Dow Jones futures will open Sunday night, along with S&P 500 futures and Nasdaq futures. Late on Friday, Moody’s downgraded the outlook for U.S. sovereignty to negative.
After the stock market retreated on Thursday, it rebounded strongly on Friday, with all major stock indexes breaking through October highs. Market breadth is still weak, but leading stocks performed well, and more buying points may be established.
After software initially led the market’s rise, the chip industry is on the rise.
Investors should look for stocks and take advantage of buying opportunities.
The video embedded in this article provides an in-depth review of market trends and analysis of TSM stock, MercadoLibre, and General Electric (General Electric).
Moody’s downgrades U.S. outlook
Late on Friday, Moody’s Investors Service downgraded the U.S. outlook to negative from stable, citing high budget deficits and political polarization. Moody’s temporarily reiterated the AAA rating of US sovereign debt.
“Against a backdrop of rising interest rates and without effective fiscal policy measures to reduce government spending or raise revenue,” Moody’s expects the deficit to “remain very large.”
An increasingly divided country increases the risk that future governments will fail to address long-term problems.
In the short term, the 45-day government financing measure will expire on November 17, and the government shutdown rate remains high.
Dow Jones Futures Today
Dow Jones futures, S&P 500 futures and Nasdaq 100 futures open at 6 p.m. ET on Sunday.
ETFs showed the Dow Jones, S&P 500 and Nasdaq 100 all fell 0.1% after Moody’s gave a negative outlook on the U.S. outlook.
The 10-year Treasury yield peaked slightly at 4.65%.
Stock market rebounds
A rebound in stocks ended last week’s long-running gains for the major averages, but they ended strong on Friday.
The Dow Jones Industrial Average rose 0.65% last week stock market tradingThe S&P 500 rose 1.3% and the Nasdaq rose 2.4%, after gaining just over 2% on Friday. All major stock indexes are trading above their October highs, another bullish sign.
Market breadth improved on Friday but remains concerning this week.
Despite Friday’s 1.1% rebound, the small-cap Russell 2000 index is still down 3.15% for the week.
Invesco S&P 500 Equal Weight ETF (RSP) rose 1.2% on Friday but were still down 0.6% for the week.
First Trust Nasdaq 100 Equal Weight Index ETF (QQ) performs better. While lagging the Nasdaq 100’s 2.9% weekly gain, the QQEW gained 0.7%, surpassing its 50-day moving average on Friday. Many large-cap tech stocks outside of mega-cap stocks had a strong week.
Market leadership is strong. The tech industry is leading the way, but leaders come from all fields.
A longer pause in the market rally may be healthy, but bulls don’t want to stop.
The 10-year Treasury yield rose 7 basis points to 4.63%, with wide daily fluctuations.
U.S. crude futures fell 4.15% to $77.17 a barrel last week, but rebounded later in the week
Among growth ETFs, iShares Expanded Tech-Software Sector ETF (IGV) jumped 4.1%, with Datadog stock IGV. VanEck Vectors Semiconductor ETF (SMH) rose 5.2%. Nvidia stock is SMH’s top holding, with TSM stock, Broadcom, KLA and LRCX all major components.
SPDR S&P Metals & Mining ETF (XMEThe SPDR S&P Homebuilders ETF ( ) fell 3.6% last week as metal prices retreated.Xin Hong) edged up 0.1%, benefiting from Friday’s 2.1% rebound. Energy Select SPDR ETF (XLE) fell 3.8%, with the Healthcare Select Sector SPDR Fund (XLV) fell 0.9%. Industrial Select Industry SPDR Fund (XLI) rose 0.9%
Financial Select SPDR ETF (XLF) rose slightly by 0.4%.
Chip stocks in buy zone
Nvidia shares rose 7.4% last week to 483.35 points, settling at 476.09 points double bottom Buy some on Friday. relative strength line Hit new highs. The RS line (the blue line in the chart) tracks a stock’s performance relative to the S&P 500 Index.
Nvidia’s earnings are due on November 21, so there isn’t much time to build up a cushion. also, Microsoft (Microsoft Corporation) will announce its The latest advances in artificial intelligence At the Ignite 2023 event on Wednesday, there were rumors that the company may launch its own AI chips to reduce its dependence on Nvidia.
Broadcom shares rose 8.5% last week to 957.52 points. On Friday, the stock cleared resistance dating back to late May. Market Smith AnalysisAVGO stock’s RS line also hit new highs.
Lam Research shares rose 8.1% to 685.43, clearing 665 points from what looked like an embarrassing double bottom. KLA stock rose 6.9% to 534.25, breaking above 520.19 buy someLRCX stock and KLA were among the best performers in the S&P 500 on Friday.Both are likely to continue rising Applied Materials (Amat) proceeds are due November 16th. AMAT stock also cleared a buy point on Friday.
TSM stock price rose 6.35% on Friday to 97.44 points, which is double the normal value and exceeded the 200-day line, trend line and short-term high. TSMC announces October sales It increased by 15.7% compared with the same period last year and increased by 34.8% compared with September. That marked an improvement in earnings and revenue after three quarters of declines.
This foundry giant produces chips for Nvidia and Broadcom. apple (AAPL)wait. It’s also a huge buyer of chip equipment. As a result, sales from Taiwan Semiconductor could help drive bullish moves for NVDA stock, Broadcom, Lam Research and KLA on Friday.
A second chance for these profit makers
MELI shares fell 1% last week to 1,374.39, after rising 15.6% the previous week as the Latin American e-commerce and payments giant reported a strong earnings report. Cup holder with handle The buying point is 1,398.15.
Roku shares fell 4.1% last week to 81.31, hitting a weekly high of 86.40 buy points. Shares of the streaming platform soared 50% last week from five-month lows. Roku is still losing money, but revenue growth accelerated for the third straight quarter.
Datadog gained 26% this week to 103.65 on strong earnings and guidance. Shares have consolidated since Tuesday’s surge. DDOG stock sits above a 102 buy point on an embarrassing double bottom basis. But investors may want to use Tuesday’s high of 104.43 as an entry. This may become a handle within a few days.
what to do now
The rally in stocks looks healthy, bouncing back quickly from Thursday’s pullback. Leading stocks are doing well and expanding.
As long as the market and their position are performing well, investors can continue to gradually increase their position.
Use this weekend to work on your watch list.From November 1st to 2nd Follow-up dayssome stocks have extended, while many others are building.
You want to be ready when a new leader emerges or other buying points clear.
Earnings season has passed its peak but is still activeInvestors will also get October inflation data and retail sales data in a busy week of economic reports.
read overall view Stay up to date with market direction and leading stocks and industries every day.
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