Q3 Earnings Set For Impressive Streak, U.S. Yields Slip
Markets traded to mixed results on Wednesday as another major batch of earnings was released with MSFT, GOOGL, and V reporting yesterday. Before today’s market open McDonald’s, Coca-Cola, and Boeing released Q3 data while Ford, Twilio, and eBay are due after market close. Key earnings announcements that can influence the market direction this week include AAPL, AMZN, and MA as earnings season remains the main event that can influence the market direction in the coming weeks. Next week, look out for the latest Federal Open Market Committee meeting is to take place and potentially influence market direction alongside earnings releases from Pfizer, BP, ATVI, CVS, BABA, and Uber. Earnings thus far have been impressively strong and are set to continue the streak of double-digit gains, as they have last five quarters.
Key headline news today includes the Bank of Canada’s decision to suspend large-scale bond purchases; U.S. Treasury yields supported the tech sector today. Durable goods orders report for October showed a slight decline while Q3 GDP is due Thursday. Please watch the critical support levels on the SPY at $451 and then at $446 as we do expect the market to continue to trade higher in November; the $TLT started to rebound and should provide support for the technology stocks and the $SPY. Inflation remains a key concern while the VIX has returned to the $16 level. Globally, both Asian and European markets closed in the rd. We encourage all market commentary readers to maintain clearly defined stop levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Key U.S. Economic Reports/Events This Week:
- Durable Goods Orders (September) – Wednesday
- Core Capital Goods Orders (September) – Wednesday
- Weekly Jobless Claims (10/23) – Thursday
- Gross Domestic Product (Q3) – Thursday
- Core Inflation (September) – Friday
- Employment Cost Index (Q3) – Friday
Upcoming Earnings:
- KO – Coca Cola – Wednesday
- MCD – McDonald’s – Wednesday
- BMY – Bristol Myers Squibb – Wednesday
- BA – Boeing Company – Wednesday
- GM – General Motors – Wednesday
- F – Ford Motor – Wednesday
- EBAY – eBay – Wednesday
- AAPL – Apple Inc – Thursday
- AMZN – Amazon – Thursday
- MA – MasterCard – Thursday
- CMCSA – Comcast Corp – Thursday
- MRK – Merck & Co. – Thursday
- SHOP – Shopify – Thursday
- SONY – Sony – Thursday
- SBUX – Starbucks – Thursday
- CAT – Caterpill – Thursday
- KDP – Keurig Dr Pepper – Thursday
- XOM – Exxon Mobil – Friday
- CVX – Chevron Corp – Friday
- ABBV – AbbVie Inc – Friday
- CHTR – Charter Comm – Friday
- CL – Colgate – Friday
For reference, the S&P 10-Day Forecast is shown below:
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term mixed outlook. Prediction data uploaded after the market closes at 6 p.m. CST. Today’s data is based on market signals from the previous trading session.
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Thursday Morning Featured Symbol
Our featured symbol for Thursday is Microsoft (MSFT). MSFT is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.
The symbol is trading at $323.6 with a vector of +0.63% at the time of publication.
10-Day Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, msft. Our featured symbol is part of your free subscription service. Not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
Oil
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $82.65 per barrel, down 2.37% at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows mixed signals. The fund is trading at $57.23 at the time of publication. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Gold
The price for the Gold Continuous Contract (GC00) is up 0.41% at $1800.80 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $168.08 at the time of publication. Vector signals show -0.01% for today. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Treasuries
The yield on the 10-year Treasury note is down, at 1.524% at the time of publication.
The yield on the 30-year Treasury note is down, at 1.938% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Volatility
The CBOE Volatility Index (^VIX) is $15.63 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
