Strong Earnings Support Markets Ahead of FOMC
U.S. indices traded near record highs as all three major U.S. indices finished in the green, but off session highs. The Dow briefly topped the 36,000 level as strong earnings continue to support markets. This comes ahead of this week’s Federal Open Market Committee two-day meeting which is set to begin on Tuesday and Concludes on Wednesday with Fed Chair Jerome Powell speaking to the press. The VIX has returned to the $16 level as earnings continue to be parsed while additional events that can influence the market include this week’s FOMC and the October employment data, set to release later this week. NXPI, RIG, and BABA are key earnings announcements this week that can potentially influence the market direction.
A U.S.-E.U. deal on steel and aluminum tariff supported several global sectors and domestic companies, while strong earnings from MCK, L, and AMC supported their respective symbols. Oil futures inched higher while the dollar dipped. Please watch the critical support levels on the SPY at $453 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. Globally, European markets closed in the green while Asian markets traded to mixed results. 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:
- Homeownership Rate (Q3) – Tuesday
- ADP Employment Rate (October) – Wednesday
- ISM Services Index (October) – Wednesday
- Factory Orders (September) – Wednesday
- FOMC Statement and Powell Press Conference – Wednesday
- Weekly Jobless Claims (10/30) – Thursday
- International Trade Deficit (September) – Thursday
- Productivity (Q3) – Thursday
- Unit Labor Costs (Q3) – Thursday
- Nonfarm Payrolls (October) – Friday
- Unemployment Rate (October) – Friday
- Average Hourly Earnings (October) – Friday
- Consumer Credit (September) – Friday
Upcoming Earnings:
- PFE – Pfizer – Tuesday
- TMUS – T Mobile – Tuesday
- COP – ConocoPhillips – Tuesday
- BP – BP – Tuesday
- ATVI – Activision Blizzard – Tuesday
- QCOM – Qualcomm – Wednesday
- CVS – CVS Health – Wednesday
- BKNG – Booking Holdings- Wednesday
- HUM – Humana – Wednesday
- MET – MetLife – Wednesday
- MAR – Marriott International – Wednesday
- ROKU – Roku – Wednesday
- EA – Electronic Arts – Wednesday
- ALL – Allstate – Wednesday
- BABA – Alibaba – Thursday
- MRNA – Moderna – Thursday
- SQ – Square – Thursday
- ABNB – AirBnB – Thursday
- UBER – Uber – Thursday
- DUK – Duke Energy – Thursday
- SO – The Southern Company – Thursday
- NET – Cloudflare – Thursday
- NTDOY – Nintendo – Thursday
- TM – Toyota Motor – Friday
- D – Dominion Energy – Friday
- HMC – Honda Motor – Friday
- DKNG – DraftKings – Friday
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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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Tuesday Morning Featured Symbol
Our featured symbol for Tuesday is Blackrock Inc (BLK). BLK is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.
The symbol is trading at $936.23 with a vector of +1.12% 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, blk. 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 $83.95 per barrel, up 0.45% 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 0.58% at $1794.30 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 up, at 1.562% at the time of publication.
The yield on the 30-year Treasury note is up, at 1.960% 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 $16.41 at the time of publication, and our 10-day prediction window shows mixed signals. 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.
