Tech Stocks Boost Nasdaq 2% Higher, Key Fed Members to Speak on Thursday
Nasdaq lead major U.S. indices with a 2% gain
U.S. stocks maintained gains on Wednesday as the Nasdaq led major U.S. indices with a 2% gain behind strong tech performance, while futures and oil also traded higher. While news regarding a COVID vaccine supported markets to open the week, strong earnings and economic reports continue to provide support for markets. McDonald’s earnings and the September Job Openings report, both released yesterday, topped expectations providing a boost to their respective sectors.
Earnings and economic reports remain light
Today, earnings and economic reports remain light but pick up tomorrow with additional labor data, Core CPI, and Federal Budget data. Likewise, Fed Chair Powell, Chicago Fed President Evans, and Fed Vice Chair Quarles are set to speak on Thursday. Next week, look out for key October economic data such as Retail Sales, Industrial Production, and Existing Home Sales.
SPY on its way to retest its recent highs
On Monday, markets briefly traded above all-time high levels. Our latest models are projecting the SPY to trade between the $340-$360 levels until an additional breakout is confirmed. We continue seeing strong rotation from growth to value stocks and believe the SPY is on its way to retest its recent highs. With the market prone to further corrections, the next level of support is set at $354. We expect volatility to persist as uncertainty around the elections continues and we will continue monitoring VIX levels, as the market can overshoot support and resistance levels when VIX is trading near the $40 level. Likewise, 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
- Veterans’ Day – Wednesday
- Weekly Jobless Claims (11/7) – Thursday
- Consumer Price Index (October) – Thursday
- Core CPI (October) – Thursday
- Federal Budget (October) – Thursday
- Producer Price Index (October) – Friday
- Consumer Sentiment Index (November) – Friday
Upcoming Earnings
- AMAT – Applied Materials – Thursday
- CSCO – Cisco Systems – Thursday
- DIS – Walt Disney – Thursday
- 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 is 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 Costco Wholesale (COST). COST is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.
The stock is trading at $372.92 with a vector of +0.97% at the time of publication.
10-Day 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.
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, GM. Our featured symbol is part of your free subscription service. It is 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 $41.41 per barrel, up 0.15% 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 $29.04 at the time of publication. 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.
(Want free training resources? Check our our training section for videos and tips!)
Gold
The price for the Gold Continuous Contract (GC00) is down 0.67% at $1863.80 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 $174.9, at the time of publication. Vector signals show +0.09% for today. 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.
Treasuries
The yield on the 10-year Treasury note is up, at 0.935% at the time of publication.
The yield on the 30-year Treasury note is up, at 1.717% 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 is 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 $23.45 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.
