Stay tuned to the OP Chat for essential updates this week, including earnings reports and Fed data that could impact market trends. This week brings high-stakes events for investors to monitor, with US stock futures pointing upward on Monday as the market readies for quarterly earnings from tech giants, significant employment data, and potential market volatility with the upcoming US election.
The S&P 500 has surged around 22% this year, sparking valuation concerns. Data from LSEG, reported by Reuters, highlights the S&P 500’s price-to-earnings ratio at 21.8 – among the highest in three years – raising questions about sustainability. With major earnings reports from the tech industry’s “Magnificent Seven,” including Alphabet, Microsoft, Meta Platforms, Apple, and Amazon, markets could see strong reactions depending on results and their AI investment strategies.
These tech titans are expected to deliver the bulk of S&P 500 earnings growth for Q3, according to FactSet and The Wall Street Journal. With heavy AI spending under scrutiny, analysts will watch for insights into whether these investments can deliver immediate returns. Tesla recently exceeded earnings expectations, and Nvidia’s upcoming report on November 20 will also be pivotal.
McDonald’s Addresses E. Coli Outbreak Concerns
McDonald’s clarified over the weekend that beef patties weren’t linked to an E. coli outbreak affecting its Quarter Pounders, which tragically led to one fatality and sickened others across the U.S. McDonald’s North America Chief Supply Chain Officer, Cesar Piña, stated that any affected products have been fully removed, and the Colorado Department of Agriculture confirmed that beef subsamples tested negative for E. coli. Quarter Pounders are expected to return to McDonald’s locations shortly.
Global Currency Update: Yen Weakens Amid Japanese Election Results
The Japanese yen took a hit, dropping to its lowest against the dollar since July. Japan’s ruling Liberal Democratic Party’s recent election outcome left it needing coalitions, adding political uncertainty that dampens rate hike prospects from the Bank of Japan.
Energy Market Update: Oil Prices Dip Following Middle East Developments
Oil prices fell significantly on Monday after Israel’s strike on Iran avoided critical oil and nuclear sites, lowering immediate geopolitical tensions. Brent crude dropped to $72.23 per barrel, and WTI fell to $68.34 per barrel, as investors shifted their focus to weaker demand forecasts.
NQ- last week we had mentioned “For the 3rd consecutive week, the main focus will continue to be how price trades versus the 20500/20530 key resistance zone. With price churning through an 8-day range, the next expansion move will be coming soon. If buyers can show acceptance above the 20500/530 area of resistance, price can target 20800, 21000, and the all-time high near 21200.” It was a volatile week (with many traps), though price failed to break the range in a meaningful way. This marks the 4th consecutive week of range trading. With big tech earnings plus PCE and NFP this coming week, do we finally see a break of the range?
For this coming week, the focus remains on the 20500 level of interest. If buyers can continue to show more acceptance above this level, price can target 20800, 21000, and the all-time high near 21200. If sellers continue to defend the 20500/530 zone, price can retest 20200, 19850 (intermediate-term higher-low), and 19550 where buyers can be expected to step in.
Upside levels of interest: 20800, 21000, 21200
Downside levels of interest: 20200, 19850, 19550
Notable Economic Data
- Wednesday: GDP
- Thursday: PCE
- Friday: NFP
Notable Earnings
- Tuesday: AMD, GOOGL
- Wednesday: MSFT, META
- Thursday: AAPL, AMZN
I expect AAPL, MSFT, and AMZN to all GUIDE well and currency headwinds slowed so those two items will likely help but the question mark will be revs. We don’t need to gamble on ERs to make goal so not worrying but I may take a play if we get an opportunity. See hou all in chat
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