The Next Big Move…

Another record-breaking week on Wall Street. Tech stocks, led by Netflix, fueled the market’s climb while gold surged to new heights amid global uncertainty. Small-caps held their own, energy stocks struggled, and Bitcoin had its best week in months. The bull market remains intact, but the coming weeks could test how much momentum is left.

The Week Ahead: As earnings season continues, all eyes will be on whether companies can keep delivering strong results to justify the market’s lofty valuations. Keep watch on tech, financials, and energy sectors for signs of shifting momentum. Updates on global oil demand and geopolitical tensions will keep energy traders alert.

→ Dow: +0.09% ➡️ closes at record high 43,275.91
→ S&P 500: +0.40% ➡️ 5,864.67, adds 0.9% for the week
→ Nasdaq: +0.63% ➡️ 18,489.55, up 0.8% for the week
→ Gold: ATH $2,732.30/oz

⚡ Last Week Brief:

• Sixth Straight Weekly Gains: The three major indexes capped their sixth consecutive week of gains, with the Dow up 0.96%, the S&P 500 climbing 0.85%, and the Nasdaq up 0.79% for the week. Both the S&P 500 and Dow closed at record highs, marking their longest streak of weekly advances this year.

• Energy Drags: The energy sector was the only S&P 500 sector in the red, down 0.4% after SLB (-4.7%) missed earnings, dragging down peers like Baker Hughes (-1.3%) and Halliburton (-2.1%).

Global Wobbles

China Cuts Lending Rates to Boost Economy
China’s central bank slashed its one-year and five-year loan prime rates by 25 basis points to 3.1% and 3.6%, respectively. This move comes as Beijing intensifies efforts to support the slowing economy.

Why: These cuts were expected after signals from the People’s Bank of China last week and follow recent reductions in deposit rates.

Our Take: China’s rate cuts are a strong signal of its determination to revive growth. While this could spur lending and consumer spending, long-term recovery will depend on how quickly global demand picks up.

Winners

➤ Netflix Stole the Show: Netflix (+11.09%) hit a record high after exceeding subscriber growth expectations and offering a bullish outlook for the year. It lifted the communication services sector by 0.9%, making it the top performer of the day.

➤ Tech Giants Stay Strong: Apple (+1.23%) and Nvidia (+0.78%) helped push the Nasdaq higher with optimism over new iPhone sales in China and bullish calls on Nvidia.
Our Take: Tech continues to dominate with six straight weeks of gains, but rising valuations and economic uncertainties might challenge this rally soon.

➤ Gold: Hit a record high of $2,732.30, with safe-haven demand pushing precious metals higher for the fifth time in six weeks.

Why: Geopolitical fears and China’s slowdown are driving investors toward safe-haven assets.

Our Take: With uncertainty still high, gold’s safe-haven appeal isn’t fading. Next stop? $2,800 could be on the horizon.

➤ Bitcoin: Surged to $68,347 on Friday, poised for a 7% gain—its best week since mid-September. Ether is up over 6%, while Coinbase soared 19%.

Why: Renewed institutional interest and optimism around regulatory clarity are giving Bitcoin a fresh boost.

Our Take: Bitcoin’s demand is back, and $70,000 is the next level to watch closely.

Trending Tickers

Movers

➤ Small-Caps Falter: Small-cap stocks like those in the Russell 2000 showed strength this week but slipped on Friday, missing the broader market’s gains.

Our Take: Small-caps are showing signs of life after lagging much of 2024. If the economy stabilizes, they could see more attention from investors.

➤ Airline ETF: U.S. Global Jets ETF (JETS) rose 1.8% on Friday and finished the week up 7%, buoyed by United Airlines’ strong Q3 report. American Airlines (+3.3%) and Southwest (+2.3%) led the pack.

Why: United’s strong results and positive outlook lifted the sector, with air travel demand staying robust.

Our Take: Airline stocks continue their recovery, and demand for travel remains resilient.

➤ 38 Stocks in the S&P 500 Hit New 52-Week Highs: Standouts include Netflix, McDonald’s, General Dynamics, and T-Mobile US, all of which are trading at all-time highs dating back to their respective IPOs. Other companies hitting milestones include Boston Properties, WEC Energy Group, and Howmet Aerospace.On the downside, Centene and Moderna traded at 52-week lows.

Why: Strong earnings and momentum in several sectors pushed stocks to record highs.

Laggards

➤ Ag Growth International (AGGZF): Agricultural stocks fell after Raymond James downgraded AGGZF to “market perform,” citing weak sentiment among farmers. Bunge Global (-6.3%) and Archer-Daniels-Midland (-3.8%) also fell.

➤ CVS Health: Dropped 5.2% after CEO Karen Lynch was replaced by David Joyner. The company also issued a lower-than-expected profit forecast.

➤ SLB (formerly Schlumberger): Down 4.7% after missing revenue estimates, citing lower capital investment and reduced oil drilling activity.
Why: A tough outlook for agriculture, a challenging CEO transition for CVS, and weak oil prices weighed on these stocks.

➤ American Express fell nearly 5% on Friday after posting weaker-than-expected third-quarter revenue, making it the worst performer in the Dow and the third-biggest loser in the S&P 500. This decline dragged the stock down 1.5% for the week, putting its five-week winning streak in jeopardy.

Why: American Express reported earnings that failed to meet revenue expectations, causing concern among investors about the company’s growth prospects in a competitive financial services sector. This revenue miss comes at a critical time when market expectations are high.
Our Take: American Express’ stumble highlights the challenges facing financial companies this earnings season. Investors will be watching closely to see if AmEx can recover as the holiday season approaches.

✂️ Quick Hits

➤ Treasury Yields Ease as Gold and Bitcoin Surge: Treasury yields dipped after housing data, with the 10-year yield falling to 4.08%.
Why: Geopolitical tensions boosted gold, and institutional interest drove Bitcoin higher.
Our Take: Treasury yields are volatile, and investors are watching the Fed’s next move closely.

➤ Intuitive Surgical: Shares surged over 8% to a record high after strong Q3 results, driven by a rise in da Vinci robotic-assisted surgeries.
Why: Growing demand for minimally invasive surgeries continues to fuel Intuitive’s growth.

Quote of the day:

“True wealth is not found in what you own, but in what you can live without.” – Seneca

The Stinger

Disclaimer

This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills.