Market review from UTEX – week 39

The main U.S. indices added 1% for the week. Among large companies, Meta (+7%) and GE Aerospace (5%) grew noticeably. FedEx lost 11% after a disappointing report.

Bitcoin added about 8% and is now trading at $63,400.

Last Wednesday, the Fed lowered rates by 50 basis points. The next meeting will be held on November 7, the probability of the rate cut by another 50 basis points is 46%.

The US Q2 GDP data will be released on Thursday and the PCE Price index on Friday. 

Picked 5 interesting stocks to trade:

Jabil (JBL). Report on September 26 before the open. The electronics maker's stock had been rising steadily until March 2024, but since then a pullback has started and the price moved from $155 to $95. There has been a break in the downtrend over the past month, but one good report is needed.

Cintas (CTAS). Report on Sept. 25 before the open. Provider of corporate uniforms and related services. The stock has been steadily rising for 10 years, up +58% in the past year. The last three times there was a gap up after the report, and we expect it this time as well. The question is whether there will be profit taking?

Micron Technology (MU). Report on Sept. 25 after the close. Shares of the chipmaker slipped 35% in the quarter, hitting support at $85. Not a bad price for the mid-term if it holds the level.

CarMax (KMX). Reporting Sept. 26 after the close. Used car sales company. In the $66–$88 range since the beginning of the year. If it breaks out of this range, you could try to ride the stops. Another option is to trade from levels.

Intel (INTC). Increased volatility on the news. On Friday, the WSJ reported that Qualcomm is interested in buying the entire company. Today Bloomberg writes that Apollo Global Management wants to invest up to $5 billion in Intel. Possibly in exchange for shares, but no decision has been made yet.

Good trading!