Market review from UTEX – week 42

US indices are up 1+% for the week. NVIDIA +8%, major banks reported strong results: Wells Fargo +7%, JPMorgan Chase +5%. The disappointment of the week was Tesla, -12% after Robotaxi Day.

Chinese stocks fell an average of 7-10% as the Chinese Central Bank gave no details on stimulus measures.

Bitcoin was falling below $59,000 but reversed from that level and is now trading at $64,800.

Following the inflation data release, the probability of a 25 basis point rate cut fell from 97% to 84%.  

Highlights of the week ahead!

Monday, October 14

Columbus Day, there will be no major reports or significant data.

Tuesday, October 15

Reports before the market opens: Citi, Goldman Sachs, Johnson & Johnson, Bank of America, UnitedHealth Group and Walgreens.

Wednesday, October 16

Reports before market open: ASML Holding, U.S. Bancorp, Abbott.

Reports after market close: SL Green Realty, United Airlines, Alcoa.

Thursday, October 17

Reports before market open: TSMC, Elevance Health, Blackstone

Report after market close: Netflix.

Initial Jobless Claims (forecast 241k) – 8:30 am EST

Retail Sales for September (forecast +0.3% mom) – 8:30 am EST. 

Industrial Production for September (forecast -0.1% mom) – 9:15 am EST.

Friday, October 18

Reports before the market opens: Procter & Gamble, SLB, American Express.

Housing starts, September (forecast 1.35 million).

Building Permits, September (forecast 1.46 million).

Reporting season is getting underway, time to get into active trading! Here's our traditional selection.

Top 5 stocks to trade this week

🟡 Johnson & Johnson (JNJ). Report on Oct. 15 before the open. Usually moves pretty well intraday, quite good for daytrading. Could be considered for a mid-term as well, very strong support at $145. Another strong support at $155.

🔴 ASML Holding (ASML), report on October 16 before the open. And Taiwan Semiconductor (TSM), report Oct. 17 before the open. The chipmakers' first earnings of the season will have an impact on the entire sector. What will move along: NVDA, ARM, AMD, AVGO, QCOM.

🔴 Netflix (NFLX). Report on Oct. 17 after the close. The streaming company is up 97% over the past year and has consolidated above the $700 mark, which it hasn't hit since 2021. Why shouldn't the stock go higher? For high volatility fans.

🟡 Abbott Laboratories (ABT). Report on October 16 before the open. Manufacturer of drugs and diagnostic equipment. The stock has been slowly declining since early 2022. Strong support at $100, could be worth a shot in the mid-term.

🟢 Walgreens Boots Alliance (WBA). Report on Oct. 15 before the open. The pharmacy company's stock continues to decline. It's fallen from $50 to $9 since the start of 2022. Walgreens Boots has lost 60% of its capitalization over the past year, but the stock is in slight plus territory for the month. If there is good news and comments from management on how to fix the situation – a turnaround could be in sight. Inexpensive, it is suitable for beginner traders.

Successful trades!