Market review from UTEX – week 44

After six weeks of growth, the S&P 500 closed the first week in the negative. The index lost about 1%. The Nasdaq closed in plus, albeit symbolic.

The event of the week was a great Tesla report. The stock jumped 22%! Tobacco giant Philip Morris also pleased investors (+8% on the report). McDonald's was a disappointment: after news of E. coli in Quarter Pounder burgers, the stock lost 8%.

Bitcoin sagged to $65,600, but stood firm. BTC is now trading at $68,250.

This week 5 bigtechs will report at once – Google, Meta, Amazon, Amazon, Apple and Microsoft. They account for 21% of the S&P 500 capitalization.

More than a third of the companies in the S&P 500 have already released their results. It's going to be a very report-heavy week, peaking on Wednesday.

Top 5 ideas for trading this week 

🟡 Robinhood Markets (HOOD). Report on Oct. 30 after the close. The most profitable stock in the UTEX product director's portfolio. +200% for the year. Piper Sandler analyst Patrick Moley estimates that one in ten American adults now has an account with Robinhood. 

Since its IPO in 2021, the company has been aggressively expanding its business – adding credit cards, cryptocurrencies – and it's not about to stop. It's hard to say how the stock will behave after the report. It's fine as a long-term idea.

🔴 Eli Lilly (LLY). Report on Oct. 30 before the open. Up 52% year-to-date, mostly due to “weight loss pills” Mounjaro and Zepbound. LLY's Alzheimer's drug was approved by the FDA in July and its eczema drug was approved in September. The company also announced that it is working with OpenAI, the developer of ChatGPT, to find new treatments for drug-resistant diseases. On the other hand, last quarter, billionaire Stanley Druckenmiller's fund exited its position in Eli Lilly. This is a troubling sign.

We believe that after the report release there will be increased volatility in any case, a big gap in either direction is likely. Only for advanced traders.

🔴 Coinbase Global (COIN). Report on October 30 after the close. The largest cryptocurrency exchange in the U.S. by trading volume. If Trump wins, cryptocurrencies and related companies are well positioned for growth. He is positioning himself as the “crypto president”, attended the Bitcoin conference and is actively promoting his own project.

The stock sagged 13% in the quarter, but is up +163% for the year. COIN is a very volatile stock. Over the year, the paper has moved 5+% in a day 77 times. Strong swings after the report are almost guaranteed.

🟢 Peloton Interactive (PTON). Report on Oct. 31 before the open. Last week's report was a game changer for the company – sales rose for the first time in nine quarters thanks to a recovery plan. Costco announced last week that it will sell Peloton Bike+ in 300 of its U.S. stores and online all holiday season. 

If investors see positivity in the report, the stock's gains could continue. Intraday trading is likely to be tough. More of a mid-term idea.

🟢 Intel (INTC). Report on Oct. 31 after the close. The chip maker's stock is down 53% YTD: competition with Taiwan Semiconductor and Samsung, falling production, and strategic changes under different CEOs are weighing on the price.

Intel is looking for a new path in AI. The company has offered its chip manufacturing services to other companies including Microsoft and Amazon. 2025 could be a watershed year for Intel if the company can solve its problems. Given the low price, we think this is a good mid-term investment.

You'll find all of these stocks in the “Hot” section. 

Profitable trades!