Market review from UTEX — week 42

Major U.S. indices rose last week: the SPY added 1.16%, while the Nasdaq gained 0.23%. Top gainers among the largest companies: Shopify (+12%), Palantir (+10%), Philip Morris (+7%). Top decliners: Arm Holdings (-13%), SK Hynix (-13%), Intel (-12%).

On Wednesday and Thursday, inflation reports will be released. The Consumer Price Index (CPI) for September will shape expectations for the Fed's next policy moves. In August, CPI rose 3.4% year-over-year — the same as in July. The September reading will help assess the price situation after the Fed's September rate hike. PPI will be released on Thursday and will reflect wholesale inflation at the business level.

Several Fed officials will speak during the week, including Christopher Waller, Michelle Bowman, and Fed Chair Kevin Warsh.

The new earnings season traditionally kicks off with results from the largest banks. Over the past month, the financial sector posted the largest decline, losing about 4%. By comparison, ahead of the second quarter, the sector was rising and was among the index leaders. In the summer, bank executives described the U.S. economy as healthy and businesses and investors as resilient to external challenges.

ASML and Taiwan Semiconductor will also publish their results this week. Their reports will show the real scale of demand for AI equipment and infrastructure. Other important reports: JPMorgan Chase, Goldman Sachs, Citigroup, Wells Fargo, UnitedHealth, Johnson & Johnson, Bank of America, Prologis, BlackRock, ASML, Taiwan Semiconductor, Domino's Pizza, Fastenal, J.B. Hunt Transport Services, Alcoa.

Top trading ideas for this week

🔴 UnitedHealth (UNH). Report on October 13 before market open. A health insurer and healthcare provider. In its July report, the company beat analyst expectations by a wide margin. Nevertheless, UnitedHealth shares have not fully recovered from the sell-off in early 2025. Traditionally quite volatile on the day of the report, usually opening with a gap. For those who like expensive earnings-report stocks.

🔴 Domino's Pizza (DPZ). Report on October 13 before market open. A pizza chain with 22,500 locations that earns primarily from its franchising model and supply chain rather than direct retail sales. Since the start of the year, the stock has fallen 25%, and previous reports disappointed investors with weak sales growth. DPZ is now near strong support at $285; below that, the stock has not traded since 2020. Prices are quite attractive for the medium term, but it's better to wait for the report and management guidance.

🟡 ManpowerGroup (MAN). Report on October 15 before market open. A global HR agency operating in more than 80 countries. MAN shares are low-volatility and inexpensive, but on report days they usually deliver strong moves. Suitable for intraday trading.

🔴 ASML Holding (ASML). Report on October 14 before market open. It builds the most complex equipment for chip manufacturing.

Taiwan Semiconductor (TSM). Report on October 15 before market open. The world's largest contract chipmaker.

Both are very important companies for the entire technology sector. Strong guidance would confirm that demand for AI infrastructure remains resilient, but any hint of slowing spending could trigger sell-offs.

🟡 Albertsons Companies (ACI). Report on October 13 before market open. One of the largest grocery supermarket and pharmacy operators in the U.S. After its July report, the stock fell more than 20% due to sharply lowered guidance. Consumer demand fell, and competition with discounters like Walmart intensified. CEO Susan Morris bought discounted shares worth $449,937.

In July, Albertsons cut the number of divisions from 11 to 4 regions to speed up decision-making. The market is waiting for the first signals on the effectiveness of this reform. On September 30, Cody Perdue was appointed interim CFO, and the board of directors was also refreshed. Support is around $11; if the stock holds above that level, it could be worth a medium-term look after the report.

Choose what suits you best:

🟡 Medium risk, for traders with some experience;

🔴 High risk, for professionals.

Profitable deals!

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