Market bulls remain strong 21/10/2024

HOT stories for the day

Stocks on the move:

• American Express's (AXP) post-earnings slide on Friday, with shares falling nearly 5%, threatens to end its five-week winning streak. The stock was the Dow's worst performer and the third-biggest loser in the S&P 500.
• Meanwhile, Boeing's (BA) month-long strike may soon conclude, which has cost the company an estimated $1 billion. Boeing and its machinists' union have reached a new contract proposal, offering a 35% wage increase over four years, with a vote scheduled for Wednesday.
• Uranium and utility stocks could see further gains as tech giants like Microsoft, Oracle, Amazon, Apple, and Alphabet increase their electricity needs to support their AI advancements—stocks to watch: CCJ, VST, PEG, NI.

Watchlist for today: NFLX, BA, TSLA, AMZN, VST, CCJ, NVDA

Markets & today's action:

• Asia-Pacific markets were mixed on Monday as traders reacted to China’s loan prime rate cut and anticipated Japan’s upcoming general election. China’s central bank reduced the one-year and five-year LPRs by 25 basis points to 3.1% and 3.6%, respectively. Meanwhile, European markets are poised for a mixed start to the week.
• In the U.S., stock futures edged higher on Sunday night, with the Dow Jones Industrial Average futures up 44 points (0.1%), while S&P 500 and Nasdaq 100 futures rose 0.13% and 0.16%. This follows the best weekly winning streaks 2024 for both the Dow and the S&P 500. Leading economic indicators for September are expected later on Monday. 
• The sustainability of recent stock gains may hinge on how well companies perform this earnings season, which picks up pace this week. About one-fifth of S&P 500 companies are set to report by Friday. According to FactSet, 112 S&P 500 firms will release earnings, including General Motors and Verizon on Tuesday; Coca-Cola, Tesla, and T-Mobile on Wednesday; and Southwest Airlines and UPS on Thursday.

Bitcoin

• Bitcoin neared $70,000 on Monday, buoyed by strong inflows into exchange-traded funds (ETFs) and optimism around US regulatory prospects. The cryptocurrency rose 1% before stabilizing at $68,720 by 11 a.m. in Singapore. Other tokens like Ether and Solana traded within narrow ranges.
• US spot-Bitcoin ETFs attracted nearly $2.4 billion in net inflows over six days through Oct. 18, amid expectations that US crypto regulations could become more favorable after the Nov. 5 presidential election.
  Watchlist: Bitcoin: 66,500-69,780, Ethereum: 2540-2760, Solana: 160.00-172.50

Forex

• The Japanese Yen (JPY) continues to gain momentum for the second consecutive day on Friday, driven by concerns over potential government intervention. Uncertainty around the Bank of Japan's (BoJ) rate-hike plans and overall market optimism may limit the Yen’s safe-haven appeal. Meanwhile, expectations for a less aggressive easing by the Federal Reserve could support the US Dollar, helping to stabilize the USD/JPY pair. The Yen has recovered from its lowest level since early August, touched last week.
• EUR/USD shows a bearish bias and may return to its descending channel despite trading above 1.0850, suggesting a potential breakout. The pair edged lower to around 1.0860 during the Asian session on Monday. A daily chart review indicates that EUR/USD has breached the descending channel pattern, signaling possible further moves ahead.
  Whatchlits: EUR/USD: 1.0810-1.0900, USD/JPY: 147-150.50

Basic Materials

• Gold has surged to unprecedented levels this year and hit a new record on Friday around the $2,732-2,733 area, even as U.S. stocks have hit record highs, too. Typically, safe-haven assets like gold don’t rally alongside stocks, but strong demand from central banks and declining accurate interest rates fuel its rise with no signs of slowing down. This has investors looking for the best ways to gain exposure to the precious metal.
• West Texas Intermediate (WTI) crude rose 0.7% to $69.72 per barrel. Saudi Aramco's CEO, Amin H. Nasser, expressed optimism about China's oil consumption following the government's stimulus measures to boost its economy. Despite this, Aramco projects global oil demand to exceed 100 million barrels per day through 2050, driven by economic growth and rising living standards in the global south.
  Watchlist: GOLD 2680-2735, US Oil: 68.80-72.50

The TEFS Analyst team wishes you a successful day!