MMR

S&P 500, Nasdaq Set to Snap Win Streaks as Tech Cools

Investors are taking profits before the Thanksgiving holiday

Digital Content Manager
Nov 27, 2024 at 12:02 PM
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Tech stocks are sending Wall Street stumbling into the Thanksgiving holiday. The Nasdaq Composite (IXIC) is carrying a triple-digit deficit and eyeing its first loss in the last five sessions, as investors take profits before Thanksgiving. The Dow Jones Industrial Average (DJI) has pared modest gains and was last seen lower, while the S&P 500 Index (SPX) is poised to snap a seven-day win streak.

Wall Street is unpacking the personal consumption expenditures (PCE) price index for October that was in line with analysts' expectations of a 0.2% rise. Meanwhile, the Cboe Volatility Index (VIX) could snap a four-day losing streak before tomorrow's holiday closure.

Continue reading for more on today's market, including: 

  • Dismal forecasts pressure 2 software stocks.
  • Urban Outfitters stock charges higher after earnings.
  • Plus, DELL dominates options pits; ULTA's pre-earnings pop; and tech stock brushes off revenue beat.

MMC Stats 1127

Dell Technologies Inc (NYSE:DELL) is the most heavily traded stock in the options pits today, with 115,000 calls and 83,000 puts across the tape so far, which is nine times the volume typically seen at this point. New positions are being opened at the top five most active contracts, led by the weekly 11/29 120-strike put. The equity was last seen down 12.7% to trade at $123.75 -- among the worst stocks on the SPX -- following the tech giant's weak fourth-quarter forecast and revenue miss. Eyeing its worst single-day percentage loss since May, DELL carries a 31.5% six-month deficit.

Ulta Beauty Inc (NASDAQ:ULTA) stock is at the top of the SPX today, up 4.3% to trade at $376.09 at last glance. The cosmetics retailer will report third-quarter results after the market closes on Thursday, Dec. 5. Shares carry a 23.3% year-to-date deficit, but are looking to close back above their 100-day moving average thanks to a 11% week-to-date pop.

ULTA 100 Day

At the bottom of the SPX is HP Inc (NYSE:HPQ), down 12.9% to trade at $34.03 at last check. The shares are pulling back from their Nov. 25, two-year high of $39.80 after the tech hardware company's fiscal first-quarter profit guidance missed estimates, overshadowing its fiscal fourth-quarter revenue beat. HPQ is testing its 200-day moving average as it stages its sharpest pullback since March 2020, but still sports a 12.3% year-to-date lead.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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