MMR

Midterm Results Spark Big Stock Market Surge

Chevron kicked off a big week for the Dow

Nov 9, 2018 at 2:30 PM
facebook X logo linkedin


Blue chips showed strength this week, with an earnings-induced bull gap for big-cap energy name Chevron (CVX) getting the bullish ball rolling on Monday. Wall Street's positive reaction to midterm election results in the U.S. only created bigger tailwinds, with the insurance sector seeing notable gains after several states voted to expand Medicaid. And although this optimism waned after Thursday's Fed announcement and Friday's inflation data -- and oil prices fell into bear-market territory -- the Dow, S&P 500 Index (SPX), and Nasdaq Composite (IXIC) are all on track for a second straight week of big gains.

Earnings Winners

Chevron wasn't the only big name to report quarterly results this week, with Twilio (TWLO) and Etsy (ETSY) both surging after earnings. And a subsequent short squeeze helped propel ETSY even higher, with the retail stock on track for its best week in two years. Other earnings winners were Dropbox (DBX) and Crocs (CROX), with options bulls winning big on the latter's post-earnings pop.

Earnings Losers

On the flip side, Michael Kors (KORS) and Yelp (YELP) sank to new lows after earnings, while Wynn Resorts (WYNN) plunged on a dire warning from CEO Matthew Maddox. And in the wake of its dismal late-October report, General Electric (GE) stock got slapped with a Street-low price target at J.P. Morgan Securities.

Big Stock Movers

Morgan Stanley targeted 20% upside for this drug stock early in the week, putting it on track for back-to-back weekly gains. Other big movers included Symantec (SYMC) and FireEye (FEYE), which rallied on buyout buzz, while rumors of some big-cap competition sent Monster Beverage (MNST) reeling.

Walmart, Weed Stocks in Focus Next Week

Next week's looking to be a busy one on Wall Street, too, with several Fed speakers on the docket. Plus, earnings from Walmart (WMT), Nvidia (NVDA), and a number of cannabis companies are due, and traders may want to adjust positions on these retail stocks that have been the best and worst performers during the holiday season over the past 10 years. In terms of other trading ideas, these are the 25 best stocks after Fed days, looking back to 2015.

 

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.
 (ad)