Jobs, Manufacturing Data Headline First Week in October

FAANG stocks Apple and Alphabet pulled in a slew of analyst attention

by Emma Duncan

Published on Oct 4, 2019 at 1:25 PM

This was quite the week on Wall Street, with stocks finishing September strong on Monday, thanks to encouraging buzz on U.S-China trade relations. The Nasdaq Composite (IXIC), Dow Jones Industrial Average (DJI), and S&P 500 Index (SPX) all posted a monthly gain for September, while the latter two took a third straight quarterly win. However, October started off extremely rough for the stock market indexes, amid weak manufacturing data, sending the aforementioned blue-chip index back below its 50-day trendline, and snapping the S&P's winning streak above its 160-day moving average. Since then, however, the indexes have pared some of their weekly losses, as the latest jobs data kept expectations for another Fed rate cut elevated. 

Brokerage Stocks Tank on Commission Elimination

TD Ameritrade (AMTD) has dropped nearly 30% this week, as of this writing, as several brokerage firms -- including sector peer Charles Schwab (SCHW) -- announced plans to start eliminating commissions on U.S. stocks, exchange-traded funds (ETF), and options trades. AMTD stock was the target of notable options activity, as a result.

The Best and Worst Stocks Heading into 2020

This week we took a closer look at the best and worst stocks for October and going into 2020, as well as which sectors may be the best fit for contrarian traders. Retail was a popular sector on our radar, with Kroger (KR) and Starbucks (SBUX) tending to outperform on seasonal tailwinds. Meanwhile, real estate investment trusts (REITs) also caught our attention. On the flip side, we explored the worst stocks to own in the month and quarter, historically, in which popular picks Advanced Micro Devices (AMD) and Under Armour (UAA) surfaced. 

FAANG Stocks Pull Attention on Wall Street

Apple (AAPL) kicked off the week receiving a bull note out of J.P. Morgan Securities Monday morning, with the firm hiking its December 2020 price target to $265 on an expected increase in iPhone demand. Just days later, reports emerged that the tech giant has asked suppliers to boost iPhone 11 production nearly 10%. Meanwhile, Alphabet (GOOGL) stock rose on the heels of a price-target raise from Deutsche Bank, and Facebook (FB) revealed a new Instagram camera-first app called "Threads."

U.S.-China Trade Talks Headline the Week Ahead

The latest Fed meeting minutes and U.S.-China trade could headline next week, as the next round of talks are scheduled to take place in Washington, D.C., on Thursday, Oct.10. This will likely keep traders on edge in the early days of the week, as the earnings calendar remains relatively bare, with Delta Air Lines (DAL) and Domino's Pizza (DPZ) among the few firms slated to report.

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