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Major Indexes Look to End Volatile Week Mixed

Semiconductor stocks were in focus as bond yields surged

Managing Editor
Oct 25, 2024 at 2:18 PM
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Treasury yields were this week's main story, with the U.S. 10-year bond compromising last week's impressive gains. Both the Dow Jones Industrial Average (DJI) and S&P 500 Index (SPX) are on track for weekly losses and looking to snap six-week win streaks. The indexes also logged their first string of back-to-back losses since early August and September, respectively.

The Nasdaq Composite (IXIC) managed to maintain its gains before cutting its five-straight win streak short amid the bond yield surge. The tech-heavy benchmark is still pacing for a seventh-consecutive weekly gain, however, which could be its longest such streak since December. Earnings were also on tap, with the likes of Tesla (TSLA), General Motors (GM), 3M (MMM), and Verizon (VZ) making noise this week.

Blue Chips' News Takeover

Blue chips were in focus, with aforementioned 3M stock surging on upbeat results. Boeing (BA) had a double-whammy, first posting a third-quarter loss, then struggling after its machinist union struck down another contract attempt, extending the worker's strike.

Meanwhile, McDonald's (MCD) suffered its worst day since Covid-19, after the Center for Disease Control and Prevention (CDC) linked an E. Coli outbreak to the restaurant's Quarter Pounder burger. Plus, disappointing revenue pushed VZ lower, and IBM (IBM) stock shed over 6% after announcing a revenue miss of its own.

Tech, Biotech, and Chip Stocks to Watch

Several tech names made notable moves. These three chip stocks are worth watching amid surging yields, and electric vehicle (EV) giant Tesla (TSLA) was the talk of the town after issuing a strong forecast. Meanwhile, Viking Therapeutics (VKTX) and Intellia Therapeutics (NTLA) moved in opposite directions Thursday amid earnings and mid-stage study data.

Looking Ahead

Next week will bring a flood of economic data, which Wall Street will be eyeing as the Fed's interest rate plan comes under scrutiny. Earnings season will still be in full swing as well, with reports set to come from Amazon.com (AMZN)Anheuser-Busch InBev (BUD)Caterpillar (CAT)Chipotle Mexican Grill (CMG)DoorDash (DASH)Etsy (ETSY), McDonald's (MCD), Microsoft (MSFT), MicroStrategy (MSTR), Robinhood (HOOD), Roku (ROKU), and Uber Technologies (UBER), to name just a few. 

Make sure to check out our own Schaeffer's Senior Quantitative Analyst Rocky White's breakdown of why Bollinger Bands should be on your radar of technical indicators, as well as Senior V.P. of Research Todd Salamone's deep dive into which SPX target might be within reach.

 

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