Blue chips continued to dominate headlines
An influx of economic data and Big Tech earnings took over the spotlight this week, sending indexes on a volatile run both up and down the charts. Monday brought excitement for the incoming tech earnings slate, sending the Nasdaq Composite (IXIC) to an all-time peak out of the gate. However, as earnings began to disappoint, a selloff came by mid-week.
While the Nasdaq swerved from record highs highs to triple-digit pullbacks in just five days, the Dow Jones Industrial Average (DJI) snapped its five-day losing streak in the same week it posted its first monthly drop since April. The S&P 500 Index (SPX) was no better, also halting its monthly win streaks, as the Cboe Volatility Index (VIX) charged to multi-month highs on the heels of a drag in Big Tech earnings. Of the three major indexes, only the Dow is on track for a weekly win.
Big Tech Takes a Toll
A plethora of Big Tech earnings took over Wall Street this week, with "Magnificent 7" powerhouse Alphabet (GOOGL) enjoying a post-earnings pop on artificial intelligence (AI) buzz. Intel (INTC) continued its fall from grace, while behemoths Meta Platforms (META) and Microsoft (MSFT) shared quarterly reports that missed the mark.
While not on the Big Tech boat, blue chip Amazon.com (AMZN) surged toward a fresh post-earnings high, while Dow peer Walmart (WMT) looked to extend its record-breaking run.
Chip, Tech Continue Volatile Run
Semiconductor giants Advanced Micro Devices (AMD) and Qorvo (QRVO) reported third-quarter earnings that were accompanied by dismal outlooks. Another chip maker that suffered after sharing weak guidance was ON Semiconductor (ON).
Meanwhile, a pair of fintech stocks that made moves on Tuesday were PayPal (PYPL) and SoFi Technologies (SOFI), the former posting a Q3 profit miss and revenue beat, while the latter ushered in a top- and bottom-line beat. Both suffered post-earnings drops, brushing off optimistic numbers.
What to Expect Election Week
Next week is fairly light in terms of economic data, though investors will be anxiously awaiting U.S. Presidential Election results and the Fed's latest interest rate decision. Earnings season is still in full swing as well, with reports from Airbnb (ABNB), Arm Holdings (ARM), Constellation Energy (CEG), Gilead Sciences (GILD), Marathon Petroleum (MPC), Marriott International (MAR), Novo Nordisk (NVO), Palantir Technologies (PLTR), Paramount Global (PARA), and Qualcomm (QCOM), to name a few.
Make sure to check out our own Schaeffer's Senior Quantitative Analyst Rocky White's look into why an underperforming market may be in the cards for Wall Street. Don't forget to also check out Senior V.P. of Research Todd Salamone's evaluation on the short-term risk for pulls when the S&P 500 suffers a pullback.