Market Overview

The stock market experienced selling pressure after six consecutive weeks of gains for the S&P 500, which closed 1.0% lower this week. The Dow Jones Industrial Average also fell, ending the week down 2.7%. This decline was partly due to profit-taking activities driven by rising market rates. The 10-year yield increased by 16 basis points to 4.23%, while the 2-year yield rose by 15 basis points to 4.10%, expanding the 2s10s spread by one basis point to 13 bps.

Nasdaq Performance

The Nasdaq Composite managed a 0.2% increase for the week, buoyed by buying activity in mega-cap and semiconductor stocks. The Vanguard Mega Cap Growth ETF (MGK) rose 0.3%, and the PHLX Semiconductor Index (SOX) gained 0.1%. Tesla (TSLA, Financial) contributed significantly to this performance following its impressive Q3 earnings and 2025 vehicle growth forecast.

Earnings Reports

• Tesla (TSLA, Financial) reported strong earnings and a positive vehicle growth forecast.
• Blue-chip companies such as Verizon (VZ), 3M (MMM), GE Aerospace (GE), Lockheed Martin (LMT), General Motors (GM), IBM (IBM), and Honeywell (HON) also released earnings reports.

Monday: Consolidation Begins

On Monday, the market faced selling pressure as part of a normal consolidation following record highs for the S&P 500 and Dow Jones Industrial Average. The Nasdaq Composite outperformed with a 0.3% increase, supported by mega-cap gains. The day's negative sentiment was influenced by rising market rates and a cautious approach ahead of a busy earnings week.

Economic Data:

• September Leading Indicators: -0.5% (consensus: -0.3%), revised prior: -0.3% from -0.2%

Tuesday: Mixed Reactions

Tuesday's market performance was stable at the index level, with mega caps providing essential support. Despite some better-than-expected earnings, many stocks declined due to continued consolidation. Notably, General Motors (GM) saw a sharp rise following strong earnings and guidance.

Wednesday: Market Struggles

Wednesday saw the market weighed down by losses in major stocks and concerns over rising Treasury yields. The Dow Jones Industrial Average dropped over 500 points at one stage. Consumer discretionary, information technology, and communication services sectors were the weakest, affecting stocks like Tesla (TSLA, Financial) and Amazon.com (AMZN).

Economic Data:

• Existing Home Sales: -1.0% month-over-month in September, annual rate of 3.84 million (consensus: 3.90 million)
• MBA Mortgage Applications Index: -6.7% week-over-week

Thursday: Recovery Signs

The market closed mostly higher on Thursday, aided by buy-the-dip action and a decrease in market rates. Tesla (TSLA, Financial) shares surged after strong earnings, while IBM (IBM), Honeywell (HON), and Boeing (BA) saw declines.

Economic Data:

• Weekly Initial Claims: 227K (consensus: 246K)
• October S&P Global US Manufacturing PMI: 47.8, US Services PMI: 55.3
• September New Home Sales: 738K (consensus: 713K)

Friday: Mixed Close

Friday started strong with broad buying interest, but the market vibe shifted as Treasury yields increased. The S&P 500 ended almost unchanged, while the Nasdaq Composite rose 0.6%, supported by mega-cap and semiconductor strength. The Vanguard Mega Cap Growth ETF (MGK) and PHLX Semiconductor Index (SOX) closed higher.

Economic Data:

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Today's News

Nvidia (NVDA, Financial) saw a 2% rise in its stock, bringing its market capitalization to $3.52 trillion, matching Apple's (AAPL, Financial) valuation. This positions Nvidia alongside Apple as one of the two most valuable companies globally, with Microsoft (MSFT, Financial) following at $3.2 trillion. Nvidia's market cap has tripled in less than a year, showcasing its significant gains from the AI revolution.

Societe Generale noted a rise in Treasury yields, with the 10-year (US10Y) and 30-year (US30Y) yields hitting three-month highs. This increase is attributed to traders selling U.S. debt on the potential election victory of former President Donald Trump. The consensus in the rates market has shifted towards expecting higher rates driven by potential tax cuts and economic growth.

Centene (CNC, Financial) and Molina Healthcare (MOH, Financial) reported better-than-expected Q3 earnings, boosting the managed care sector. This positive performance lifted shares of CVS Health (CVS, Financial), UnitedHealth (UNH, Financial), and Elevance Health (ELV, Financial), reversing losses from the previous week. Centene raised its revenue outlook significantly, contributing to the sector's rebound.

Bitcoin (BTC-USD) experienced a slight decline, hovering below $69,000 after failing to breach the $70,000 threshold. Analysts predict increased volatility for Bitcoin as the U.S. elections approach, with altcoins also showing mixed performance.

Nike (NKE, Financial) continued its losing streak, ending the session 0.25% lower, marking a 5.97% decline over the last six trading days. Despite announcing a historic deal with the NBA, the stock couldn't maintain its post-market gains, remaining 27.62% down year-to-date.

Amgen (AMGN, Financial) declared a quarterly dividend of $2.25 per share, maintaining its forward yield at 2.84%. The dividend is payable on December 9, with a record date of November 18. This announcement follows Amgen's recent Q3 earnings review and pipeline updates.

Moderna (MRNA, Financial) shares rose 0.55% after six days of losses, closing at $53.09. Despite a 31% drop over the past year, analysts remain mixed on the stock's outlook, with a focus on Moderna's diverse portfolio and future growth potential.

Microsoft (MSFT, Financial) CEO Satya Nadella received a 63% increase in total compensation for fiscal 2024. Despite cybersecurity issues affecting his cash incentive, Nadella's stock options and overall pay package reflect the company's strong performance and his commitment to security improvements.

Apple (AAPL, Financial) tested an app to help individuals with prediabetes manage their health, posing a competitive threat to companies like DexCom (DXCM) and Abbott (ABT). While the app isn't set for release, its technology may feature in future Apple health products.

Elon Musk, founder of Tesla (TSLA, Financial) and SpaceX, has reportedly been in discussions with Russian President Vladimir Putin. These talks, which span various topics, have raised national security concerns, particularly regarding Musk's Starlink satellite service.

Vizio (VZIO) dropped 1.2% following a judge's decision to block Tapestry's acquisition of Capri Holdings. Vizio, which agreed to be sold to Walmart (WMT), is facing scrutiny over its deal amid regulatory challenges.

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