Market Overview

Today's market activity was relatively subdued following yesterday's record highs for major indices. The S&P 500 and Nasdaq Composite both dipped by 0.2%, while the Dow Jones Industrial Average fell by 0.6%. The Russell 2000 lagged behind, closing 1.3% lower. There was minimal urgency among sellers, and buyer enthusiasm was equally muted, resulting in lackluster price action at the index level.

Cryptocurrency and Semiconductors

In contrast to the stock market, the cryptocurrency market showed notable strength, with Bitcoin surging above $100,000. The semiconductor sector was in focus as the PHLX Semiconductor Index (SOX) dropped 1.9% due to normal profit-taking activity after a strong performance earlier in the week. Despite this decline, the SOX remains 2.0% higher than last Friday. Nearly all SOX components closed lower, including NVIDIA (NVDA, Financial) and Broadcom (AVGO).

Mega-cap and Consumer Discretionary Stocks

Mega-cap stocks traded in a mixed fashion, contributing to the overall tepid market sentiment. Tesla (TSLA) rose by 3.2%, and Amazon.com (AMZN) gained 1.1%, helping to lift the S&P 500 consumer discretionary sector by 1.0%. However, retailer components within the consumer discretionary sector showed relative weakness as earnings reports emerged. The SPDR S&P Retailer ETF (XRT) fell by 1.6%. Noteworthy performances in the retail space included American Eagle Outfitters (AEO), Dollar General (DG), and Five Below (FIVE).

Treasury Yields

Treasury yields retreated from earlier highs, settling slightly mixed. The 10-year yield, which briefly surpassed 4.22%, ended the day unchanged at 4.18%. The 2-year yield eased from 4.17% to 4.15%, three basis points higher than yesterday.

OPEC+ and Crude Oil

OPEC+ agreed to extend the additional voluntary adjustments of 2.2 million barrels per day, announced in November 2023, until the end of March 2025. WTI crude oil futures settled 0.4% lower at $68.30 per barrel.

Economic Data

• Weekly Initial Claims: 224K (consensus 213K); Prior revised to 215K from 213K
• Weekly Continuing Claims: 1.871 million; Prior revised to 1.896 million from 1.907 million

The key takeaway is that the report does not indicate any major changes in labor market trends, which show some softening but no significant disruptions in employment.

October Trade Balance

• October Trade Balance: -$73.8 billion (consensus -$75.1 billion); Prior revised to -$83.8 billion from -$84.4 billion

The report reflects overall weakness in global trade activity in October.

Overseas Markets

• Europe: DAX +0.7%, FTSE +0.2%, CAC +0.4%
• Asia: Nikkei +0.4%, Hang Seng -0.9%, Shanghai +0.1%

Commodities

• Crude Oil: -0.30 @ 68.30
• Natural Gas: +0.04 @ 3.08
• Gold: -27.40 @ 2648.10
• Silver: -0.32 @ 31.55
• Copper: -0.02 @ 4.18

NVDA,AVGO,TSLA,AMZN,AEO,DG,FIVE

Today's News

SoundHound AI (SOUN, Financial) saw its shares soar as much as 30% during Thursday's trading session. This surge followed the company's announcement of a new deal with Torchy's Tacos, where its voice AI Smart Ordering product will be rolled out across 130 locations. The company's CFO, Nitesh Sharan, also highlighted their AI-powered conversational voice products at the UBS Global AI and Technology conference, contributing to the stock's year-to-date climb of over 500%.

UiPath (PATH, Financial) reported a strong Q3 performance, with a Non-GAAP EPS of $0.11 beating expectations by $0.04, and revenue of $354.65 million surpassing estimates by $6.93 million. The company's annual recurring revenue increased by 17% year-over-year, and shares rose by 8.09% following the announcement. UiPath has positioned itself as a key player in the robotic process automation sector.

Argan (AGX, Financial) also reported impressive Q3 results, with GAAP EPS of $2.00 exceeding expectations by $0.74 and revenue of $257.01 million, a 56.9% increase year-over-year. The company's shares jumped by 14.23%, reflecting investor confidence in its robust project pipeline and potential benefits from AI advancements.

GameStop (GME, Financial) shares climbed over 10% after Keith Gill, known as Roaring Kitty, posted a cryptic image on social media, sparking interest among retail investors. This led to a temporary halt in trading due to volatility. AMC Entertainment (AMC, Financial) also saw a rise of more than 6%, as both stocks continue to be popular among meme stock enthusiasts.

American Airlines (AAL, Financial) shares surged more than 15% after the company raised its fourth-quarter adjusted earnings forecast, signaling a positive outlook for the airline industry during the holiday season. The revised earnings per share estimate now ranges from $0.55 to $0.75, up from the previous $0.25 to $0.50.

Nvidia (NVDA, Financial) announced plans to open an AI research and development center in Vietnam, in collaboration with the Vietnamese government. This move aims to leverage the country's talent pool to accelerate AI adoption across various industries. Nvidia's initiative highlights its commitment to expanding its global AI footprint.

Chevron (CVX, Financial) and Shell (SHEL, Financial) are in discussions to join a consortium led by YPF (YPF) for a $3 billion project to enhance crude oil exports from Argentina's Vaca Muerta shale play. This partnership could signify increased foreign investment in the region's oil and gas sector.

DocuSign (DOCU, Financial) reported Q3 results that exceeded expectations, with a Non-GAAP EPS of $0.90 and revenue of $754.82 million. The company's subscription revenue increased by 8% year-over-year, demonstrating continued growth in the digital document management space.

Bitcoin (BTC-USD) briefly surpassed the $100K mark but pulled back to around $98.5K. The rally was driven by market optimism following Trump's presidential victory and the appointment of a pro-crypto SEC head. Bitcoin-related stocks such as MicroStrategy (MSTR, Financial) and Coinbase Global (COIN, Financial) experienced declines alongside the cryptocurrency's retracement.

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