Wall Street extended its weekly winning streak to six straight wins. The stock market has risen on the gains, but will it rise again next week? The S&P 500 and Dow both closed at new highs on Friday, marking their best week of the year. But on a percentage basis, it was the tech-heavy Nasdaq that led Friday’s trading, rising more than 0.6% and after Netflix shares rose 11% after earnings. The Nasdaq ended July less than 1% from its all-time high. This buying last week had pushed the market back into near-overbought territory as of Friday’s close, just as earnings season is getting ready to get into full swing, according to the S&P Short Range Oscillator. Jim Cramer said Friday that the situation looks like a frenzy and a “nirvana moment” for investors, as falling oil prices and last week’s strong retail sales show subdued inflation and resilient growth. pointed out. However, he acknowledged that timing is important, as the firm’s portfolio discipline requires it to consider reducing equity exposure in overbought markets. We’re not there yet, but we’re getting closer. With the market trending toward overbought, we called two companies from our bullpen stocks to watch list during our October meeting on Wednesday. We initiated positions in BlackRock and CrowdStrike. On Monday, we purchased additional shares in Modelo and Corona beer brewer Constellation Brands. On Tuesday morning, at the beginning of a decline in chip stocks, we added to a position in Advanced Micro Devices. That afternoon, the second shoe dropped following disappointing results from Dutch semiconductor equipment maker ASML, sending the sector further down. However, two days could make a big difference as strong results and comments from Taiwan Semiconductor Manufacturing Company on Thursday boosted the chip group. Nvidia, the club’s name, rose more than 2% this week and closed Friday just below Monday’s record. However, AMD and Broadcom ended the week lower. In fact, AMD was the worst performing stock all week, dropping more than 7% following a 1.8% drop the previous week. One area that caught fire in the market was finance. Morgan Stanley on Tuesday announced better-than-expected key results, along with strong results in other key performance indicators across the company. Stocks ended the week at record highs. Morgan Stanley surged more than 9.5% to become the best club stock of the week. Abbott Laboratories was another portfolio name that reported last week with a win and a raise. The stock price rose nearly 3% over the week. Energy was the worst sector for the market this week as oil prices fell. West Texas Intermediate crude, the U.S. oil benchmark, fell 2% on Friday, ending the week below $70 a barrel. For the week, WTI fell 8.4%, its worst level in more than a year, as China’s slowing economic growth and supply concerns over record US oil production overshadowed smoldering tensions in the Middle East. The economic focus for the coming week will be on the number of housing units. But in reality, it’s all about profits, with more than 100 S&P 500 companies reporting earnings, including Club Health life sciences company Danaher on Tuesday and industrial stocks Dover and Honeywell on Thursday. Earnings Danaher: German bioprocessing peer Sartorius announced a 9% quarter-over-quarter increase in orders, which had been a headwind for both Sartorius and Danaher throughout the year, as customers neared completion of inventory clearing. As a result, we are encouraged heading into this quarter. . Expectations for Danaher have risen somewhat as a result of the Sartorius update, and with management making a concerted effort to keep guidance conservative, we expect positive results. In addition to the headline numbers, management’s comments on the bioprocessing end market will likely determine the stock’s price movement after Tuesday’s announcement. As of Friday afternoon, Danaher’s consensus estimates from LSEG analysts were for third-quarter revenue of $5.59 billion and earnings per share (EPS) of $1.57. Honeywell: We received an update from management on its business streamlining plans as the company announced plans to separate its advanced materials division. In addition to quarterly results, we would like to hear management’s view on demand for the short-cycle portion of the business, which tends to be highly profitable and volatile. As of Friday afternoon, LSEG estimates Honeywell had third-quarter revenue of $9.9 billion and EPS of $2.50. Dover: Organic bookings are key this quarter. Growth in thermal connectors and heat exchangers used in data centers has increased order momentum in recent quarters. Biopharmaceutical components. CO2 system for refrigeration. I’d also be interested to see if management provides updates on the evolution of the portfolio. Last quarter, executives emphasized divestitures in the garbage truck manufacturing business and acquisitions in the clean energy sector. As of Friday afternoon, LSEG estimated Dover’s third quarter on revenue of $2.09 billion and EPS of $2.33. Economy This week will be a fairly light week for economic indicators. However, there are two big updates on the state of the housing market: September existing home sales will be announced on Wednesday and September new home sales will be announced on Thursday. Housing is an important watch item for investors and the Federal Reserve because it is a large, unavoidable expense for most Americans and has proven to be a troubling source of inflation. Last week, the number of housing starts in September was down from the previous month, but slightly higher than expected. After all, significant improvements in the housing market are unlikely to persist until bond yields fall, mortgage rates fall, and monthly payments become more affordable as a result. The yield on the 10-year U.S. Treasury, which influences mortgage rates, has remained steady despite the Fed’s steep 50 basis point rate cut last month. Market odds call for a 25 basis point rate cut next month and another 25 basis point cut in December. We expect mortgages to eventually fall and housing to pick up as the Fed eases. This dynamic is at the heart of our investment thesis for Stanley Black & Decker, Home Depot, and Best Buy. Increased housing stock means people need to buy more power tools, home improvement supplies, big-ticket appliances and flat screen televisions. 1 week ago Monday, October 21 Post-earnings: SAP (SAP), Nucor (NUE), Logitech (LOGI) Tuesday, October 22 Pre-earnings: Danaher (DHR), Verizon (VZ), General Motors (GM) ), Freeport-McMoRan (FCX), RTX (RTX), 3M (MMM), GE Aerospace (GE), Lockheed Martin (LMT), Quest Diagnostics (DGX), Fiserv (FI), Philip Morris (PM), Kimberly-Clark (KMB), Norfolk Southern (NSC), Pulte Group (PHM), Polaris (PII) After the Bell: Enphase Energy (ENPH), Seagate Technology (STX) , Baker Hughes (BKR), Texas Instruments (TXN), Canadian National Railway Company (CNI) Wednesday, October 23, 10 a.m. ET: Existing Home Sales Before the Bell: Vertiv (VRT), Boeing (BA), AT & T (T), Coca-Cola (KO), GE Vernova (GEV), Thermo Fisher Scientific (TMO), Boston Scientific (BSX), General Dynamics (GD), Hilton (HLT) After Bell: Tesla (TSLA) , Lam Research (LRCX), International Business Machines (IBM), Newmont Mining (NEM), ServiceNow (NOW), Viking Therapeutics (VKTX), Las Vegas Sands (LVS), T-Mobile (TMUS), Vista Energy (VIST) , Mattel (MAT), O’Reilly Automotive (ORLY), Whirlpool (WHR) Thursday, October 24th 8:30am ET 8:30am ET: New Home Sales Bell Previous: Honeywell (HON), Dover (DOV), American Airlines (AAL), United Parcel Service (UPS), Southwest Airlines (LUV), Nasdaq (NDAQ), Tractor Supply Company (TSCO), Carrier Global ( CARR), Dow Chemical (DOW), Harley-Davidson (HOG), Union Pacific (UNP), Valero Energy (VLO), Hasbro (HAS), Northrop Grumman (NOC), Rider Systems (R) After the Bell: DexCom (DXCM ), Deckers Brands (DECK), Skechers (SKX), Boyd Gaming (BYD), Edwards Lifesciences (EW), Western Digital (WDC) ), Boston Beer Company (SAM), Texas Roadhouse (TXRH), Vail (VALE), Capital One Financial (COF) Friday, October 25th, Before the Bell: New York Community Bancorp (NYCB), Colgate-Palmolive (CL), Newell Brands (NWL), AutoNation (AN) (Jim Cramer’s See here for a complete list of Charitable Trust stocks. ) As a subscriber to Jim Cramer’s CNBC Investing Club, you will receive trade alerts before Jim Cramer makes a trade. . 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NEW YORK, NEW YORK – OCTOBER 16: Traders work on the floor of the New York Stock Exchange (NYSE) on October 16, 2024 in New York City. Stocks rose slightly in morning trading following Tuesday’s decline. (Photo by Spencer Pratt/Getty Images)
Spencer Pratt | Getty Images News | Getty Images
Wall Street extended its weekly winning streak to six straight wins. The stock market has risen on the gains, but will it rise again next week?
