Bear Bear Craig wrote a post · Oct 28 13:21

🔥 Magnificent week ahead! (US market outlook 28Oct-1 Nov)🔥 Capital Gain week?

This week will be highly exciting 🔥 as five of the “Magnificent Seven” tech companies: $Alphabet-C (GOOG.US)$ $Microsoft (MSFT.US)$ $Meta Platforms (META.US)$ $Apple (AAPL.US)$ $Amazon (AMZN.US)$ release their earnings. Given their substantial impact on the market, these reports could heavily influence stock movements. Would any of these company 🚀 like $Tesla (TSLA.US)$ that shot up 30% last week?! Let’s dive into it

Monday- starts off the week with earnings from $Ford Motor (F.US)$. Analysts suggests that the automaker giant will report a clean quarter with no issues from warranty costs and not too much lost on electric vehicles
Tuesday - $Alphabet-A (GOOGL.US)$:
$Alphabet-A (GOOGL.US)$ after an impressive Q2 with solid AI-driven growth, will report Q3 earnings. The cloud segment has achieved a significant milestone of $10 billion in quarterly revenue, marking 28% growth year-over-year.
$Alphabet-A (GOOGL.US)$ has strong record of surpassing earnings expectations, and investors will be watching its balance between ad revenue stability and growth in new AI areas.

$McDonald's (MCD.US)$ quoted from CNBC “a full airing of the e-coli situation,” but that it is too early to tell how much damage it will do to the fast food chain. The Centers for Disease Control and Prevention said Friday that a deadly e-coli is linked to McDonald’s Quarter Pounders has led to 75 cases in 13 states.

$Advanced Micro Devices (AMD.US)$ $PayPal (PYPL.US)$ $Royal Caribbean (RCL.US)$ $Reddit (RDDT.US)$ is expected to to all report a large beat and raise in year-end guidance.

Wednesday - $Microsoft (MSFT.US)$ $Meta Platforms (META.US)$:
$Microsoft (MSFT.US)$ : Investors will focus on AI, particularly the adoption of its Copilot tool. Whether $Microsoft (MSFT.US)$ convinces investors of Copilot’s success may influence stock momentum.
$Meta Platforms (META.US)$: stock has surged nearly 60% in 2024, supported by a solid track record of exceeding earnings estimates. $Meta Platforms (META.US)$ ability to maintain strong performance amid competitive pressures will be key. $Meta Platforms (META.US)$ could potentially see the same run as $Tesla (TSLA.US)$ after hours, keep an eye on it.

$Eli Lilly and Co (LLY.US)$ $Caterpillar (CAT.US)$ $Booking Holdings (BKNG.US)$ $DoorDash (DASH.US)$ are likely to show a hot quarter. 🔥

Thursday - $Apple (AAPL.US)$ $Amazon (AMZN.US)$:
$Apple (AAPL.US)$: Reporting Q4 earnings, $Apple (AAPL.US)$ projected revenue of $94.43 billion would reflect a 5.5% year-over-year rise. Investors are especially interested in $Apple (AAPL.US)$ performance in China, a crucial market with mixed recent data. AI initiatives, such as Apple Intelligence, are in the spotlight, but $Apple (AAPL.US)$ cautious R&D spending suggests a measured AI investment approach.
$Amazon (AMZN.US)$ : analysts suggest patience with Amazon, despite challenges last quarter. This report will indicate how well Amazon is adjusting to current market demands

$Uber Technologies (UBER.US)$ would report strong and worth a buy! $Intel (INTC.US)$ likely muted despite a strong forecast of growth.

🔥 Magnificent week ahead! (US market outlook 28Oct-1 Nov)🔥 Capital Gain week?

Friday: Economic Indicators to Watch:
Alongside earnings, significant macroeconomic data will be released. Investors should keep an eye on these for insights into potential Federal Reserve policy shifts:

1. Jobs Report (Friday): Expected to show a 140,000 job gain, which, if weak, could increase the likelihood of a Fed rate cut, supporting market sentiment.
2. Personal Consumption Expenditures (PCE) (Thursday): This inflation measure is forecasted to decrease to 2% from 2.2%, signaling easing pricing pressures.
3. Q3 GDP (Wednesday): The initial GDP reading is expected to show a slowdown to 2.1% from a previous 3%, indicating moderate economic growth.
4. JOLTS and Consumer Confidence (Monday): These indicators will offer insights into labor demand and consumer sentiment.

Action Plans for Investors:
1. Hold Off Immediate Reactions: Given that initial moves often misalign with ultimate stock performance, wait for companies’ full reports and guidance. For instance, $Alphabet-A (GOOGL.US)$ $Microsoft (MSFT.US)$ AI progress may have long-term potential but might face initial scrutiny.
2. Monitor Key Economic Data: Jobs data, PCE inflation, and GDP growth will provide insights into Federal Reserve policy directions. Weak economic indicators may increase the likelihood of a rate cut, creating buying opportunities if markets dip.
3.Focus on Core Holdings: Tech giants like $Apple (AAPL.US)$ $Amazon (AMZN.US)$ remain long-term value plays despite quarterly volatility. $Apple (AAPL.US)$ cautious AI strategy and $Amazon (AMZN.US)$ market footprint indicate stability through economic cycles.
4.Diversify into Resilient Sectors: For a defensive stance, stocks like $Broadcom (AVGO.US)$ $Merck & Co (MRK.US)$ could act as a hedge, particularly if jobs data signals weaker economic conditions.

🔮: $S&P 500 Index (.SPX.US)$ and $NASDAQ 100 Index (.NDX.US)$ outlook for (28Oct- 1Nov). If you have followed my Market outlook last week, congrats! Many fortunes was created in it. 👏🏻

$S&P 500 Index (.SPX.US)$ will range within 5775-5883. Any unfavourable news on friday may drive it down to 5750. Vice versa, any 🔥 news could drive it to 5900.

$NASDAQ 100 Index (.NDX.US)$ is going to be super 🔥 this week. range 19414-20750. Would Mag 7 stocks bring it notch further up, likely. consider $Invesco QQQ Trust (QQQ.US)$ $ProShares UltraPro QQQ ETF (TQQQ.US)$ when market is hot and $ProShares UltraPro Short QQQ ETF (SQQQ.US)$ to protect your tech portfolio in downturns.