Weekly Buzz: Market volatility for very good reasons
Happy Friday, mooers! Welcome back to Weekly Buzz where we talk about the top ten buzzing stocks on moomoo this week! Comment below to answer the Weekly Topic question for a chance to win an award!
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Weekly Buzz
This week was a busy one, beginning with another round of Chinese stimulus measures, a major U.S. hurricane that decimated much of the inland south. A port strike from the Longshormen's Union started Monday night for wage increases that shut down massive ports across the East Coast and Gulf of Mexico, hurting shipping and trade stocks.
If that were not enough, volatility entered the market in a big way Tuesday after Iran shot 180 missiles into Israel in retaliation for ground raids in Lebanon and anti-terror strikes in Beruit. The U.S. and its allies said they shot down many, but the fresh violence plunged the market into the red, while the defense, oil, gold, and silver climbed alongside defense stocks. Shipping stocks climbed on higher prices but would fall later in the week when the strike went on pause after port operators increased wage offers by 62% over 6 years.
$Crude Oil Futures(JAN5) (CLmain.US)$ climbed all week, up 8% after Israel sent overnight strikes across the Middle East, while the market awaits a full retaliatory assault on Iran that has yet to come. President Biden, speaking at a White House Press briefing Friday, said his Administration was arguing with Prime Minister Benjamin Netanyahu to keep the Israelites from bombing oil fields or the Iran Nuclear program.
For the entire week, the $S&P 500 Index (.SPX.US)$ climbed 22 bps, the $Dow Jones Industrial Average (.DJI.US)$ climbed 9 bps, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 10 bps. $Bitcoin (BTC.CC)$ fell 5% this week, while gold fluctuated and U.S. treasury yields climbed. $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ grew by 9%.
In macroeconomic news, the market awaited labor data that came in hot on Friday. Monday afternoon, Federal Reserve Chair Jerome Powell spoke at the National Association of Business Economics. He said inflation was on its way down and that labor should not get any weaker to make room for inflation decreases.
"If the economy evolves broadly as expected, policy will move over time to a more neutral stance," Powel said. "But we are not on any preset course, the risks ahead are two-sided, and we will continue to make our decisions meeting by meeting."
ISM PMI for September came in lower than forecast, at the same level as last month. With a number below 50, it shows manufacturers spent less than previously on input costs, which can be bad for growth but good for a decrease in inflation.
The market closed lower Thursday after conflict in the Middle East kept volatility on everyone's minds, while semiconductor stocks climbed after news that OpenAI pulled in a massive new funding round. Semiconductor and tech stocks climbed back from divots left by uncertainty in the Middle East.
Thursday macro also saw the release of Initial Jobless Claims, which was right in line with two-year averages at 225k.
Friday, the new job numbers came in hot-- 254k new payrolls in September, compared to estimates of 147k according to the Bureau of Labor Statistics. That and the lower BLS Unemployment rate sent the market back into a climb, with nine out of 11 sectors of the S&P 500 in the green.
Anyway, let's dive into the buzzing stocks this week:
$NVIDIA (NVDA.US)$ pulled up the market with its Semiconductor Tech price power, climbing 3% Thursday after receiving a JPM buy rating and receiving positive press from CEO Jason Huang on CNBC, who said the Blackwell chip is seeing 'Insane' demand. The Wall Street Journal reported that Nvidia contributed $100 million to the OpenAI funding round.
$Tesla (TSLA.US)$ fell 5%, at one point the lowest on the Nasdaq after it posted Q3 deliveries that grew YoY and QoQ. The firm shipped 462,890 vehicles during the July-to-September period, nearly on point but 1,003 less than the highest of estimates. The result was a 6.4% increase over the third quarter of last year, when its sales were impacted by factory upgrades that paused production.
@71692035: is it worth to buy for long term?
Monday, $NIO Inc (NIO.US)$ stock soared 14.4% after the Chinese electric vehicle manufacturer announced a significant $2 billion cash boost from existing shareholders.
@104631563: NIO losses billion USD every year
$BTC/USD (BTCUSD.CC)$ fell almost 3% Tuesday to 62,019.23 in an apparent risk-off move as Iran attacked Israel with missiles. Bitcoin stocks also declined. The coin fell to a low of $59k, down about 5% for the week, before rising to about $62k.
@booya: ever seen the film red October hehe
Chinese stocks were again climbing at record paces this week after China's central bank on Sunday directed commercial banks to lower mortgage rates for existing home loans by at least 30 basis points before Oct. 31. Last week, the People's Bank of China lowered the reserve requirement ratio for banks and cut the interest rates. By Friday, the gains had slowed down, but $Alibaba (BABA.US)$, $PDD Holdings (PDD.US)$ and $JD.com (JD.US)$ were climbed all week and the $CSI 1000 Index (000852.SH)$ was up 22% this week.
@Fredo in the cut: Dump you pos make me rich
According to Angela Palumbo and Janet H. Cho at Barrons, $Super Micro Computer (SMCI.US)$ performed a 10-for-1 stock split Monday. Investors went from owning one share to ten shares in an attempt to lower the price of each share to make it easier for investors to buy the stock.
@Silverbat: DJ probe could be only “tip of a huge iceberg”!
Shares of $Trump Media & Technology (DJT.US)$, the social media company majority-owned by Donald Trump, rose more than 10% intraday Monday after surviving a week in which early investors sold shares.
@Stock_Drift: “Trump Media COO resigns, company turns over more shares to investor”
$Apple (AAPL.US)$ is preparing to launch a new low-end iPhone by early 2025, according to a report Tuesday, in a move that seems aimed at attracting value-conscious shoppers amid losing market shares to Chinese rivals.
The new model -- code-named V59 -- will become Apple's new entry-level model, people with knowledge of the matter told Bloomberg. The report said it would move away from the old home button design and transition to an edge-to-edge screen.
@Saurabh Aggarwal: Apple will sell enough iPhones to stay profitable but that doesn't mean they'll sell enough iPhones to please investors.
According to Emily Dattilo at Barrons, the movie theater chain announced Monday that it reduced a substantial amount of debt. "Between Aug. 5, 2024, and Sept. 30, 2024, the Company entered into a series of privately negotiated agreements to extinguish unsecured debt in an aggregate principal amount of $152,923,002," according to a securities filing.
@EasyGravy: hey bagholders
$UP Fintech (TIGR.US)$, a Singapore-based Chinese brokerage firm climbed 109% this week following exuberance for Chinese stocks after government stimulus encouraged investors and funds to pump an estimated $3T into Chinese stocks and equities in a week and a half.
@Master Corgi: Wait so many years then suddenly pump why why why
Thanks for reading!
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Weekly Topic
Will earnings next week keep the volatile October trend going? Do you think this season's earnings results will make up for last season's mixed bag?
Comment below and share your ideas! We will select up to 15 TOP COMMENTS for a reward next week. Winners will get 200 points by next week, with which you can exchange gifts at Reward Club.
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Moomoo News and Community Manager
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HuatLady : Thanks for the rewards![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Regardless of the immediate results or the market's post earnings volatility, I plan to continue with my regular savings plan (RSP) into high-quality stocks. Over time, it's the steady growth and the consistent returns that matter most to me.
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It's possible that next week's earnings could extend October's volatility, especially with so much uncertainty in the broader market. However, regardless of post earnings trends, I don't worry too much about short-term market swings or the ups and downs that come with earnings seasons. My focus is on the long-term investments, particularly in solid dividend-paying stocks with a strong history of delivering reliable returns.
102362254 : Next week’s earnings are likely to drive continued volatility throughout October, in line with historical trends and current market conditions. There seems to be growing optimism that this season could outperform the mixed results of the previous quarter, with several key companies expected to deliver strong performances. I’m feeling quite positive and eager to see how it all unfolds
HuatEver : Many thanks for your reward points![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Earnings next week could continue the volatile trend we’ve seen in October, but it’s important to remember that market fluctuations are a natural and expected part of the short-term cycle. While this season’s earnings results might show improvement over last quarter’s mixed performance, long-term investing remains focused on a company’s sustained growth and strong fundamentals. So I’ll look beyond earnings reports and consider broader economic trends, market conditions and industry developments to make better choices.
ZnWC : Thanks for the reward points![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Warren Buffett said “Market Fluctuations are your friend, not your enemy… profit from the folly rather than participate in it”. Stock market volatility may not be a bad thing, you just need to manage the risk so that it will not be permanent capital loss.
I think the volatile October trend will continue because more uncertainty ahead is expected. Some possible examples are the US presidential election, escalation of conflict (Hamas- Israel war and Ukraine -Russian conflict) and US Fed's comment on inflation and US recession.
I have a long position portfolio hence not utterly worried about any downtrend - just noise to me. In fact, I am looking forward to some company Q3 earnings announcement and Tesla Robotaxi unveils on 10/10. Volatility will also benefit my options trading provided I can manage my risk and avoid greed (e.g. FOMO buy). This is the dawn of a bull market and I expect the FOMC will announce more rate cuts in Q4.
Malik ritduan : great
dynamic-stacker : As I analyze the market trends and indicators, I predict that October will be a volatile month for stocks. Here's my thought process:
Reasons for Volatility:
1. Economic uncertainty: The ongoing inflation concerns, interest rate hikes, and global economic slowdown will continue to impact market sentiment.
2. Earnings season: October marks the beginning of Q3 earnings season, which can bring surprises and market swings.
3. Political uncertainty: The upcoming US midterm elections and global geopolitical tensions will contribute to market anxiety.
4. Seasonal factors: October has historically been a volatile month, with significant market fluctuations.
Key Indicators to Watch:
1. Inflation rate changes
2. Interest rate decisions by central banks
3. Earnings reports from major companies
4. Global economic data releases (e.g., GDP, PMI)
5. Market sentiment indicators (e.g., VIX, put-call ratio)
Potential Market Scenarios:
1. Bullish: Strong earnings reports, easing inflation, and positive economic data could propel the market upward.
2. Bearish: Disappointing earnings, rising inflation, and global economic concerns could lead to a market downturn.
3. Range-bound: The market may experience sideways movement, with investors awaiting clearer economic signals.
My Prediction:
I expect October to be a volatile month, with the S&P 500 experiencing price swings of 5-10% or more. The market will likely react to earnings reports, economic data, and geopolitical developments.
102181510 : o.k
placid Leopard_3817 : China's gold price should soar on the Shanghai Stock Exchange on Monday.
章允量 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
mr_cashcow : Thanks for the reward points! Yes I think we are going to see more volatility moving forward as we still have ongoing geopolitical uncertainty and so much stuff going on everywhere all at once![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Hm earnings results will be a hard one to figure out since it has been the trend of good earnings but stock price falls
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