FPG US Stock Market Report November 1, 2024

FPG U.S. Stock Market Report November 1, 2024

U.S. stock futures rose as strong earnings reports from technology companies boosted market confidence

U.S. stock futures rose on Friday, driven by strong earnings reports from major technology companies. In after-hours trading, Amazon rose nearly 6% on strong growth in cloud computing and advertising, beating market expectations for its third-quarter results and showing the resilience of its diversified business. Meanwhile, Intel surged 7% on better-than-expected revenue and an upbeat sales outlook. In contrast, despite solid quarterly results, Apple’s shares fell nearly 2% on weak holiday season growth and warnings of ongoing challenges in the Chinese market.

Market drivers

1.⁠ ⁠Tech giants’ earnings boost: Strong performances from Amazon and Intel have brought investor confidence, and the tech sector’s ability to diversify its earnings has shown growth potential.
2.⁠ ⁠Apple’s cautious outlook: Despite Apple’s stable results, its outlook for slowing holiday season growth and challenges in the Chinese market has limited stock price performance, raising underlying concerns about the consumer electronics market.
3.⁠ ⁠Key jobs data release imminent: Investors are waiting for the October jobs report to get a sense of the health of the US labor market, which will provide more guidance on the future direction of Fed policy.

The previous day’s market performance

•⁠ ⁠Dow Jones: -0.9% lower, weighed down by earnings reports from tech giants, especially Microsoft and Meta.
•⁠ ⁠S&P 500: -1.86% down, reflecting concerns about rising costs and earnings pressures in the technology sector.
•⁠ ⁠Nasdaq Composite: -2.76% as poor expectations for tech companies weighed significantly.

Market outlook

•⁠ ⁠October Jobs Report: Today’s non-farm payrolls data will be the focus of the market’s attention, and any data that beats expectations could affect investors’ expectations for Fed policy.
•⁠ ⁠Follow-up earnings: There will still be a number of key companies reporting earnings in the coming days, especially the continued focus on the technology sector, and market sentiment volatility is likely to intensify.
•⁠ ⁠Macroeconomic risks: As uncertainty about inflationary pressures and the Fed’s policy path increases, investors need to be wary of possible volatility risks.

Investment strategy advice

At present, the market is affected by the alternation of technology earnings reports and macroeconomic data, and investors are advised to adopt a balanced layout strategy, focusing on sectors with growth potential and defensive attributes. Technology stocks are more volatile due to cost and earnings pressures, and it is recommended to diversify risks moderately in the short term.

20,320 points of resistance above the first line, 20,500 points of resistance above the second line,
The lower first line supports 20,000 points, and the lower second line supports 19,631 points.

Risk Disclaimer: This report is for informational purposes only and does not constitute financial advice. All investments involve risk and past performance is no guarantee of future results. Please consult your financial advisor for personalized investment advice.