U.S. Markets Rebound Ahead of Election, FOMC Announcement Thursday
After finishing the week lower on Friday, U.S. stock-market benchmarks saw impressive gains to start the week with all three major U.S. indices closing in the green. Markets were pressured by growing COVID data last week while the continued stream of strong economic reports looks to support markets this week.
On Tuesday, the U.S. election is set to take place with U.S. markets remaining open for the day while the latest Federal Open Market Committee is set to take place on Wednesday and Thursday. Earnings season remains in full swing with over 500 Q3 corporate earnings set to release this week. Atop the list of notable earnings are reports from Alibaba, Uber, Qualcomm, Marathon Oil, and CVS. Key economic reports to release this week include October ADP employment and September Trade deficit on Wednesday, October unemployment rate and average hourly earnings on Friday.
With the market prone to further corrections after having recently broken through the $340-342 support levels, the next level of support is set at $318. Our latest models are projecting the SPY to trade in the range of $318-$360 and we will look to be buyers into any short-term corrections. We continue monitoring VIX levels as the market can overshoot support and resistance levels when VIX is trading near the $40 level. As always, we encourage all market commentary readers to maintain clearly defined stop-levels for all positions. For reference, the SPY Seasonal Chart is shown below:
Key U.S. Economic Reports/Events This Week
- Factory Orders (September) – Tuesday
- Motor Vehicle Sales (October) – Tuesday
- ADP Employment (October) – Wednesday
- Trade Deficit (September) – Wednesday
- Weekly Jobless Claims (10/31) – Thursday
- Productivity (Q3) – Thursday
- Unit Labor Costs (Q3) – Thursday
- FOMC Announcement – Thursday
- Unemployment Rate (October) – Friday
- Average Hourly Earnings (October) – Friday
- Wholesale Inventories (September) – Friday
- Consumer Credit (September) – Friday
- AMC – AMC Entertainment – Monday
- CDW – CDW – Monday
- CLX – The Clorox Company – Monday
- L – Loews – Monday
- LL – Lumber Liquidators – Monday
- MPC -Marathon Petroleum – Monday
- PYPL – PayPal – Monday
- WM – Waste Management – Monday
- EXC – Exelon – Tuesday
- GWPH – GW Pharmaceuticals – Tuesday
- HUM – Humana – Tuesday
- PRU – Prudential Financial – Tuesday
- SYY – Sysco – Tuesday
- W – Wayfair – Tuesday
- ALL – Allstate – Wednesday
- FIT – Fitbit – Wednesday
- GDDY – GoDaddy – Wednesday
- H – Hyatt – Wednesday
- MRO – Marathon Oil – Wednesday
- MET – MetLife – Wednesday
- QCOMM – Qualcomm – Wednesday
- WEN – Wendy’s – Wednesday
- ZNGA – Zynga – Wednesday
- BABA – Alibaba Group – Thursday
- BKNG – Booking Holdings – Thursday
- CZR – Caesars Entertainment – Thursday
- CAH – Cardinal Health – Thursday
- D – Dominion Energy – Thursday
- DUK – Duke Energy – Thursday
- EA – Electronic Arts – Thursday
- GM – General Motors – Thursday
- GRPN – Groupon – Thursday
- LYV – Live Nation Entertainment – Thursday
- PZZA – Papa John’s – Thursday
- PTON – Peloton International – Thursday
- RMAX – Re/Max Holdings – Thursday
- ROKU – Roku – Thursday
- SQ – Square – Thursday
- TMUS – T-Mobile US – Thursday
- TRIP – TripAdvisor – Thursday
- UBER – Uber Technologies – Thursday
- YELP – Yelp – Thursday
- ZG – Zillow Group – Thursday
- CVS – CVS Health – Friday
- HSY – Hershey – Friday
- HMC – Honda – Friday
- MAR – Marriott International – Friday
- TM – Toyota Motor – Friday
- VIAC – ViacomCBS – Friday
(Want free training resources? Check our our training section for videos and tips!)
For reference, the S&P 10-Day Forecast is shown below:
Using the “^GSPC” symbol to analyze the S&P 500 our 10-day prediction window shows a near-term mixed outlook. Prediction data is uploaded after the market closes at 6 p.m. CST. Today’s data is based on market signals from the previous trading session.
Breakthrough, high-tech Artificial Intelligence platform available to Tradespoon’s individual investors:
Click Here – To See Where AI Places My Money
Tuesday Morning Featured Symbol
Our featured symbol for Tuesday is Alphabet Inc. (GOOGL). GOOGL is showing a steady vector in our Stock Forecast Toolbox’s 10-day forecast.
The stock is trading at $1624.32 with a vector of -1.54% at the time of publication.
10-Day Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
Note: The Vector column calculates the change of the Forecasted Average Price for the next trading session relative to the average of actual prices for the last trading session. The column shows the expected average price movement “Up or Down”, in percent. Trend traders should trade along the predicted direction of the Vector. The higher the value of the Vector the higher its momentum.
*Please note: At the time of publication Vlad Karpel does have a position in the featured symbol, GOOGL. Our featured symbol is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his money in paid subscription services. If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, or MonthlyTrader recommendations. If you are interested in receiving Vlad’s picks, please click here.
West Texas Intermediate for Crude Oil delivery (CL.1) is priced at $37.38 per barrel, down 5.53% at the time of publication.
Looking at USO, a crude oil tracker, our 10-day prediction model shows positive signals. The fund is trading at $27.11 at the time of publication. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The price for the Gold Continuous Contract (GC00) is down 1.80% at $1,877.40 at the time of publication.
Using SPDR GOLD TRUST (GLD) as a tracker in our Stock Forecast Tool, the 10-day prediction window shows mixed signals. The gold proxy is trading at $178.55, at the time of publication. Vector signals show -0.25% for today. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The yield on the 10-year Treasury note is down, at 0.804% at the time of publication.
The yield on the 30-year Treasury note is down, at 1.596% at the time of publication.
Using the iShares 20+ Year Treasury Bond ETF (TLT) as a proxy for bond prices in our Stock Forecast Tool, we see mixed signals in our 10-day prediction window. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.
The CBOE Volatility Index (^VIX) is $32.46 at the time of publication, and our 10-day prediction window shows mixed signals. Prediction data is uploaded after the market close at 6 p.m., CST. Today’s data is based on market signals from the previous trading session.