foxex: All-Time Highs

Monday, October 28, 2019

All-Time Highs

Chart Advisor | Focus on the Price

By Gordon Scott, CMT

Monday, October 28, 2019

1. Stocks Closed at their All-Time Highs

2. Tech Stocks Lead the Way

3. Apple's Investors May Have Gotten Ahead of Themselves

Market Moves

The S&P 500 (SPX) and the Nasdaq 100 (NDX) both closed at new, all-time highs today. Tech stocks outperformed others as Invesco's Nasdaq 100-tracking ETF (QQQ) rose nearly one percent today. By comparison the S&P 500 closed just over one-half percent higher. The Dow Jones Industrial Average (DJX) and the Russell 2000 (RUT) small-cap index moved higher as well, though neither of them broke above their all-time high prices. After hours, Google (GOOGL) reported earnings featuring a number that beat top-line estimates but missed on profits, suggesting that today's rally may be tested tomorrow.

Tech Stocks Lead the Way

Within the Nasdaq 100, several semiconductors stocks moved higher today including Intel (INTC), Lam Research (LRCX), Applied Materials (AMAT) and others, along with Microsoft (MSFT) which gapped higher on news that the company had won a contract from the U.S. Department of Defense for cloud computing solutions. On Google's mixed news, investors had sold the stock down as much as five percent, however during the company's conference call the stock price recovered most of that drop. With that in mind investors will likely shrug off the news tomorrow as they wait for the Fed announcement on rates the following day.

Gap Between Equity Outflows and Bonds, Cash Is Highest Since 2008

Apple Earnings: What to Look For

Apple's Investors May Have Gotten Ahead of Themselves

Shares of Apple (AAPL) have had a stunning rise since the stock initially dropped after the last earnings announcement. It may be possible that investors could be in for a similar dynamic later this week. The stock has risen over twenty percent in the quarter. It's not impossible that the response to the newly released iPhone 11 will lead the company to beat earnings estimates, however it is unlikely that they numbers will represent much more than a 20 percent increase in sales over the best numbers in the company's history. However, the company's other initiatives, Apple TV and Apple Card will show some impact this quarter, and perhaps investors anticipate these services will perform beyond expectations. This or other outcomes are certainly possible, however considering the mixed news from other companies so far, it would make Apple a significant outlier, and this means that investors may be expecting too much from the report on Thursday.

The Bottom Line

Stocks reached new all-time highs with technology stocks leading the way. Google's earnings were only a bit uninspiring so the market may not give back it's high-water mark tomorrow. If neither the Fed nor Apple provides significant disappointment in their scheduled reports later this week, the market could continue higher.