NDW Morning Pulse
Below are highlights from the NDW Morning Update Video for the morning of 10/26. Access the video on the NDW Morning Update Video page.
- US equity futures are higher this morning with the Nasdaq leading the way to upside, up around 40 bps. Meanwhile, gold, silver, and crude oil futures are lower.
- US indices were up across the board yesterday. The Nasdaq-100 (NDX) led the market higher, gaining 1.09% while the S&P 500 (SPX) was up 70 bps. It was a strong day for semiconductors as the iShares Semiconductor ETF (SOXX) was up almost 3%.
- Crude oil was down almost 1.5% on Monday, but is still trading above $100/bbl.
- Yesterday’s research focused on the rotation out of technology and into defensive stocks this month. The Consumer Staples Select Sector SPDR ETF (XLP) is up more than 9% this month, outperforming technology by more than 14%.
- The Fed will wrap up its October meeting tomorrow. The market is currently pricing in about a 90% chance that it will leave the Fed funds rate unchanged at this meeting. But, the market is still pricing in nearly an 80% chance of at least one more 25 bps increase by the end of the year, meaning that a December rate hike is the likely outcome in the market’s estimation.
- Visa (V), Coca-Cola (KO), and Boeing (BA) are among the major names reporting earnings today.
- V is 5 for 5’er and sits on four consecutive buy signals on its default chart but has recently moved into heavily overbought territory. The stock also sits about 10% away from its nearest level of support st $360.
- KO is a 4 for 5’er that sits on a string of eight consecutive buy signals dating back November of last year. KO currently sits at $92 on its trend chart with initial support at $86, a level from which the stock has rallied twice since August.
- BA is the weakest of the three – a 0 for 5’er that sits on three consecutive sell signals and its currently testing its 2026 lows.
