The Nasdaq was last seen on track for a perfect week
The Dow Jones Industrial Average (DJI) spent most of the week stringing together record highs, despite some volatility along the way. The blue-chip benchmark saw four-straight record closes amid prolonged interest rate cut optimism, as investors worked through September’s services and manufacturing purchasing managers’ index (PMI) readings. Wall Street also brushed off dwindling consumer confidence following China’s stimulus measures, but the Dow ultimately snapped its win streak with a triple-digit loss.
The S&P 500 Index (SPX) also enjoyed tailwinds, nabbing its 42nd record close as stocks bounced after a big batch of upbeat economic data. The Nasdaq Composite (IXIC) was not left out of the fun, last seen on its way to a perfect week amid Micron Technology’s (MU) post-earnings surge and Nvidia’s (NVDA) rally. At last check, the three major benchmarks were on track for their third-straight weekly wins.
Big Week for Tech Sector
This week in tech, Palantir Technologies (PLTR) saw a downgrade from Raymond James, with the analyst noting the company needs to “grow into its rich valuation.” Intel (INTC) also made headlines after attracting a $5 billion offer from Apollo Global Management (APO), with Qualcomm (QCOM) also reportedly coming up as potential suitor. Meanwhile, Ciena (CIEN) stock popped following a rate double upgrade, and Broadcom (AVGO) made it to a list of stocks that attracted most weekly options volume in the last two weeks.
The big news this week was undoubtedly Micron’s report, though, which gave chip stocks including Advanced Micro Devices (AMD) a boost. Additionally, Barclays said Hewlett Packard Enterprise (HPE) is the best pick for a rebounding enterprise server market. For those looking to get in on the sector for cheap, Arlo Technologies (ARLO) and Applied Optoelectronics (AAOI) boast attractive entry points.
Retail Stocks to Watch
Retail stocks continued to capture investors’ attention, with Lowe’s (LOW) shares eyeing record highs following an upgrade at Oppenheimer to “outperform.” Costco Wholesale (COST) was near all-time highs as well before its quarterly report, while Jefferies cast doubt on Starbucks’ (SBUX) ability to turn around weak demand, even with a new CEO at the helm.
October Kicks Off With Ample Economic Data
Key manufacturing and services data, as well as the ADP employment report highlight the start of a new month next week. The earnings docket also features notable names, including Conagra (CAG), Constellation Brands (STZ), Levi Strauss (LEVI), and Nike (NKE). Before then, take a look at the best and worst sectors to invest in after SPX outperformance, and dig into bullish technical patterns that pointed to a big rally.