October 24, 2024

Markets:

Futures linked to the S&P 500 rose Thursday as the benchmark looks to rebound following three straight losing sessions. Strong earnings from Tesla and others led the gains.

Tesla surged 14% in the premarket after the electric vehicle manufacturer posted third-quarter results that beat analyst expectations. Whirlpool and Lam Research were also higher on the back of better-than-expected earnings by 4.7% and 5%, respectively.

Weighing on Dow futures was IBM, which fell more than 3% as consulting revenue narrowly missed analysts’ estimates. Boeing also weighed on the 30-stock index, as the company’s shares slipped more than 2% after its machinists rejected a new labor contract.

Lam Research – The stock rose more than 6% after the semiconductor equipment maker’s fiscal first-quarter figures beat Wall Street expectations. The company posted earnings of 86 cents per share on revenue of $4.16 billion, above the consensus estimate of 80 cents per share and revenue of $4.05 billion, per LSEG.

Treasury yields moved lower early Thursday, helping lift market sentiment after rising yields kept stocks under pressure this week. The 10-year Treasury yield topped the 4.25% threshold on Wednesday at the high of the session.

Initial filings for unemployment benefits receded last week as impacts faded from the recent hurricanes and the Boeing strike. Jobless claims for the week ending Oct. 19 totaled a seasonally adjusted 227,000, down 15,000 from the previous week’s upwardly revised level but well below the Dow Jones estimate for 245,000, the Labor Department reported Thursday.

Portfolio:

We enter this new session holding setups in WULF, MSTU, RKLB, HOOD, and TSLL. What we are watching today… QQQ 490 gap that was filled yesterday after 5 trading days and SPY filled the gap from last week just two days ago at the 581 level and that was the signal to go back long. TSLA has created a beautiful Island Bottom. Being up over 14% brings extreme excitement for a full week of earning reports next week. Again, narratives have completely switched by mid-day yesterday through this morning. This is way we state to be patient and trade the overall trend. The negativity we saw yesterday in emotion was clear the trap was set. This is why we continue to remind our community to not get sucked in with the day to day moves.

Watching levels today and price activity. Queue is firing this morning BUT, really curious to see the aggressiveness that can come in. As we stated last week, we expect a bit of turbulence over the next two weeks with a bit of derisking into the election. This is expected behavior, but TSLA might have changed the game. Overall, cannot stress this enough, the runway continues to build that will be outstanding after the election.