Last week, as the major indexes were all bouncing off their 200-day SMA, we asked if that was the bottom. This week, it appears that perhaps we’ve got our answer. Markets moved decisively higher as CPI, Jobless claims, and retail sales numbers all helped to quell the recession fears that have recently reignited. In other news;
- CPI shows annual inflation rate slowing
- Jobless claims & retail sales surprise
- CMG CEO moves to SBUX
- Buffett takes stake in ULTA
- Discover the Correction Deniers
The large caps are now just a few percentage points shy of their all-time highs, with next week bringing important news from the Fed’s Jackson Hole meeting regarding PCE data due out on Friday. Let’s delve into the charts to assess how the markets are shaping up ahead of this potentially market-moving event.
Weekly Analysis
SPY (SPDR S&P 500)
The bid was relentless this week on the SPY ETF. With the bulls dug in at the year-to-date Anchored VWAP and Point-of-Control, the price was able to march decisively higher and close at $554.31 (+4.00%). In just two weeks, this index has managed to gain over 8% from the recent low, a thrust we’ve not seen the likes of since November of 2022.
QQQ (Invesco QQQ Trust)
Much like the SPY, the QQQ ETF managed to stack its gains for the second week in a row and close at $475.02 (+5.46%). Year-to-date buyers were again the key factor, front-running this week’s retest of the YTD Anchored VWAP and pushing this index to within 6% of its all-time high.
IWM (iShares Russell 2000)
Though the IWM ETF was the weakest performer of the group, gains were still made as buyers managed to step in at the year-to-date AVWAP and act as firm support to push this index to a close of $212.60 (+2.97%). This was a key level to hold, and now bulls need to stick the landing by making a new yearly high.
Earnings
Notable Results
AMAT (Applied Materials)
- EPS: $2.12 vs $2.02 est
- SALES: $6.78B vs $6.67B est
JD (JD.com)
- EPS: $1.29 vs $0.83 est
- SALES: $40.10B vs $40.83B est
DE (Deere & Co)
- EPS: $6.29 vs $5.85 est
- SALES: $13.15B vs $10.94B est
WMT (Walmart)
- EPS: $0.67 vs $0.64 est
- SALES: $169.34B vs $168.57B est
BABA (Alibaba Group)
- EPADS: $2.26 vs $2.13 est
- SALES: $33.47B vs $34.81B est
CSCO (Cisco)
- EPS: $0.87 vs $0.85 est
- SALES: $13.64B vs $13.54B est
CAH (Cardinal Health)
- EPS: $1.84 vs $1.73 est
- SALES: $59.87B vs $58.64B est
UBS (UBS Group)
- EPS: $0.34 vs $0.12 est
- SALES: $11.90B vs $11.30B est
NU (NU Holdings)
- Revenue Increased 65% YoY to $2.8B
- Added 5.2M Customers
- Net Interest Income Increased 77% to $1.7B
ONON (ON Holdings)
- EPS: $0.14 vs $0.17 est
- SALES: $568.00M vs $563.00M est
SE (Sea Limited)
- EPS: $0.14 vs $0.15 est
- SALES: $3.81B vs $3.72B est
HD (Home Depot)
- EPS: $4.67 vs $.50 est
- SALES: $43.18B vs $43.38B est
What’s Happening Now
GLD (SPDR Gold Trust)
Spot gold surged to a new high of $2,500 an ounce on Friday, driven by growing confidence in imminent interest-rate cuts. Adding fuel to the rally, GLD recently broke out of a 13-year monthly cup and handle pattern. Analysts now see gold potentially reaching $2,900, with a measured move suggesting a further 20% rally that could push prices into the $3,000 per ounce range.
SBUX (Starbucks)
Starbucks has boldly appointed Brian Niccol, former CEO of Chipotle, as its new CEO starting September 9, 2024. Niccol, credited with transforming Chipotle into a powerhouse, replaces Laxman Narasimhan, who stepped down amid pressure from activist investors. Analysts are flipping bullish on Starbucks, with buy upgrades and price target hikes suggesting up to 25% upside from Friday’s close.
QQQ (Nasdaq 100)
The Nasdaq 100 has surged 13.1% since bottoming out on August 5th, with semiconductors, especially NVDA, driving the gains. This rally coincides with Nancy Pelosi’s recent purchase of up to $5 million in NVDA stock at the end of July. In contrast, Google closed the week in the red amid reports that the U.S. government is considering breaking up the company to address its dominance in online search.
Believe it or not, this is just a fraction of what happened in the markets this week. For a full run down delivered straight to your inbox every weekend, sign up for The Official Trendspider Newsletter.
Market Update Into September 7th: Inflation Data Incoming