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Happy Thursday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟨 | US stocks were mixed Thursday. The Dow fell to its first four-day losing streak since June, while the S&P 500 and Nasdaq bounced back on the strength of… well, keep reading.
📈 | One Notable Gainer: Tesla (TSLA) put the pedal to the metal, surging nearly 22% to its best day in more than a decade, on CEO Elon Musk’s “best guess” that vehicle growth could reach 30% next year.
📉 | One Notable Decliner: Keurig Dr Pepper slumped almost 5% on news it will buy energy drink bit player Ghost for $1B.
🎧 | Tomorrow's Trade: Streaming Wars Wrapped. Keep scrolling for more, or read on our site.
Plus, most people fail to diversify their investments. The solution? Two fingers, neat…
GO DEEPER
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S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
MOH (+17.6%) Molina Healthcare beats third-quarter profit estimates on higher premiums (Reuters)
HAS (-6%) Hasbro to layoff about 100 employees as it considers potential move to Boston (NBC)
IBM (-6.2%) IBM Posts Soft Revenue Growth as Consulting Woes Continue (Bloomberg)
WST (+15.4%) West Pharmaceutical Services Shares Rise after Raising 2024 Outlook (MarketWatch)
HON (-5.1%) Honeywell Earnings Beat Estimates. Why the Stock Is Down. (Barron’s)
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OVERHEARD ON THE STREET
FT: Striking machinists rejected Boeing’s latest contract offer, dealing a blow to the new CEO’s plan to stabilize business.
YF: The number of Americans filing for first-time unemployment benefits fell to a three-week low.
Fox: Mortgage rates have climbed higher for a month straight, reaching nearly 7% again, and exacerbating the housing affordability crisis.
NYT: Southwest Airlines struck a deal to avoid a proxy fight with an activist investor shareholder, and will appoint six new directors to its board.
Bloomberg: CEO Elon Musk bragged most Tesla vehicles are “capable of autonomy”, but no fully autonomous vehicles have been shipped yet.
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TOMORROW’S TRADE IDEA, TODAY
Streaming Wars Wrapped
We Have a Winner
The music streaming wars are over. The top artist? Spotify (SPOT).
The stock is now consolidating just below its all-time highs. And it has a chance to break through following its upcoming earnings on November 12, according to CNBC’s Todd Gordon.
Topping the Charts
The stock has had a remarkable run since July, rising from $343 per share to $376 at today’s close, just below its 2021 record close of $387.
Gordon’s technical analysis finds that the stock is currently sitting in a neutral position within a trend channel, with the potential to move upwards. A bull-flag pattern has emerged just below $387, which represents an increase in volume.
That, Gordon argues, could be the catalyst for a breakout.
Asserting Streaming Dominance
On the fundamental side, Spotify’s earnings growth has also been stellar.
In 2022, it was losing more than $3 per share. In 2024, it’s earning more than $6 per share. And its estimated EPS for 2025 sits at $9.06.
Spotify is also beginning to explore new avenues for monetization and growth. These include different ad tiers and AI-powered content recommendations.
Earlier this week, another industry leader across the streaming sector reasserted its dominance with strong earnings: Netflix (NFLX). Its stock surged in response. If the charts are any indication, Gordon believes the same fate may await Spotify.
TOGETHER WITH THE OXFORD COMMUNIQUE
The Fed's rate cut has sparked a massive opportunity in AI stocks, and today’s sponsor, Alex Green, is revealing his "Next Magnificent Seven" stocks he believes could turn $7,000 into $1 million in just six years.
ON OUR RADAR
CNBC: A French trader bet more than $28M on an electoral win by former President Donald Trump using four separate Polymarket accounts.
NYT: Will Biden’s bet on Intel backfire? The White House’s plan to rejuvenate US-based chipmaking relies on a company plagued by lay-offs and delays.
FT: A Dutch court ruled Heineken is liable for competition violations by its Greek subsidiary, potentially exposing it to hundreds of millions of euros in damages.
MarketWatch: Investors are anxious about a potential Republican electoral sweep.
ABC: CVS union workers in Southern California have reached a tentative contract agreement following a weekend strike.
WEDNESDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 🐂 Bullish
🟨🟨🟨🟨🟨⬜️ 🐻 Bearish
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