Stock market news was mixed through the first full week of November. The Nasdaq clocked a 3% decline, its worst week since the Trump administration’s ‘Liberation Day’ tariff announcements in early April. The S&P 500 fell a more modest 1.6%, a lesser fall than in its last down week, ended Oct. 10. The upside was that both indexes found support at their 50-day/10-week moving averages. Hinting, just maybe, at a possible rebound in what promises to be a very busy coming week.
Dow stocks Cisco Systems (CSCO) and Walt Disney (DIS) headline the earnings calendar, which also includes important reports from some key nuclear power and space technology names, such as Oklo (OKLO) and RocketLab (RKLB). Congress will be in the spotlight as it attempts to engineer an end to the federal shutdown, a move which could stir the stock market. On the lighter side, Netflix (NFLX) is set to launch its first pocket theme park just outside of Philadelphia.
Stock Market Watch: Put Relative Strength To Work
With the market struggling, investors should be cautious about new buys, but still looking for stocks setting up and showing relative strength. Valero Energy (VLO), Deutsche Bank (DB), CrowdStrike (CRWD), Eli Lilly (LLY) and Broadcom (AVGO) are just a few examples, from a variety of sectors, of stocks with those characteristics. Valero Energy is actionable, as low oil prices and steady gas prices drive refinery profit. CrowdStrike is also currently actionable, holding its ground in a tough week for tech stocks. Deutsche Bank is setting up after taking a break from this year’s 113% advance. Eli Lilly has rallied past one entry and working toward record highs, after a 14-month consolidation.
Cisco, CoreWeave, Nebius Headline Parade Of AI Infrastructure Earnings Reports
Econ: Is Congress Getting Off Its Duff?
The government shutdown may be nearing resolution amid air traffic disruptions and as the potential toll of lost benefits grows urgent. The Senate planned a key vote Friday. Republicans promised a vote on subsidies set to expire at year end, threatening sharp increases in Affordable Care Act costs. Senate Democrats pitched a one-year extension of the subsidies. Meanwhile, the White House sought a stay of a federal judge’s order to pay out Supplemental Nutrition Assistance Program benefits. The shutdown will likely cancel official government economic releases in the coming week, including the consumer price index, producer price index and retail sales for October.
How To Read Stock Charts
Dow Stocks: A Look Inside The Data Center Craze
Cisco Systems reports fiscal Q1 earnings Wednesday. Analysts see an 8% earnings gain, with revenue up 7%. Server growth tied to artificial intelligence data centers will be key, as well as an update on Cisco’s partnership in UAE to provide end-to-end AI Infrastructure (servers, switches, security, optics). There’s speculation Cisco could be facing more competition in AI networking from startup Nexthop.ai. In the July quarter, Cisco said AI network infrastructure orders exceeded $800 million, up from $600 million in the previous quarter. It had $2.1 total billion AI orders at the end of July, up from $1.3 billion AI orders at the end of April.
Energy Markets: Checking In On The New Nukes
Nuclear startup Oklo — a long way from profitable, but up around 470% this year — reports third-quarter financials late Tuesday. Investors want to know when it plans to bring its first commercial small modular reactor online. Meanwhile, Germany’s Siemens Energy (SIEGY), up 44% this year, reports fiscal fourth-quarter earnings and revenue Thursday.
Dow Stocks: The Magic Kingdom’s Do-Over
Walt Disney’s Q4 results on Thursday will focus on the ongoing turnaround strategy. Analysts expect an 8% EPS drop, the first earnings slip in at least eight quarters. This will be the final quarter in which Disney reports subscriber numbers and average revenue per user for Disney+ and Hulu. For Disney’s parks business, Wall Street expects revenue of $7.869 billion and operating income of $1.280 — both well below the prior quarter. Disney shares are flat, for now, in a volatile year.
Entertainment: Arcades Get An Upgrade
The expanding internet television network Netflix launches its first major in-person attraction on Wednesday at a shopping mall in King of Prussia, Pa. It’s the first of three planned Netflix House attractions, with others slated for Dallas and Las Vegas. Netflix House will feature immersive experiences and games based on Netflix shows like “Wednesday,” “Stranger Things” and “Squid Game.” It also will offer themed food at Netflix Bites.
Aerospace: Chasing The Space Economy
Space industry innovators RocketLab, AST SpaceMobile (ASTS), and Firefly Aerospace (FLY) are due to report in the coming week. All operate at a loss, leaving investors focused on revenue growth, execution, and cash burn management. Rocket Lab, the largest of the three, is projected to post $151.8 million in revenue and losses of $55.4 million, FactSet says. AST SpaceMobile expects quarterly revenue of $20.5 million, up from $1.2 million in the second quarter. AST this month signed a 10-year deal with the Saudi Arabian telecom company stc group to provide wireless services. That followed Verizon’s deal to use AST’s satellites to provide U.S. cell service. Analysts still expect AST to be $84 million in the red.
Stock Market Earnings Briefs
CoreWeave (CRWV) reports Q3 earnings Monday. Analysts expect an adjusted per-share loss of 40 cents and revenue of $1.286 billion amid massive data center build-outs. The company recently terminated its proposed $9 billion acquisition of Core Scientific (CORZ). CoreWeave is among a wave of “neoclouds” that includes NebiusNBIS, Lambda and Nscale. Neoclouds build data centers from scratch for AI workloads.
Softbank (SFTBY) has been on a tear since a June breakout. The Japan-based telecom and tech giant reports fiscal Q2 results Tuesday. Analysts see a 79% earnings drop, after two quarters of triple-digit gains. Investors will want to know more about the firm’s $22.5 billion investment in OpenAI. Shares are up more than 110% since June.
Sea Limited (SE) reports third-quarter earnings Tuesday. FactSet analysts see the Southeast Asia e-commerce leader’s earnings rising 200%. Revenue is expected to climb 30%. Sea stock has rallied nearly 300% since the start of 2023. But shares have pulled back in recent weeks due to growing e-commerce competition in Latin America.
Nu Holdings (NU), the parent of NuBank, Latin America’s largest fintech, reports Wednesday. The company is expanding core markets like Brazil, Mexico, and Colombia and has applied for a U.S. national bank charter. Consensus views see a 19% revenue gain and a 45% year-over-year jump in earnings, according to FactSet. Wall Street expects total assets under management of $57.45 billion, down from $62.73 billion in Q2. Shares are below a buy point in a flat base.
Grail (GRAL), a cancer-screening specialist and Illumina spinoff, will report its third-quarter earnings late Wednesday. Analysts expect losses to widen to $3.35 a share while sales increased 18% to $33.9 million in sales. Shares are up 346% this year, despite a pullback from an Oct. 20 high.
Other key industries/areas with companies due to report during the week:
Gold/Silver Miners
Anglogold Ashanti (AU) (Tuesday), Pan American Silver (PAAS) (Wednesday), Hudbay Minerals (HBM) (Wednesday)
Cryptocurrency Miners
Bitdeer (BTDR) (Monday), TeraWulfWULF (Monday), Hive Digital Technologies (HIVE) (Nov. 17)
Israel-based Companies
Tower Semiconductor (TSEM) (Monday), Nice (NICE) (Thursday)
Companies Based In China
Tencent Music Entertainment (TME) (Wednesday), Tencent Holdings (TCEHY) (Thursday), Bilibili (BILI) (Thursday), JD.com (JD) (Thursday), Canadian Solar (CSIQ) (Thursday), NetEase (NTES) (Nov. 20)
IBD reporters Allison Gatlin, Ryan Deffenbaugh, Patrick Seitz, Reinhart Krause, Kit Norton, Jed Graham, Juan Arancibia and Paolo Confino contributed to this report.
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