The Dow Jones Industrial Average just can’t be stopped. The venerable index, a bellwether for American industry, closed at a record high for the second day in a row. It was a day of mixed signals though, as the tech-heavy NASDAQ couldn’t keep pace and actually ended the day slightly down. So, is this a sign of things to come? Are we witnessing a changing of the guard where industrial giants reclaim their throne from the tech darlings that have dominated market sentiment for the past decade? Buckle up, folks, because the ride might be about to get bumpy.
Let’s dive deeper into some of the forces driving today’s market action. On the positive side, the American consumer continues to demonstrate resilience. Retail sales data for September came in hotter than expected, flashing a green light for the broader economy. This tells us the Fed may just be able to pull off its much-anticipated “soft landing,” taming inflation without sending the economy into a tailspin. Of course, the mainstream media would love for you to believe that everything is coming up roses… but that’s why you read Market Monitors. Because you know we’re not afraid to look beyond the headlines and give you the real story.
Now, let’s talk about those tech stocks. Taiwan Semiconductor Manufacturing (TSM), the behemoth chipmaker, posted a blowout earnings report. Revenues were up over 35%! Now, even a seasoned investor like myself has to be impressed by that sort of performance. This sent shockwaves through the sector, lifting the boats of chipmakers like Nvidia (NVDA) and Broadcom (AVGO). But don’t let the hype fool you. This is where things get interesting. Lurking beneath the surface of these seemingly positive earnings is a warning from a major Dutch supplier, ASML, indicating a potential slowdown in the chip sector. Could TSMC’s performance be a last hurrah before the curtain falls on the tech boom?
Speaking of potential warning signs, healthcare giant Elevance Health (ELV) took a beating after slashing its full-year profit forecast on account of… you guessed it… rising costs. This sent ripples of fear throughout the healthcare sector, pulling down fellow insurers like Molina Healthcare (MOH) and Centene (CNC).
Now for a quick look at today’s biggest winners and losers:
| Ticker | Closing Price | Change (%) |
|---|---|---|
| GEVO | $2.65 | +17.78% |
| ASPI | $4.04 | +15.43% |
| FOLD | $11.97 | +14.00% |
| IGMS | $16.03 | +13.13% |
| NPWR | $7.98 | +11.61% |
| ELV | $444.35 | -10.59% |
| MOH | $289.46 | -12.55% |
| BEKE | $19.47 | -11.22% |
| AMRC | $30.90 | -11.23% |
| WNS | $44.18 | -11.09% |
What To Watch Tomorrow
- Netflix Earnings: The streaming giant reports earnings after the bell tomorrow. Keep an eye out for subscriber growth numbers, as well as any commentary on the impact of their new ad-supported subscription tier. Is this a sign of a sea-change in how we consume our entertainment? And will it be enough to keep Netflix ahead of the pack?
- Chip Sector Volatility: TSMC may have posted stellar results, but ASML’s warning can’t be ignored. Will other chipmakers echo TSMC’s optimism, or are we headed for a downturn in the semiconductor industry? Remember, fortunes are made and lost on these sorts of seismic shifts.
- Inflation Data: The Producer Price Index (PPI) is a key measure of inflation, and tomorrow’s release is sure to be closely watched by the Fed. A hot PPI reading could spook the markets as it means more interest rate hikes are on the table.
That’s all for today. Remember, the key to success in the market is to stay informed, think critically, and never be afraid to zig when everyone else zags.
