Stocks are expected to take inspiration from the bond market over the coming week as investors assess earnings from leaders Apple, Microsoft and Alphabet. Strategists continue to watch market trading patterns for signs that a bottom is forming after the Oct. 13 washout, when the market first fell and then surged following a report on the September consumer inflation hotter than expected. Some strategists also say it looks like Treasury yields have peaked – at least temporarily – and that could help stocks. Stocks were higher last week despite a sharp rise in Treasury yields. The closely watched benchmark 10-year yield hit a high of 4.33% on Friday, before falling back to around 4.21%. The yield soared, after ending the previous week at 4.02%. All three major averages closed higher on Friday, with the S&P 500 adding 2.37% to close at 3,752.75. The Nasdaq Composite gained 2.31% to end at 10,859.72. The Dow Jones Industrial Average gained 748.97 points, or 2.47%, to 31,082.56. “Even though we are only three weeks away from the month, we are ahead of the average [stock market] volatility in October of 50%,” said CFRA chief market strategist Sam Stovall. ‘ now.” Stovall said the S&P 500 had six positive moves of 1% or more in the past 17 trading days, as of Friday. “And five of them were up more than 2%. Each of those strong jumps was then hit by a series of negative days,” he said. “Often, the volatility of this standoff is a signal that a bottom is forming.” Strategists looked for signs of the market. Treasury yields reversed some of their rapid rise on Friday after the Wall Street Journal published a story suggesting the Fed may be considering a lower rate. San Francisco Fed President Mary Daly made a similar comment on Friday, saying the Fed is close to a point where it should consider slowing rate hikes. This could be good for stocks. “Yields will have a direct impact on earnings going forward, and yields will also impact the depth or depth of a recession,” Stovall said. “Yields are always key. That’s why the market is rallying [Friday] because of the index that the Fed may be looking at a 50 basis point hike in December, not 75.” (One basis point equals 0.01 percentage point) AmeriVet Rate Strategist Greg Faranello said it’s possible the 10-year yield hit a temporary peak on Friday morning.”If you look at momentum and volatility, you can convince yourself that they peak at and around those levels. . Generally, the declines have also been very steep,” Faranello said. He said the yield might hold and start to come back down, but that doesn’t mean it’s a longer-term top. “, he said, noting that the Bank of Japan and the European Central Bank are holding rate meetings on Thursday. The Federal Reserve will then hold its next meeting the following week, on Tuesday and Wednesday, November 2 and 3.” It’s the level of interest rates that drives equities,” said Gargi Chaudhuri, head of BlackRock’s iShares investment strategy for America. “I’d love to say that’s going to be the earnings trajectory, but frankly, that’s not what we’re seeing. These are not micro-markets these days. This is the macro. jerky exchanges as estimates are revised downwards. Stovall points out that expectations for third-quarter earnings have gradually weakened. “In fact, on June 30, expectations were for a 10% gain in earnings. As of September 30, it was a 3% gain, and now it looks like it will be a 2% gain,” said Stovall. He said technology profits are expected to fall 4%, but system software is down nearly 7% “Internet retail and direct market profits are expected to fall 42%,” he said. he added. “Earnings are going to be tough,” Stovall said. “I’ll be watching earnings to see what the companies are talking about in terms of…the margin pressures they’re feeling, how the higher, stronger dollar has impacted their business,” he said. she declared. I will also be looking into hiring plans or if there are any job freezes. There’s no need to pull plans, but is there anything to be taken away from companies looking to freeze hiring.” The S&P 500 is down as low as 3,491. “We could have a buying period in the market, a sentiment-based technical change that could lead a lot of people to buy,” she said. minimal volatility that reduces downside risk. Technically speaking, T3Live.com partner Scott Redler said he was watching a formation in the S&P 500 that could be positive. The S&P was in the zone around 3,735 at the end of the week, which would be the neckline in an inverted head and shoulders pattern in the index. He said the shoulder has been building all week. If completed, the pattern is positive for forward momentum, just like the traditional head and shoulders pattern is negative. He’s watching short-term technical trends and he expects Friday’s action on the 10-year yield to signal a temporary high in interest rates. “There’s been a bit of a sellout in TLT [the iShares 20+ year Treasury ETF ]. It’s like feeling [Friday] put in a short-term bottom,” he said. It would help next week. “He said the big profits from the technology will be significant,” he said. His first target for the S&P 500 is 3,800. “I think a really tough spot would be 3,900,” he said. He noted that it was positive that banks have been participating in the rally since the earnings release. “The energy is actually erupting again,” he said. -Cola, UPS, 3M, Raytheon Technologies, JetBlue, Archer Daniels Midland, Cleveland-Cliffs, General Electric, General Motors, Chubb, Chipotle Mexican Grill, Boyd Gaming, Enphase Energy, Ameriprise, UBS, Novartis, SAP, Biogen, Corning, Kimberly-Clark, PulteGroup, Synchrony Financial, Centene, Valero Energy, Polaris, HSBC, Moody’s, Sherwin-Williams, MSCI, Juniper Networks 9:00 a.m. S&P/Case-Shiller Home prices in August 9:00 a.m. FHFA Home prices real estate in August 10:00 October consumer confidence Wednesday Profits: Boeing, Meta Platforms, Ford, Bristol-Myers Squibb, General Dynamics, Kraft Heinz, Penske Auto Group, Harley-Davidson, Norfolk Southern, Seagate Technology, Brink’s, Hess, Wingstop, Waste Management, Molina Healthcare, O’Reilly Automotive, SLM, United Rentals, Raymond James, Canadian Pacific, Flex, Olin, Pilgrim’s Pride, Ethan Allen, Fortune Brands, Frontier Group, Teladoc Health, Samsung Electronics, Vale, Weyerhaeuser, Southwestern Energy, Hartford Financial, Mohawk Industries, Capital One, First Solar, Yamana Gold, Edwards Lifesciences, Eastman Chemical 8:30 a.m. Leading Economic Indicators 10:00 a.m. September New Home Sales Thursday Profits: Apple, Amazon, Intel, McDonald’s, Merck, Caterpillar, Honeywell, Northrop Grumman, Comcast, Anheuser-Busch, Mastercard, Gilead Sciences, T. Rowe Price, Hertz Global, Ambev, PG&E, Travel + Leisure, Textron, Southern Co, Carrier Global, BorgWarner, Lazard, Oshkosh, Reliance Steel, AutoNation, Southwest Air, Altria, American Tower, International Paper, Shopify, S&P Global, Sonic Automotive, Tradeweb Markets 8:30 a.m. Initial weekly jobless claims 8:30 a.m. September durable goods 8:30 a.m. Q3 real GDP (advance; preliminary first) Friday results: Exxon Mobil, Chevron, Colgate-Palmolive, LyondellBasell, Newell Brands, Booz Allen Hamilton, Bloomin’ Brands, Church and Dwight, AbbVie, AllianceBernstein, Equinor, Airbus, WW Grainger, DaVita 8:30 am September staff income and spending 8:30 a.m. 3rd quarter employment cost index 10:00 a.m. September housing pending 10:00 a.m. October Consumer sentiment
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