• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Stocks Regain Some Ground Amid Rising Yields, Gold Prices, US Dollar
Stock

Stocks Regain Some Ground Amid Rising Yields, Gold Prices, US Dollar

by October 22, 2024
by October 22, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The overall trend in the stock market’s broader indexes remains bullish. While the indexes were trading lower on Tuesday morning, they rebounded and ended the day relatively flat. The S&P 500 ($SPX) and Dow ($INDU) closed slightly lower, and the Nasdaq Composite ($COMPQ) closed a little higher.

Consumer Staples Sector Leads

Philip Morris International (PM) reported better-than-expected earnings, which increased the stock by 10.46% on Tuesday, making it the top performer in the S&P 500 (see MarketCarpet below). Walmart (WMT) was another stock that helped the Consumer Staples sector secure the top spot in Tuesday’s S&P 500 sector performance. WMT is the heaviest-weighted stock in the Consumer Staples sector, and it closed up by 1.51%, notching an all-time high.

FIGURE 1. MARKETCARPET FOR OCTOBER 22. Consumer Staples was the best-performing sector, mainly due to strong earnings from Phillip Morris.Image source: StockCharts.com. For educational purposes.

It’s worth viewing a daily chart of the Consumer Staples sector using the Consumer Staples Select Sector SPDR ETF (XLP) as a proxy.

FIGURE 2. DAILY CHART OF CONSUMER STAPLES SELECT SECTOR SPDR FUND (XLP). Although it was Tuesday’s leading sector, overall, it’s been trending lower. The S&P Consumer Staples Bullish Percent Index and its relative performance against the S&P 500 confirm the lack of momentum in this sector.Chart source: StockCharts.com. For educational purposes.

After hitting a high in mid-September, XLP has been trending downward within a channel. The S&P Consumer Staples Bullish Percent Index ($BPSTAP) is also trending lower, approaching the 50 level. A move below 50 would be bearish for the sector. XLP’s relative performance with respect to the S&P 500 is at -5.34%.

Overall, even though XLP was the highest sector performer on Tuesday, indicators point to a slightly weakening sector.

Tech Leads In One-Month Performance

If you look at a one-month performance of the 11 S&P 500 sectors, XLP sits in the bottom three. Technology is the leading sector in one-month performance. The Technology Select Sector SPDR ETF (XLK) is in a consolidation similar to the Nasdaq Composite ($COMPQ).

The Nasdaq has been moving sideways for the last week, but saw some action on Tuesday afternoon. If you look at the chart below, you can see the Nasdaq managed to maintain the support of the triangle and broke out above resistance. It looks like the Nasdaq wants to spring to the upside; it’s only 0.4% from its high. Maybe it’s pre-earnings anxiety. Most of the mega-cap tech stocks will be reporting quarterly earnings next week, so it could be getting a head start.

FIGURE 3. DAILY CHART OF NASDAQ COMPOSITE. The Nasdaq is in a narrow consolidation at the apex of a triangle. Which way will it break out? Look for the breadth indicators to confirm the direction.Chart source: StockCharts.com. For educational purposes.

The three breadth indicators—the Nasdaq Composite Bullish Percent Index ($BPCOMPQ), the percentage of Nasdaq stocks trading above their 200-day moving average ($NAA200R), and the Nasdaq Advance-Decline line (!ADLINENAS) in the lower panels—aren’t confirming the uptrend, although that could change if the Nasdaq gains momentum and roars higher.

Top of the News: Yields, Gold, US Dollar

Overall, it was a relatively quiet trading day in equities. With Tech earnings, key economic data, the presidential election, and a Fed meeting in the next two weeks, you’d expect a lot of uncertainty. Yet the CBOE Volatility Index ($VIX) is relatively low at 18.20.

The uncertainty was felt in other areas of the market. The benchmark 10-year US Treasury yield ($TNX) closed at 4.21%, gold prices ($GOLD) closed at a record high again, and the US Dollar Index ($USD) continues to strengthen.

The Bottom Line

Until the “uncertainties” become “certainties,” it may not make sense to add positions. Instead, focus on managing your open positions. Engage with the stock market by monitoring the StockCharts Sector Summary and MarketCarpets to see which sectors investors gravitate towards so you know how to allocate your portfolio.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • These 4 Chinese Stocks are Worth a Look
  • When Uncle Utilities (XLU) Shows Up Drunk
  • The Best Five Sectors (1)
  • Technology Sector Participation Is Fading
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Elon Musk, Tesla, Warner Bros. Discovery sued over alleged ‘Blade Runner 2049’ AI ripoff for Cybercab promotion
next post
DISCOVER the Top Consumer Discretionary Stocks

You may also like

The Titanic Syndrome Indicator Issues a WARNING!

February 21, 2024

Rocks over Stocks | GoNoGo Show 041824

April 18, 2024

DP Trading Room: Upside Initiation Climax?

March 17, 2025

With The Top 10 Picks In The Stock Market DRAFT,...

February 19, 2024

End of Quarter NASDAQ 100 Pile-On

June 24, 2024

Cybersecurity Makes Yet Another Statement

January 31, 2025

Are You Ready for a Huge Selloff?

August 19, 2023

Growth Sectors Tumble as Defensive Plays Post a Strong Finish

October 14, 2023

Tech Stocks Plunge: What This Means for Investors

November 16, 2024

This Report Might Self Destruct in 5 Days

April 11, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,631 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Stocks Tentatively In a Trend but...

    February 23, 2023

    Technology Sector Participation Is Fading

    June 6, 2024

    Common Lessons Amongst Corporate, Sports &...

    January 12, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here