Tech Stocks Hit, Yields Plunge As AI Trade Fizzles: NTAP, AMGN, NDAQ In Focus — Stock Market Today

[00:00:00] Speaker ?: Субтитры сделал DimaTorzok [00:00:30] Speaker 1: Good afternoon, everyone, and welcome to Stock Market Today for Thursday, October 22nd. It's Alyssa Coram along with Ken Shreve here. And a tough day in the market, particularly for tech stocks and the NASDAQ composite plunging on the day. The S&P 500 also getting hit. We'll get to the index action and some earnings movers out after the closing bell. But, Ken, what stocks should we focus on today? [00:00:57] Speaker 2: Well, I want to talk about a high-profile technology stock that actually held up pretty well. And that's going to be NetApp, N-T-A-P. That was sort of a, well, it just acted, traded very well today. So that was sort of stuck out like a sore thumb, NetApp. And then I'm going to take a look at health care. There were just a lot of health care stocks working today on a tough day for semiconductor stocks. So take a look at Amgen, A-M-G-N. And then strong earnings from NASDAQ. Not the index, but the NASDAQ exchange, N-D-A-Q. I lost your audio. I can't hear you. [00:01:44] Speaker 1: Thank you. I was saying nothing like having to sneeze when you're live on air. And then, to make matters worse, forgetting to unmute yourself. But at any rate, we are seeing the NASDAQ composite now down a whopping 2.6% on the day here. Now back down to that 26,000 level, Ken, and below the low from just four trading sessions ago. Meanwhile, the S&P 500 down 1.2% on the day. Not as bad of a look here. It's still holding above the low from four days ago. But expectation breaker after the setup day that we saw in the prior session. The Dow was able to close roughly flat on the day. So a raising or an earlier loss to close fractionally positives. And the rest of 2000 also with a fractional gain on the day. But not looking too good here for the NASDAQ, Ken. [00:02:45] Speaker 2: Yeah, pretty, pretty, pretty amazing. Pretty, pretty rough day for the NASDAQ, Ali. We were talking about the price action in the NASDAQ yesterday, saying that we were encouraged by the fact that it was able to, you know, get back above its 50-day moving average. But it did, it did hit some resistance at those short-term moving averages that, you know, we wanted to just see a little bit, a little bit more. Nice percentage gain yesterday. But, yeah, that's just sort of the bottom, you know, fell out today. We had a big, big problem with the bond market today. Just a big, big plunge in that 10-year Treasury yield that was just a little too much for the NASDAQ to handle. Big, big sell-off in semiconductor stocks. You know, we had a pretty nice earnings report from Meta platforms. It seemed to be, you know, a lot more good news than bad news in the report. You know, a lot of good metrics. The guidance, revenue guidance, the midpoint was, you know, above, or the guidance, so the midpoint of guidance was above, uh, expectations, uh, uh, Muse, uh, their Muse, a digital assistant seems to be off to a good start, but you can see the, the, the response, uh, by the time the stock market opened was, uh, was, was not good, you know, and Meta, Meta ended up having a, a tough day. But, uh, yeah, the real story on the NASDAQ was just this really nasty sell-off in, uh, in semiconductor stocks. SMH just had a, you know, just had a, a, a really, really, uh, tough day, came down close to the 200-day moving average, uh, didn't quite, uh, touch the 200-day line. But, uh, I think the, the, the real story in technology stand, uh, in, in technology land was, uh, the sell-off in chip stocks and AI, AI stocks in, in general, just had a, had a really bad, uh, really bad day today. And I think a lot of selling in, in the bond, uh, a lot of selling in the, uh, or a lot of buying in the bond market, I should say, which, uh, well, that flight-to-safety trade was, uh, just more of this, you know, more of this, uh, fears of the, you know, a lot of spending in the AI space and a lot of these, uh, debt levels that was really kind of fueling the selling in CoreWeave, uh, earlier in the week. And, you know, CoreWeave had a, had another bad day, uh, today. [00:05:19] Speaker 1: Yeah. Down 10% and the SMH that we were showing down 6% on the day and undercutting the lows from the last couple of months, Ken. Yeah. So not quite to where, uh, that July low was and, uh, we're at this long-term 200 day line. So this is, uh, we use a lot of custom shorter term moving averages as trend followers and, and momentum traders can, but the 200 day on the daily or the 40 week on the weekly is something that is widely watched. So how will SMH act around that level? And chip stocks that likely have the same look, it'll be interesting. [00:05:59] Speaker 2: Yeah. Well, I, you know, there was just so many moving parts, uh, to this, to this market, uh, today. I thought it was, uh, very interesting to see one of the last, uh, chip stocks, uh, left standing, a name that we have been watching, uh, AMD. You know, this has been, uh, you know, one of the, one of the strongest, uh, stocks, you know, AMD, which had just been, you know, hanging around at its, uh, 50 day moving average. You can see volume picked up the pace, uh, today. Look at the volume was probably the heaviest for a down day, uh, for AMD. It wasn't huge, but you know, it was the heaviest for a down day in quite, quite some time. And finally gave up, uh, support and broke below, um, recent, uh, recent lows, uh, showed some pretty weak, uh, technical action today. So this was noteworthy price action for, for AMD. And yeah, it was just a kind of broad based, uh, selling in the, in the ship space, uh, today. And just, uh, yeah, just, uh, just, uh, uh, just an ugly day for them, for the NASDAQ. But, um, you know, S and P 500, like you said, it's just that, that, that has not nearly been as, uh, as deep, uh, a correction, uh, for the, uh, for the S and P 500 as it's been for the, for the NASDAQ. And still holding above that, that low from, uh, from, from last week. And, uh, also that, uh, that, that round number of, uh, of, of 700 here. So S and S and P 500 at least is still in the ball game here, even though that was a, it was a big percentage decline. I will say, I was just talking with my colleague, uh, Dave Chung to my right here. You know, the breadth, if we're going to find any silver lining in the market today, the breadth was actually okay today. You know, you would have thought that the breadth on the NASDAQ would have been much worse than two to one, maybe three to one, four to one negative, but it was actually less than, you know, two to one negative. So, uh, actually declining stocks only had a small edge over advancers on, uh, uh, the NASDAQ. Today. And I think, uh, I think Dave said that breadth was actually positive late in the day. Did I have that right? Uh, Dave? Yeah. The breadth was actually positive on the NYSE late in, in the day. So that was, uh, surprising, uh, to hear, but, um, so breadth overall, not, not too bad on such a, uh, such a, uh, sharp down day for the NASDAQ. Yeah. [00:08:20] Speaker 1: And RSP, another measure of breadth up 7, 10, 7% on the day. So kind of interesting dynamics here. Yeah. I mean, just, uh, yeah. [00:08:30] Speaker 2: And here we have the, uh, S and P 500, I believe ended with a loss of, uh, yeah. Yeah. One, one, 1% at least. 1.2%. Yeah. To see, uh, to see that up, uh, RSP up today. Pretty, pretty impressive. Okay. [00:08:45] Speaker 1: Uh, we just have a couple more sector ETFs to look at. Then we'll take a look at three stocks and stocks after the close. We've also got to get you to leaderboard scorecard, very important quarterly webinar. So we will go rapid fire here. I'll just take a quick look at the consumer staples. If it's a flight to safety kind of day, no surprise to see staples here up 3.3%. Ken with names like Coca-Cola up 2.9%. Procter and gamble up 5.6% and CL that's Colgate breaking out of 4.3%. [00:09:21] Speaker 2: Yeah. All the, uh, all the, uh, these are all top 10 holdings of, uh, of that, uh, ETF. So all these, uh, consumer staple stocks, uh, breaking out and, uh, and fueling a breakout for this, uh, ETF, the top performing, uh, S and P 500, uh, sector today. So that flight to safety in, in bonds and flight to safety in the consumer staple stocks today. [00:09:45] Speaker 1: Yeah. And XLU also with a gain of over 2%, another defensive area. [00:09:51] Speaker 2: Another defensive area in, in the market. So we knew, we, we know where the money was, was flowing, uh, today out of, uh, out of tech and into, uh, the safe havens. [00:10:00] Speaker 1: Exactly. Risk off. Okay. So let's look at the closing range here. 70%. So that's also encouraging. It's managed to hold above the 50 day moving average, the round number of 200 and this cup with handle by point from a couple of weeks back. So even though it corrected pretty quickly from that 20% profit taking zone to just above the 50% moving average, the round number of 200 and this cup with handle by point from a couple of weeks back. So even though it corrected pretty quickly from that 20% profit taking zone to just above the buy point, it looks a lot better than many other hardware AI names out there. [00:10:41] Speaker 2: Well, you can just look in, look inside the, uh, the group here and you can look at names at, uh, at, at Dell and you can look at, uh, you know, Hewlett Packard, uh, enterprise. And there's just a lot, a lot more damage, uh, in, in this, uh, in this, in this group. So, um, you know, and then Dell and Hewlett Packard enterprise are, are, you know, top performing stocks in the, in this group, but, uh, you know, they've, uh, they've all kind of broken below their, their 50 day lines. And, uh, for whatever reason, net app is, uh, is still holding its own here. And you just, you want to pay attention to stocks, uh, showing, showing strength like [00:11:18] Speaker ?: this. [00:11:18] Speaker 2: So even though net app had a, had a tough percentage decline to the fact that it closed off lows and it is really holding tight and above its 50 day line. Uh, this is important and you want to pay attention to, uh, to a stock like this. So kind of put this one off to the, to, to the side and respect the stocks, uh, strength. This is a, uh, a stock market leader and, uh, one that we want to pay attention to here because, uh, I thought the, the price action was decidedly, uh, bullish today. And, uh, I think it's proving itself that, uh, this is a, a tech name that we want to be watching, uh, in, in the future here. So that once the selling does kind of resolve itself in the NASDAQ, this is, uh, a name that, that, that could, could go on to, to be a leader in the tech space. Yeah. [00:12:04] Speaker 1: Let's also take a look at Amgen. We've been keeping a very close eye on leadership out of the medical sector. And so an early entry, uh, last week as it cleared a trend line right at the 50 day, but breaking out today. So another opportunity to either get in or add to a position, Ken, and a blue dot on this breakout underscoring the stock's outperformance. Yeah. [00:12:29] Speaker 2: Outperforming the S and P 500, uh, just a good quality, uh, healthcare name here with, uh, a high composite rating, uh, a very, uh, very strong earning stability rank, accumulation distribution rating of a, so, you know, a stock that's clearly under accumulation here. And, uh, another stock that, uh, you know, quietly has, uh, uh, a weight loss, uh, drug that's in, uh, in, in phase three, uh, trials here. So, you know, a name to watch here and a stock that's, uh, that that's actionable here. So I, I think it's, uh, you know, it was a buy signal, uh, today, a good breakout with a, a relative strength line, uh, and a, and a blue dot. So healthcare is, uh, clearly seeing money flow here. And, uh, you know, Amgen is just a, a really solid blue chip name and, um, great technical setup here. And it's got that blend of, uh, fundamentals and technicals that we, that we like to see. And, um, yeah, it looks, looks really strong. [00:13:27] Speaker 1: Yeah, we do have earnings and about 12 calendar days. So just something to keep in mind there, but this is, uh, not a high octane mover typically on earnings, at least just eyeballing the last couple of reports. So in terms of risk management can treat this perhaps a little differently than one of the, a high flying name that has either gapped up or down 20% in a recent quarter. Let's go to, uh, sorry, go ahead. [00:13:55] Speaker 2: Uh, I say exactly, exactly right. And, uh, just looking at the ATR because it's just a, a liquid large cap name. Yeah. The ATR is down around the two and a half, uh, two and a half percent. So, you know, it tends to, tends to trade fairly orderly. [00:14:10] Speaker 1: It sure does. Let's go to NDAQ breaking out on earnings today, shares up seven and a half percent. Uh, we did see a little bit of a slowdown in the earnings growth and sales growth for that manner, uh, but matter, but still up 18% on the bottom line, 13% growth on the top line. And it looks like this round number at 100 goes back quite a ways, Ken. So clearing a long consolidation. Yeah. [00:14:40] Speaker 2: And we've looked at some stocks, uh, recently in the stock market, uh, today that have been kind of breaking out over these really long-term, uh, price levels. And this is a really strong industry group in the market. So we're seeing a lot of, a lot of these exchanges, uh, breaking out recently, whether it's a CBOE or Chicago Mercantile Exchange, or even ICE Intercontinental Exchange, ICE. So this is, uh, a very, uh, strong industry group, uh, in the market here and, uh, NASDAQ reported earnings. And this is just a good solid breakout, still sitting in that blue shaded area. Still in that 5% buy zone. Good close, uh, you know, finish up near session highs here. So stock that's still in a buy zone here. And, uh, yeah, the growth is not, uh, you know, it's not, not huge, but, uh, again, the, the metrics were all, uh, much better than, uh, expected. And when you look inside the report, some of their business segments were, uh, showing nice acceleration in certain areas. So CEO was on CNBC earlier this morning, and, uh, uh, she's been, uh, with the, with the company for several years and very sharp. And, uh, NASDAQ is a, a good solid company that's executing, uh, quite well. And again, a very strong, uh, very strong industry group here. [00:15:54] Speaker 1: Mm-hmm. All right, Ken, well, we have to get you to the leaderboard scorecard webinar, leaderboard.investors.com for members join at that top link. So we'll just do rapid fire your earnings reaction. Uh, here's a look at Western Digital, uh, in the badly beaten, uh, hard drive group up, uh, up just less than 1% right now. So we'll see where that goes. Yeah. [00:16:20] Speaker 2: This one has, uh, really been, uh, beaten, beaten, beaten up with, along with, uh, with, with Seagate. Uh, so I don't know that, uh, they have come out yet, but the stock is up. Mm-hmm. But, um, we will see, but, uh, both Seagate and Western Digital have really struggled, uh, trying to recover after nasty, uh, nasty sell-offs. Yeah. Both of these stocks were hit, uh, after the news. I think Samsung is getting into the hard, uh, hard disk drive area. And these stocks were just never able to recover after that Samsung news. Yeah. [00:16:52] Speaker 1: Be, uh, Bloom Energy, this is another AI stock seeing shares down over 5% after coming down to the 200-day. [00:17:01] Speaker 2: Really innovative, uh, technology here. Fuel cell technology that is, uh, helping power data centers was in a very, very strong, uh, uptrend for quite some time. It, too, has, uh, succumbed to selling pressure, even though growth prospects remain very, very bright, uh, again, for the company's fuel cell technology. Uh, looks like it, too, is under some pressure here, as it continues to sell at a very, very high multiple. So, again, uh, expectations very, very high here, uh, is gonna continue to report very, very strong bottom line and top-line growth. But, again, just sells at a high multiple. So, uh, expectations are just very high here. So, uh, we'll see. We'll see what the, uh, what ultimately the numbers, uh, look like here. Strong bottom line and top-line growth quarter after quarter. But, um, again, the, um, it's just a high multiple stock. So, expectations are always very high. [00:17:58] Speaker 1: All right. And we'll go to Max Lanier in the semiconductor group. Gapped down today. Can almost 14% decline on the day. Ouch. Yeah. Down another 2% after hours. Yeah. [00:18:12] Speaker 2: Well, these, these semiconductor stocks, this was the worst performing, uh, area in, in the market. I think SMH was down 5% or 6% today, that, that, that chip, uh, ETF. Again, Max Lanier, you look at the annual earnings estimates here and you look at the recent growth. It's just growing like gangbusters. But, uh, you know, and it was a big winner, uh, not that long ago, but has come under heavy. Selling pressure and, uh, down sharply today. So we'll see what the numbers look like again, strong growth, uh, expected here. But, um, you know, the stock has been hit hard by institutional selling. We'll see if it can recover, but, uh, looks like it's ready to consolidate a little while longer. Yeah. [00:18:53] Speaker ?: All right. [00:18:53] Speaker 1: Well, thank you so much, Ken. We appreciate it. And see you on leaderboard scorecard. Okay. [00:18:57] Speaker 2: Thanks a lot. [00:18:58] Speaker 1: Thanks everyone for tuning in. That's it from us for today. We will be back with more tomorrow morning on IABD live. Joe Fahmy joins us. Now his name, usually nickname, we call him follow through Fahmy. Not in a position, uh, for that in the stock market at this time. We'll see if we can get some sort of bounce. But I think more importantly, getting his perspective on how to handle conditions like this, what he's keeping his focus on as we prepare for the next market turn. So we'll see you there tomorrow morning on IABD live investors.com slash IABD live for all the details. And then we'll see you back here tomorrow to wrap up the week.