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Stock Market Outlook for October 24, 2019


The number of new 52-week highs on the NYSE is on a rebound, helping to push the NYSE Cumulative Advance-Decline line to new highs.

 

Real Time Economic Calendar provided by Investing.com.

 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.   As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.

Stocks Entering Period of Seasonal Strength Today:

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Almaden Minerals Ltd. (TSE:AMM.TO) Seasonal Chart

Almaden Minerals Ltd. (TSE:AMM.TO) Seasonal Chart

Magellan Health Services, Inc. (NASD:MGLN) Seasonal Chart

Magellan Health Services, Inc. (NASD:MGLN) Seasonal Chart

Bloomin' Brands Inc. (NASD:BLMN) Seasonal Chart

Bloomin’ Brands Inc. (NASD:BLMN) Seasonal Chart

Mosaic Co. (NYSE:MOS) Seasonal Chart

Mosaic Co. (NYSE:MOS) Seasonal Chart

Akamai Technologies, Inc. (NASD:AKAM) Seasonal Chart

Akamai Technologies, Inc. (NASD:AKAM) Seasonal Chart

 

 

The Markets

Stocks posted minor gains on Wednesday as investors continue to digest the release of earnings.  Notable releases on Wednesday were reports for Caterpillar and Boeing, both of which recorded significant earnings misses.  The results, however, failed to deter investors, who bid the stocks higher throughout the session.  Reaction in these industrial bellwethers is fairly indicative of the sentiment of investors whereby weak earnings are warranting a pass given that results are not as bad as what they were feared to be.  Ongoing positive reaction to downbeat earnings could be the catalyst to break the market free of its summer range.  The S&P 500 Index added just less than three-tenths of one percent, continuing this dance with the psychologically important 3,000 level.  The open gap around 2950 remains a short-term level of support below, while the hurdle on the upside is the all-time high around 3025.

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Industrials have become the proxy for the beleaguered cyclical trade, impacted by the woes of the ongoing trade war.  Reduced production at Boeing is also a factor.  The sector has been underperforming the market since the end of February, trading within a very defined range for the past eight months.  Recently, however, the relative performance trend seems to have broken from its downward path of lower-lows and lower-highs, hinting of an upward shift as buying demand returns to the previous unloved area of the market.  The Industrial Sector ETF (XLI) confirmed support at the 200-day moving average at the start of October.  The long-term moving average is pointing higher, suggesting the long-term positive trend remains intact and increasing the likelihood of a breakout above the multi-month trading range that spans between $72 and $79.  Upside target upon a breakout from the span is to $86.  Seasonally, the sector is entering its period of strength, which runs through the start of May.  The sector will be a key tell of whether the period of seasonal strength for stocks is cyclically dominated, as is typical, or a hybrid of risk-on and risk-off amidst ongoing economic concerns.

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Industrials Sector Seasonal Chart

Meanwhile, the number of new 52-week highs on the NYSE is on a rebound.  At the start of October, the level of new highs hit a low of 16, hovering around levels seen in the fourth quarter of last year during the market swoon.  The level is now up to 205, moving back into a range that is consistent with higher equity prices on a broader scale.  This is also helping the NYSE Cumulative Advance-Decline line, which is charting new all-time highs.  Weakness in these two indicators were two of the technical signals that hinted of a downturn in stocks through the last three months of last year; clearly the warning signs are not present this time around.

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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.87.

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Seasonal charts of companies reporting earnings today:

Amazon.com, Inc. Seasonal Chart Visa Inc. Seasonal Chart Intel Corporation Seasonal Chart Comcast Corporation Seasonal Chart Astrazeneca PLC Seasonal Chart Danaher Corporation Seasonal Chart 3M Company Seasonal Chart Gilead Sciences, Inc. Seasonal Chart Northrop Grumman Corporation Seasonal Chart Raytheon Company Seasonal Chart American Electric Power Company, Inc. Seasonal Chart Illumina, Inc. Seasonal Chart Baxter International Inc. Seasonal Chart Capital One Financial Corporation Seasonal Chart Valero Energy Corporation Seasonal Chart Aflac Incorporated Seasonal Chart Dow Inc. Seasonal Chart Roper Technologies, Inc. Seasonal Chart Xcel Energy Inc. Seasonal Chart Hershey Company (The) Seasonal Chart Twitter, Inc. Seasonal Chart Nokia Corporation Seasonal Chart Southwest Airlines Company Seasonal Chart Coca-Cola European Partners plc Seasonal Chart T. Rowe Price Group, Inc. Seasonal Chart Stanley Black & Decker, Inc. Seasonal Chart TAL Education Group Seasonal Chart VeriSign, Inc. Seasonal Chart Cerner Corporation Seasonal Chart STMicroelectronics N.V. Seasonal Chart Cincinnati Financial Corporation Seasonal Chart ResMed Inc. Seasonal Chart CMS Energy Corporation Seasonal Chart Arthur J. Gallagher & Co. Seasonal Chart Laboratory Corporation of America Holdings Seasonal Chart Principal Financial Group Inc Seasonal Chart Huntington Bancshares Incorporated Seasonal Chart Old Dominion Freight Line, Inc. Seasonal Chart Citrix Systems, Inc. Seasonal Chart Universal Health Services, Inc. Seasonal Chart American Airlines Group, Inc. Seasonal Chart Tractor Supply Company Seasonal Chart SVB Financial Group Seasonal Chart West Pharmaceutical Services, Inc. Seasonal Chart Eastman Chemical Company Seasonal Chart Allegion plc Seasonal Chart Erie Indemnity Company Seasonal Chart Teck Resources Ltd Seasonal Chart Mohawk Industries, Inc. Seasonal Chart Kimco Realty Corporation Seasonal Chart Cypress Semiconductor Corporation Seasonal Chart Juniper Networks, Inc. Seasonal Chart Alaska Air Group, Inc. Seasonal Chart Cabot Oil & Gas Corporation Seasonal Chart Old Republic International Corporation Seasonal Chart First American Corporation (The) Seasonal Chart Axalta Coating Systems Ltd. Seasonal Chart Proofpoint, Inc. Seasonal Chart Reliance Steel & Aluminum Co. Seasonal Chart CubeSmart Seasonal Chart Entegris, Inc. Seasonal Chart LPL Financial Holdings Inc. Seasonal Chart Alliance Data Systems Corporation Seasonal Chart First Solar, Inc. Seasonal Chart Flex Ltd. Seasonal Chart Integra LifeSciences Holdings Corporation Seasonal Chart Brunswick Corporation Seasonal Chart Deckers Outdoor Corporation Seasonal Chart W.R. Grace & Co. Seasonal Chart Carter's, Inc. Seasonal Chart Avnet, Inc. Seasonal Chart Federated Investors, Inc. Seasonal Chart AllianceBernstein Holding L.P. Seasonal Chart Monro, Inc. Seasonal Chart Allegiant Travel Company Seasonal Chart Callaway Golf Company Seasonal Chart Forward Air Corporation Seasonal Chart OSI Systems, Inc. Seasonal Chart Patterson-UTI Energy, Inc. Seasonal Chart Group 1 Automotive, Inc. Seasonal Chart Southwestern Energy Company Seasonal Chart Celestica, Inc. Seasonal Chart Oil States International, Inc. Seasonal Chart Precision Drilling Corporation Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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