{"id":180638,"date":"2024-10-21T02:22:00","date_gmt":"2024-10-21T06:22:00","guid":{"rendered":"https:\/\/timingthemarket.ca\/techtalk\/?p=180638"},"modified":"2024-10-21T08:47:38","modified_gmt":"2024-10-21T12:47:38","slug":"tech-talk-for-monday-october-21st-2024","status":"publish","type":"post","link":"https:\/\/timingthemarket.ca\/techtalk\/2024\/10\/21\/tech-talk-for-monday-october-21st-2024\/","title":{"rendered":"Tech Talk for Monday October 21st 2024"},"content":{"rendered":"

Pre-opening Comments for Monday October 21st<\/sup><\/strong><\/font><\/em><\/p>\n

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U.S. equity index futures were lower this morning<\/b>. S&P 500 futures were down 16 points at 8:30 AM EDT.<\/em><\/p>\n

People\u2019s Bank of China<\/b> cut its prime lending rate on one and five year lending rates to major banks by 0.25%. The rate on one year loans dropped to 3.1% and the rate on five year loans dropped to 3.6%.<\/em><\/p>\n

Boeing<\/b> added $5.01 to $160.01 after reaching a tentative agreement with its machinist union. Compensation is expected to increase 35% over four years.<\/em><\/p>\n

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Spirit Airlines<\/b> advanced $0.46 to $1.93 after reaching a deal to extend a key debt financing deadline.<\/em><\/p>\n

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Kenvue <\/b>added $1.78 to $23.50 on news that activist investor Starboard Value has acquired a significant position in the company<\/p>\n

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Humana<\/b> added $10.86 to $278.00 and Cigna<\/b> dropped $12.31 to $212.69 following news reports on a merger negotiations.<\/em><\/p>\n

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EquityClock\u2019s Stock Market Outlook for October 21st<\/sup><\/strong><\/font><\/em><\/p>\n

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The trend of Industrial Production this year points to a Republican win for the office of the President. See:<\/em><\/b><\/p>\n

https:\/\/equityclock.com\/2024\/10\/19\/stock-market-outlook-for-october-21-2024\/<\/em><\/a><\/p>\n

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The Bottom Line<\/strong><\/font><\/p>\n

Better than consensus third quarter results released to date by 14% of S&P 500 companies prompted North American equity indices to advance to all-time highs.<\/b> Analysts were less convinced. They lowered third quarter consensus earnings estimates again.<\/p>\n

Frequency of reports ramps up this week<\/b>. Another 112 S&P 500 companies (including seven Dow Jones Industrial Average companies) are scheduled to report. Focuses are on reports by Amazon on Tuesday, Tesla on Wednesday and Amazon on Thursday.<\/p>\n

Focus in Canada is on the Bank of Canada\u2019s statement on interest rates on Wednesday <\/b>Consensus calls for at least a 0.25% drop in the Bank\u2019s lending rate for major Canadian chartered banks. <\/p>\n

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Consensus for Earnings and Revenues by S&P 500 companies<\/strong><\/font><\/p>\n

Source: www.factset.com<\/a><\/p>\n

Earnings estimates for remainder of 2024 and for the first half of 2025 were lowered slightly again last week despite encouraging third quarter results release to date. Fourteen percent of S&P 500 companies have reported to date: 79% reported higher than consensus earnings and 64% reported higher than consensus revenues.<\/b><\/p>\n

A word of caution!<\/b> Consensus for third quarter results calls for significantly lower than the 11.3% year-over-year earnings gain recorded in the second quarter. Third quarter earnings on a year-over-year basis are expected to slip to a 3.4% increase, down from 4.1% last week. Consensus for third quarter revenues calls for a 4.7% year-over-year increase (versus a 4.6% increase last week).<\/p>\n

Earnings and revenue gains accelerate in the fourth quarter, but at a slightly lower rate.<\/b> Consensus calls for a 14.0% increase in earnings (versus a 14.2% increase last week) and a 5.0% revenue increase.<\/p>\n

For all of 2024<\/b>, consensus calls for a 9.4% earnings increase (versus a 9.7% increase last week) and 5.0% revenue increase.<\/p>\n

Earnings gains accelerate in 2025, but at a slightly lower rate.<\/b> First quarter earnings are expected to increase 13.8 % on a year-over-year basis (versus a 13.9% increase last week) and revenues are expected to increase 5.5%. Second quarter earnings are expected to increase 13.0% (versus a 13.1% gain last week) and revenues are expected to increase 5.4%. For all of 2025 earnings are expected to increase 15.1% (versus a 14.9% increase last week) and revenues are expected to increase 5.9%.<\/p>\n

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Economic News This Week<\/strong><\/font><\/p>\n

September U.S. Leading Economic Indicators<\/b> released at 10:00 AM EDT on Monday are expected to drop 0.3% versus a gain of 0.2% in August.<\/p>\n

Bank of Canada statement on interest rates<\/b> is released at 9:45 AM EDT on Wednesday. A press conference is offered at 10:30 AM EDT.<\/p>\n

September U.S. Existing Home Sales<\/b> released at 10:00 AM EDT on Wednesday are expected to increase to 3.90 million units from 3.86 million units in August<\/p>\n

Beige Book<\/b> is released at 2:00 AM EDT on Wednesday<\/p>\n

September New Home Sales<\/b> released at 10:00 AM EDT on Thursday are expected to drop to 710,000 from 716,000 in August.<\/p>\n

September U.S. Durable Goods Orders<\/b> released at 8:30 AM EDT on Friday are expected to drop 0.9% versus unchanged in August.<\/p>\n

October Michigan Consumer Sentiment<\/b> released at10:00 AM EDT on Friday is expected to slip to 68.9 from 70.1.<\/p>\n

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Selected Earnings News This Week<\/strong><\/font><\/p>\n

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Trader\u2019s Corner<\/strong><\/font><\/p>\n

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Note that data was updated from October 10th<\/font><\/em><\/b> <\/b><\/p>\n

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Equity Indices and Related ETFs<\/strong><\/font><\/p>\n

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Green: Increase from previous day<\/font><\/em><\/p>\n

Red: Decrease from previous day<\/font><\/em><\/p>\n

Source for all positive seasonality ratings: <\/em>www.EquityClock.com<\/em><\/a><\/p>\n

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Commodities<\/strong><\/font><\/p>\n

Daily Seasonal\/Technical Commodities Trends for October 18th<\/sup> 2024<\/p>\n

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Green: Increase from previous day<\/font><\/em><\/p>\n

Red: Decrease from previous day<\/font><\/em><\/p>\n

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Sectors<\/strong><\/font><\/p>\n

Daily Seasonal\/Technical Sector Trends for October 18th<\/sup> 2024<\/p>\n

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Green: Increase from previous day<\/font><\/em><\/p>\n

Red: Decrease from previous day<\/font><\/em><\/p>\n

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Changes Last Week<\/strong><\/font><\/p>\n

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Links offered by valued providers<\/strong><\/font><\/p>\n

Michael Campbell\u2019s Money Talks for October 19th<\/sup> <\/b><\/p>\n

Michael Campbell\u2019s MoneyTalks \u2013 Complete Show (mikesmoneytalks.ca)<\/a><\/p>\n

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Just a Handful of Stocks Boosting Dow Higher: Mark Leibovit<\/b><\/p>\n

Just a Handful of Stocks Boosting Dow Higher \u2013 HoweStreet<\/a><\/p>\n

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Ross Clark, Martin Armstrong, Hilliard MacBeth interviews<\/b><\/p>\n

https:\/\/www.howestreet.com\/category\/talk-digital-network\/radio-podcasts\/this-week-in-money\/<\/a><\/p>\n

 <\/p>\n

Be On The Lookout For THIS During Earnings Season! Mary Ellen McGonagle<\/b><\/p>\n

https:\/\/www.youtube.com\/watch?v=E5THqEtyJcI<\/a><\/p>\n

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Weekly Update with Larry Berman – October 19, 2024<\/b><\/p>\n

https:\/\/www.youtube.com\/watch?v=6oSxjK2CByE<\/a><\/p>\n

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CHART THIS with David Keller, CMT Friday 10\/18\/24<\/b><\/p>\n

https:\/\/www.youtube.com\/watch?v=Dmn8Uo8RRP8&t=28s<\/a><\/p>\n

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Insurers Stung By Florida Hurricanes: Bob Hoye<\/b><\/p>\n

Insurers Stung By Florida Hurricanes \u2013 HoweStreet<\/a><\/p>\n

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Stats Show Higher Unemployment After Fed Rate Cuts: Danielle Park<\/b><\/p>\n

Stats Show Higher Unemployment After Fed Rate Cuts \u2013 HoweStreet<\/a><\/p>\n

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Technical Scoop from David Chapman and <\/b>www.EnrichedInvesting.com<\/b><\/a> <\/b><\/p>\n

https:\/\/enrichedinvesting.com\/library\/<\/a><\/p>\n

 <\/p>\n

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S&P 500 Momentum Barometers<\/strong><\/font><\/p>\n

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The intermediate term Barometer added 0.40 last week to 77.20. It remains Overbought.<\/p>\n

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The long term Barometer added 2.00 last week to 79.60. It remains Overbought.<\/p>\n

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TSX Momentum Barometers <\/strong><\/font><\/p>\n

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The intermediate term Barometer dropped 1.69 to 80.27 last week. It remains Overbought.<\/p>\n

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The long term Barometer slipped 0.90 to 80.27 last week. It remains Overbought.<\/p>\n

<\/b><\/p>\n

Disclaimer:<\/b> Seasonality ratings and technical ratings offered in this report and at<\/em><\/p>\n

www.equityclock.com<\/em><\/a> are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Pre-opening Comments for Monday October 21st U.S. equity index futures were lower this morning. S&P 500 futures were down 16 points at 8:30 AM EDT. People\u2019s Bank of China cut its prime lending rate on one and five year lending rates to major banks by 0.25%. The rate on one year loans dropped to 3.1% […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-180638","post","type-post","status-publish","format-standard","hentry","category-reports"],"_links":{"self":[{"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/posts\/180638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/comments?post=180638"}],"version-history":[{"count":3,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/posts\/180638\/revisions"}],"predecessor-version":[{"id":180649,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/posts\/180638\/revisions\/180649"}],"wp:attachment":[{"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/media?parent=180638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/categories?post=180638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timingthemarket.ca\/techtalk\/wp-json\/wp\/v2\/tags?post=180638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}