Nasdaq 100, Dow Jones, S&P 500 News: Awaiting October’s Job Report After Apple’s Dip

Highlights

• Apple’s outlook dims Nasdaq 100’s shine.
• Communication and health sectors lag behind.
• Market sentiment hinges on Non-Farm Payrolls report.
• Earnings reports from key companies loom.

Apple’s Outlook Weighs on Nasdaq 100 Futures

Nasdaq 100 futures faced downward pressure following Apple’s latest quarterly results announcement. The tech juggernaut’s revenue outlook for the December quarter failed to inspire confidence, even though they surpassed expectations on both top and bottom lines for the fiscal fourth quarter.

However, this came alongside a trend of declining sales for four consecutive quarters. While Apple’s results pulled the futures down by 0.36%, S&P 500 futures decreased by 0.16%. Contrarily, the Dow Jones Industrial Average futures saw a slight uptick, moving 0.01% higher.

Market Rally and Major Performers

The stock market had previously experienced an expansive rally during Thursday’s regular session. Factors such as retreating Treasury yields and a weakened dollar led to surging stock prices. A staggering 90% of the total shares traded on the New York Stock Exchange advanced in price, with only a minor 10% decline. Meanwhile, on the Nasdaq Stock Market, approximately 82% of shares traded at a higher volume, with less than 18% seeing a drop.

Sector Gains and Laggards

Energy, real estate, and financial sectors outshone others, each recording gains surpassing the S&P 500’s 1.89% rise. While energy and real estate sectors both surged by 3.1%, financials saw a 2.4% hike. However, communication services, consumer staples, and health care sectors lagged behind, with gains of 0.9%, 1.3%, and 1.6% respectively.

Jobs Report Anticipation

The financial world now eagerly awaits October’s job report. Predictions by economists suggest an addition of 170,000 payrolls, a decline from September’s impressive 336,000 jobs. Should the report fall short of expectations, it might bolster stock prices by reinforcing the belief that the Federal Reserve’s rate hikes might soon conclude.

Weekly Performance and Upcoming Earnings

As the week neared its end, stocks were geared towards considerable weekly gains. Both the Dow and the S&P 500, along with the Nasdaq, are on track for their best weekly performances in over a year. Investors and traders are also keenly watching out for earnings reports from notable companies like Church & Dwight, Dominion Energy, and Cardinal Health, expected on Friday.

Short-Term Market Outlook

Following Apple’s tepid revenue forecast, Nasdaq 100 futures displayed some fragility. However, recent market rallies, influenced by falling Treasury yields and a weaker dollar, provide a counterbalance.

The forthcoming October job report will significantly influence market sentiment. If the report falls short, it may reinforce the belief that the Federal Reserve’s rate hikes are nearing their end, potentially bolstering stocks.

Given the current weekly performance trends, the immediate outlook appears cautiously bullish, but traders should remain vigilant to changing macroeconomic signals.

Technical Analysis

The S&P 500 Index (SPX) witnessed a positive price movement, closing at 4317.79, showing a significant rise from the previous close of 4237.87.

Currently, the index is trading slightly below the 50-day moving average of 4348.00 but has surpassed the 200-day moving average of 4245.31.

While the index floats above the minor support level of 4261.72, it sits just below the minor resistance level of 4327.18.

Given its proximity to the 50-day moving average and its current position relative to the main and minor support and resistance levels, the market sentiment for the S&P 500 appears cautiously bullish.

The near-term tone is likely to be determined by trader reaction to 4348.00 with the potential for an acceleration to the upside on a sustained move over this level.