The stock market continued its winning streak this week, with the Dow Jones, S&P 500, and Nasdaq all marking their sixth consecutive week of gains. This impressive run comes on the heels of positive economic indicators, including strong retail sales in September and a significant drop in jobless claims, suggesting a robust US economy. This robust economic performance has led some analysts to question the need for further interest rate cuts by the Federal Reserve. However, rising Treasury yields are casting a shadow on the housing market, resulting in a sharp increase in mortgage rates and a corresponding drop in mortgage applications. Homebuyers, deterred by the higher borrowing costs, have seen the steepest decline in demand since April 2020.
While the overall market remains positive, individual sectors are experiencing both bullish and bearish trends. Here are some highlights from the week:
Bullish Market Moves:
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Apple’s iPhone 16 Achieves Record Sales:
Apple Inc. (AAPL) reported record iPhone sales in the third quarter of 2024, securing 18% of the global market share, trailing only Samsung Electronics Co. Ltd. (SSNLF) as the global smartphone market continues to grow by 5% year-over-year. This dominance reflects Apple’s continued strength in the tech sector.*
Oklo Rides the Nuclear Energy Wave:
Oklo Inc. (OKLO) shares surged following Alphabet Inc.’s (GOOG, GOOGL) announcement of plans to utilize nuclear energy. This news sparked speculation that Sam Altman’s connections could position Oklo for future collaborations with tech giants, further fueling the company’s growth potential.*
Meme Coins Outpace Traditional Companies:
Dogecoin (DOGE/USD), Shiba Inu (SHIB/USD), and Pepe (PEPE/USD) achieved billion-dollar valuations faster than established companies like Nutanix Inc. (NTNX) and Nice Ltd. (NICE). This unexpected surge in meme coin popularity highlights the unpredictable nature of the cryptocurrency market and the increasing influence of social media trends on investor behavior.Challenges and Bearish Trends:
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Moderna Faces Lawsuit Over COVID-19 Vaccine Technology:
Northwestern University filed a lawsuit against Moderna Inc. (MRNA), alleging that Moderna used the university’s lipid nanoparticle technology in its COVID-19 vaccines, like Spikevax, without permission. The lawsuit seeks damages for patent infringement.*
FTC’s ‘Click-to-Cancel’ Rule Tightens Grip on Subscription Services:
The Federal Trade Commission’s new rule, aimed at simplifying subscription cancellations, will impact companies like Netflix Inc. (NFLX) and Planet Fitness Inc. (PLNT) by requiring them to make canceling subscriptions as easy as signing up. This rule is intended to protect consumers from hidden fees and unnecessary charges.*
Tesla Faces New Chinese Competition:
Skywell, a Chinese company previously known for its budget-friendly Skyworth TVs, unveiled the Q hatchback EV at the Paris Auto Show. This move marks Skywell’s entry into the electric vehicle market and potentially poses a challenge to Tesla Inc. (TSLA) with its competitively priced models.The stock market remains dynamic, with various factors influencing individual companies and sectors. Keep an eye on these developments to navigate the ever-evolving investment landscape.