U.S. stocks weekly: Head fakes

Gen Digital

10/11/2023 21:44

** S&P 500  .SPX  rises 2nd straight week in seesaw trade,
finishes up 1.3% as investors assess Fed's hawkish comments  .N 
    ** The SPX snapped 8-day winning streak on Thurs after Fed
Chair Powell warned of prior inflation 'head fakes', suggesting
more rate hikes are possible, then rebounds on Fri
    ** Indeed, SPX was on its tip toes with win streak
    ** And as one internal measure shows burgeoning Nasdaq
strength under the surface, another, highlighting the IXIC's
narrowness, has traders in tumult 
    ** But U.S. 10-year Treasury yield's  US10YT=RR  six-month
win streak appears at risk
    ** In the end, majority of sectors stand their ground: tech
and communication services most steady, while energy, materials
and bond proxies outflanked
    ** Tech  .SPLRCT  surges 4.8%. Gen Digital  GEN.O  jumps >9%
on qtrly revenue beat. Nvidia  NVDA.O  rallies >7% amid plans to
release three new chips in China.
    Chip index  .SOX  gains 4%
    ** Communication Services  .SPLRCL  up 2.2%. Disney  DIS.N 
jumps after earnings exceed expectations on higher theme parks
attendance, and media cos climb as Hollywood actors end strike
after tentative deal
    ** Healthcare  .SPXHC  drops 1%. Illumina  ILMN.O  falls
after genetic testing firm cuts annual profit forecast for 2nd
straight qtr. ILMN sheds 16% on the week
    But Eli Lilly  LLY.N  rises as FDA approves weight-loss drug
with brand name Zepbound 
    ** Materials  .SPLRCM  melt 1.8%. Gold miners track drop in
metal prices, then fall as dollar strength dulls bullion's
safe-haven appeal, then take hit on Powell's hawkish cues.
Newmont  NEM.N  tumbles >12%
    ARCA Gold Bugs index  .HUI  loses ~8%, suffers biggest
weekly decline since May 2022
    ** Utilities  .SPLRCU  slide 2.6%. Sempra  SRE.N  down after
pricing $1.2 bln stock offering
    ** Energy  .SPNY  sags 3.8%. Group declines tracking lower
crude prices  O/R . Crude futures  CLc1  slick sliding away,
fall for a third-straight week
    ** Meanwhile, individual investor bulls post biggest jump in
13 years 
    ** SPX performance YTD:
        
 
 

 (Lance Tupper and Terence Gabriel are Reuters market analysts.
The views expressed are their own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com
terence.gabriel.tr.com@reuters.net
terence.gabriel@tr.com))