The QC Daily Pre-Market Analysis November 19, 2024

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NOVEMBER 19, 2024

The global market landscape remains a volatile mix of geopolitical tensions and macroeconomic uncertainties. The ongoing conflict in the Middle East continues to cast a long shadow, with oil prices hovering near multi-year highs. This situation fuels inflation concerns and weighs heavily on energy-dependent economies.

The US Federal Reserve's recent hawkish stance, hinting at potential further rate hikes, adds to the market's unease. Investors are grappling with the implications of these actions for economic growth and corporate earnings.

Meanwhile, China's economic recovery remains uneven, with mixed signals emerging from key economic indicators. While consumer spending demonstrates resilience, the country's manufacturing sector is struggling. The interplay of these global dynamics creates a complex and challenging landscape for investors, demanding a nuanced and strategic approach to portfolio allocation.

11-18-2024	10:00 AM	Fed Goolsbee Speech	Medium
11-18-2024	10:00 AM	NAHB Housing Market Index (Nov)	Medium
11-18-2024	4:00 PM	Net Long-Term TIC Flows (Sep)	Medium
11-19-2024	8:30 AM	Housing Starts (Oct)	Medium
11-19-2024	8:30 AM	Housing Starts MoM (Oct)	Medium
11-19-2024	8:30 AM	Building Permits (Oct)	High
11-19-2024	8:30 AM	Building Permits MoM (Oct)	Medium
11-19-2024	4:30 PM	API Crude Oil Stock Change (Nov/15)	Medium

The COT data reveals a mixed picture. The US Dollar (DX) continues to see increasing bearish sentiment, with net positions declining significantly. This suggests that speculators are becoming more bearish on the greenback, potentially driven by expectations of a weakening US economy or a shift in global monetary policy.

Meanwhile, natural gas (NG) sees increasing bullish sentiment, indicating growing optimism about the commodity's future price.

The sector performance data reflects a divergence in investor sentiment, with a preference for defensive sectors like utilities and real estate amidst the current economic uncertainty.

Utilities: 0.94%
Real Estate: 0.53%
Financial Services: 0.52%
Consumer Cyclical: 0.01%
Technology: -1.26%
Industrials: -1.3%
Communication Services: -2.04%
Energy: -2.36%

The most active index stocks today are APLD, ZPTA, SMCI, TSLA, VST, DUK, ON, GFS, EPAM, DOCN, and META.

The significant activity in TSLA, APLD, and ZPTA suggests a focus on technology and renewable energy sectors.

The decline in META and EPAM could be attributed to investor concerns about the tech sector's growth prospects and potential regulatory headwinds.

CI&T Inc. (CINT) PT Raised to $10 at Canaccord Genuity

Citi Starts Astera Labs (ALAB) at Buy

Applied Materials (AMAT) PT Lowered to $230 at Wolfe Research

Shoals Technologies price target lowered to $7 from $8 at Morgan Stanley

Applied Materials (AMAT) PT Lowered to $200 at Deutsche Bank

UBS Starts Cogent Communications (CCOI) at Buy

Evercore ISI Reiterates Outperform Rating on NVIDIA (NVDA)

Tesla (TSLA) PT Raised to $270 at Barclays

Palantir Stock Surges After Announcing Move to the NASDAQ

Why Buffett Dumped Apple and Bet Big on Domino's Stock Instead

Liberty Energy stock jumps after Trump picks CEO Chris Wright as energy secretary

Post-Election Rally Stalls, But These 3 Stocks Can Keep Going

The market is currently navigating a complex environment, with geopolitical tensions, macroeconomic uncertainties, and potential shifts in monetary policy creating a volatile backdrop.

The upcoming CPI release will be a critical data point, influencing investor sentiment and the direction of the market. While the sector performance data suggests some preference for defensive sectors, the overall picture remains mixed.

Investors should remain cautious and focus on a well-diversified portfolio, carefully considering the potential impact of upcoming events. The current market conditions highlight the importance of remaining informed and adaptable, navigating the choppy waters with a clear understanding of the underlying forces at play.

This report is for informational purposes only and should not be construed as financial advice. Investing in the stock market involves inherent risks, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.

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