Indexes Bounce From Key Levels; Broadcom, Twilio, JPMorgan In Focus

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0:39good afternoon everyone welcome to stock market today for wednesday november 5th my name is ken shreve and i'm joined today by ed carson our news editor and we'll talk about what happened to the market today we had very strong gains but those gains faded by the close we'll discuss that with Ed, who has got three stocks to watch. What do you got, Ed? Yeah, Broadcom, Twilio, and J.P. Morgan. Three good names there. Broadcom, Twilio, J.P. Morgan. All right. Well, let's take a look at this market that actually we did see some selling late in the session here. And we'll see what's going on. NASDAQ ended, was up well over 1 % at one point today, ended higher by four-tenths of a percent.

1:31This chart is just a little bit delayed. Check out the S &P 500. That index was only up three-tenths of a percent on the day. Still settling out here. We have the Dow Jones Industrial Average eking out a modest gain here of only two-tenths of a percent at this point. So we definitely had some selling late in the session here. And let's check in on the Russell 2000, which at one point was up 1.6%. That looks like it is only up about six-tenths of a percent by the close after making a nice stand at the 50-day moving average. So, Ed, let's take a look at the NASDAQ composite and maybe just take a look at an intraday chart here and see when the selling started to crop up.

2:28And it looked, yeah, pretty much in the final half hour of trading here. Any headlines driving the selling? Colleague Dave Chung said bond yields spiked. That could have been part of it. Yeah, they spiked, but the bond market closes at 3 % Eastern. Of course, it never closes, but, you know, that wouldn't have necessarily done it. But, yeah, I mean, the market got a lift. There was economic data was relatively positive. And then the Supreme Court oral arguments over Trump tariffs. Some justices were skeptical. That seemed to be well received by markets. I mean, we did bounce where we needed to.

3:05All the major indexes and the Russell 2000 sort of bounced off of key levels or near key levels. It's a little disappointing that they came off highs. This just shows you how it's difficult. If you own stocks for any reasonable amount of time, you know, probably you're OK unless there was some kind of earnings issue. So it's like these are just little blips. But if you're buying stocks, I mean, there's been so you buy on strength and then the next it breaks out or flashes a bicycle, then comes down and you're down 4 percent. It just it just makes it tricky. So would have liked to have seen more strength.

3:36Markets are still holding key levels. So, you know, it's nice to see the rise, but it could have been better. Yeah, maybe a market worried a little bit, too, about if the Supreme Court is going to give Trump a negative ruling regarding these tariffs. I know he's got other ways that he could work around that ruling, I heard you talking about, but maybe just a little trepidation here from the market. Yeah, it's just hard to know how that all shakes out and there's tons of earnings. And again, how much conviction? I don't have a lot of conviction when it comes to making new purchases. So I can understand why markets might be a little hesitant on either side.

4:13I mean, it's not like the market's selling off either. I mean, it had a bad day yesterday, but the major indexes are all above their 21-day lines. Yeah, that's really the key right now. You can see the NASDAQ here above the 21-day moving average. Let's just take another look at the S &P 500 here. And I mentioned that was up nicely as well. That only ended up three-tenths of a percent. But again, holding at that 21-day moving average. So all is good. And a really nice stand by the Russell 2000 at the 50-day moving average. Closed, you can see, showing up 1.4%. But that Russell, again, ended about 0.6 % higher.

4:58So we had breadth pretty good today, Ed, on the NASDAQ. It was 2 to 1 positive on the NASDAQ. a little better than that on the New York Stock Exchange, about two and a half to one positive. We have the equal-weighted RSP, still below its 50-day moving average, performed mostly in line with the S &P 500 today. The equal-weighted NASDAQ 100 ETF QQEW in a little better shape here, holding that 50-day line. And we mentioned the bond market, big rise in interest rates today. And you can see a pretty strong move off lows and well above that 4 % level. Market is still uncertain about a rate cut in December.

5:48I think that the odds are about 60%, 60 % or so. So still some questions about if there's going to be another rate cut at the December meeting. it. One point, though, is that while the lower Fed rate odds are a little bit of a negative, the higher yields are a little bit of a negative, but it reflects more confidence in the economy. So, I mean, yes, you'd like the yields to be lower, but you like the reason why the yields are rising. So it's back and forth on that.

6:28at hermes.com slash us. Investments are subject to risk and may lose value. Yeah, yeah. All right, well, let's take a look at some stocks here. We wanted to first take a look at AI Bellwether, right along with NVIDIA. Let's take a look at Broadcom. AVGO is the ticker symbol here. This was a four-day pullback, not in very heavy volume, but it dipped below the 21-day moving average which yesterday rebounded above it, but still trying to reclaim this handle entry right here, which would be 363.24. So the chart is still intact here, ended a losing streak today. We'll just got to see if it can reclaim the buy point here.

7:16Yeah, and there's just so many stocks like this. I mean, some of them are doing it one day and then they come back down. But you're seeing a lot of stocks. They're moving above buy points. They may move for a little bit or come back down. And then they come back down, test the buy point or undercut. And then often they rebound again. But, you know, the jury's still out whether or not this will work. And it just, you know, there's nothing wrong with this chart really other than the fact that it's both a buy point. It's just tricky. You know, if you bottom the breakout, you're probably you're down a little bit.

7:43You might have gotten shaken out. And it's just a little tricky. But, you know, it's tricky, but it's also could all work out fine. So you definitely want to be watching this. and it definitely could be actionable with just a little bit of strength. Yeah, still looking very strong and did see some sellers in NVIDIA today. It did reverse slightly lower down by about 2 % or so. You can see volume was pretty light today. Not much volume coming back and retesting that 195-62 pivot. Let's move over to Twilio. T-W-L-O is the symbol here. This was a really nice earnings move for Twilio. This looks like it was a Friday gap up when they reported earnings.

8:35And pretty mild pullback. Stock reversed slightly higher today. You know, good fundamentals here and a reasonably strong technical setup as well. Yeah, this was a pullback that's less of a concern. Like, you know, yeah, it got above the buy point. But after that kind of surge, a pause is sort of nice. And this was our stock of the day. It may seem strange, but I think this was our fifth straight quarter of accelerating sales growth, which is pretty impressive. Hard to do when you're only at 16 percent. But there is sort of a turnaround. It's gradual. So just nice to see that trend. You know, a pause here would be nice because that was a big spike.

9:11There's been some, you know, it's hard when it's that far above the moving averages. It would take a lot for the 50-day line to catch up, but maybe if the 21-day line can close the gap a little, that'd be nice. But if it does rise above the buy point, it would be actionable. So, yeah. Here is the accelerating revenue growth that Ed was talking about with 4 % to 10%, 11, 12, 13, 15. So it's just sequentially picking up the pace. It's not super fast growth, but it is accelerating, and that's a good sign for Twilio and a pretty good technical setup here as well. Final stock is still seeing some strength in these money centers, Ed.

9:53J.P. Morgan, a big liquid large cap name here. This looks like it's in a good technical setup as well, just moving sideways, holding just above its 50-day moving average. Yeah, because you got above last week's highs, I think it would be actionable. I think it did technically for a brief moment, but didn't close below it. So you get up to like 313, you're above the bulk of this base. Yeah, a lot of financials. Not just J.P. Morgan, Goldman Sachs, and Wells Fargo, and there's Capital One. There's some foreign banks. A lot of them look sort of similar. And so definitely worth looking at out there.

10:29So just the earnings aren't amazing on some of these things. and you just have to understand that, especially after the gains had, but definitely these are worth watching. Yeah, no doubt about it. Goldman Sachs, right along with J.P. Morgan setting up. We talked about KBWB, which is a leaderboard holding. This is an ETF that holds a lot of money centers. Looks a lot like J.P. Morgan trying to break out of a downtrend here, setting up in a base. I did want to mention the performance of growth stocks today. Our barometer here is FFTY. You know, pretty sharp down day. Yesterday held support at the 50-day moving average.

11:09Crow stocks had a pretty good day today. FFTY up close to 2%. Chip stocks in general, SMH, holding support here in a strong uptrend, holding above that 21-day moving average. IGV, this is sort of our benchmark software ETF. This one's struggling a little bit more, a little break of the 50-day moving average Tuesday. Volume picked up the pace today. You can see that right here. But it really didn't give up a whole lot of ground, traded in a tight range. But I want to see IGV get above. Yeah. Yeah, I was just going to say, you know, like, Palantir is the biggest name in this one. And that one did okay today after the sell-off.

11:57But there were a lot of software names that have broken out recently that are coming back down. They haven't bounced yet. So, you know, again, you just don't know. I mean, and I think one thing is I just want to make you have to follow your rules. And sometimes following your rules doesn't mean you're always going to win. You know, you're playing the percentages. You're playing just things like to make sure you don't blow up. And so you might get shaken out of some things. Or you might, you know, you might miss some things that end up working. But, you know, follow those rules. And if things aren't working for you, well, maybe you don't step back a little bit, you know, analyze your trade, see if you want to make any changes or just wait for a market that better suits your style.

12:33But, you know, it is a tricky market. And so, you know, there's it's but following the rules is still important. Even if you go, ah, if I hadn't have done this, you know, everything would have worked out. That's the kind of market you're going to get. But you just have to deal with that. Yeah. Market are doing pretty well. The dollar has been strengthening quite a bit. This is a notable move. I mean, this is UUP, which is basically a long U.S. dollar ETF up for six sessions in a row. That has weighed on gold a little bit, but GLD still holding above its 50-day moving average. And leaderboard added a gold producer to the model portfolio today.

13:11So GLD is still fighting a good fight here at above the 50-day moving average. And if the U.S. dollar starts to back off, that could provide more fuel for gold. Yeah, absolutely. There are a few stocks that were reported after the close that were interesting. The moves aren't as dramatic. Hood beat views. Initially, it's down a little bit, but it was getting very close to what you could see as like a short-term entry. I think if you get above last week's highs, that would be an entry and an emerging consolidation. you know app loving i didn't oh yeah good i was just gonna say uh yeah hood has been a a huge a huge stock market leader and uh sort of an important earnings report for the for the market so we've seen some uh some gold mines and land mines on the earnings front so robin hood uh just down a little down two and a half uh three percent so we'll we'll see how that uh how that plays out.

14:12What else do you have on the earnings front here? A few more app. And that joined the S &P with Robin at the same time. So, you know, that emergency consolidation, maybe last week's highs also could be an entry. This one has a little bit more of a violent pullback, though. And this company, we should note, is being, well, there's sort of an inquiry into the company regarding how it collects some of its marketing data. So that is unresolved. That's the big reason why the stock really fell sharply on this day. But it has held up pretty well here. Nice earnings report. It actually could try to break out of a downtrend.

14:52But just to know there's an investigation going on with AppLovin. And then there was also ARM holdings in the chip group here. Yeah, that was moving back toward a buy point. So that'll be interesting to see. You know, that'll be interesting tomorrow. The big loser so far is DoorDash. And honestly, this had been sending some pretty clear signals that things were not going great. And ahead of time. I mean, this one broke pretty decisively. You just don't know how things are going to go. But that was obviously showing weakness. They missed on earnings. And pretty, pretty ugly selling so far. Yeah.

15:30I mean, this is, you know, we had this on leaderboard, but, you know, we first of all recognize this very nasty downside reversal right here that kind of put us on guard. And then this break of the 50 day moving average here, which also came in higher volume. So we were able to exit exit DoorDash before earnings just under the with the feeling that the stock just wasn't acting right. We were seeing, you know, signs of institutional selling in the stock. This is a pretty big hit down 17%. Pretty good fundamentals here, but, you know, still sells at a pretty lofty valuation. Yeah, when you do that, you know, like we saw Pounder sold off, you know, somewhat not like that.

16:19But, you know, even when it's stellar numbers, everything's perfect. So if you disappoint and you have a high valuation, you can definitely really pay the price. Dutch Brothers, which had been trying to come off lows here, that is trying to rally a little bit. I'm pretty sure they had numbers after the close today. Qualcomm as well, I think was another big one. Not sure if they've reported yet, but down just a little bit. They did report already, yeah. Okay. And there's SightTime, S-I-T-M. Oh, sorry. Sorry. Oh, I didn't know that one was going. Oh, nice one. Thank you. PTRN. I missed that. Yeah.

16:59PTRN, I think, is this. So I'm not sure if they've reported yet, but down just a little bit. And then what was the other one? SITE, right? SITM. Oh, SightTime. Yep. Got it. And that one, you know, if that, well, that's not acting well, But you could see that if it had gotten up to about 300 or close to that, like the last of the highs from Monday, this would have been something that could have been actionable. But right now, not looking like it is. All right. Well, not a great close for the market today, Ed. But, hey, we're still on an uptrend. And growth stocks may be looking a little vulnerable, but really not seeing sell signals, seeing a lot of names still holding above support level.

17:44So no reason to panic quite yet. We're also getting into a pretty good time of the market, November, December. I seem to remember a lot of nice up days in November, a lot of nice up days in December, too, whether it's a January effect taking early or a Santa Claus rally. So getting into a seasonally pretty good time for the market. So it doesn't make sense to get too bearish here. But like you said, not easy putting new money to work right now. The market's volatile, a little bit choppy. That's absolutely true. All right. Well, thanks very much, as always, Ed. We'll see you next time. All right.

18:21That'll do it for today. Thanks very much for watching IBD Live tomorrow morning. Rachel Fox is going to be in the host seat. And we're also welcoming back Matt Caruso, one of our more popular guests on Friday. If you haven't had a chance to check out IBD Live, you can do that at investors.com forward slash IBD Live. Ed and Alexis will be back here Thursday for the Stock Market Today video. Hope you have a great afternoon, everyone, and we'll see you back here next time.

19:00Thank you.

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