Indexes Keep Rising Into Fed; LSCC, VRTX, FCX In Focus | Stock Market Today

TL;DR

The market had a strong session with the NASDAQ Composite and S&P 500 both posting gains. However, the NASDAQ is looking extended and may be at risk of a pullback. The market generally looks strong, but investors should be cautious and consider the potential volatility from the upcoming FED meeting.

Transcript

thank you good afternoon everyone and welcome to stock market today it's Ali Corman Ed Carson here with a breakdown of the action in today's session and you may have heard there's a big AWS outage happening right now so instead of streaming live across social media like we usually do we're recording this show via zoom and then going to distribute t... Read More

Key Insights

• 🤨 The market had a strong session, but the increasing extended position of the NASDAQ raises the risk of a pullback.
• ❓ Investors should be cautious and consider the potential volatility from the upcoming FED meeting.
• 👲 Small caps and mid caps are displaying positive momentum, indicating overall market strength.
• 🎁 Infrastructure and industrial sectors are gaining strength, presenting potential opportunities for investors.
• 🐿️ Biotechs, software stocks, and chips are performing well, although caution is advised due to their potential overextension.

Questions & Answers

Q: Is the NASDAQ at risk of a pullback after its significant rise above the 50-day line?

Yes, the NASDAQ's extended position could increase the likelihood of a pullback. While it doesn't necessarily mean it will happen immediately, the risk and potential size of a pullback are rising.

Q: What should investors consider with the upcoming FED meeting?

The FED meeting could introduce volatility to the market. While the current CPI report indicates a potential pause in rate hikes, investors should pay attention to the tone set by Fed Chief Powell and the possibility of future rate increases.

Q: Are there any stocks that present potential buying opportunities?

Yes, there are stocks like Lattice Semiconductor, Vertex, and Freeport McMoRan that are showing potential entry points. However, investors should be cautious and consider waiting for a handle to form or a pause in the stock's movement before making a purchase.

Q: What is the state of infrastructure stocks and ETFs?

Infrastructure stocks and ETFs, such as PAVE and XL Industrial, are performing well and showing positive trends. Factors like potential China stimulus and positive U.S. construction trends contribute to their improved outlook.

Summary & Key Takeaways

• The NASDAQ Composite and S&P 500 had strong gains, with the NASDAQ reaching new highs. However, the NASDAQ's significant rise above its 50-day line indicates a potential for a pullback.

• The S&P 500 is also getting extended and may be running out of room for further gains before a possible pause.

• The Dow is showing improvement and reaching new highs, potentially exiting its sideways range.

• Small caps and mid caps are showing positive momentum, indicating broad market strength.

• Software stocks and chips are performing well, although some caution is advised as they may be nearing overextension.

• Biotechs are seeing improved participation, presenting opportunities for investors.

• Infrastructure and industrial sectors are also gaining strength, with various ETFs showing positive moves.

• Selected individual stocks, such as Lattice Semiconductor, Vertex, and Freeport McMoRan, are showing potential entry points but have specific considerations for investors.