Key Takeaways

• Nvidia’s stock fell nearly 5% Tuesday after hitting a record closing high the previous session.
• Tuesday’s downturn came as Bloomberg reported that the Biden Administration is mulling AI chip export curbs to some Middle Eastern countries, news that tempered optimism about surging demand for the company’s chips.
• Nvidia shares broke out above a multi-month symmetrical triangle earlier this month, though the breakout occurred on below-average volume, indicating a lack of conviction behind the move.
• Investors should watch key support levels on Nvidia’s chart around $125, $115, and $97, while also keeping an eye on a measured moved price target at $177.

Nvidia (NVDA) shares will likely remain on investors’ radar screens after falling sharply Tuesday, just a day after setting a record closing high.

The decline Tuesday came as Bloomberg reported that the Biden Administration is mulling AI chip export curbs to some Middle Eastern countries. The news tempered optimism about surging demand for Nvidia’s chips from tech giants hyperscaling their AI infrastructure amid a backdrop of tight supply.

Nvidia shares fell 4.7% Tuesday to close at $131.60.

Below, we break down the technicals on Nvidia’s chart and identify important price levels that investors will likely be watching.

Symmetrical Triangle Breakout Lacking Volume

Nvidia shares consolidated within a symmetrical triangle between June and September before breaking out above the pattern earlier this month.

Although the breakout signals a continuation of the stock’s longer-term uptrend, it’s worth pointing out that the move occurred on below-average volume, indicating a lack of conviction behind the move.

Conversely, Tuesday’s selling registered the highest daily share turnover in nearly a month, raising the possibility of a potential bull trap, a trading event that lures investors into buying a breakout before the price makes a sudden reversal.

Let’s take a look at three important support levels on the AI chipmaker’s chart and also use technical analysis to forecast a potential bullish price target above the stock’s all-time high (ATH).

Important Support Levels to Watch

The first sits around $125, where the shares find a confluence of support from the symmetrical triangle’s top trendline and a horizontal line connecting a range of comparable trading levels on the chart between early June and late September.

A decisive breakdown below this level would confirm a bull trap, which could trigger a move down to the $115 level, where the stock may encounter buying interest near the triangle’s lower trendline and multiple minor peaks and troughs stretching back to late May.

Further selling could see the shares revisit major support around $97, a location on the chart currently just below the upward sloping 200-day moving average (MA) where investors could look for buying opportunities near the twin March peaks and prices situated just above the August low.

Measured Move Price Target

Investors can forecast a bullish price target above the stock’s ATH by using a measured move, also referred to by chartists as the measuring principle.

This works by calculating the distance between the symmetrical triangle’s trendlines near the start of the pattern and adding that amount to the breakout point.

In other words, we add $50 to $127, which projects a price target of $177. The forecast, around 34% above Tuesday’s close, indicates a potential area on the chart where investors may be happy to lock in profits.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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Key Takeaways

• The S&P 500 fell 0.8% on Tuesday, Oct. 15, 2024, as semiconductor stocks tumbled, weighing on the index. 
• Shares of semiconductor equipment makers KLA, Applied Materials, and Lam Research led losses after weak results from peer ASML, reports of potential U.S. export restrictions, and price target cuts by Raymond James analysts.
• Walgreens shares surged as the pharmacy giant beat quarterly estimates and laid out a plan to turn around its business.

Major U.S. equities indexes moved lower Tuesday as semiconductor stocks tumbled. Both the S&P 500 and the Dow fell roughly 0.8% on Tuesday, retreating from record closes posted in the previous session. The Nasdaq dropped 1%.

Semiconductor stocks came under pressure after semiconductor equipment maker ASML (ASML) accidentally released its earnings report a day earlier than expected, revealing lower-than-expected net bookings and a lackluster sales guidance. ASML shares plunged 16.3%.

ASML’s results, as well as a report on potential U.S. export restrictions, weighed on companies across the semiconductor industry, with heavy pressure on shares of fellow semiconductor equipment manufacturers. KLA (KLAC) shares dropped 14.7%, the steepest drop of any S&P 500 stock, while shares of Applied Materials (AMAT) and Lam Research (LRCX) were down 10.9% and 10.7%, respectively. Raymond James trimmed its price targets for all three stocks, as well as ASML.

Shares of solar technology firm Enphase Energy (ENPH) sank 9.3% after RBC Capital Markets downgraded the stock to “sector perform.” Analysts said tough industry competition could weigh on Enphase’s growth rate.

Walgreens Boots Alliance (WBA) shares surged 15.8%, marking the top performance in the S&P 500, after the pharmacy giant reported better-than-expected sales and profits for its fiscal fourth quarter. The drugstore and health care chain also announced a turnaround plan that includes closing around 1,200 stores over the next three years.

Crude oil prices moved lower following some signs of easing geopolitical tensions and as the International Energy Agency cut its projection for oil demand growth. The prospect of lower fuel costs helped boost shares of cruise operators. Carnival (CCL) shares sailed 6.6% higher, while shares of Norwegian Cruise Line Holdings (NCLH) were up 4.1%.

Charles Schwab (SCHW) shares jumped 6.1% after the brokerage firm posted its results for the third quarter, exceeding revenue and earnings per share (EPS) forecasts. Year-over-year increases in total client assets and the number of active brokerage accounts helped drive the strong performance.

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Key Takeaways

• More than 14% of people said they were worried about missing a debt payment over the next three months, the most in more than four years, a New York Federal Reserve survey showed.
• The rise came as more middle-aged and high-earning respondents said that they are more worried about making debt payments.
• Consumers are expected to keep shopping, as retailers today projected that spending will continue to grow this upcoming holiday season.

The number of people worried they will miss a debt payment in September rose to its highest levels in more than four years, though economists don’t expect consumers to slow their spending. 

A monthly consumer survey from the New York Federal Reserve showed that more than 14% of people believed they could miss a debt payment within the next three months, the most to deliver that answer since April 2020.

The starkest increases in debt worries came from respondents between ages 40 and 60 and those earning more than $100,000 a year, the survey showed.

Credit Troubles Not Expected to Slow Down Spending

The data comes as some economists and lenders have raised worries over consumers’ debt levels. In the New York Fed’s most recent quarterly report on household debt, more than 10% of credit card accounts were delinquent by more than 90 days, the highest levels since 2012. The same report also showed almost 5% of borrowers were behind on their auto loans.

Lenders have been noticing consumers’ struggles, with Ally Financial  (ALLY) recently warning that its auto loan business was struggling as people were having trouble paying bills. Borrowing costs have been an issue for consumers, as the Federal Reserve held interest rates at decades-high levels for more than a year before lowering rates in September. 

Despite pressure from elevated inflation and interest rates, consumers have continued to spend, with retail sales continuing to perform better than economist expectations. That trend is expected to continue through the holiday season, with the National Retail Federation projecting an increase of between 2.5% and 3.5% in holiday sales this year.

“Concerns about the amount of credit are valid, but really not considered at a critical level at this time,” said NRF Chief Economist Jack Kleinhenz. “Yes, there has been a share of credit card debt transitioning into delinquency, but still, they remain relatively small.”

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Key Takeaways

• Shares of the parent company of social media app Truth Social are up significantly Tuesday for a second consecutive day.
• The 2024 election odds have lately shifted in former President Donald Trump’s direction on Polymarket.
• Truth Social on Monday introduced a web version of its Truth+ streaming service.

Shares of the parent company of Truth Social are soaring again. 

Trump Media & Technology Group (DJT) shares were recently up some 10%, backing a bit off earlier highs, on the heels of an 18% jump Monday. The stock has lately raced upward from September lows, trading at levels last seen in July.

Investors may be reacting to a perceived increased likelihood that former President Donald Trump, majority owner of Trump Media’s shares, will win the 2024 presidential election race against Vice President Kamala Harris. Trump’s chances on prediction market Polymarket have climbed roughly 3 percentage points since Monday to around 58%.

Trump Media on Monday launched a web version of its Truth+ TV streaming service. The platform includes a selection of “news, entertainment, faith-based programming, weather, documentaries, children’s content, and more.”

In addition to a recently announced Truth+ Android app, the company says it plans to introduce an iOS app and bring the service to connected TV platforms including Apple TV and Amazon Fire.

Trump Media shares remain off April highs around $80.

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Key Takeaways

• Caterpillar shares fell Monday as Morgan Stanley analysts downgraded the stock and lowered their price target.
• The analysts pointed to “bloated channel inventories that now need to be de-stocked.”
• The downgrade comes after Caterpillar shares hit an all-time high last month after the Chinese government announced stimulus measures.

Shares of Caterpillar (CAT) slid 2% Monday as analysts at Morgan Stanley downgraded the stock and lowered their price target, citing pressure on the company’s construction industries segment.

“We now see rising evidence of a potential de-stocking downturn” for U.S. construction equipment, the analysts wrote, adding Caterpillar faces “bloated channel inventories that now need to be de-stocked. As a result, we see even more risk of downward earnings revisions.”

The analysts downgraded the stock to “underweight” from “equal-weight” and lowered their price target to $332 from $349, nearly 16% below Caterpillar’s closing price Monday of $393.95.

Of the 11 analysts covering Caterpillar tracked by Visible Alpha, just four held a “buy” or equivalent rating as of Monday, with a consensus price target of $360.55.

Concerns Come After Shares Hit Record High

The downgrade comes after Caterpillar shares hit an all-time high last month on hopes the company could benefit from an expansion in China’s housing market in the wake of stimulus measures announced by the Chinese government.

The construction equipment company is widely considered a bellwether stock as a proxy for domestic and global economic expansion or contraction.

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Key Takeaways

• On Monday, the Federal Reserve’s Christopher Waller outlined three economic scenarios and the path forward for rate cuts—though he says his “baseline” calls for lower rates in 2025.
• Waller said in published remarks that a “pause” in rate cuts might be on the table “if inflation picks back up but the labor market stays robust.
• Investors are watching to see what the Fed will do at its next meeting in November after stronger-than-expected inflation and job reports. Futures traders broadly expect a quarter-percentage-point cut.

Federal Reserve Governor Christopher Waller is preparing for three scenarios that might affect the central bank’s monetary policy choices—but no matter which one might occur, he expects lower interest rates in 2025. 

“Whatever happens in the near term, my baseline still calls for reducing the policy rate gradually over the next year,” Waller said in prepared remarks released in conjunction with an appearance Monday.

His remarks come after the Fed cut its key federal funds rate for the first time since 2020 in September and ahead of its next policy meeting in early November.

Since the policy committee’s last meeting, data showed more jobs were created than economists expected and food prices pushed inflation higher than analysts’ projections in September. Both are important to central bankers as they decide how to balance their dual mandate of promoting employment and taming inflation through rate cuts.

While the Fed cut rates by half a percentage point last month, Waller thinks differently about what should be next for rates.  

“I view the totality of the data as saying monetary policy should proceed with more caution on the pace of rate cuts than was needed at the September meeting,” Waller said. 

Waller thinks there are three economic possibilities moving forward:

• The U.S. economy stays resilient, with inflation near the Fed’s 2% annual target and a modest increase in the unemployment rate. In that case, the Fed “can proceed with moving policy toward a neutral stance at a deliberate pace,” Waller said. “In this circumstance, our job is to keep inflation near 2% and not slow the economy unnecessarily.”
• In a scenario he views as less likely, Waller said inflation could drop below the central bank’s annual target, or the labor market could “significantly” weaken. In this case, the Fed “may suddenly be behind the curve, and that message would argue for moving to neutral more quickly by front-loading cuts to the policy rate,” he said.
• Finally, if inflation picks back up but the labor market stays robust, the Fed could pause rate cuts “until progress resumes and uncertainty diminishes,” Waller said.

Traders are pricing in an 86% chance that the Federal Reserve will cut the fed funds rate by a quarter of a percentage point at its November meeting, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data.

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Key Takeaways

• Uber shares lost ground Monday but are still near record highs after investors saw little threat to rideshare companies from Tesla’s highly anticipated robotaxi unveiling last week.
• A chart-based price target using the measuring principle projects a potential move up to $93, an area where investors may decide to lock in profits.
• Investors should watch important support levels on Uber’s chart around $81, $74, and $68.

Shares in Uber Technologies (UBER) lost ground Monday but were still near record highs after investors saw little threat to rideshare companies from Tesla’s (TSLA) highly anticipated robotaxi unveiling last week.

Tesla revealed its long-awaited Cybercab autonomous vehicle and a larger Robovan at an event last Thursday evening. Analysts pointed out that the electric vehicle maker provided little in the way of details, with no specific business model to indicate how the new lineup of autonomous vehicles would eventually compete with companies such as Uber and Lyft (LYFT).

Since the start of the year, Uber shares have climbed nearly 40%, in part from its own foray into robotaxis. In recent months, the company has announced partnerships with General Motors’ (GM) self-driving car company Cruise, Alphabet’s (GOOGL) autonomous vehicle business Waymo, and startup Wayve.

Uber stock was down 1.6% at $85 in mid-afternoon trading Monday. The stock hit an all-time high of $87 on Friday and finished the session 11% higher.

Below, we take a look at the technicals on Uber’s chart and identify important price levels worth watching out for.

Inverse Head and Shoulders

Uber shares carved out an inverse head and shoulders pattern on the chart between May and September, with the stock’s price decisively breaking out above the pattern on Friday. 

Importantly, the move occurred on the highest trading volume since early May, signaling buying activity by larger market participants. 

Moreover, the relative strength index (RSI) confirms bullish price momentum with a reading above 70, but also cautions overbought conditions that open the door to short-term profit taking.

Let’s take a look at a chart-based upside price target and locate three important support levels likely to attract attention.

Chart-Based Price Target to Monitor

We can project a price target using the measuring principle, helping us determine an area on the chart where investors may decide to lock in profits.

To do this, we calculate the distance from the inverse head and shoulders head to neckline and add that amount to the breakout point.

For instance, we add $19 to $74, which forecasts a bullish target of $93, representing upside of around 8% from Friday’s close.

Watch These Important Support Levels

During an initial pullback, investors should keep a close eye on the $81 level, where the shares could garner support near three prior peaks that formed on the chart from February to March, an area that also closely aligns with the low price of Friday’s breakaway gap.

A failure to hold this level could see the stock decline to around $74, a location on the chart where investors who prefer not to chase breakouts may look for buying opportunities near the inverse head and shoulders pattern’s neckline.

Finally, further selling could lead a decline to the $68 area, were the shares may encounter support around a horizontal line connecting a range of comparable trading levels on the chart between May and September.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

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KEY TAKEAWAYS

• Boeing shares fell Monday after the troubled plane maker announced a slew of cost-cutting measures and billions of dollars of upcoming charges.
• The measures are among the most radical taken by CEO Kelly Ortberg, who took the helms of the plane maker in August.
• Ortberg said in a memo to employees late Friday that the company is cutting around 10% of its workforce or 17,000 people “over the coming months,” and postponing the launch of its first 777x jetliner.

Boeing (BA) shares fell in early trading Monday after the troubled plane maker announced a slew of cost-cutting measures and billions of dollars of upcoming charges, among the most radical measures by CEO Kelly Ortberg, who took the reins in August. 

Ortberg said in a memo to employees late Friday that the company is cutting around 10% of its workforce or 17,000 people “over the coming months,” and postponing the launch of its first 777x jetliner.

“Our business is in a difficult position, and it is hard to overstate the challenges we face together,” Ortberg said. “We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones.” 

Boeing To Take $5B in Q3 Charges

Boeing also said it expects to take a total of $5 billion in pre-tax earnings charges at its commercial airplanes and defense divisions in the third quarter. The company said it may report a loss of around $10 per share for the period.

The plane maker, which has faced a number of challenges since a door plug door detached during an Alaska Airlines flight in January, was hit with a downgrade warning on its debt by ratings agency S&P Global last week after it withdrew its contract offer to its striking machinists.

Ortberg said Friday that with the planned layoffs, the plane maker wouldn’t “proceed with the next cycle of furloughs.” Boeing last month temporarily furloughed employees to preserve cash as the strike hit its business.

Boeing shares, which fell close to 3% Monday morning, are down more than 43% since the start of the year.

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Key Takeaways

• Economic growth is expected to slow down in the fourth quarter, possibly making the year’s final months its weakest.
• Consumer spending is expected to fuel continued growth, while economists keep an eye on a labor market that is sending mixed signals.
• Sectors hardest hit by high interest rates are also expected to show improvement as the Federal Reserve’s interest rate reductions start to have an effect.

Economic momentum is projected to slow in the fourth quarter, but economists expect consumers will provide enough power to fuel growth through the year’s end.

High interest rates, a slowing job market, and continued price pressures have weighed on the economy so far this year, but not enough to tip it into a long-predicted recession. The Federal Reserve is shifting from fighting inflation to maintaining a historically low unemployment rate. Meanwhile, market watchers, consumers, and businesses await the outcome of the November presidential election to get some idea of the direction of fiscal policy.

Those factors could make the last quarter crucial for the trajectory of the U.S. economy. Several analysts expect the final quarter’s Gross Domestic Product (GDP) to grow between 1% and 1.5%. That would likely make it the weakest quarter of the year but would avoid an economic downturn.

Labor Market Weakness Could Weigh on Economy

U.S. GDP increased 1.6% in the first quarter, followed by a stronger-than-expected 3% in the second quarter. Official numbers for the third quarter won’t be released until the end of October, but projections by the Atlanta Federal Reserve put it at 3.2%.

Economists believe the primary drag on the economy could come from the labor market, where there have been signs of deterioration. Data from the private sector showed unusually high layoffs and government tracking indicated slower hiring.

However, the closely watched jobs report from the Bureau of Labor Statistics earlier this month showed that the unemployment rate fell to 4.1% in September and, surprisingly, employers created more than 250,000 jobs. That data could indicate that the labor market may be stronger than anticipated.

“This should put to rest—at least for the next month—the idea that the economy is about to fall off a cliff or that imminent doom is on the horizon,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.

Consumer Spending Likely to Support GDP Growth

Economists expect consumer spending to remain resilient despite questions about the job market. This is partly due to a continuing deceleration in inflation, which is easing price pressures across the economy.

“The latest economic data continues to point to a gradual economic downshift, with consumers and businesses still spending but doing so with more prudence,” wrote Gregory Daco, chief economist at EY-Parthenon.

Economists said the Federal Reserve’s pivot to interest rate cuts could also boost GDP. Sectors like housing, construction, and manufacturing have struggled with high borrowing costs and could see a rebound. 

“Some of the sectors that have been battered the most by high interest rates are finally able to gain traction again as we move into 2025,” said Diane Swonk, chief economist at KPMG.

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Key Takeaways

• As President Joe Biden’s Administration enters its final months, White House economic advisors say he has yet to address two crucial policies for household finances.
• The chair of the White House Council of Economic Advisors said housing and childcare expenses are two of the most pressing issues for households.
• Kamala Harris and Donald Trump are proposing policies to address soaring childcare and housing costs.

President Joe Biden’s administration has left at least two major economic problems festering, and both Kamala Harris and Donald Trump are touting plans to address them.

Biden and White House officials are quick to point out the bright spots of the economy under his presidency—restoring the jobs lost during the pandemic and then some; inflation falling back to near pre-pandemic levels, and a reduction in drug prices for Medicare recipients. But Biden was never able to get major legislation passed addressing two of the biggest financial burdens on American families: soaring costs for housing and child care.

In an interview last month with Investopedia, Jared Bernstein, chair of the White House Council of Economic Advisors, highlighted those issues as the economic problems most in need of government intervention.

“I would say the 15-year build-up and the shortage of affordable housing is one of the biggest pieces of unfinished business we face,” Bernstein said. “And of course, there are too many people that spend too large of a share of their income on child care.”

Home prices have risen more than 50% since the pandemic began, putting home ownership out of reach for many people and creating a ripple effect of economic problems, including preventing people from moving to get better jobs.

Child care is an even more daunting issue for families who must pay for it. Sending two children to daycare was typically more expensive than rent across the country last year, according to an analysis this spring by the advocacy group Child Care Aware.

Both major presidential candidates have proposed policies addressing those problems. 

Harris on Child Care

To offset child care costs that are increasing faster than overall inflation, Harris has adopted and expanded upon one of the Biden era’s most effective anti-poverty measures: expanding the child tax credit.

In speeches and a policy paper, Harris has proposed expanding the credit to a maximum of $3,600 per child per year from its current level of $2,000, matching a temporary policy Biden put in place in 2021. Biden’s later efforts to make the change permanent ran aground in the Senate, torpedoed by opposition from Republicans with help from Democratic senator Joe Manchin.

Harris would take the idea a step further, raising the credit to $6,000 for parents of children younger than a year old.

She has also said she would take other measures to “lower the costs of high-quality child care and preschool for working families” though has not offered more detailed plans. The Biden-Harris administration had previously proposed offering free universal pre-school, and capping families’ child care costs at 7% of their income. 

Trump on Child Care

The Trump campaign, through his running mate JD Vance, has proposed a credit of $5,000 per child. As president, Trump signed legislation expanding the existing credit to $2,000 per child from $1,000. 

Trump himself has offered few specifics. When asked last month what child care legislation he would support, Trump replied that child care was “something you have to have in this country” but didn’t elaborate on a plan.  

Trump on Housing

Trump’s housing policies would involve deregulation and using federally owned land.

Trump and Vance have said immigrants have stoked competition for housing, driving up rents and home prices. Trump said he would order police and the military to deport millions of immigrants, which could reduce demand for housing and give landlords and home sellers less bargaining power.

Homebuilders, however, say mass deportation would remove much of their workforce, slowing the pace of building and worsening the nation’s long-standing housing shortage.

Trump also said he would take advantage of a little-used federal asset—the massive amount of land that it owns—to tackle the housing shortage. He laid out the idea last month in a speech at the Economic Club of New York.

“We will open up portions of federal land for large-scale housing construction,” Trump said. “These zones will be ultra-low tax and ultra-low regulation.”

Although the federal government owns more than a quarter of the land in the United States, most of it is inhospitable mountain and desert terrain in the western part of the country, or is being used for national parks, wildlife refuges, or military bases.

Trump has also said he would undo Biden-era rules that encourage municipalities to build affordable housing, calling the policies a “war on the suburbs.”

Harris on Housing

Harris has emphasized housing in her economic agenda, pledging to build an additional 3 million homes to cover what Moody’s Analytics estimated to be a shortfall of 2.9 million affordable homes relative to demand.

Harris said she would get this done largely by offering carrots to builders and local governments in the form of tax credits. In addition to creating a $40 billion “innovation fund” to incentivize affordable home construction, Harris said she would offer tax credits to builders who construct or renovate affordable housing and reduce red tape that blocks the construction of new houses.

Housing economists say local zoning regulations, which restrict the number of homes that can be built where, are a major reason for the nation’s simmering housing shortage.

Harris has also promised to create a $25,000 credit for first-time homebuyers, an idea that’s gotten a mixed reception from economists—some have raised concerns that it would put upward pressure on home prices, while others have said it would target a small enough group of people that it would avoid inflating prices.

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