Key Takeaways

• Advanced Micro Devices is gearing up to showcase new tech at its 2024 Advancing AI event on Thursday.
• The company is expected to showcase its Instinct GPU accelerators and EPYC server processors at the event.
• Analysts said the event could be a “catch-up” catalyst for AMD in the AI accelerator market.

Advanced Micro Devices (AMD) is gearing up to showcase new tech at its 2024 Advancing AI event on Thursday, which Bank of America analysts said could be a “catch-up catalyst” for the chipmaker.

AMD is expected to highlight its line of Instinct GPU accelerators and EPYC server processors at the event, and could potentially offer a glimpse into how it plans to capture a larger share of the AI accelerator market. 

Analysts expect a followup to AMD’s MI300 series of accelerators launched in the fourth quarter of 2023. The company is off to a strong start in its first year of accelerator sales, Bank of America analysts said in a note Wednesday, guiding for more than $4.5 billion in sales this year. 

How AMD Could Grow Its AI Market Share

The big question is how large of a market share can it command with Nvidia (NVDA) dominating the AI sector. The current analyst consensus suggests that AMD is expected to hold a roughly 5% to 7% share of the AI accelerator market over the next couple years (while Nvidia’s share is north of 80%). However, if it could show a path to 10% by the end of 2026, the company would add about $5 billion in sales, Bank of America said. 

What could help is the announcement of high-profile companies that use AMD’s MI300 series accelerators. Analysts said they believe AMD’s MI300X is already used by Microsoft (MSFT), Oracle (ORCL), and Meta (META), and others could be announced at the event. 

Shares of AMD jumped nearly 10% the day after last year’s AI event in December, and could surge again after this year’s event.

The stock climbed nearly 5% Friday to $170.90 and is up about 16% so far this year, thanks to surging AI demand.

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Facebook Parent Has Gained 65% in 2024

Key Takeaways

• Meta shares hit a new record high Friday as investor optimism about the tech giant’s AI opportunities runs high.
• The relative strength index confirms bullish price momentum in the stock, but also warns of overbought conditions, opening the door to short-term profit taking.
• Investors should monitor key retracement levels around $535 and $480, while also monitoring chart-based bullish price targets at $700 and $790.

Meta Platforms (META) shares hit another record high Friday as investors continue to pile into the stock, impressed by the tech giant’s latest artificial intelligence (AI) and metaverse innovations revealed last week at the company’s Connect conference.

Earlier this week, the shares received a boost after Pivotal Research analyst Jeffrey Wlodarczak initiated coverage on the stock with a “buy” rating, pointing out that the Facebook and Instagram parent’s AI initiatives have it well placed to boost user engagement, helping the company gain market share in search and social media.

Meta shares were up 0.4% at around $585 in midday trading Friday. The stock has gained 65% so far in 2024, handily outpacing the S&P 500’s return of around 20% over the same period.

Below, we take a closer look at the technicals on Meta’s chart and point out key price levels worth watching.

Strong Price Momentum, Overbought Conditions

Meta’s price has continued to grind higher since breaking out from an ascending triangle last month, however, trading volumes have decreased throughout the move, potentially signaling a tiring uptrend in the stock.

Moreover, while the relative strength index (RSI) confirms bullish price momentum, it also warns of overbought conditions, opening the door to short-term profit taking.

Looking ahead, investors should eye several key retracement levels on Meta’s chart, while also monitoring a couple of bullish price targets we can forecast using technical analysis.

Retracement Levels to Watch

During an initial pullback in the stock, it’s worth keeping an eye on the $535 level, a key region on the chart near the ascending triangle top trendline that may have flip from providing prior resistance into offering future support.

A breakdown below this level could signal a potential trend reversal, leading to a retest of lower support around $480, an area where the shares would likely attract buying interest near the rising 200-day moving average and a range of similar trading levels on the chart between February and August.

Bullish Price Targets to Monitor

Forecasting chart-based price targets essentially works by using historical price action to predict future moves.

To project a price target using the measuring principle, we calculate the distance between the symmetrical triangle’s two trendlines near the start of the pattern and add that amount to the breakout point. In this case, we add $165 to $535, which forecasts a target of $700.

We can predict a price target using the bars pattern by taking Meta’s trend higher from December to March and overlaying it on the chart from last month’s low, a technique that forecasts a target of around $790. 

The prior move, which also started from the lower trendline of an earlier ascending triangle, occurred over 62 trading days, meaning a similar trending move could potentially play out until early December if price history rhymes.

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

• Stellantis shares tumbled Thursday after the Chrysler and Jeep parent reported a significant drop in U.S. sales.
• Since setting its record high in March, the stock has trended lower within a narrow descending channel, with share turnover this week registering its highest level since late October 2019 to indicate conviction behind the recent selling.
• Investors should monitor crucial downside levels on the Stellantis chart around $11.50 and $8.50, while watching key upside areas near $15 and $18.50.

Stellantis (STLA) shares tumbled Thursday after the Chrysler and Jeep parent reported a significant drop in U.S. sales, prompting concerns that the company could rein in its generous payout to investors through dividends and buybacks.

On Monday, the company slashed its full-year profit outlook, noting that it was reducing its North American inventory amid softening global industry dynamics and intensifying competition from Chinese rivals.

Following the automaker’s weaker-than-expected U.S. sales and profit warning, analysts at Barclay’s reduced their rating on the stock to “equal weight” from “overweight,” noting they see no recovery for Stellantis until at least the first half of next year. Since the start of the year, the company’s shares have fallen around 44% through Thursday’s close.

The shares fell 4% to close at $13.08 on Thursday.

Below, we take a closer look at the automaker’s weekly chart and apply technical analysis to identify important price levels worth watching.

Descending Channel Breakdown Looms

Since setting their record high in March, Stellantis shares have trended lower within a narrow descending channel, falling below the closely-watched 50- and 200-week moving averages (MAs) in the process.

Importantly, volumes have steadily increased since late July, with share turnover this week registering its highest level since late October 2019 to indicate conviction behind the recent selling.

Crucial Downside Levels to Watch

Upon a breakdown below the descending channel’s lower trendline, investors should monitor two crucial levels on the Stellantis chart.

The first sits around $11.50, a region where the shares could attract buying interest near the prominent July and October 2022 swing lows, particularly given that the relative strength index (RSI) indicator points to oversold conditions in the stock.

A failure to hold this level may see the shares revisit lower support around $8.50, a location on the chart where investors could seek lower entries near a series of comparable trading levels positioned just above the March 2020 pandemic low.

Key Upside Levels to Monitor

If Stellantis shares undergo a reversal, it’s worth watching two key overhead levels on the chart.

Firstly, an initial recovery could test the $15 level, where the price may run into resistance near last week’s pre-gap lows, an area that also aligns with multiple peaks and troughs on the chart dating back to early January 2021.

A rally above this level could see a move up to around $18.50, a chart location where investors may look to lock in profits near the 200-week MA and a multi-year trendline connecting a range of comparable price action from December 2020 to October last year.

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

• U.S. dockworkers agreed to suspend their strike until Jan. 15, after reaching a tentative agreement with port operators on wages. 
• An estimated 45,000 members of the International Longshoremen’s Association went on strike earlier this week, seeking higher pay and labor protections.
• The strike shut down U.S. ports responsible for about two-thirds of the country’s imports, disrupting supply chains and threatening to raise prices for many goods. 

U.S. dockworkers agreed to return to work and suspend their strike until Jan. 15, after reaching a tentative agreement with port operators on wages. 

The International Longshoremen’s Association (ILA) and United States Maritime Alliance (USMX) said they would “return to the bargaining table to negotiate all other outstanding issues,” according to a joint statement Thursday.

The agreement reportedly includes a 62% bump in wages over six years, up from an earlier proposal that would have lifted workers’ pay 50%, though still below the 77% raise the union had hoped for. 

An estimated 45,000 members of the ILA went on strike earlier this week, seeking higher pay and labor protections against automation from port operators.

The strike shut down U.S. ports responsible for more than 68% of the country’s imports, disrupting supply chains and threatening to raise prices for many goods.

JPMorgan analysts estimated the strike could have cost the U.S. economy as much as $4.5 billion per day.

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Key Takeaways

• Market participants are pricing in deeper interest rate cuts than Federal Reserve Officials projected recently.
• Experts say that, if economic data comes in strong over the next few months, stocks and other risk assets could get a boost as skeptical investors grow more optimistic about a soft landing.
• The market’s response to Friday’s jobs report could be muted as investors await more labor and inflation data before the Fed’s November meeting.

Judging from interest rate expectations, Wall Street is more pessimistic about the U.S. economy than the Federal Reserve is, and that outlook could be put to the test by Friday’s closely watched September jobs report.

Late Thursday, investors were pricing in a 56% chance that the Fed will cut interest rates by at least 75 basis points before the end of the year, according to CME Group’s FedWatch Tool, which forecasts interest rate decisions based on federal funds futures trading data. A reduction of that size would require the Fed to cuts its benchmark rate by 50 basis points, or half a percentage point, in one of its two remaining policy meetings this year, in November or December.

The Fed cut the fed funds rate by 50 basis points last month, its first rate cut in more than four years, citing progress in the fight against inflation and a deterioration in the labor market. The cut was an unusually large move for the Fed, which more commonly has carried out 25-basis-point adjustments.

The market’s bias toward another jumbo cut puts it squarely at odds with the Fed, whose September dot plot forecasted two 25-point cuts by the end of the year, and most economists, who generally see the U.S. economy on track for a soft landing. It also reflects lingering skepticism on Wall Street about the health of the economy.

According to Deutsche Bank analysts, Wall Street’s aggressive rate cut expectations could end up being a boon to markets over the next few months. “From a market perspective,” analysts wrote in a recent note, the market’s pessimism “suggests that investors could still price in even more good news over the months ahead if economic growth does hold up.”

Much More Data Before Next Fed Meeting

Key labor market updates this week have sent mixed signals about how well the economy is holding up. The number of job openings increased in August, but the hiring rate dipped to April 2020 levels. One report indicated private hiring rebounded in September, while another suggested layoffs were unseasonably high.

Friday’s September jobs report could help clarify the relatively muddy picture painted by this week’s other data. A report that’s generally in line with expectations would likely bolster the case for slow-and-steady easing, wrote Oxford Economics’ Lead Economist Nancy Vanden Houten in a recent note. “If the report on balance is much weaker than expected,” she wrote, “it could be enough to prompt the Federal Reserve to lower rates by another 50bps at its November meeting.”

Bank of America analysts expect the market’s reaction to Friday’s report to be tempered by the fact that there’s a month’s worth of data still to be released before the Fed’s rate decision. Traders, the analysts said in a recent note, are unlikely to write off a 50-point cut until after September’s inflation data and October’s jobs report, both of which will be released the week before the Fed’s November meeting.

“We think a soft employment report is likely to generate a larger market response vs a strong labor report,” the analysts wrote.

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Key Takeaways

• A court ruling in Georgia has cleared the way for President Joe Biden’s latest program to forgive student debt, at least for the time being.
• The case will now be decided by a different federal court in Missouri and could ultimately be decided by the Supreme Court.
• If Biden’s program is allowed to go through, millions of borrowers would have some or all of their federal student loans forgiven.

A legal victory for President Joe Biden’s administration has removed an obstacle standing in the way of student loan forgiveness for millions of borrowers. 

A federal judge in Georgia late Wednesday allowed a temporary block on Biden’s latest student loan forgiveness program to expire. The expiration of the block was a setback for Republican states who filed a lawsuit seeking to prevent the $147 billion program from going into effect.

Missouri and seven other states had sued to stop Biden’s second attempt at student loan forgiveness, arguing the new rules are unconstitutional. Judge J. Randal Hall in early September temporarily blocked the program while the case was considered, but ruled on Thursday that the case must be heard in Missouri, not Georgia, because the state of Georgia did not have legal standing to sue.

What Does This Student Loan Forgiveness Plan Include?

Biden’s Department of Education created the latest debt forgiveness program after the Supreme Court struck down an earlier attempt that would have wiped out up to $20,000 of student loan debt per borrower.

The latest iteration was scheduled to go into effect as early as this month before it was blocked. The program would forgive some or all of the federal student loan debts for people in certain situations, including those whose debts grew because of interest, borrowers with decades-old debts, and those who qualify for existing debt relief programs but haven’t applied, among others.

If it survives court challenges, the program will bring the total number of people who have received some amount of student loan forgiveness to 30 million. About 4 million borrowers have already had their loans forgiven under other Biden programs, the department said.

“While we appreciate the District Court’s acknowledgment that this case has no legal basis to be brought in Georgia, the fact remains that this lawsuit reflects an ongoing effort by Republican elected officials who want to prevent millions of their own constituents from getting breathing room on their student loans,” an Education Department spokesperson said via email. “ We will continue our lawful efforts to deliver relief to more Americans, including by vigorously defending these proposals in court.”

More Legal Challenges Are Ahead

The fate of the program could ultimately be determined by the same Supreme Court that struck down Biden’s earlier attempt at forgiveness.

In that case, the court’s conservative majority ruled that Biden had overstepped his authority as president when discharging the loans, siding with Missouri and other Republican-led states that had sued to block forgiveness. The new program, however, uses a different bureaucratic procedure based on a different law—the Education Act of 1965—which the Department of Education says is constitutional. 

The loan forgiveness program is just one of Biden’s student loan-related programs currently tied up in court. Republican lawsuits have also blocked the SAVE repayment plan, a lower-cost loan repayment plan Biden rolled out last year, enrolling 8 million borrowers. Those borrowers’ loans are in interest-free forbearance until the legal battle is resolved.

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Key Takeaways

• Constellation Brands, the maker of Corona and Modelo beers, posted mixed second-quarter results as wine and spirits sales sank.
• The maker of Modelo Especial and Corona beer posted strong overall beer sales in the quarter.
• CEO Bill Newlands said the beverage alcohol market has been negatively impacted by the “current macroeconomic backdrop.”

Constellation Brands (STZ),  the maker of Corona and Modelo beers, posted mixed second-quarter results as wine and spirits sales sank.

The company reported second-quarter fiscal 2025 diluted earnings per share of $4.32, above estimates from analysts surveyed by Visible Alpha. However, revenue was short of forecasts, rising 2.9% to $2.92 billion.

Constellation Brands shares were down 3.6% in early-afternoon trading, pushing the stock into negative territory for the year.

Beer sales mainly increased. Second-quarter sales of Modelo Especial, the top selling beer in the U.S., rose 5% and those of Pacifico surged around 23%, while those of Corona Extra dropped 3%.

Macro Backdrop Weighs on Demand

Wine and spirits sales fell 12% to $388.7 million, however, dragged down by a 9.8% slide in shipment volumes. 

CEO Bill Newlands said “the current macroeconomic backdrop has weighed on demand for beverage alcohol,” as well as overall consumer packaged goods.

The company said it sees full-year net sales growth in the range of 4% to 6%, with beer sales up 6%-8% and wine and spirits sales down 4% to 6%.

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Shares Plunged 12% on Wednesday

Key Takeaways

• Shares in Humana will likely remain on watchlists after plunging 12% Wednesday on news the Centers for Medicare and Medicaid Services downgraded a large portion of the health insurer’s Medicare offerings.
• The stock has traded within a descending channel since July last year, with Wednesday’s sell-off testing the pattern’s lower trendline. 
• Investors should watch key lower price levels on Humana’s weekly chart around $232, $218, and $190, while monitoring an important overhead price level near $300 if the stock stages a reversal.

Shares in Humana (HUM) will likely remain on watchlists after plummeting Wednesday to levels not seen in more than four years after the Centers for Medicare and Medicaid Services (CMS) downgraded a large portion of the health insurer’s Medicare offerings.

The change means that only 25% of Humana’s Medicare Advantage members will be enrolled in plans rated four stars or higher next year, a significant drop from 94% in 2024, an outcome likely to have a major impact on the quality bonuses Humana receives from the government, which in turn could pressure the health insurer’s earnings.

Humana shares fell 12% to close at $246.49, after dropping as low as $213.31 during Wednesday’s session. The company’s stock has plunged around 46% since the start of the year as ongoing challenges surrounding the Medicare Advantage health insurance program weigh on its share price.

Below, we take a closer look at Humana’s weekly chart and use technical analysis to point out important longer-term price levels worth watching.

Descending Channel Test

Humana shares have traded within a descending channel since July last year, with Wednesday’s sell-off testing the pattern’s lower trendline. 

Importantly, the move has occurred on the highest weekly volume since mid-July 2016, indicating conviction by larger market participants behind the selling.

If the stock’s price stages a decisive close below the channel this week, investors should monitor three specific lower areas on Humana’s chart.

Key Lower Chart Levels to Watch

The first area to watch out for sits around $232, a location where the shares could encounter support near a horizontal line connecting several pullback lows from July to November 2017 with price action around prominent troughs that formed on the chart in April 2019 and March 2020.

Interestingly, this area also sits in close proximity to the projected price target of a bars pattern that takes the stock’s impulsive move lower from November to April and positions it from the July high.

A breakdown below this level could see a decline to the $218 area, where the shares may attract buying interest near the 2015 and 2016 peaks that formed within the stock’s longer-term uptrend.

Further selling opens the door to a retest of lower support around $190, an area on the chart where buy-and-hold investors may look for entry points near a trendline joining a range of comparable trading levels from July 2015 to February 2017.

Important Overhead Chart Level to Monitor

If the stock stages a reversal and moves higher, investors should keep a close eye on the $300 level. As well as possibly facing selling pressure around the psychological round number, the shares could also encounter overhead resistance from the August 2019 swing high and April 2024 swing low.

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

• CVS Health shares have been in the spotlight following reports that the healthcare services giant is considering separating its retail pharmacy and insurance units as it looks to improve profitability and appease investors. 
• The stock remains stuck in a long-term descending channel, with the price trading sideways since finding buying interest near the pattern’s lower trendline in late April.
• Investors should watch crucial support levels on CVS Health’s chart around $56 and $52, while monitoring key resistance areas near $68 and $76.

CVS Health (CVS) shares have been in the spotlight following reports that the healthcare services giant is considering separating its retail pharmacy and insurance units as it looks to improve profitability and appease investors.

The company also said this week it will lay off about 2,900 employees, representing about 1% of its workforce, as part of a previously announced cost-cutting plan. These latest developments come after CVS executives reportedly met hedge fund investor Glenview Capital Management on Monday to discuss a shakeup of the the firm’s operations.

Shares in the healthcare conglomerate rose 1.1% Wednesday to close at $62.24 but have fallen 21% since the start of the year, weighed down by higher expenses, lower reimbursements and shifting consumer habits, all of which have contributed to the company lowering its outlook in recent quarters.

Below, we take a closer closer look at CVS Health’s weekly chart and turn to technical analysis to identify important longer-term price levels to watch out for.

Shares Stuck in Descending Channel

CVS Health shares have traded within a descending channel since late 2021, with the price tagging the pattern’s upper and lower trendlines several times to establish easily identifiable support and resistance areas on the chart.

More recently, buyers stepped up to defend the channel’s lower trendline after a steep sell-off throughout April, though the stock has chopped in a sideways drift since.

The relative strength index (RSI) gives a reading of around 50, indicating neutral conditions, while declining volumes since the stock bottomed in late April points to waning interest from larger market participants, such as institutional investors and pension funds.

Let’s take a look at several longer-term price levels that investors will likely be watching.

Crucial Support Levels in Play

The first level to watch sits around $56, a region where the stock may find buying interest near the lower portion of the recent rangebound period. This area also aligns with similar trading levels on the chart between March 2019 and November 2020.

Selling below this level could see the shares decline to the $52 area, where they would likely encounter support around the April and May 2019 troughs.

Key Resistance Levels in Focus

An initial move higher could bring the $68 level into play, an area on the chart where the stock may face a wall of resistance from the descending channel’s upper trendline and multiple peaks and troughs on the chart stretching from October 2017 to December last year.

A breakout above this level could accelerate a move up to $76, an area where investors may look to lock in profits near a multi-year trendline connecting a range of similar price levels from early 2017 through to March this year.

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

• Major U.S. indexes were little changed at midday Wednesday, as investors watch developments in the Middle East and the U.S. port strike. 
• Nike shares fell Wednesday, a day after the company declined to offer a full-year outlook alongside its fiscal first-quarter results.
• Humana’s stock price plunged after a large share of its Medicare offerings were downgraded by the Centers for Medicare and Medicaid Services.

Major U.S. indexes were little changed at midday Wednesday, as investors watch developments in the Middle East and the U.S. port strike. The Dow, S&P 500, and Nasdaq were all slightly lower.

Humana (HUM) was the worst-performing stock in the S&P 500 after a large share of the insurer’s Medicare offerings were downgraded by the Centers for Medicare and Medicaid Services (CMS).

Shares of Nike (NKE) also fell, a day after the athletic apparel giant withdrew its full-year guidance and pushed back its investor day.

Tesla (TSLA) shares slipped after the electric vehicle maker reported more deliveries than analysts projected for the third quarter, but investors may have had higher expectations.

Conagra Brands (CAG) shares sank as the food maker with brands such as Duncan Hines and Slim Jim reported profit and sales that missed estimates as it faced a “challenging environment.” 

Lamb Weston Holdings (LW) shares climbed after frozen potato products company announced a major restructuring that includes closing a plant, production cuts, and layoffs.

Shares of Caesars Entertainment (CZR) gained as the hotel and casino operator said it would buy back half a billion dollars in stock after its current repurchase program ends.

Diamondback Energy (FANG) shares also rose as Barclays upgraded the stock, pointing to the benefits of the oil company’s $26 billion purchase of Endeavor Energy Resources. 

Oil futures climbed and gold prices declined. The yield on the 10-year Treasury note was higher. The U.S. dollar was up versus the euro, pound, and yen. Most major cryptocurrencies traded lower. 

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