This week could be pivotal in determining if stocks can maintain their momentum after hitting an all-time high. The Dow topped 42,000 and the S&P 500 broke 5,700 after the Federal Reserve's half-point rate cut. However, October is a historically weak month for equities, it could bring increased volatility due to the upcoming US presidential election. Economic reports this week may show weakness, but lower inflation could support the Fed's rate cut decision.
PFE
Pfizer is down 52% from its 2021 high and is showing signs of a "bearish-to-bullish" reversal. After several setbacks over the past three years, it's trading at $29.30. Recently, the stock has shown bullish price-volume trends and strong relative performance within the S&P 500 Pharmaceuticals Industry Group. Pfizer appears to be a compelling value play with a 5.73% dividend yield, offering potential upside while investors "get paid" to wait for further recovery.
PFE (Daily). After a solid performance over the past six months, Pfizer has formed a lower high of around $30.00. According to the bullish projection line, the price may correct to $28.50 before resuming its upward momentum.
BA
Boeing's defence unit head, Ted Colbert, is leaving the company, marking CEO Kelly Ortberg's first major executive change since taking over in August. Steve Parker, the unit's COO, will step in temporarily. Boeing's defence, space, and security division, which generated 40% of the company's revenue in the first half of the year, has faced production issues and cost overruns, including challenges with the new Air Force One aircraft and Boeing's Starliner program.
BA (Weekly). Boeing broke the support level of $170.00 and the bearish momentum continues. Ongoing labour strike issues have shifted the target to $120.00 as the next support level.
INTC
Qualcomm has reportedly approached Intel about a potential takeover, though it's unclear if Intel has engaged in talks or what the terms might be. The deal, if it materialises, would be one of the largest in tech history, as Intel has a market cap of over $90 billion. Intel's struggles, including disappointing earnings and a 53% stock drop this year, have raised doubts about its costly chip manufacturing plans. Both companies face competition in chip markets and could encounter regulatory hurdles, including antitrust and national security concerns, especially due to their operations in China.
INTC (Weekly). After breaking below $25 per share, a support level established over the past two years, Intel is actively seeking solutions to restore the stock price to that level.
Fullerton Markets Research Team
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