After a rocky start to October, Wall Street is uncertain about near-term catalysts for stocks. Despite tensions in the Middle East driving the biggest oil price rally since March 2023, the major indexes—Dow, Nasdaq, and S&P 500—posted modest weekly gains. October typically sees market volatility as investors take profits before year-end, and concerns over the upcoming US presidential election, Federal Reserve policy and corporate earnings. Still, with the S&P 500 up 20.5% year-to-date, analysts believe an end-of-year rally may still materialise once uncertainty clears.
AAPL
Apple is launching "Apple Intelligence," an AI system set to debut on the iPhone 16, aiming to compete with advanced AI like OpenAI’s ChatGPT and Google’s Gemini. While Apple’s AI isn’t as sophisticated as these rivals, its strength lies in integrating Siri with third-party apps. Apple is rallying its 34 million developers to create "App Intents", small code snippets enabling Siri to perform actions within apps. This could give Apple a significant edge in the AI race by making Siri more functional and boosting iPhone sales. However, developer support is crucial to its success.
AAPL (Daily). Since Apple first reached 218.00 in June 2024, this price has become a demand level, with the stock predominantly trading above it. We recommend buying around that level and holding for the long term.
LVS
Stocks surging following China's recent stimulus measures may soon decline. The People’s Bank of China introduced support measures, which led to a 25% rally in the CSI 300 index. US stocks tied to China, such as Wynn Resorts and Las Vegas Sands, also gained. With their relative strength index (RSI) above 70, they are considered overbought and may drop soon. Analysts warn that recovery in Macau may be slow, reflecting China's uncertain economic outlook.
LVS (Daily). After breaking through the resistance level at 44.00, the stock quickly targeted the higher resistance level. We believe the price is due for a correction around the 55.00 level.
JPM
JPMorgan Chase & Co. (JPM) is expected to maintain stable performance this week, with many analysts giving the stock a "Moderate Buy" rating. The average 12-month price target is around $212. According to a report earlier last week, "October marks the strongest period for three-month returns, with shorter-term returns also among the best." Dividend-paying stocks, such as JPM, have historically performed well in the fourth quarter, and the bank’s current dividend yield stands at 2.4%. Strong Q3 results and JPM’s leading position in the banking sector bolster confidence, though forecasts indicate moderate revenue growth relative to the industry.
JPM (Daily). The stock has shown bullish momentum over the past 6 months, outlined by a projection line. We recommend buying near the 200.00 level, where it rebounded previously.
Fullerton Markets Research Team
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