Stocks Finish Mixed As Chip Stocks Struggle To Gain Traction
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Stocks finished the day mixed, but tomorrow morning will be a key moment for earnings season as Taiwan Semiconductor (TSMC) reports its results. These results are always closely watched, especially for insights into Nvidia’s performance, but they carry extra weight this time following ASML’s surprisingly weak results.
Analysts expect TSMC to report third-quarter earnings of $0.36 per share on revenue of $23.3 billion, with gross margins projected at 54.8%.
The fourth-quarter outlook may hold even more significance, as it will provide insight into what’s ahead. Analysts are forecasting earnings of $0.38 per share on revenue of $24.94 billion, with gross margins of 54.7%. If TSMC beats expectations and provides a strong outlook, it could help soothe concerns raised by ASML’s report. So, these results are important for the semiconductor group.
SMH
What’s interesting is that despite Nvidia’s (NVDA) more than 3% rise today, the SMH ETF remained flat, reflecting broader weakness in the sector. The key question now is where the ETF goes from here—the chart doesn’t look promising, and today’s action seems more like a pause than a turnaround.
S&P 500
There has been a noticeable pattern of bearish engulfing candles in the S&P 500, often followed by an up day, occurring around key turning points in the index. The real test, however, isn’t where the index moves in the next day or two but where it stands a week from now. We have spoken about this before. The one difference this time is that today’s came on a Tuesday, while the others have come mostly on Thursday.
WING
Today, Wingstop’s stock dropped nearly 4%, breaking below key support. The next potential support level is around $366. Why does Wingstop matter? Interestingly, it seems to have a knack for signaling where the Nasdaq might be heading.
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Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary for informational and educational purposes only. Michael Kramer is a member and investment ...
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