Stocks Climb as Technology Shares Rebound

Economic Indicators - September retail sales are expected to increase by +0.4% month-over-month and +0.3% month-over-month excluding autos [1] - September PPI is anticipated to remain unchanged from August at +2.6% year-over-year, while September core PPI is expected to ease to +2.7% year-over-year from +2.8% year-over-year in August [1] - The Conference Board's November consumer confidence index is projected to decline by 1.2 points to 93.4 [1] - October pending home sales are expected to rise by +0.1% month-over-month [1] - Weekly initial unemployment claims are expected to increase by 6,000 to 226,000 [1] Stock Market Performance - US stock indexes are experiencing significant gains, with the S&P 500 Index up by +1.21%, the Dow Jones up by +0.58%, and the Nasdaq 100 up by +2.01% [5] - The markets are pricing in a 72% chance of a -25 basis point rate cut at the next FOMC meeting on December 9-10 [5] - Technology stocks, particularly semiconductor and AI-infrastructure stocks, are contributing to the market's strength [4][10] Corporate Earnings - Q3 earnings season is nearing completion, with 466 of the 500 S&P companies having reported results; 83% exceeded forecasts, marking the best quarter since 2021 [6] - Q3 earnings rose by +14.6%, significantly surpassing expectations of +7.2% year-over-year [6] International Markets - Overseas stock markets are also up, with the Euro Stoxx 50 rising by +0.65% and China's Shanghai Composite recovering from a six-week low with a +0.05% increase [7] Sector Movements - Chip makers and AI-infrastructure stocks are leading the market rally, with Broadcom up more than +8% and Micron Technology up more than +6% [10][11] - The Magnificent Seven technology stocks are also climbing, with Tesla up more than +6% and Alphabet up more than +4% [12] - Healthcare insurers and providers are seeing gains, with Oscar Health up more than +21% following news of a potential health insurance premium tax credit extension [13] Company-Specific News - Lumentum is up more than +11% after a price target increase from Needham & Co. [15] - Carvana is up more than +7% following an upgrade from Wedbush Securities [15] - Merck & Co. is up more than +3% after an upgrade from Wells Fargo Securities [16]