Five stocks to watch in November and what to watch for

The stock market started November on a high note after crashing to close last month as uncertainty over the US presidential election and the Federal Reserve’s next moves on interest rates hover over the market.

A sharp decline on Thursday, led by a sell-off in tech stocks, sent major indexes into negative territory for October. The S&P 500 and Dow snapped a five-month winning streak, while the Nasdaq Composite failed to post a monthly gain for the first time since July.

The third quarter earnings season will wrap up in November with some big names including Nvidia (NVDA) and Home Depot (HD). But the November 5 presidential election will dominate the headline odds and move markets the most this month. Below, we look at some stocks that could see big price moves.

Nvidia

Nvidia is scheduled to report its third-quarter results on Nov. 20, and investor attention will focus on the world’s largest chip company ahead of those results.

Analysts are overwhelmingly bullish on the long-term potential of Nvidia stock, which nearly 4 out of 5 analysts rate a “Buy,” according to the data. Wall Street Journal data. Bank of America (BofA) analysts in a recent note called Nvidia “a generational opportunity,” citing its dominant position in an artificial intelligence (AI) accelerator market expected to double to $280 billion of dollars by 2027.

U.S. cloud providers are expected to spend more than $200 billion on infrastructure this year, with much of that spending going to data centers and the chips that train and run AI models. Nvidia, with an estimated 80% share of the AI ​​chip market, is by far the biggest beneficiary of this spending.

Shares of Nvidia have gained nearly 170% this year after rising more than 200% last year. But with the stock’s banner performance came high expectations. Shares fell more than 6% on the day after Nvidia beat handily earnings from the second quarter estimates at the end of August.

Trump Media & Technology Group

Trump Media & Technology Group Daily Movement (DJT) stock has effectively become a proxy for former President Donald Trump’s chances of returning to the White House in January. No other stock is so widely seen as an indicator of voter sentiment, nor do the fortunes of any other company depend so directly on the outcome of the November election.

The stock more than doubled in October as polls showed Trump closing the gap on Vice President Kamala Harris in national polls. Until November 5, DJT’s share price will likely continue to reflect betting odds on popular platforms such as PolyMarket, PredictIt and, since Monday, even Robinhood (HOOD).

Given how close the polls will be to the election, DJT is likely to remain volatile, especially if legal challenges to the results play out in courts across the country.

Home Depot

Home improvement retailer Home Depot is set to report quarterly earnings in mid-month, and investors will be hoping the results contain signs of recovery for the US housing market.

Mortgage rates has steadily decreased throughout the third quarter, falling from about 7 percent on average in early July to 5.9 percent in mid-September, when the Federal Reserve began cutting its benchmark interest rate.

New home registrations reached a three-year high in September 2024, according to data from Realtor.com, as rate cuts and optimism eased “blocking effect” of increased interest. There were more homes for sale at the end of September than at any other time in April 2020. That could bode well for Home Depot, whose business largely depends on homeowners making improvements ahead of time. of listing.

That said, a rise in the 10-year Treasury yield has pushed mortgage rates higher in recent weeks. Wall Street has tempered its expectations that the Federal Reserve will continue to cut rates aggressively this year and next. Uncertainty about the presidential election and the impact of each candidate’s policies on the economy also contributed to the increase in yields. Rising yields could cloud Home Depot’s outlook, as it did for homebuilder DR Horton (DHI) whose shares sank when its earnings guidance remained below estimates.

Shares of Home Depot are up about 15% this year.

Intel

No company in the Dow Jones Industrial Average had a tougher year than Intel (INTC). The once-dominant US chipmaker has struggled to maintain its technological edge over international rivals and is now in the midst of a massive turnaround effort.

Intel shares have lost more than 50% of their value this year as the chip maker reported massive losses…16 billion dollars only in the third quarter – as a result of sluggish demand for computer chips and high spending at its chip foundry business. The company’s limited exposure to artificial intelligence also weighed on sentiment.

CEO Pat Gelsinger implemented a $10 billion cost-cutting planwhich includes laying off about 15% of the company’s employees and suspending its dividends. Intel’s third-quarter results suggested the effort may be starting to pay off. The company beat estimates with its quarterly revenue and sales outlook.

However, with the company appearing in dire straits, the vultures are circling. Qualcomm (QCOM) reported considered making an offer to buy at least part of Intel’s assets. Alternative asset manager Apollo Global Management offered the company a investment of 5 billion dollars.

The presidential election will have ramifications for US trade policy and Sino-US relations, both of which are important to Intel as they influence its main rival, Taiwan Semiconductor Manufacturing Co. (TSM). Trump recently promised to impose stiff tariffs on semiconductors made in Taiwan to support American manufacturers like Intel.

Boeing

Boeing (nay) 2024 was almost as tough as Intel.

The planemaker’s stock has fallen 40 percent this year as it dealt with the fallout from a plug explosion in early January. The company has burned through billions of dollars in its efforts to reorganize its operations and revive its public image.

Boeing’s problems worsened in September when more than 30,000 union workers went on strike, a work stoppage that analysts estimate was costing Boeing up to $100 million a day. Negotiators at the end of October reached a provisional contract which includes a 38% salary increase over the next 4 years, an increased 401(k) match and a $12,000 ratification bonus. The proposal does not reinstate Boeing’s defined benefit pension plan, a key demand from workers.

Boeing recently raised over $21 billion through a public stock offering designed to help the company weather the strike, which has hampered production and, depending on the outcome of the Nov. 4 union vote, could stretch into the third month of November.

Analysts called the end of the strike “an offset event.” could set the stage for Boeing’s return.