Last night, U.S. crude oil futures continued to climb after the U.S. military destroyed five Iranian crude oil tankers. The Iranian regime prefers elevated energy prices. Its strategy is to lift gas prices to record highs as the U.S. holds mid-term elections in around 60 days.
Energy stocks will get a lift. Watch Cenovus Energy (CVE) and BP plc (BP).
Even though chip stocks trade at a premium, their forward P/E suggests value. Tradres might continue to buy AMD (AMD) and Intel (INTC). Nvidia (NVDA) stock, despite falling by 2%, is still on a solid uptrend that began in late July.
Watch storage suppliers build on Tuesday’s strength. Seagate (STX), Western Digital (WDC), and SanDisk (SNDK) need to follow through with a rally today. In the server market, investors prefer Dell Technologies (DELL) over HP Inc. (HPQ). SMCI is also likely to hold the $40 support level. Shares peaked at $58.78 in the last year.
Consumer discretionary stocks will face meaningful selling pressure. Dollar General (DG), Dollar Store (DLTR), Costco (COST), Walmart (WMT), and TJX Companies (TJX) have downtrend risks. Consider avoiding the proverbial “catch a falling knife.”
Watch for Amgen (AMGN) to recover from the 10% drop. Similarly, Novartis (NVS) might rebound from the 13.93% decline on Tuesday. They both fell amid Novartis’s disappointing clinical results. Novartis posted a cardiovascular trial failure, while Amgen issued a weak outlook for its olpasiran program.
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