• A mixed ending on Friday. The S&P 500 and the Dow fell around 1% and 3%, respectively, which put an end to a six-week string of positive results. The NASDAQ saw a lift from strong results from technology stocks, inching towards its seventh weekly gain in a row. The NASDAQ briefly hit an all-time intraday high on Friday.
• Yield rallies. The yield of the 10-year U.S. Treasury note climbed for the fifth week out of the past six. The yield of the 10-year note closed at 4.24% on Friday—up from 4.07% at the end of the previous week.
• Tech stocks to lead in earnings. Analysts expect that the group of stocks known as the Magnificent Seven will generate average third-quarter growth of 18.1%, according to FactSet. In contrast, the other 493 companies in the S&P 500 were projected to produce growth of 0.1%.
• U.S. consumer sentiment rose. University of Michigan’s Consumer Sentiment Index, which tracks U.S. consumer sentiment, rose to the highest level in six months. Friday’s final reading was 70.5, up from a preliminary number of 68.9 released a couple weeks earlier. The latest result marked the third monthly sentiment increase in a row. 
• Real estate is down. The National Association of Realtors reported that sales of previously owned homes fell 1.0% in September relative to the previous month; compared with September 2023, sales were down more than 3.5%.
• Oil continues its volatility in price. The price of U.S. crude oil saw a gain of almost 5% for the week to nearly $72 per barrel on Friday afternoon. In the previous week it lost more than 8%. 
• Bitcoin dropped. Bitcoin went down to $66,000 last week and dragged down other digital asset stocks along with it, including Riot Platforms and Coinbase. A WSJ report that said the US is probing Tether for sanctions and laundering violations.
• UPS surprises with its earnings. United Parcel Service (UPS) posted third quarter revenue of $22.2 billion, beating estimates and breaking a 10-quarter miss streak on its top line. 
• Nvidia briefly beat Apple for top value. Chip-maker Nvidia on Friday briefly became the world's most valuable company, but Apple regained its top position by the close of trading.

• Tapestry, Inc. (TPR)
• Deckers Outdoor Corp. (DECK)
• Digital Realty Trust, Inc. (DLR)
• Universal Health Services, Inc. (UHS)
• Joby Aviation, Inc. (JOBY)

Biggest Gainers

• Tapestry, Inc. (TPR) +13.54%
• Resmed, Inc. (RMD) +7.12%
• Deckers Outdoor Corp. (DECK) +10.57%
• Immunity Bio, Inc. (IBRX) +26.37%
• Newell Brands, Inc. (PTON) +21.59%

Biggest Losers

• Joby Aviation, Inc. (JOBY) -14.57%
• The Bancorp Inc. (TBBK) -14.47%
• Carter's Inc. (CRI) -13.30%
• Mohawk Industries (MHK) -13.82%
• Capri Holdings Limited (CPRI) -48.89%

Weekly Notables

Trump Proposes Tariffs Plan 

Presidential candidate Donald Trump has proposed tariffs of 60% on Chinese imports and 10% to 20% on goods imported from all other nations. These tariffs would take the biggest chunk off the gross domestic products, or GDPs, of Indiana, Kentucky, Tennessee, and Mississippi — all reliably GOP states in presidential elections, according to a new report from the Tax Policy Center. Illinois, Wisconsin, and Michigan followed. 

Delta Sues CrowdStrike for $500 Million

Delta has filed a lawsuit against cybersecurity firm CrowdStrike Holdings Inc. in a Georgia state court, following a global outage in July that led to widespread flight cancellations. Delta is seeking over $500 million for out-of-pocket losses and unspecified damages for lost profits, legal fees, and reputational harm.

The Week Ahead

• Potential market moving catalysts this week: Data to watch this week include more quarterly earnings reports, the U.S. government’s initial estimate of third-quarter GDP on Wednesday and a monthly jobs report on Friday. According to Jim Cramer, the nonfarm payroll report on Friday will have massive effects on interest rates, where weak hiring result could urge the Federal Reserve to keep cutting the rates.
• Earnings on deck this week: Ford, PayPal, Reddit, Lilly, Caterpillar, Chevron, ExxonMobil, McDonald's, Alphabet, Meta, Apple, Microsoft and Amazon. 

Earnings Spotlight: Amazon

 Third quarter earnings are due on Thursday for Amazon. Analysts believe AI demand would boost Amazon's cloud business as the retail business continued improving its profitability. "Objectively, Amazon has never been stronger — they are the market leader in cloud and e-commerce, with both business units growing steadily and profitably, and (they are) third in digital advertising, making a strong push to close the gap to the two players ahead," Bernstein analyst Mark Shmulik wrote to clients on Friday.