Dow Heads for 3rd Weekly Win Despite Tech Turmoil

Earnings season is well underway, with this week sporting no shortage of report-driven volatility. Also moving the needle are renewed tensions in the Middle East, as well as a handful of economic data and the highly anticipated SpaceX (SPCX) earnings report. Tech-induced whipsaw price action saw the Nasdaq Composite (IXIC) surge 290 points to kick off the week, before eventually falling 614 points in Thursday's session, triggered by AI valuation concerns and an earnings-induced selloff alongside the broader market.

The Dow surged with small caps -- and subsequently fell, while the S&P 500 Index (SPX) followed suit. Friday saw West Texas Intermediate (WTI) crude cross back above the $100 threshold, too, as Middle East fears reignited. The Dow is eyeing a third-straight weekly pop, while the S&P 500 and Nasdaq aren't so lucky, both pacing for a five-day loss.

Earnings Deluge Continues

More earnings reports entered the ring, including a Cleveland-Cliffs (CLF) melt-up, RTX's (RTX) post-report jump, and Hasbro (HAS), Haliburton (HAL), and Northrop Grumman's (NOC) respective upbeat sessions. Subscriber growth and AI optimism carried Spotify Technology (SPOT) higher, while defense giant Lockheed Martin (LMT) gapped higher after its beat-and-raise.

Not everyone fared so well. Blue-chip AT&T (T) brushed off a beat and outlook hike, while GE Aerospace (GE) succumbed to cash flow fears, and Meta Platforms (META) triggered a Thursday market selloff. Tesla (TSLA), Nokia Oyj (NOK), and chip behemoth IBM (IBM) each suffered a notable post-earnings tumble as well, while Deckers Outdoor (DECK) couldn't avoid its own misstep. 

Historic Trendlines to Watch This Week

One name is nearing a trendline with historically bearish implications, with data suggesting you should think twice before placing any bullish bets on EQT (EQT). However, there is plenty of opportunity for bullish bettors, with CrowdStrike (CRWD) and Home Depot (HD) both within a stones' throw of more gains. Video game producer Take-Two Software Interactive (TTWO) looks like a good bet for those with patience, yielding impressive long-term returns for bulls.

October Fed Meeting on Deck

The earnings calendar will continue its slew of reports next week, featuring the likes of Alphabet (GOOGL), Chipotle Mexican Grill (CMG), Coca-Cola (KO), Coinbase Global (COIN), eBbay (EBAY), Eli Lilly (LLY), and more. Investor focus will also be largely on the two-day October Federal Open Market Committee (FOMC) meeting and interest rate decision, which is slated to kick off on Tuesday, Oct. 27.

Until then, Schaeffer's Senior Quantitative Analyst Rocky White take a closer look at how the Dow and Nasdaq weekly divergence impacts stocks in the long run, while Senior V.P. of Research Todd Salamone pondered how long stocks can keep up with the 'Go Nowhere' market. Plus, keep things spooky with five frightening trading strategies for Halloween!