BUZZ-U.S. stocks weekly: Arm strength

(Repeats from Friday, no changes to text. Updates chart)

** S&P 500 (.SPX) edges down ~0.2% for the week as markets digest inflation data, look ahead to next week’s FOMC meeting (.N)

** Indeed, choppy trade prevails, as Nasdaq Composite (.IXIC) also deflates slightly, loses ~0.4% for the week

** Though a put/call measure still elevated, as the U.S. 10-year Treasury yield (US10YT=RR) is back up to challenge highs

** Even with small SPX weekly loss, most sectors pump up: utilities, consumer discretionary and financials lift most, while tech is among the weaklings

** Tech (.SPLRCT) down 2.2%. Oracle (ORCL.N) tumbles as top-line forecast disappoints. Street View: cloud business to see benefit in the long term. Stock slides ~10%

Apple (AAPL.O) falls after report that China’s Huawei raises phone shipment targets, and Street View: Apples’ steady iPhone prices divides Wall St

U.S. chip tool makers fall on report TSMC asks vendors to delay delivery, and chip group also takes hit as UAW strikes cast a shadow on demand from the auto sector

However, Arm’s (ARM.O) Nasdaq debut boosts sentiment, even though Needham warns of challenges

Semiconductor index (.SOX) gives up >2%

** Industrials (.SPLRCI) dip 0.6%. RTX (RTX.N) falls on $3 bln hit from Pratt & Whitney GTF engine issues, BofA downgrades. RTX loses >9%. 3M (MMM.N) expects ‘slow growth environment’ in 2024, MMM falls ~5%

** Healthcare (.SPXHC) edges up 0.05%. Moderna (MRNA.O) rises >6% as UK regulator approves co’s updated COVID vaccine

** Energy (.SPNY) up 0.1%. U.S. energy firms rise on tight oil supply outlook. Group comes out on top over past 3-months after lagging this year. This as NYMEX crude futures (CLc1) probe over $90 for first time since Nov 2022 (O/R)

** Communication Services (.SPLRCL) up 0.6%. Charter Communications (CHTR.O) , Disney (DIS.N) rise on reaching distribution deal. Street View: ‘win-win for both.’ CHTR rallies ~6%, DIS up ~5%

** Financials (.SPSY) gain 1.4%. Citi (C.N) rallies >5% after management changes give CEO more oversight of businesses. S&P 500 banks index (.SPXBK) up ~3%

** Consumer discretionary (.SPLRCD) rises 1.7%. Tesla (TSLA.O) zooms as MS upgrades on supercomputing potential, makes it ‘top pick’. TSLA surges >10%

And although the United Auto Workers union on Fri launched simultaneous strikes at three factories owned by General Motors (GM.N) , Ford (F.N) and Chrysler-owner Stellantis (STLAM.MI) , both GM and F rise ~3% each for the week

** Meanwhile, Arm’s shares seen as a shoo-in for Nasdaq 100 (.NDX) , though S&P 500 unlikely, and Instacart raises IPO price range after robust Arm debut

** SPX performance YTD:

SPXsectors09182023

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)