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Equity markets continue to grind higher led by growth as has been the case all week long. This was the story this week as growth took a turn while cyclical areas generally took a back seat. This was a reversal from previous weeks and classic rotation that you see in uptrends. It is likely only a matter of time before cyclical areas takes a turn but growth is long and strong heading into the weekend.
We will break down all the technicals, major storylines and what to look forward to in the Tackle Trading Newsletter released later today and the Trading Justice podcast this weekend.
Stocks in the News
- Lululemon Athletica (LULU): Reported EPS of $2.87 ($2.69), surpassing expectations by 6.69%, with revenue at $2.40 billion, an 8.73% YoY increase. The company reaffirmed its Q4 EPS guidance, indicating stable holiday expectations. Following the earnings release, shares surged over 9% in premarket trading, driven by strong third-quarter results and an increased full-year forecast.
- Hewlett Packard Enterprise (HPE): Achieved EPS of $0.61 ($0.56), exceeding estimates by 7.02%, with revenue reaching $8.46 billion, up 15.06% YoY. Q1 EPS guidance suggests a modest 1.9% increase, indicating continued strength in enterprise IT demand. Shares rose 0.9% following the positive earnings report.
- Ulta Beauty (ULTA): Delivered EPS of $5.14 ($4.47), beating expectations by 15.0%, with revenue totaling $2.53 billion, a 1.65% YoY rise. The company raised its fiscal 2025 guidance by 0.7%, signaling confidence in steady growth across key categories. Shares jumped 12% after the earnings announcement, reflecting investor optimism.
- DocuSign (DOCU): Posted EPS of $0.98 ($0.87), surpassing estimates by 12.64%, with revenue increasing 7.77% YoY to $754.82 million. Q4 revenue guidance was reaffirmed at $758-$765 million. The stock climbed 12% as the company’s third-quarter profit exceeded expectations.
- Rubrik (RBRK): Reported a loss of $0.20 ($0.40), beating expectations by 50%, with revenue rising to $236.18 million. Q4 revenue guidance suggests a 2.5% increase as losses continue to narrow. Shares soared 23% following the earnings release, driven by better-than-expected results and increased fiscal year guidance.
Economic Reports
The monthly unemployment numbers were released today and was generally mixed and inline with expectations. Monthly wage growth came in hot, the headline number was a slight beat, will the overall unemployment number ticked up a notch.
- Non-Farm Employment Change: 227k vs 218k exp
- Unemployment Rate: 4.2% vs 4.1% exp.
- Wage Growth: 0.4% vs 0.3%
After the numbers the odds for a December cut at the Fed meeting jumped to nearly 90%.
Next 24 Hours
There are no major earnings reports or economic releases before the bell on Monday. We will be releasing the Tackle Trading Newsletter later today and the Trading Justice podcast tomorrow.
NASDAQ 100 (QQQ)
Growth areas of the market took the reigns at the start of the week and never looked back. We will break down all the sector analysis in the Tackle Trading Newsletter released later today.
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