EB Daily Market Report - Thursday, November 6, 2025
Executive Summary
- Futures were mixed overnight, but all of our major indices turned lower at the opening bell
- The S&P 500 and NASDAQ 100 have both moved below their respective 20-day EMAs
- Commodities are mostly lower, including crude oil prices ($WTIC, -0.23%), which are currently below $60 per barrel for a 2nd consecutive day
- After surging on Wednesday, the 10-year treasury yield ($TNX) has given it all back, falling 6 basis points to 4.09%
- Despite weak crude oil prices, energy (XLE, +1.11%) is the undisputed sector leader on the session
- Consumer discretionary (XLY, -1.90%) and technology (XLK, -1.33%) are easily the worst-performing sectors
- Semiconductors ($DJUSSC, -2.1%) are taking another hit, testing key price support and its rising 20-day EMA - more on this group below
- Earnings are beginning to slow down a bit, at least in terms of the really big market-moving types of earnings reports
- Datadog, Inc. (DDOG, +25.15%) and DoorDash, Inc. (DASH, -16.53%) are the best- and worst-performing S&P 500 companies after reporting their respective quarterly results
Market Outlook
Growth-oriented stocks are definitely taking a hit as the market falls, but that's the norm during periods of weakness. The real key will be, "what areas show leadership on the next bounce and/or new all-time high?" Check out the S&P 500 losing 20-day EMA support, while simultaneously checking out our sustainability ratios:
I can only give you my opinion, but this looks like nothing more than a regular pullback in an overbought secular bull market rally. I don't see this weakness lasting for long, though I do respect any Volatility Index ($VIX) spike that clears 20 on a closing basis. The VIX hit 20.31 earlier, but has since backed off to 18.97, where it was just before 3:30pm ET.
Sectors/Industries
Semiconductors ($DJUSSC) are the most influential industry group, in my view, so let's take a look and see how this group is positioned technically:
At this point, it looks as though price support and the 20-day EMA are being tested, but I wouldn't say there's anything broken here. Still, watching this group makes a lot of sense given the representation of semiconductors in both the NASDAQ 100 and S&P 500.
ChartLists and Trading Strategies
While most of the largest companies have now reported their results, we'll still see hundreds of "Tier 2" and "Tier 3" companies reporting. When reviewing companies prior to earnings, I get the best sense of the type of report they're likely to deliver (beat vs. miss) off of their relative strength throughout the last quarter. Two that I expect to report strong results after the bell today are as follows:
MNST:
MTD:
Both of these stocks are outside the recently-volatile technology area, which is probably a good thing.
Upcoming Earnings
We have begun tracking the daily Upcoming Earnings and the Weekly Upcoming Earnings Relative Strength ChartLists for Q3 earnings. They are included on our website under ChartLists.
Economic Reports
Economic reports due out based on government data continue to be delayed, because of the U.S. government shutdown.
Happy trading!
Tom