Clorox stock looks for support while investors await a big week of earnings. The Daily Breakdown digs into the week’s details.
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Weekly Outlook
Remember when the Fed cut interest rates earlier this month amid worries over the labor market? Well, this week will have plenty of jobs-related data dropping, helping investors gain some insight about that corner of the economy. Notably, the end of the quarter is this week too, with Q4 firing up on Wednesday October 1st.
Economic data to watch
On Tuesday morning, the consumer confidence and JOLTS reports will drop. Consumer confidence will give us a peak at how consumers view the economy right now, while the JOLTS data will show things like the number of job openings and layoffs.
On Friday, we’ll get the monthly jobs report, which will tell us how many jobs were added or lost last month, as well as the updated unemployment rate. This is considered the biggest labor report of the month.
Earnings
Earnings season will begin in earnest in a couple of weeks, but we’ve still got some out-of-season stragglers to keep an eye on. Carnival Cruise will report earnings today, while Nike reports earnings on Tuesday.
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The Setup — Clorox
Clorox isn’t a name we talk about too often, but is one that’s popped up on the radar after the stock pulled back to a level that has been long-term support. Even after shares spiked higher during the COVID-19 pandemic, this area has remained a key zone. Now there again, bulls are hoping this zone continues to buoy CLX stock.
The decline has allowed Clorox’s dividend yield to swell, with shares now yielding 4%. If this $110 to $120 zone remains support, bulls might look to lock in a solid dividend yield and ride a rebound back to the upside. If support fails though, they may look to cut their losses and exit the position.
Options
As of September 26th, the options with the highest open interest for CLX stock — meaning the contracts with the largest open positions in the options market — were the October $120 calls.
This is one area where options can come into play, as the risk is tied to the premium paid when buying options or option spreads. Bulls can utilize calls or call spreads to speculate on a rebound, while bears can use puts or puts spread to speculate on more downside should support break.
For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
GOLD
Gold prices are moving higher yet again, with the metal hitting a new record high this morning. That’s helping give a jolt to the GLD and SLV ETFs as well, as silver also pushes higher. The GLD ETF is currently up six weeks in a row — rallying almost 13% in that span — while gold prices are now trading above $3,800 an ounce.
EA
Shares of Electronic Arts spiked almost 15% on Friday and are up another 5% in pre-market trading. The stock is rallying to new record highs on reports that it will be taken private in a deal valuing the company at around $50 billion, making it one of the largest take-private deals ever.
ETH
Ethereum, Bitcoin and others did not look great going into the weekend, but were able to find support and bounce off the week’s lows. That’s helped shore up sentiment, but bulls are hoping this space can find more traction in the days and weeks ahead. Check out the chart for ETH.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.
