Stocks Bounce Back on Trade Hope, Facebook Earnings

Apple's earnings reaction stifled the stock market's momentum

Stocks came back with a bang this week, though it wasn't enough to save the Dow from its worst monthly loss since January 2016. While news the U.S. was considering more tariffs on Chinese goods spooked traders early on, an upbeat tweet on U.S.-China trade talks from President Donald Trump sparked a broad-market surge, with the Dow and Nasdaq stringing together three straight triple-digit gains by Thursday and the S&P 500 bouncing sharply from a trendline that's previously marked both short- and long-term buying opportunities.

Apple, Facebook Round Out FAANG Earnings

Earnings were also a catalyst for big moves on Wall Street this week. While options bears braced for negative earnings reaction from Apple (AAPL)stifled stock market momentum on Friday, call buyers were rewarded with a rare earnings win for Facebook (FB). Former Dow component General Electric (GE) was volatile after earnings -- putting the stock on path to Friday's nine-year low of $9.07. Other names in the earnings spotlight included Electronic Arts (EA), Shake Shack (SHAK), and Clovis Oncology (CLVS).

Stocks Flashing Buy, Sell Signals

The October sell-off may have created a number of buy-the-dip scenarios for stocks, with Canopy Growth (CGC) and Square (SQ) trading near trendlines that have had bullish implications in the past. Plus, this pair of construction names join McDonald's (MCD) on the list of best stocks to own in November. On the flip side, speculators may want to steer clear of real estate stocks and Wynn Resorts (WYNN) this month.

Wall Street's Biggest Movers

Among equities that made significant moves this week were this electric auto stock, which doubled on a strong orders update, and Puma Biotechnology (PBYI), which plummeted on disappointing sales of the biotech's key drug. Elsewhere, this options bull earned millions on Red Hat's (RHT) M&A-related surge, and these two penny stocks soared on Wednesday.

Midterms, Fed Meeting Up Next

Looking ahead, the first full trading week features a number of notable earnings reports, including results from Walt Disney (DIS) and Etsy (ETSY). Plus, the November Fed meeting kicks off in the wake of a strong October jobs report, though no rate hikes are expected this time around. However, the most anticipated event is the midterm election vote next Tuesday, Nov. 6, which has historically been positive for stocks.