A continued cooling of labor market data made for a mixed day on Wall Street, as investors struggle to determine if ‘bad’ news for the economy is good news for stocks. Despite the market weakness, defensive sectors slumped and Tesla became the latest AI play. 👀

Today's issue covers Broadcom breaking down after a double-beat, traders eying Tesla’s technical breakout, an auto parts giant preparing to accelerate, and why Trump-linked stocks aren’t having any $PHUN. 📰

Here’s the S&P 500 heatmap. 2 of 11 sectors closed green, with consumer discretionary (+1.13%) leading and healthcare (-1.37%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $ZUMZ, $VOR, $TVTX, $BRZE, $ABUS 📉 $MCK, $SWBI, $GOSS, $MBLY, $NWBO*

*If you’re a business and want to access this data via our API, email us.

Semiconductor giant Broadcom sank 7% despite delivering earnings and revenue beats. Like many of its peers, the stock came into its report hot, and expectations proved a bit too high for the company to match. 😬

Adjusted earnings per share of $1.24 on revenues of $13.07 billion topped the expected $1.20 and $12.97 billion. Its semiconductor solutions segment saw $7.30 billion in revenue, while infrastructure software generated $5.80 billion.

CEO Hock Tan emphasized the company’s role in the artificial intelligence (AI) boom, saying he now expects a record $12 billion in revenue from AI parts and custom chips during fiscal 2024, up from a previous forecast of $11 billion. 🦾

Still, investors are trying to figure out how to value the company, which remains far more diversified to categories like networking, broadband, server storage, wireless, and industrials than competitors seen as ‘pure AI’ plays.

Shares had risen over 75% over the last year in hopes that it would become a major player in the space. And although it has, its guidance simply meeting analyst expectations was not enough to keep investors excited in the near term, especially in an environment where even Nvidia is under pressure... 😐

Traders and investors will be watching closely to see how the stock digests this news in the coming days and weeks. Currently, the after-hours price action is at odds with Stocktwits community sentiment, which remains in ‘extremely bullish’ territory. 🧐

Despite other electric vehicle (EV) stocks remaining stuck in neutral, Tesla is regaining its momentum and popping back up on traders’ radars.

Driving the move was the company announcing that its Full Self Driving service (a paid add-on driver assistance feature) will launch in Europe and China during the first quarter of 2025…pending regulators’ approval.

On the one hand, this is certainly a positive development for the business. However, the strong stock reaction raised some eyebrows from bears who said this announcement is nothing new since, in July, Elon Musk said he expected regulatory clearance for those two regions by the end of 2025. 🤔

Still, the bulls are running with the news, and the stock showcased its relative strength in an otherwise mixed market.

Technical analysts are watching the stock’s latest breakout attempt above its multi-year downtrend line. And fundamental analysts like Wedbush Securities’ Dan Ives believe the company is ‘ the most undervalued AI play.’

Still, the Stocktwits community remains skeptical…with sentiment sitting in ‘extremely bearish’ territory. 🙃

And while we’re talking about EV stocks, we should mention Nio Inc., which rebounded 15% after its revenue and delivery guidance topped expectations. Bears say the numbers are concerning since delivery volumes growing faster than sales signals weak pricing. They say that will ultimately impact margins and profitability and hurt the company long-term. ⚡

Still, bulls are looking beyond that and instead focusing on the company’s narrowing loss per share and improving top-line momentum.

Stocktwits sentiment hit its highest level since July today, and our engagement question brought out the company’s biggest bulls. With momentum improving, this one’s expected to stay on traders’ radars for the days and weeks ahead. 👀

If you like this chart and commentary, you’ll love our “Chart Art” newsletter. We’ll deliver you the best trade ideas and analysis from the Stocktwits community every evening by 8 pm ET.

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Politically charged stocks are expected to remain hot topics through the upcoming November election. Unfortunately for investors in Trump-linked stocks, momentum has not been on their side since early this year.

Below is a year-to-date (YTD) performance chart of three stocks typically seen as proxies for Trump’s presidency, showing that two-thirds of them recently fell into negative territory. 📉

Trump Media & Technology ($DJT), Phunware ($PHUN), and Rumble ($RUM) all benefitted early in the year from the former President’s return to the limelight. However, they’ve struggled to maintain their strength despite consensus forecasters expecting November to be a tight race. 🗳️

Like other ‘social-momentum’ or ‘meme’ stocks, much of their performance is driven by feelings rather than fundamentals. That’s because many of these underlying companies have yet to prove that their business models can generate a consistent profit and return for shareholders. 🌡️

And right now, the vibe toward these stocks is far from bullish, as investors realize they’ve given back all their gains and are left wondering what the next potential upside catalyst could be.

Time will tell if that changes in the coming weeks and months heading into the election. But for now, it seems the bulls have left the building. 🤷

Economic data: Nonfarm Payrolls/Average Hourly Earnings and the Unemployment/Labor Force Participation Rates (8:30 am ET). 📊

Pre-Market Earnings: Big Lots ($BIG), ABM Industries ($ABM), and Genesco ($GCO). 🛏️

After-Hour Earnings: None — have a great weekend! 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

❌ Advertisers plan to withdraw from X in record numbers

🏦 China creates $230 billion brokerage to take on Wall Street

🚐 US government orders big US airlines to explain their frequent-flyer programs

✈️ Southwest is offering free flights for a limited time after seating policy change

🤫 BofA accused by whistleblower of sharing nonpublic information, WSJ reports

🔋 Toyota and BMW are joining forces to push through the hydrogen fuel cell headwinds

📺 Tech tycoon Larry Ellison will control Paramount Global after Skydance deal closes: filing

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