The stock market closed higher on Tuesday, led by gains in technology and chip stocks as investors awaited major corporate earnings and the upcoming Federal Reserve policy decision.
Nebius (NBIS) and Credo Technology (CRDO) were standout performers as they were both up 11%. Meanwhile, Lumentum (LITE) continued its momentum as it rose 6%.
Overall, S&P 500 rose 0.6% to 7,723, while Nasdaq increased 1.2% to 26,478.
Chart of the Day
Here is the one-year chart of Costco (COST) as of October 5, 2026, when the stock was at $924.
Costco stock is around where it was a year ago, even though results have been solid. COST was $930 in our report 4 quarters ago and is $924 this quarter. Meanwhile, profit growth has averaged 13% during that time, which David Sharek, Founder of School of Hard Stocks, considers good.
Last quarter, profits grew 12% on an 11% increase in sales. Same-store sales (SSS) increased an impressive 9% year-over-year. Within SSS, size of transaction increased 6% while traffic rose 3%. Online sales increased 20% year-over-year.
The reason the stock has not moved was the P/E has been high. Four quarters ago, the P/E was 46. This quarter, the P/E is 41, and even though that is lower, David Sharek feel the stock is still overvalued.
The big issue with this stock is that it is expensive. So COST is on the radar and if the stock drops some more, he will likely buy in.
