Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures, with Fed chief Jerome Powell and the start of key economic data on tap.
The stock market closed on Tuesday apple (AAPL) once again pulls the main index, with Amazon.com (AMZN) and Tesla (TSLA). At the same time, the partner of Apple Dow giant Boeing (BA), Chevron (CVX) and Goldman Sachs (GS) is near the point of purchase.
Hewlett Packard Enterprise (HPE) and NetApp (NTAP) reported earnings last Tuesday, with CrowdStrike (CRWD) and working day (WDAY) kicks off this week’s big software report.
HPE stock rose slightly in overnight trading after HPE’s stock came out on top. HP Enterprise stock, above the 200-day line, is working on a long cup. NTAP’s stock tumbled in a longer move due to weak NetApp earnings and guidance. WDAY stock jumped overnight on a Q3 hit and $500 million in purchases. CRWD stock sank despite beating its Q3 outlook as bookings emerged and the cybersecurity company claimed a Q4 revenue shortfall.
On Wednesday morning, ADP will release its November employment estimates for private payrolls. The Department of Labor will publish job openings in the October JOLTS report. The job opening is closely watched by Fed chief Jerome Powell, who will speak on Wednesday afternoon.
All of this points to the Fed’s favorite gauge of inflation, the PCE measure, on Thursday morning, along with the November jobs report on Friday. , as well as many other economic publications.
Investors should be cautious about opening new positions until there is more clarity about the economy and the Fed’s rate hike. If there is something that may want to be a light place in a short time.
CVX stock is on the IBD Leaderboard. BA stock is on SwingTrader.
Fed Chairman Powell’s speech
Fed Chairman Jerome Powell will speak at the Brookings Institution at 1:30 pm ET on Wednesday. He was expected to confirm expectations that the central bank will move to a 50-basis rate hike on December 14. of 75 basis points. But he is also likely to indicate that inflation will continue into 2023.
Whatever Powell says will be quickly weighed down by the economic data. If inflation begins to show a significant cooling and the labor market eases, even the most hawkish Fed policymakers will appreciate a reduction in inflation and an earlier-than-expected end. the market. Hot data on prices and jobs will confirm the decision of many Fed doves. Of course, economic data in the coming days may show mixed results, or little improvement.
Dow Jones Futures today
Dow Jones futures rose slightly to fair value, along with S&P 500 futures. Nasdaq 100 futures rose 0.1%.
The 10-year Treasury yield fell 1 basis point to 3.74%. Oil futures rose 1%.
China’s official manufacturing index fell 1.2 points to 48 in November, falling below the neutral 50 level and 49. The services index fell to 46.7 to forecast for 48. The situation worsened. -due to China’s Covid lockdown.
Remember that overnight movements in Dow futures and elsewhere do not necessarily translate into actual trading in the next trading session.
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Stock Market Rally
After a sharp sell-off on Monday, the stock market closed on Tuesday.
The Dow Jones Industrial Average closed above break-even in stock market trading on Tuesday. The S&P 500 index fell about 0.2%. The Nasdaq composite was down 0.6%. The small-cap Russell 2000 rose 0.3%.
Apple stock fell 2.1%, the third straight decline, as China’s Covid cases, shutdowns and protests weighed on the tech giant. On Tuesday, the stock fell 2.6%, below its 50-day moving average. Above the 50-day line is 200-day resistance for AAPL stock. Apple has seen chaos at China’s major iPhone manufacturing plant Foxconn.
Amazon stock fell 1.6% and Tesla stock fell 1.1%, both retreating from near their 21-day line. Both are close to the bottom of the market.
US crude oil prices rose 2.4% to $79.62 a barrel. On Monday, oil futures hit their lowest level of the year.
The 10-year Treasury yield rose 5 basis points to 3.75%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.2%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 0.5%. The iShares Expanded Tech-Software Sector ETF (IGV) VanEck Vectors Semiconductor ETF stock price is 0.3 US dollars.
During the last month, the price of the SPDR S&P Metals & Mining ETF (XME) changed by +2.3% and changed by +0.1% during the week. The change of the US Global Jets ETF (JETS) changed to +1.8%. Over the past month, the price of the Financial Select SPDR ETF has changed by +0.66%. The Health Care Select Sector SPDR Fund ( XLV ) fell 0.25%.
Over the past month, the price of the ARK Innovation ETF has changed by +0.5% during the week. The Tesla Stock fund has a large holding in Ark Invest’s ETFs.
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Dow Stocks Near Buy Points
Boeing stock rose 2% to 175.32 on Tuesday, back above the 173.95 cup price, according to MarketSmith analysis. Shares traded sharply in light currency near buy points after a big boost on prospects for the aerospace giant. Analysts expect Boeing to return to profitability in 2023 after four years of losses. BA stock’s last stop has a 21-day trailing line.
Chevron stock rose 1.45% to 180.94, slightly below the price of 182.50 and above the 21-day line. CVX stock has been trading around this official buy point for the month. An early entry near 167 on October 19 was safer at first. But with Chevron stock at 21 days and no further extension at 50 days, it looks more interesting.
GS stock rose 0.35% on Tuesday to 383.71. The investment bank has a 389.68 buy point from a 35%-deep base with a cup with a handle back to November 2021. Investors can also view the recent breakout as the shelf above the purchase price from the low base that Goldman’s stock has taken off. early November. The 21-day moving average is close to being reached, while the 50-day line is starting to gain momentum. The relative strength is at a multi-year high which shows the performance of GS stock against the S&P 500.
Market Rally Analysis
The stock market rally is back with key technical tests and economic data on tap, along with uncertainty over China’s Covid policy.
The S&P 500 index is extending its pullback from below its 200-day moving average, but remains above its 21-day line. The Russell 2000, which dipped below its 200-day and 21-day lines on Monday, retreated above the 21-day.
The laggard Nasdaq fell below the 21-day line and is nearing the 50-day line.
The stocks of Apple, Tesla and other megacaps weighed on the Nasdaq index and the S&P 500.
The lowest value of the Invesco S&P 500 Equal Weight ETF in US dollars is in the annual table.
But don’t exaggerate Apple’s influence. Many major stocks are testing or falling below buy points or decent profits.
The silver lining is that the stock market doesn’t get caught up in Fed speeches and key economic data. This may mean that the market can jump if there are no negative surprises, with the potential for greater gains if future headlines are positive.
But the rally will do what it will do.
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What to do now
With the market pulling back, not many stocks are generating buy signals. Investors may wait for Powell’s speech and economic data before making big news purchases. Investors may want to take at least a portion of the winnings’ profits, especially if the winning stock is held back to buy points.
If the rally goes higher soon, many stocks will be available. But many of today’s interesting stocks will begin to deteriorate if the major indexes fall sharply from here.
Therefore, investors need to remain active and flexible. Keep your watch list up to date but have an exit strategy for your assets as well.
Read The Big Picture every day to stay in tune with the direction of the market and stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market reforms and more.
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