Dow Jones Futures Fall: Market Recovery Faces Important Test; Disney spikes as Bob Iger returns as CEO

Dow Jones futures fell slightly Monday morning, along with S&P 500 and Nasdaq futures, but Disney (dis) spiked when Bob Iger returned as CEO.


The stock market rally held support last week. Now can the S&P 500 break above its 200-day moving average in the coming days and weeks? Apple (AAPL) could be the key.

Apple stock held on to the important and rose modestly even as the overall market retreated. Like the S&P 500, the iPhone tech giant is returning to its 200-day line. A decisive move above that level could present a buying opportunity. But another rejection could present another opportunity to short AAPL stock.

Meanwhile, Dow Jones components Boeing airplanes (father), JPMorgan Chase (JPM) and GS stock have been quietly rising significantly over the past few weeks, contributing to the Dow’s better performance during the current market rally. Technically, BA stock is right around the traditional buy point. Goldman book (GS) is forming a deep base while JPM stock still has a lot of work to do.

Disney brings back Bob Iger as CEO

In other Dow stock news, Bob Iger is back as CEO of Walt Disney (dis), effective immediately. Iger stepped down after a long reign in February 2020 to make way for Bob Chapek, at the height of the Covid crisis. Chapek has been criticized for a number of decisions. Disney earnings fell significantly in the latest quarter, with Chapek soon to announce staff layoffs and other cost cuts.

Iger has agreed to return for two years, Disney said Sunday, “to establish the strategic direction for new growth” and work with the board to find a new successor.

Disney stock rose nearly 10% in premarket trading. signal moves to the 50-day line. But DIS stock is near a bear market low.

Dow Jones Futures Today

Dow Jones futures are down 0.25% from fair value, with DIS stock helping to limit losses. S&P 500 futures fell 0.5%. Nasdaq 100 futures lost 0.8%.

The yield on the 10-year Treasury note rose 1 basis point to 3.83%.

Crude oil futures fell slightly. Copper fell 1%.

Hong Kong’s Hang Seng Index fell 1.9% as Beijing implemented an effective lockdown as the city reported Covid deaths. Conflicting signals from Chinese officials have added to confusion about the country’s strict “no Covid” policy.

Remember that action overnight in future index and other places that don’t necessarily translate into actual transactions the next time stock market meeting.

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Stock market analysis

Last week, the Dow Jones Industrial Average gained less than 0.1% last week. stock market trading. The S&P 500 fell 0.7% and the Nasdaq composite fell 1.5%. The Russell 2000 small-cap index rose 1.75%.

On Tuesday, November 15, the S&P 500 briefly peaked at 4,000, approaching the 200-day moving average. That level is especially important because the benchmark index returned just 1 point from the 200-day line on August 16, triggering another leg in the bear market.

A decisive move above the 200-day line, which also roughly coincides with the descending trendline from the all-time high on January 4, would be a strong signal that the uptrend is more than just a wave. bear market recovery.

A break of the S&P 500 above the 200-day line will also be a positive backdrop for top stocks, which are struggling to stay near buy points amid market volatility.

Meanwhile, the Russell 2000 fell below the 200-day line last week but is likely to regain that level before the S&P 500. The Dow Jones index, backed by shares of Boeing, Goldman and JPM, is at on the road 200 days comfortably. But breaking last week’s high would send the Dow back to 34,000 and just below the August peak.

Nasdaq, weighed down by strong growth, is 8.3% below the 200-day line. A move above last week’s high would be a good first step. Also a positive: The 21-day moving average just crossed above the 50-day line on Friday.

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Thanksgiving week isn’t necessarily a great time for a big market move. The markets will be closed for Thanksgiving with half-day trading on Friday. Volume is likely to be low throughout the week. The next week ended with a bang. On December 1, investors will receive October PCE inflation data, along with the ISM November manufacturing index. On December 2, the November jobs report is due. That news could have a big impact on Fed rate hike expectations, bond yields and stock prices.

So it wouldn’t be surprising to see the major indexes trade in a range for the next week or so. There’s nothing wrong with giving a little boost to the major indexes and leading stocks.

apple stock

Apple shares rose 1.1% last week to 151.29, following a spike of 8.2% last week. The stock holds the 50-day moving average, with the 21-day line set to cross the 50-day line. AAPL stock is just modestly below its 200-day line. The Dow giant hit the 200-day mark on October 28 following the earnings report. But it turned out to be a great opportunity to sell short, with the stock plunging within days to its worst close since mid-June.

A decisive move above the 200-day line, possibly surpassing the Oct. 28 high of 157.50, would provide an early entry point into the bottom-making base starting Aug. 17. But what if the stock Apple reverses lower from that area, it could provide a new price. short selling opportunity.

Apple’s success or failure at the 200-day line could be key to the S&P 500’s own efforts and vice versa.

Boeing shares

BA stock fell 2% to 173.89, after gaining 47% in five weeks. While the aerospace giant Dow Jones reversed lower October 26 in earnings, the stock rebounded, especially thanks to bullish money-flow guidance a few days later.

Technically, Boeing stock is just under 173.95 cups buy points. But the stock is 9.5% above the 200-day moving average and 19.5% above the 50-day moving average. A pause around current levels could create a safer buying opportunity.

Boeing is expected to be profitable in 2023, ending four years of losses.

Goldman stock

GS shares fell 1.55% to 379.20 last week. On the daily chart, the stock is extended from 358.72 cup base buy point in a much larger consolidation. On the weekly chart, Goldman stock has a buy point of 389.68 in one year cup with handle base, according to MarketSmith Analysis. But after a 28% gain in a four-week winning streak, that’s an incredibly small sum. A longer, deeper handle would be helpful and let the 50-day line close the gap.

The relative strength line is at a 4-year high, reflecting the outperforming performance of Goldman stock against the S&P 500. The RS line is the blue line in the charts provided.

Shares of JPM

JPMorgan shares fell 1.1% to 133.84 last week. That’s after a 29.5% gain in six weeks. Stocks are above the 50-day and 200-day lines, but there’s still work to be done. JPM stock could build on the right side of a deep and long consolidation or it could create a bottoming base.

Read Big picture every day to stay in sync with market trends and top stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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