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Dow Jones futures rose after the market recovered from key levels; 5 income winners


Dow Jones futures rose early Friday, along with S&P 500 futures and Nasdaq futures. The stock market rally fell on Thursday morning on the back of belligerent statements by the Fed, extending Wednesday’s decline. But the major indexes recovered from some key levels to close slightly lower.




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Treasury yields rebounded while crude oil prices fell.

Apple (AAPL), Microsoft (MSFT) and the parent company of Google Alphabet (GOOGLE), the only three trillion dollar stocks on US exchanges, recovered after testing support at their 50-day moving averages. Meanwhile, Tesla (TSLA) retreats to bear market lows.

Investors should be cautious in the current market, increase their exposure slowly and be ready to take profits and cut losses quickly.

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Application materials (amateurs), Palo Alto . Network (PANW), Open land (CLFD) and Ross Store (ROST) all of 1st in terms of sales and EPS late on Thursday, with generally strong guidance as well.

AMAT stock rallied early Friday, poised to get back above its 200-day moving average. PANW stock soars, signaling a move above its 50 days. CLFD stock rallied in extended trading, looking to race above the 50-day line as it attempted to build on the right side of a double bottom. ROST stock spiked to a 2022 high after closing in range from the bottom.

JD.com (JD) and Atkore (ATKR) was reported early Friday.

JD.com earnings top in views, while revenue falls, like alibaba (TORTOISE) early Thursday. JD stock rallied in premarket trading. On Thursday, shares rose 7.5% on Alibaba’s results, up to the 200-day line.

ATKR stock remains untraded on Friday, but construction products maker Atkore beat the fiscal fourth-quarter views and led to higher Q1 and 2023 profits. ATKR stock fell 3.5% on Thursday, but remains comfortably above the 200-day line as it operates on the right side of a deep cup pattern.

Dow Jones Futures Today

Dow Jones futures are up 0.5% from fair value. S&P 500 futures rose 0.75%. Nasdaq 100 futures rose 1%, with technology lifting AMAT and PANW stocks.

The yield on the 10-year Treasury note rose 3 basis points to 3.8%.

Crude oil futures fell, while natural gas fell 4%.

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


Join IBD experts as they analyze stocks that could act in the stock market rally on IBD Live


Stock market recovers

The stock market rally fell sharply at the open as Fed President St. Louis James Bullard and Kansas City Fed President Esther George made hawkish statements. The major indexes rebounded and closed slightly lower.

Dow Jones Industrial Average just below breakeven on Thursday stock market trading. The S&P 500 index fell 0.3%. The Nasdaq Composite Index fell 0.35%. The Russell 2000 small-cap index rose 0.9 percent.

Apple shares rose 1.3%. Microsoft shares returned 2 cents, Google shares fell 0.5%. They all test their 50-day lines for the day. All are below the 200-day line and have no clear buy point. Tesla shares fell 2%, approaching a November 9 bear market low.

US crude oil prices fell 4.6% to $81.64 a barrel. Beyond the Fed’s hawkish comments, blame Beijing’s renewed emphasis on “Covid-free” policies. China’s State Council is said to have warned cities to avoid “irresponsible easing” of Covid-19 prevention measures, just a week after that high body backed the loosening regulations. liquid. On Wednesday, Peking University locked its doors because of a single case. Covid cases have increased in the past two weeks in China.

Hawkish Fed raises Treasury yields

The yield on the 10-year Treasury note rose 8 basis points to 3.77%.

Louis Fed’s Bullard said the lending rate, currently at 3.75%-4%, could have to go as high as 7%, much higher than the consensus of around 5%. George of the Kansas City Fed said a recession may be needed to bring down inflation.

One reason why policymakers have been belligerent is to push up market interest rates and curb a stock market rally. If financial conditions ease significantly in light of the Fed’s pivot hopes, inflation is likely to remain higher for longer, forcing the Fed to tighten official interest rates further.


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ETFs

Among the best ETFsIBD 50 Innovator ETF (FFTY) decreased by 0.1%. iShares Expanded Tech-Soft Sector Sector ETF (IGV) fell 2.65%, even with MSFT stock being the major component. PANW shares are also holding shares by IGV. VanEck Vectors Semiconductor ETF (SMH) fell 0.5%, with AMAT stock that SMH is notably holding.

SPDR S&P Metals & Mining ETF (XME) decreased by 2.1%. SPDR S&P Homebuilders ETF (XHB) retreat 2%. Energy Select SPDR ETF (XLE) decreased by 0.5% and the Healthcare Sector SPDR Fund (XLV) decreased by 0.2%.

Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) dropped 2.8% and the ARK Genomics ETF (ARKG) 3.2%. TSLA stock is the primary holding in Ark Invest ETFs.


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Stock market analysis

The stock market rally tested several key levels on Thursday’s open. Nasdaq has found support right above its 50-day moving average. The S&P 500 fell to a short-lived October high. Russell 2000 recovered from near its 21-day line. The S&P 400 MidCap has held its 200-day line.

It’s safe to say that the market is about to have a pullback after a strong rally and the S&P 500 is approaching its 200-day moving average. At the same time, the market rally found support on Thursday in key areas. So the past few days have been normal and somewhat constructive for the major indexes – assuming they can hold Thursday’s lows and eventually move higher.

However, the market pullback from Tuesday’s high to Thursday morning’s low has affected a number of stocks that have broken out or quickly entered early in the past few days. Some have checked those items or have failed at all. Some are recovering while others are able to do so. In certain cases, previous buy points are still valid, while in others it may be necessary to establish new handles or other entries. Still others may struggle for a long time.

A series of stocks and sectors are having interesting movements.

In all of these cases, a healthy market rally will be key.

Apple, Microsoft, and Google stocks are not market leaders and may not be for some time. But if they can avoid falling behind it will be a big help.


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What to do now

The stock market rally showed encouraging action on Thursday. The overall trend has been higher over the past few weeks. But it’s a winding road for investors.

Anyone who buys shares after October 21 the next day was likely underwater in early November. While the indexes spiked on November 10 thanks to a steady CPI report, the Nasdaq, S&P 500 and Russell 2000 have remained flat since.

The stock market rally remains tough, with industry rotations and large intraday swings complicating matters. Buying opportunities are often times when the market pulls the rug away from investors.

So be exposed to light. Increase exposure gradually — and be prepared to reduce exposure due to market conditions or individual stock selling rules.

Keep your watchlist up to date so you can spot emerging leaders.

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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