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Dow Jones Futures: The market’s recovery is weak, but these 4 stocks have a quick buy signal; Due Inflation Report


Dow Jones futures edged higher after hours, along with S&P 500 futures and Nasdaq futures. Attention turns to the CPI inflation report ahead of Wednesday’s open.




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The stock market rally was mixed on Tuesday, with indexes tapering off at the close.

Cloud computing growth concerns weigh heavily on giants amazon.com (AZMN), Microsoft (MSFT) and the parent company of Google Alphabet (GOOGLE). That also hits cloud software names like Snowflakes (SNOW) And data (DDOG).

But health products and services seem strong, with visual surgery (ISRG), Alignment technology (ALGN) And Biometrics Zimmer (ZBH) all buy signals flashing, with medical shockwave (SWAV) make a big move.

Builders Dr. Horton (university), House of Merit (MTH), lennar (WOOL), Tri Pointe’s House (TPH), And Pulte group (PHMA) was able to act, with building materials company Builders FirstSource (BLDR) break out.

Skechers (SKX) also broke out when some footwear stocks rose in price.

DR Horton, Skechers, Builders FirstSource and SWAV stocks moved in much higher-than-average volume.

MTH stock is active charts. DHI stock is on SwingTrader. MSFT stock is on Long-term leadership of IBD. Meritage, Tri Pointe Homes and PHM shares are on the exchange IBD 50.

The video embedded in this article reviewed the market action and analysis of the BLDR, DR Horton, and Shockwave Medical stocks.

Large bank reserves

Banks offer the largest deposit of $30 billion for First Republic (FRC) will set aside about $100 million for each loss provision, Bloomberg reported Tuesday night, sources said. JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (OLD) And american bank (NORTH) each put up 5 billion dollars. JPMorgan, Wells and Citi report on Friday, with BofA due to launch next week.

CPI . Inflation Report

The Labor Department will release its CPI inflation report at 8:30 a.m. ET. Economists expect the consumer price index to rise 0.3% in March, with the annual CPI inflation rate falling to 5.2% from 6% in February. But core CPI, never before. including food and energy, is said to increase 0.4% from February. That would push the core CPI inflation rate to 5.6%, up slightly from February’s 5.5%.

The annual CPI inflation rate is cooling in part due to overheating in prices in early 2022. But those annual comparisons should ease later in the year, making it difficult for the inflation rate to come down. Meanwhile, economic data has finally weakened, including employment, while the banking woes are starting to hit lending.

Investors see a strong chance of another Fed rate hike in early May, but are betting that will be the last move.

Dow Jones Futures Today

Dow Jones futures contract higher than fair value. S&P 500 futures were higher and Nasdaq 100 futures were up 0.1%.

The CPI inflation report is sure to impact Dow Jones futures, Treasury yields and more.

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 started weakly, resisted, and then fizzled out belatedly. However, the indices closed opposite each other for most of the session.

The Dow Jones Industrial Average rose 0.3% on Tuesday stock market trading. The S&P 500 Index is flat. The Nasdaq Composite Index fell 0.4 percent. The Russell 2000 small-cap index rose 0.8%.

U.S. crude oil prices rose 2.2% to $81.53 a barrel, the highest close since January 23. Copper futures rose nearly 1%.

The yield on the 10-year Treasury note rose 2 basis points to 3.43%. The yield on the 2-year Treasury note rose 5 basis points to 4.06%. The 3-month T-bill rate fell slightly but was at 5.03%. That severe 3-month to 10-year Treasury yield curve inversion signals the Fed’s unfinished inflation war and growing recession risks.

ETFs

Among the growth ETFs, the Innovator IBD 50 ETF (FFTY) increased by 0.7%. iShares Expanded Tech-Soft Sector Sector ETF (IGV) fell 0.5%, with Microsoft stock held by the big IGV. VanEck Vectors Semiconductor ETF (SMH) also decreased by 0.5%.

Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) rose 0.6% and the ARK Genomics ETF (ARKG) 1.2%.

SPDR S&P Metals & Mining ETF (XME) rebounded 1.5% and the Global X US Infrastructure Development ETF (PAY THE ROAD RED) 0.8%. US Global Jets ETF (jet plane) increased by 1.5%. SPDR S&P Homebuilders ETF (XHB) increased 2%. Energy Select SPDR ETF (XLE) increased by nearly 1% and the Healthcare Sector SPDR Fund (XLV) increased by 0.3%.

Financial Options SPDR ETF (XLF) increased by 0.9%. SPDR S&P Regional Bank ETF (KRE) increased by 0.3%.


The five best Chinese stocks to watch right now


Concerns about cloud computing

Cloud computing growth likely to slow furthermore, analysts from UBS and Jefferies both stated, with negative analyst comments about Microsoft’s Azure, Google Cloud and Amazon Web Services.

MSFT stock fell 2.3% to 282.83, but still in range from 276.86 flat sole buy points.

GOOGL stock, the least exposed to cloud computing of the three, fell 1% to 105.35. That’s just under a 106.69 cup with handle buy points removed on Thursday.

AMZN stock fell 2.2% to 99.92. Amazon is building a bottom, but forming below the 200-day line.

Meanwhile, some cloud-related network and software names have retreated. SNOW stock was a notable loser, down 5.8%.

Stocks flashing signals to buy in bulk

DHI stock rose 3.7% to 99.77, back above 99.08 of cup with handle buy points after flashing a bullish signal earlier in the session, according to MarketSmith Analysis.

BLDR rose 4.2% to 92.37, clearing a 90.31 buy point from a flat base next to the top of a 14-month consolidation. Last week, Builders FirstSource retreated amid selling in the construction and industrial sectors, but held support at the 21-day moving average. While still in a buy zone, it is now 10% above the 50-day moving average. On the positive side, relative strength line for BLDR stock is at a new high.

SWAV rose 10.6% to 251.05, breaking above the 200-day line for the first time since December. Investors could have used that move as a positive entry. However, Shockwave stock is currently trading around the bottom of a base from last fall that ended in a failed breakout. Investors may want to wait for SWAV stock to move higher, then forge a handle.

Shockwave soars as a new Medicare rule can soften chargeback payments to its systems.

SKX stock rose 3.4% to 48.70, surpassing a 47.80 cup-with-handle buy point. Volume was slightly above average, although it didn’t turn positive until late in the session. Shares of Skechers were up 2% Monday in a set-up day.

Analysis of market recovery

The stock market rally once again looks set to end near session highs, but falters in the final hour of trading. But the major indexes still look good, while the leading stocks show strength.

The Nasdaq Composite Index lagged, but held above 12,000, pausing below key resistance and support.

The S&P 500 has continued to trade closely over the past few days. The Dow Jones index hit its best level since Feb. 17. The Russell 2000 index is back above its 21-day line.

While some tech giants like Microsoft and Amazon weigh in on indexes, the Invesco S&P 500 Equal Weight ETF (RSP) rose 0.65%, hitting a one-month high and closing above the 50-day moving average. First NASDAQ-100 Equivalent Weighted Index ETF (QQEW) closed slightly higher than a 0.6% drop on the Nasdaq 100.

The bulls led the bears on Tuesday, especially on the NYSE. Even in the morning, when the S&P 500 and Nasdaq were near session lows, the winners outnumbered the losers.

In addition to homebuilders, health products and footwear companies, various groups are showing strength, including gold and copper miners, drug manufacturers, restaurants, some software and industries. wide chip sector.


Market Timing with IBD’s ETF Market Strategy


What to do now

The stock market rally has stabilized after some sharp sell-offs in industrial and growth stocks last week. A large number of top stocks are once again sending buy signals as market breadth improves.

Investors can gradually regain exposure. Don’t buy expansion and don’t get too focused. Industry rotation can still cause huge losses in some sectors while putting others in place. The overall market rally could explode to new highs in a day or two – or break key levels with a sell-off

So get involved and be nimble. Spot potential leaders by working on a broad watchlist while doing research on smaller numbers of stocks across buy zones.

In addition to the CPI inflation report, earnings season is about to begin.

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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