S&P 500 flashes a bullish Golden Cross on Powell’s inflation control; Apple, Microsoft show healthy retracements
The major stock market indexes plunged after Fed Chairman Powell noted signs of deflation at the Economic Club of Washington, DC on Tuesday. The Dow Jones Industrial Average was down 0.2% at 1:30 p.m. ET.
X
Nasdaq also fell 0.2 percent after losing ground on Monday and Friday. The tech index has definitively broken through its 200-day moving average — a resistance level since April 2022. The index is up more than 10% this year.
S&P 500 set gold cross buy signal as its 50-day line moves above the 200-day moving average. However, the index fell 0.4% in the afternoon.
The Russell 2000 Small Cap Index lost 0.8%.
Volumes on the NYSE and Nasdaq were higher than at the same time on Monday.
Crude oil rose more than 3% to trade at $76.92 a barrel. An earthquake in the Turkish port of Iskenderun burned shipping containers and forced carriers to divert to other ports. Recovering Chinese demand also pushed prices up for two consecutive days. The yield on the benchmark 10-year Treasury note fell 3 basis points to 3.61%.
Overview of the US stock market today |
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|---|---|---|---|---|
| Table of contents | Icon | Price | Loss of profit | % Change |
| Dow Jones index | (0DJIA) | 33757.88 | -187.39 | -0.19 |
| S&P 500 | (0S&P5) | 4096.29 | -14.93 | -0.39 |
| Nasdaq | (0NDQC ) | 11865.03 | -26.27 | -0.20 |
| Russel 2000 | (IWM) | 193.16 | -0.96 | -0.49 |
| IBD 50 | (FFTY) | 23.20 | -0.06 | -0.26 |
Last Updated: 1:30 PM ET 2/07/2023 |
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Fed’s Powell spoke for the first time after Friday’s strong jobs data.
Powell observed that “wage growth is at a moderate level close to sustainable levels with the 2% inflation target. We expect substantial progress on inflation this year.” The Fed raised interest rates by a quarter basis point to 4.5%-4.75% last week while pointing to “deflationary” incentive pockets.
However, Friday’s jobs data stoked optimism that the tightening will end soon. In January, the economy added 517,000 new jobs, a jump after a revised 260,000 in December.
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Dow Jones Tech Leaders Follow
Dow Jones tech stocks show signs of recovery as low volume pullbacks suggest higher prices in the near term.
In Monday, Apple (AAPL) recovered on light volume after Friday’s strong rally. The stock is up more than 1%, staying above the 200-day line, and an early entry at 157.60 is possible if the rally continues.
Also on its 200-day line, Sales force (CRM) Being monitored. Microsoft (MSFT) is recovering near 4% after finding support at the 200-day line. An entry at 264.02 is possible.
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Stocks move today
Health CVS (CVS) is up 0.5% after the news that there are plans to buy Oak Street Health (OSH) for $10.5 billion. OSH stock spiked more than 30% on high volume. Oak Street’s elderly-focused service will expand CVS’s access to primary health care.
Activating blizzard (ATVI) rose more than 5% after earnings. Microsoft’s bid for the console remains in uncertain regulatory territory, here and abroad.
Shares of BP (BP) has increased by more than 7% after earnings. The company has increased its dividend by 10% and is buying back more shares for $2.75 billion. The British oil giant has a strength Composite Rating is 89, but its RS Rating lags at 75.
Dow Jones component Boeing airplanes (father) announced it would cut 2,000 jobs. Shares were up 2% in afternoon trading.
The AI race is on. Google-parent Alphabet (GOOGLE) could launch its own AI-powered chatbot, called Bard, to go head-to-head with rival Microsoft’s ChatGPT. GOOGL stock was up more than 2% midday Tuesday. Microsoft has an unexpected turn of events that may shed some light on the integration of ChatGPT with the Bing search engine.
Elsewhere, the Chinese internet giant Baidu (BIDU) spiked after revealing plans to launch its own AI chatbot. Shares are up more than 10% on strong volume.
Strong car rental demand has brought Hertz (HTZ) rose 7% when it reported earnings. Leisure travel surged and auto manufacturing barriers continued to contribute to a strong quarter.
stock meme Outdoor shower bed (BBBY) And AMC (AMC) is moving today. Bed Bath & Beyond plans to raise $1 billion by issuing new shares. Cinema chain AMC intends to charge different prices, based on seat placement.
BBBY is down more than 40% while AMC is 7% lower.
Please follow VRamakrishnan @IBD_VRamakrishnan for more stock market news today.
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