Dow futures will open Sunday evening, along with S&P 500 and Nasdaq futures contracts.
A new attempt to rally in the stock market began last week, with significant early gains for the Dow Jones and other major indices. But as hopes about the Fed’s pivot once again faded, Treasury yields rebounded and equities pulled back from resistance. Together with warnings of Advanced Micro Devices (AMD) And the CVS Health (CVS) whose stocks bombed late in the week, major indexes wiped out most of their gains.
While the market rally attempt is far from over, the Dow Jones, S&P 500 and Nasdaq indices are nearing their bear market bottoms. Investors should be very cautious in the current environment.
Tesla (TSLA), Energy Enphase (ENPH) And the on semiconductors (on me), three stocks that were close to buying points, suffered big selloffs. TSLA shares sold off Monday with disappointing deliveries, then continued to slide. Enphase stock flashed briefly with a strong buy signal on Tuesday, and then abruptly declined on Wednesday. ON stock closed above the trendline entrance on Thursday, then fell on Friday as AMD launched a sell-off on chips.
Megacaps do not help. Microsoft Stock, Google Parent the alphabet (The Google) And the Amazon.com (AMZN), all of which are just below the 21-day lines on Thursday, fell sharply on Friday, returning towards a bear market or short-term lows. apple (AAPL), which never reached its 21-day low, slipped toward short-term lows.
Microsoft (MSFT) and Google Inventory is running Long-term leaders of IBD. ON stock is in defect 50. anemy, Vertex Pharmaceuticals (VRTX) and ENPH stock on file IBD Big Cap 20. It was Vertex on Friday IBD stock today.
Dow jones futures contracts today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
stock market rise
The stock market’s bull run got off to a strong start, but it was rocking by the end of the week, returning near bear market lows.
The Dow Jones Industrial Average rose 2% last week stock market trading. The S&P 500 rose 1.5%. The Nasdaq Composite Index is up 0.7% after falling 3.8% on Friday. Small cap Russell 2000 rose 2.2%.
Apple shares rose 1.4% during the week, but fell 3.7% on Friday. Microsoft posted a weekly gain of 0.6% as AMD’s warning on PC demand sent Mr. Softy slipping 5.1% on Friday. Google and Amazon shares rose 3.2% and 1.4% respectively, trimming their strong weekly gains on Friday as well.
The 10-year Treasury yield rose 8 basis points to 3.88%, up for the 10th consecutive week. That’s after dropping as low as 3.56% on Tuesday, to test the 21-day streak. The 10-year Treasury yield is approaching a 12-year high near the 4% set in late September.
The US dollar, which fell sharply at one point, rallied for modest weekly gains.
US crude oil futures rose 16.5% to $92.64 a barrel, up all five days. A cut in the OPEC+ production quota of 2 million barrels per day boosted the gains. Meanwhile, US shale operators remain cautious about stepping up drilling.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 1.7% last week, while the Innovator IBD Breakout Opportunities ETF (fit) gained 1.2%. iShares Expanded Technology and Software Fund (ETF)IGV) is up 2.6%, with MSFT stock holding a massive lead. VanEck Vectors Semiconductor Corporation (SMH) rose 1.9%, but sold hard on Friday after AMD’s warning and an extended US ban on exports of chip technology to China. AMD is a big SMH stock with a prominent On Semiconductor component.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) down 0.6% last week and the ARK Genomics ETF (ARKG) is down 0.15% after both selling more than 6% on Friday. Tesla stock remains a major ownership across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETFs (XME) jumped 7.3% last week. Global Infrastructure Development Fund X US (cradle) popped 3.4%. US Global Gates Foundation (ETF)Planes) rose 3.7%. SPDR S&P Homebuilders ETF (XHB) by 4.5%. SPDR Specific Energy Fund (SPDR ETF)XLE(Up 13.6% and the Financial Select SPDR ETF)XLF) by 1.9%. SPDR Healthcare Sector Selection Fund (XLV) rose 1.25% with LLY stock owning a significant stake.
Shares fell 16% last week to 223.07 after Tesla’s third-quarter sales were below views amid concerns about demand in China. Elon Musk has indicated that he will go ahead with Twitter (TWTR) the acquisition, reviving fears that it would sell more TSLA shares to fund the deal. Musk promoting the start of Tesla Semi production failed to provide an elevator on Friday. Stocks are still above their late-May lows of 206.84, but not much.
Market Rise Analysis
The stock market movement last week was almost clerical. Major indexes, at bear market lows, rebounded strongly from severe oversold conditions on Monday and Tuesday. But the stock market’s attempt to rally quickly hit resistance at the 21-day moving average – while Treasury yields and the dollar bounced back. The selling intensified on Friday with the strong jobs report, which lifted yields and the dollar.
So what now? An attempt to rally in the stock market is still in place until the major indexes break their recent lows. But the Dow, S&P 500 and Nasdaq are not far away.
a Follow-up day It could come at any time to confirm the upside of the market. That would be a positive sign. Investors should remain cautious, especially if indices put the FTD below their 21-day lines. Watching ahead of Thursday’s CPI also carries additional risks.
A new bear market leg?
On the flip side, there is a high risk that a bear market will break down again.
The market rebounded earlier in the week on hopes that the Federal Reserve will slow rate hikes, possibly due in part to external pressures. Declining job opportunities and a sluggish rate increase in Australia have only reinforced this situation. But Fed officials continue to insist that they will not back down, while Friday’s jobs report was very hot. In the end, the odds of a 75 basis point straight rate hike in November, already high, have been boosted over the past week. Markets are close to holding at least 50 basis points in December – with a small but increasing chance of 75 basis points.
In addition to Fed and recession fears, earnings season can be a minefield. Warnings from AMD and CVS follow several other high-profile pre-sales announcements, with earnings kicking off next week. Even after a long bear market and clearly difficult business conditions, markets still couldn’t price the bad news, with shares of AMD and CVS down more than 10% on Friday.
Energy stocks look strong as crude oil prices rise. However, many of them seem to extend after big runs.
In the meantime, a sharp rise in oil prices could be bad news for the broader market. Higher energy costs, especially gas prices, will complicate the Fed’s task of curbing inflation. Gas prices had already rebounded significantly, especially in California, on various refining issues.
Some biotech and drug names still do well, somewhat insulated from economic concerns. But can they make much headway if the broader market heads to new lows?
Meanwhile, some of the tech and medical product names that have been showing buy signals in recent days were big losers on Friday. Some held up reasonably well, while others made big sell-offs, including shares of ENPH and On Semiconductor. Tesla stock, which until a week ago was reasonably close to an entry point, has fallen toward its 2022 lows.
Shares of Apple, Microsoft, and other tech giants aren’t driving the downside, but they certainly aren’t supporting the major indicators.
What are you doing now
Arguments for being a cash or all-in remained strong even at weekly highs, and they are even stronger now. Swinging market attempt to rise. Indicators could soon break below bear market lows.
If you bought some new jobs recently – apart from the energy sector and opted for drugs – you may have to cut them out or actually get out of them. Even if you are only taking demo positions, do not let the losses increase. If you have gains, you may want to lock in some of that given general market conditions.
Keep working on your watchlists and stay connected. An attempt to rally in the market can still come to life, which will likely lead to buy signals for a large number of stocks. So focus on the stocks that are created. But also keep a broader list of strong stocks that appear relative strengthEven if their schemes need repair work.
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