Overnight Dow Jones futures are up slightly, along with S&P 500 futures and Nasdaq futures, as investors look ahead to big inflation reports and Federal Reserve news.
The Nasdaq and Standard & Poor’s 500 indices hit new bear market lows on Tuesday. Dow Jones led higher on the day, but the major indicators faded to mostly negative at the close. Chip stocks continue to sell in the wake of weak demand and US controls on China sales. Tesla (TSLA) Extended her sharp slice.
Investors should be on the sidelines, in full or nearly cash.
On Wednesday morning, the Labor Department will release its Producer Price Index, which is the preparation for Thursday’s Consumer Price Index. Meanwhile, the Fed’s meeting minutes from the September policy meeting will be released on Wednesday afternoon.
energy stock ExxonMobil (XOM), Albemarle (ALB), Cheniere Energy (liquefied natural gas), Eli Lilly (LLY) And the Vertex Pharmaceuticals (VRTX) brag Lines of relative force At or near the highs, with most approaching potential buying points.
Vertex and LNG stock is running IBD Leaderboard. VRTX is located in defect 50. XOM, Vertex and Albemarle on IBD Big Cap 20. Microsoft and Google stock Long-term leaders of IBD. The video included in this article discusses market action on Tuesday and analyzes LNG stockpiles, commercial metal (CMC) And the outdoor deckers (deck).
uranium miner kameko (CCJ) Team up with Brookfield Renewed Partners (BEP) to buy nuclear power giant Westinghouse Electric for about $8 billion. Cameco will own 49% and Brookfield 51%. CCJ shares were sold overnight. The BEP Stock is not active.
Intel Corporation (INTC) is planning to cut thousands of jobs amid the slowdown in computers, with deep cuts in sales and marketing, Bloomberg reported late Tuesday. INTC stock rose overnight. Advanced Micro Devices (AMD) last week announced preliminary third-quarter returns that were well below views, criticizing shares of AMD, Intel, and many other companies. Many other reports highlight the vulnerability of the computer.
early wednesday, PepsiCo (PEP) will report third-quarter earnings. PEP stock rose on Tuesday. But stocks have fallen over the past several weeks, even with the RS line trending higher during that time.
Dow jones futures contracts today
Dow futures rose 0.2% against fair value. S&P 500 futures rose 0.25%. Nasdaq 100 futures rose 0.4%.
The yen fell to a 24-year low, below the level that prompted the Bank of Japan’s intervention last month.
The Labor Department will release its Producer Price Index at 8:30 AM ET, exactly 24 hours before the CPI inflation report. At 2 PM ET, the Federal Reserve will release the minutes of its September meeting.
stock market tuesday
The stock market started weak, tried to recover but faded again, led by the Nasdaq.
The Dow Jones Industrial Average rose 0.1% on Tuesday stock market tradingwith Amgen (AMGN) a major contributor thanks to the analyst upgrade. The S&P 500 fell 0.7%. The Nasdaq Composite sank 1.1%. The small Russell 2000 roof closed partially higher.
US crude oil prices fell nearly 2% to $89.35 a barrel, continuing to decline modestly after last week’s rally.
The 10-year Treasury yield rose 6 basis points to 3.94% from 3.88% on Friday. The 10-year note yielded 3.97% on the day, just below a 12-year high hit on Sept. 27. US bond markets were closed on Monday, but bond futures and sovereign yields around the world pointed to another rise in the 10-year Treasury yield. was coming.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) is down 1.1%, while the Innovator IBD Breakout Opportunities ETF is downfit) rose 0.15%. iShares Expanded Technology and Software Fund (ETF)IGV) lost 1.75%, and MSFT stock was IGV Holdings stock.
SPDR S&P Metals & Mining ETFs (XME) down 0.9%. US Global Gates Foundation (ETF)Planes) 0.65% sank. SPDR Specific Energy Fund (SPDR ETF)XLE) decreased by 0.8%. SPDR Healthcare Sector Selection Fund (XLV) rose 0.5%.
stock to watch
XOM stock shed 0.85% to 98 on Tuesday, rebounding from intraday lows. The oil major appears to be working on the knob after last week’s skyrocket amid rising oil prices and a strong Q3 update. At the moment, Exxon’s share price is fixed at 105.67 buy point.
ALB stock fell 1.8% to 272.99, back below the high 50-day line. Stocks are not far from entering a potential trend line as the lithium giant works out the potential flat base. But buying volatile Albemarle shares in a bear market would be very risky.
LNG stocks rose 0.15% on Tuesday to 168.14, rebounding from the 10-week streak on the day. The LNG leader looks strong but needs to forge a new base.
LLY stock rose 1.15% to 327.60, rebounding from its 21-day streak. According to Eli Lilly, Eli Lilly stock is attempting to return to 335.43 fixed-base buy points MarketSmith Analysis.
VRTX stock rose 0.2% Tuesday to 295.16, continuing to trade tightly in its deep 10% flat base. The buy point is 306.05, with 304.36 offering slightly lower entries.
Apple stock is down 1%, just above last week’s three-month lows. Microsoft stock fell 1.7%, falling to a 17-month low, with major PC problems. GOOGL stock is down 0.7%, just above a 52-week low on Sept. AMZN stock closed down 1.3% after hitting its worst level in nearly three months.
Tesla shares lost 2.9 percent to 216.50, their worst level since June. The EV giant has fallen for five consecutive sessions and eight of the last nine sessions. TSLA stock closed at a 52-week low of 206.84 hit last May. Tesla earnings are due on October 19.
stock market analysis
Shortly after Tuesday’s opening, the Nasdaq Composite and S&P 500 indexes made new bear market bottoms. The Dow didn’t fall much, it triggered a rebound as Treasury yields plummeted. But after a brief rally, the S&P 500 and Nasdaq faded for most of the afternoon as returns regained momentum. The Dow made small gains.
With the Nasdaq and S&P 500 dropping, their attempts to rally were wiped out. The market rally attempt for the Dow Jones is still in progress, but the leading stock index is hitting resistance at the 10-day line.
The losers beat the winners, but not by an overwhelming majority.
Meanwhile, the September inflation report is looming large.
The stock market has rebounded repeatedly in inflation data, Fed events, and other Fed-related reports over the past couple of months, as investors try to hope that the Fed will turn interest rates into a reality. When the actual news dashed hopes, the stocks saw a big sell-off.
Thursday’s CPI report also comes with the start of earnings season. This can add significant volatility, especially for individual stocks and sectors. The chip’s warnings don’t bode well for overall technology revenue and beyond.
What are you doing now
This is not the time to make purchases. Many stocks that looked promising a week ago have been hit hard, especially tech names like Paylocation (PCTY), Energy Enphase (ENPH) And the on semiconductors (on me). But even the resilient names haven’t made much headway: Vertex stock is up a bit from what it was six months ago.
Investors should look for strong relative strength. Many stocks with RS lines at their highs may be below the 50-day and 200-day lines, with the charts showing serious damage. But as the bear market continues to reach new lows, that’s okay.
So keep updating your watchlists while staying engaged. When the market shows real signs of strength, you want to be ready. But don’t jump the gun.
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