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Dow Jones futures rose slightly overnight along with S&P 500 futures and Nasdaq futures after a tough day for the S&P 500 and stock market rally. All eyes will be on his CPI inflation report for October.
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The stock market rally lost momentum on Wednesday, with the S&P 500 breaking below its 50-day moving average. mixed election results, Bitcoin’s ongoing woesChina’s renewed lockdown, and the looming consumer price index may have contributed.
Bitcoin plummeted to a two-year low Wednesday afternoon after Binance, the world’s largest cryptocurrency exchange, announced it would not buy rival FTX.
Megacap didn’t help. Tesla (TSLA) fell below key levels to its lowest level in two years. Amazon.co.jp (AMZN) also set new bear market lows. apple (AAPL) posted its worst closing price since June, microsoft (MSFTMore) and Google’s parent alphabet (Google) decreased slightly.
facebook parent meta platform (meta) was an exception and then rebounded Announces job and spending cutsHowever, major suppliers fell.
Catalytic drug (CPRX), boost energy (EE), Celsius Holdings (Selja), Rivian (Riven) When Wynn Resorts (win) reported late Wednesday.
CPRX’s share price rose strongly in after-hours action. Catalyst Pharma Beats EPS and earnings view. Biotech also hints at fourth quarter sales in line with consensus. Catalyst stocks fell 5.35% on Wednesday, returning to early entrants.
CELH shares surged overnight on strong earnings growth in Celsius after the energy drink maker fell to its lowest level since July on Wednesday.Rivian Stocks Rebound Mixed results in the third quarter After falling to four-month low Clarity (LCID) result. EE stock fell slightly in limited trading after Excelerate’s earnings topped the view. Excelerate shares plunged Wednesday, testing the 50-day line.
On the other hand, a network company Digi International (DG) and Tesla China EV rivals Nio (Nio) is available early on Thursdays. DGII shares pulled back towards his 50-day line on Wednesday. ascending basis buy points Nio shares tumbled to two-year lows as southern manufacturing hub Guangzhou announced a Covid lockdown, slamming many Chinese stocks.
The October CPI will be released on Thursday at 8:30 am ET. Economists expect the CPI inflation report to show prices rose 0.7% against his September. Core CPI, excluding food and energy, should rise 0.5%.
Annual CPI inflation should ease to 8% from 8.2% in September. Core inflation remains stable at 6.6%.
The Federal Reserve wants to see clear and compelling evidence that inflation is slowing before ending rate hikes. The market is leaning slightly towards his Fed rate hike of 50 basis points in December, but a fifth consecutive 75 basis point rate hike is still likely. November’s employment data and CPI report are due out ahead of his Fed meeting and announcement in December.
Dow Jones futures rose 0.1% to fair value. S&P 500 futures were up 0.12% and Nasdaq 100 futures were up 0.3%.
The 10-year Treasury yield fell 6 basis points to 4.09%.
Bitcoin traded just over $16,000, close to its two-year low Wednesday afternoon.
remember the night action dow futures Elsewhere, it doesn’t necessarily translate into the next regular real deal stock market session.
Join IBD experts analyzing viable stocks on IBD Live stock market rally
The stock market had a mixed rally on Wednesday, but then fell, especially in the afternoon, to close at session lows.
The Dow Jones Industrial Average fell nearly 2% on Wednesday. stock market tradingThe S&P 500 Index fell 2.1%. The Nasdaq Composite fell 2.5%. The small-cap Russell 2000 is down 2.7% on him.
The 10-year Treasury yield rose two basis points to 4.15%.
The dollar traded strongly following three days of significant declines.
US oil prices fell 3.5% to $85.83 a barrel. Weekly US crude stocks increased the most in a month. China’s lockdown, meanwhile, has raised concerns over oil demand there. US natural gas futures fell her 4.5%.
Bitcoin plummeted again as a tentative deal on Binance to buy FTX collapsed on Tuesday as Binance walked away after seeing a rival’s book. Binance said in a statement Wednesday afternoon that it “hoped to be able to help FTX customers provide liquidity, but the issue is beyond our control or ability to help.”
FTX, which seemed like a potential savior to troubled crypto companies earlier this year, is now on the brink of collapse.
Bitcoin plummeted to $15,554.48, its worst in two years. Pioneer’s cryptocurrency fell below $20,000 on Monday. Other major cryptocurrencies such as Ethereum also continue to sell off alongside crypto-related stocks.
In between best ETFsInnovator IBD 50 ETF (FFTY) fell 4.2% as the Innovator IBD Breakout Opportunities ETF (game) ceded 1.8%. iShares Expanded Tech Software Sector ETF (IGV) fell 2.2%, with Microsoft shares being the main component. VanEck Vectors Semiconductor ETF (SMH) retreated by 2.7%.
Reflecting more speculative story stocks, the ARK Innovation ETF (arc) plummeted 6.5% while the ARK Genomics ETF (ARKG) 4.3%. Tesla stock is Ark Invest’s primary holding in his ETF.
SPDR S&P Metals & Mining ETF (XME) fell 5.4%, while the Global X US Infrastructure Development ETF (pave) lost 2.1%. US Global Jets ETF (jet) decreased by about 1%. SPDR S&P Homebuilders ETF (XHB) fell 1.75%. Energy Select SPDR ETF (XLE) sold at 4.9% and the Financial Select SPDR ETF (XLF) fell 1.7%. Healthcare Select Sector SPDR Fund (XLV) decreased by 1.1%.
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Tesla’s stock fell 7.2% to 177.59, below its 2021 low. Late Tuesday, Elon Musk revealed that he sold his TSLA shares worth $4 billion on November 4, 7 and 8. Musk has yet to say he has completed his latest stake sale, although the disclosure could clear an overhang in his TSLA stake.
Elon Musk’s Twitter takeover has wider repercussions. It’s taken up a lot of his time, and there are concerns that his Twitter moves and tweets will damage his Elon Musk brand, and possibly Tesla’s. At his Twitter Spaces event on Wednesday, Musk talked about adding subscriptions and savings and payment features, but they didn’t do much to win back wary advertisers.
And Tesla, like other Chinese stocks, could fall as lockdowns tighten in China. Additionally, a number of US and Chinese EV stocks, including Nio, Lucid and RIVN stocks, suffered double-digit losses on Wednesday.
Finally, Tesla still owns some bitcoin.
The TSLA strain remained active overnight. Late Wednesday, President Biden responded to a question about whether masks were a national security risk, saying they were “worth looking into”, adding that there are “many ways” to do it.
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Meta Platforms will cut 11,000 jobs, or 13% of its workforce. Facebook’s parent company will also curb infrastructure spending as investors are hesitant about the cost of the huge metaverse. META shares rose 5.2% but were hit by restrained spending Arista Networks (ANET), NVIDIA (NVDA) and other suppliers that benefit from the Metaverse splurge.
Apple shares fell 3.3% to 134.87. While the iPhone maker hasn’t fallen below October’s intraday low or June 16th’s bear market bottom, AAPL’s stock closed at its worst level since June 17th. Apple has warned that China’s Covid restrictions will affect production of the iPhone 14 Pro.
Amazon shares rose 4.3% to their lowest since March 2020. MSFT shares fell 1.9%. Google shares fell 1.8%. But both are still up slightly this week.
Selling returned on Wednesday just as the stock market rally seemed to pick up momentum. The Dow Jones has retreated to just below his 200-day line. The S&P 500 has broken below its 50-day moving average. The Russell 2000 also fell below his 50-day line.
The laggard Nasdaq retreated after hitting resistance at the 21st line on Tuesday.
Treasury yields rose, but not by much. The dollar has rebounded, but has recently been on a downward trend. The still uncertain election results, which suggested fewer waves in the GOP than expected, may have played a role. .
Ultimately, the market rally has come under pressure over the past week. The S&P 500 crossing his 50-day line is the lowest level of market strength. If the Nasdaq rises above that critical level, it will be an even stronger signal.
October’s CPI report could dictate Fed rate hike expectations and possibly market direction for at least a few weeks.
Time the Market with IBD’s ETF Market Strategy
The Dow is close to recent highs and the Nasdaq is close to bear market lows, but the market rally is range bound. A volatile and sideways market is very dangerous for investors.
A strong bull market generally lifts all boats. A bear market will sink them and drive everyone into drought. But volatile market waves are enough to entice investors with index mini-runs and big gains in individual stocks. caught in the undertow. This can go on and on and the investor can suffer many small or very large losses.
In this environment, you might consider getting at least a partial profit quickly, but making a few test buys and holding the position if it works is fine. However, investors should wait until the market rally shows sustained strength before gaining significant exposure.
But staying engaged is key. Investors should have a game plan and execute if the market or individual holdings fall or rise. Keep your watchlist up-to-date and ready for the next true bull market rally.
read big picture Every day to stay in sync with market direction and major stocks and sectors.
Follow Ed Carson on Twitter. @IBD_E Carson Stock market updates and more.
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