Dow Jones futures rose slightly earlier Friday, along with S&P 500 futures and Nasdaq futures. All eyes are on the pre-opening December employment report.
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tesla (TSLA) announced massive price cuts in China for the Model 3 and Model Y, following demand concerns and increased competition.
world wrestling fun (WWE) and Aehr Test Systems (AEHR) jumped in expanded trade on Thursday, whereas Bed Bath and Beyond (BBBY) continued to fall on fresh news.
The stock market tumbled on Thursday after warmer-than-expected labor data, including jobless claims, ahead of the big jobs report. Major indices fell from key levels.
Microsoft (MSFT) while extending Wednesday’s big sale tesla (TSLA) gave up most of the jump from the previous day. Meanwhile, United Health (UNH), Swan (WHO’S) and other health insurers continued to have a bad start to the new year.
The video attached to this article analyzed and reviewed the market movement Combined Treatments (UTHR), Trane Technologies (TT) and CI stock.
Traders should wait until there are clear signs of market strength before adding positions. Friday’s employment report may provide a catalyst, but in what way?
Dow Jones Futures Today
Dow Jones futures rose 0.3 percent. reasonable value. S&P 500 futures rose 0.3%. Nasdaq 100 futures rose 0.3%.
The employment report could set the tone for Friday’s trading, sure to change Dow futures, Treasury yields and more before the open.
Remember, overnight action Dow futures and elsewhere it doesn’t necessarily turn into real trade on the next regular trade Exchange session.
Business Report
The Department of Labor will release its December jobs report at 8:30 AM ET.
Economists expect to see nonfarm payrolls It increased by 200,000, cooling off from 263,000 in November. This will be the weakest level since December 2020, but still solid. Unemployment rate should hold steady at 3.7%. Average hourly earnings are expected to show a strong 5% increase. a year ago, but slightly down from 5.1% in November.
Friday’s jobs report will follow several hot workforce readings this week, from Wednesday’s still-high job postings to Thursday’s stronger-than-expected ADP employment data and falling unemployment claims.
The Federal Reserve wants to see slower hiring and wage growth to ease inflation pressures. Fed policymakers have also repeatedly signaled that a rally in the stock and bond markets could undermine their inflation struggle, including Wednesday’s Fed minutes from the December meeting.
Markets still expect the Fed to slow rate hikes again by only a quarter point on February 1. 1 policy meeting. However, the rate dropped from 69% to 61% on Wednesday.
Tesla China Price Discounts
Tesla announced massive price cuts for the Chinese market. Tesla slashed the Model 3 entry price to 229,900 yuan ($33,454), down 13.5% from the 265,900 set at the end of October. The new base Model Y price was 259,900 ($37,819), down 10% from 288,900 at the end of October. Both are down about 18% from before the cut in late October.
Tesla extended year-end incentives worth 10,000 yuan at the beginning of 2023. So the effective deduction is not as large as the sticker price suggests. Still a big reduction.
It’s Jan. On October 2, Tesla reported record fourth-quarter deliveries, but they fell well short of sight as stocks rose. Demand in China slumped despite the October price cut and massive year-end stimulus.
One factor is increased incentives. Tesla Model 3 is now much closer to earth HOUSING (BYDDF) seal starting at 225,800 yuan ($32,857). When the BYD Seal was first released, the Model 3 was priced roughly $10,000 more in China.
How much sales growth will Tesla get and how permanent will it be? How about competitors like BYD, No (NIO) and others responding? The Chinese EV market will be extremely competitive in 2023.
Tesla stock tumbled 2.9%. This hit bear market lows, following Tuesday’s 12% drop to 5.1% Wednesday.
Corporate News
Former WWE CEO Vince McMahon, who retired after a sexual harassment scandal last year, plans to go back and sell his entertainment company. The Wall Street Gazette Reported late Thursday. Sources told the WSJ that McMahon will take him and the other two to the WWE board of directors.
WWE stock is up 11% in late trading, breaking above the 50-day line, and it’s not far from November 1. 28 peak of 81.63. Shares rose 2.3% to 72.04 on Thursday and were up 5.1% weekly as WWE shares bounced above the 50-day line.
Aehr earnings increased 220% vs. one year ago. Fiscal Q2 revenue for the chip testing firm with exposure to the EV market rose 54% to $14.8 million. AEHR stock rose 14% overnight. Shares fell 3.55% to 17.27 on Thursday, even outpacing early entry. AEHR stock is down 14% to start 2023 after falling in the last five weeks of 2022.
Bed Bath & Beyond plans to file for bankruptcy in the coming weeks. The Wall Street Gazette Reported late Thursday. This comes after the embattled home goods retailer issued a “continuity” warning earlier on Thursday. BBBY stock fell 8% overnight after falling 30% in the regular session.
Join the IBD experts as they analyze stock rally tradable stocks on IBD Live
Stock Market Thursday
The stock market rally attempt pulled back on falling jobless claims and closed near session lows.
The Dow Jones Industrial Average fell 1% on Thursday stock market trading. The S&P 500 index fell 1.2 percent. The Nasdaq composite tumbled 1.5%. The minor Russell 2000 tumbled 1.1%.
Microsoft shares tumbled 3% a day after the Dow Jones tech giant tumbled 4.4% as UBS voiced concerns about Azure cloud computing growth.
Shares of UnitedHealth, a Dow component like Microsoft, lost 2.9%, closing their lowest since June. Shares are down 7.6% to start 2023 and cross the 200-day mark. Cigna stock fell 2% on Tuesday after falling below the 50-day line. CI stock is down 8.2% this week.
US crude oil prices rose 1.1% to $73.67 a barrel after falling to begin 2023. Natural gas futures fell 10.8% to a one-year low.
The 10-year Treasury yield increased by 1 basis point to 3.72%. The 10-year yield hit 3.78% after Thursday morning’s jobless claims data, but hit resistance at the 50-day line. The two-year yield, which is more closely tied to Fed policy, rose 6 basis points to 4.45%. The 3-month Treasury rate increased by 11 basis points to 4.62%. The highly inverted yield curve is sending a signal of recession.
Tesla vs. BYD: EV Giants Are Competing For The Crown, But Which Is Better To Buy?
ETFs
Between best ETFsInnovative IBD 50 ETF (fifty) fell 0.2%, while the Innovator IBD Breakout Opportunities ETF (STRUGGLE) decreased by 0.15%. iShares Extended Technology-Software Industry ETF (IGV) fell 3.2% as MSFT stock became a major holding. VanEck Vectors Semiconductor ETF (SMH) gave up 1.8%.
SPDR S&P Metals & Mining ETF (XME) rose 0.5%. US Global Jets ETF (JETS) rose 1.1%. SPDR S&P Homebuilders ETF (XHB) penalty 0.75%. Energy Select SPDR ETF (XLE) was up 1.8% and the Financial Select SPDR ETF (XLF) gave up 0.75%. Health Sector Selected SPDR Fund (XLV) fell 1%. UNH stock is the largest component of XLV and Cigna is a notable holding.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) fell 2.4% and the ARK Genomics ETF (ARKG) 0.9% TSLA stake remains the most important asset among Ark Invest’s ETFs. Cathie Wood’s Ark has increased its Tesla holdings over the past few months.
Top Five China Stocks to Watch Now
Market Rally Analysis
After rising modestly to key resistance levels on Wednesday, major indexes fell on Thursday.
The Dow Jones, which nearly closed Wednesday above its 21-day and 50-day moving averages, pulled back on Thursday. The S&P 500 and Russell 2000 pulled back from the 21-day line, while the Nasdaq also pulled back.
Microsoft stock, Tesla and UnitedHealth slumped in the S&P 500, but losses were broad-based. Invesco S&P 500 Equal Weight ETF (RSP), fell 1% after rebounding on Wednesday, returning below the 21-day, 50-day and 200-day lines.
The biotech, industrial, residential, medical, infrastructure/construction product and mining sectors continue to show relative strength, along with some retailers and energy names, with Chinese stocks rebounding. Many have given buy signals on Tuesday or Wednesday, but many have pulled back or returned lower.
An attempt at a market rally for major indices is underway, but has not made much headway. Since rebounding from recent highs in mid-December, major indexes have hit range-bound, upside resistance, but haven’t broken out either.
Friday’s jobs report could break this sideways move, triggering a decisive move above or below key levels. But even that may be temporary.
Time the Market with IBD’s ETF Market Strategy
what to do now
Prepare, prepare… and wait.
If you’re sticking to the market and looking for promising setups, it’s hard not to jump on promising stocks while the buy signals are flashing. In a sustained market rally, this usually works. But in the current volatile market environment, this simply did not happen.
It’s possible the December jobs report could trigger a major market rally. This could be a signal to make some purchases in individual stocks or industry/market ETFs, but not to significantly increase exposure.
Despite challenging market conditions, many stocks are showing strength. So get your watch lists ready.
To read big picture Staying in sync with market direction and leading stocks and industries every day.
Please follow Ed Carson on Twitter: @IBD_ECarson for stock market updates and more.
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