Dow Jones futures changed little overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally fell on Thursday morning’s hawkish Fed statements, adding to Wednesday’s losses. However, major indices rallied to close slightly lower than some key levels.
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Crude oil prices fell as Treasury bond yields rebounded.
Apple (AAPL), Microsoft (MSFT) and Google top Alphabet (GOOGLE), the only three-trillion-dollar stock on the US stock market rallied after testing support at its 50-day moving averages. Meanwhile, tesla (TSLA) bear market retreated to lows.
Investors should be cautious in the current market, slowly increase risks and be prepared to take profits and cut losses quickly.
Earning
Applied Materials (AMAT), Palo Alto Networks (PANW), open area (CLFD) and Ross Stores (GRILL) all highest EPS and sales views As of late Thursday, guidance is also generally strong.
AMAT stock rose moderately overnight and is poised to break above the 200-day mark. PANW stock explodesIt signals a move over 50 days. CLFD stock rallied in long trade looking to bounce above the 50-day line as it tries to form the right side of a double bottom. ROST stock skyrocketed to 2022 highs after closing range from a bottoming bottom.
JD.com (JD) and Atkor (ATKR) on the air early on Friday.
JD stock rose 7.5% on Thursday to hit the 200-day mark. Ali Dad (FATHER) early Thursday earnings. ATKR shares were down 3.5% on Thursday, but were comfortable above the 200-day line as it was working on the right side of a deep cap bottom.
Dow Jones Futures Today
Dow Jones futures fell slightly against 2009. reasonable value. S&P 500 futures rose. Nasdaq 100 futures were up 0.2% on AMAT and PANW stock removal technologies.
Crude oil futures rose.
Remember, overnight action Dow futures and elsewhere it doesn’t necessarily turn into real trade on the next regular trade Exchange session.
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Stock Rally
Stock market rally, St. Louis Fed President James Bullard and Kansas City Fed President Esther George made hawk statements. Major indices recovered and closed slightly down from the horizontal.
The Dow Jones Industrial Average was just below Thursday’s breakeven level. stock market trading. The S&P 500 index fell 0.3 percent. The Nasdaq composite fell 0.35%. The small-scale Russell 2000 gave up 0.9%.
Apple shares rose 1.3 percent. Microsoft stock gave back two cents, Google stock fell 0.5%. All tested their 50-day lines day in and day out. All are below the 200-day lines with no clear buy point. Tesla stock is down 2%, approaching November 1. 9 bear market low.
US crude oil prices fell 4.6% to $81.64 per barrel. In addition to the Fed comments, Şahin is blamed for Beijing’s re-emphasis on its “zero Covid” policies. China’s State Council has reportedly warned cities to avoid “irresponsible relaxation” of Covid-19 measures, just one week after the top organ-sponsored relaxation rules. On Wednesday, Peking University was locked on a single case. Covid infections in China have increased over the past two weeks.
Hawkish Fed Boosts Treasury Yields
The 10-year Treasury yield rose 8 basis points to 3.77%.
st. Louis Fed’s Bullard said the federal funds rate, which is currently 3.75%-4%, may need to go up to 7%, well above the consensus around 5%. Kansas City Fed President George said a recession may be needed to keep inflation down.
One reason policymakers are speaking hawkish is to raise market rates and curb the stock market rally. If financial conditions ease significantly over the Fed’s pivot prospects, inflation could remain high for longer, forcing the Fed to further tighten official rates.
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ETFs
Between best ETFsInnovative IBD 50 ETF (fifty) fell 0.1%. iShares Extended Technology-Software Industry ETF (IGV), MSFT stock fell 2.65% despite being a key component. PANW stock is also an IGV holding. VanEck Vectors Semiconductor ETF (SMH) fell 0.5%, with AMAT stock and significant SMH holding.
SPDR S&P Metals & Mining ETF (XME) fell 2.1%. SPDR S&P Homebuilders ETF (XHB) 2% withdrawn. Energy Select SPDR ETF (XLE) 0.5% and Selected Health Sector SPDR Fund (XLV) decreased by 0.2%.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) fell 2.8% and the ARK Genomics ETF (ARKG) 3.2%. TSLA stock is a major holding in Ark Invest’s ETFs.
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Stock Rally Analysis
The stock market rally tested some key levels in Thursday’s open. The Nasdaq found support just above its 50-day moving average. The S&P 500 briefly sank to October short-term highs. Russell 2000 rebounded near the 21-day line. S&P 400 MidCap maintained its 200-day line.
After a strong uptrend and the S&P 500 approaching the 200-day line, the market was likely to pull back. At the same time, the market rally found support in key areas on Thursday. As such, the past few days have been normal and somewhat constructive for major indices – assuming they can sustain Thursday’s lows and eventually go higher.
However, the market slumped from Tuesday’s intraday high to Thursday morning’s low, hitting a number of stocks that have broken or entered early in the past few days. Many have tested or completely failed these entries. Some can rebound while others can. In some cases, previous purchase points are still valid, while others may need to set up new handles or other entries. Still others may struggle for a long time.
A wide variety of stocks and sectors are showing interesting moves.
In all these cases, a healthy market rally will be key.
Apple stock, Microsoft and Google are not market leaders and will not be for a while. But if they can avoid the delay, that would be a big help.
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what to do now
The stock market rally showed an encouraging move on Thursday. The overall trend has been higher over the past few weeks. But it’s been a winding road for investors.
Anyone who bought shares after October. 21 follow up day it was probably underwater in early November. Indices rose on November 1st, while the Nasdaq, S&P 500, and Russell 2000, which were number 10 in the Docile CPI report, have all been down flat since then.
The stock market rally remains volatile as industry rotation and large intraday fluctuations complicate things. Buying opportunities are often moments when the market pulls the curtain over investors.
So keep the exposure light. Add risk gradually and be prepared to reduce risk due to market conditions or individual stock selling rules.
Keep your watchlist updated so you can see emerging leaders.
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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