Dow Jones futures fell, along with S&P 500 futures and Nasdaq futures, towards the last trading day of 2022. Apple (AAPL) iPhone news and tesla (TSLA) keeps jumping.
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However, the market is in a correction after breaking key levels on Wednesday. Thursday marked just the first day of a new stock market rally attempt. Investors should be very careful about taking new positions.
Medpace (MEDP) giving a buy signal on Thursday, KLA Corp. (ROD), Starbucks (SBUX), Combined Rental (URI), furniture (MBLY), Super Micro Computer (SMCI) and fluorine (FLR) we set up. But these stocks will likely rise or fall with the market.
MEDP stake, Fluor and United Rentals open IBD Leaderboard. KLAC stocks open IBD Long-Term Leaders. MBLY stock on sale IBD 50. KLA Corp. and URI stock IBD Big Cap 20.
Meanwhile, new Treasury Department guidelines state that many Model Y vehicles will not be eligible for U.S. tax credits effective January 1. Without sharp price cuts 1. However, there is a loophole that could allow all Tesla vehicles – and any EV – to qualify for hefty tax credits at any price.
Dow Jones Futures Today
Dow Jones futures fell 0.1 percent. reasonable value. S&P 500 futures fell 0.2%. Nasdaq 100 futures fell 0.15%.
Remember, overnight action Dow futures and elsewhere it doesn’t necessarily turn into real trade on the next regular trade Exchange session, meeting, session.
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Market Rally Initiative
The stock market rebounded strongly, rising in the morning and then holding those gains in the afternoon.
The Dow Jones Industrial Average rose just over 1% on Thursday stock market trading. The S&P 500 index rose 1.75 percent. The Nasdaq composite and the small cap Russell 2000 were up 2.6%.
Initial jobless claims rose slightly more than expected in the week ending December 1st. 24, but remained low at 225,000. Continuing applications rose from 41,000 to 1.71 million last week, reaching their highest level since early February.
AAPL stock rose 2.8% to 129.61 after slipping 3.1% to a bear market low on Wednesday. According to The Wall Street Journal, Apple iPhone manufacturing is recovering after another report of recent iPhone manufacturing issues.
US crude oil prices fell 0.7% to $78.40 a barrel.
The 10-year Treasury yield fell 5 basis points to 3.83%.
ETFs
Between best ETFsInnovative IBD 50 ETF (fifty) rose 1.1%, while the Innovator IBD Breakout Opportunities ETF (STRUGGLE) rose 0.9%. iShares Extended Technology-Software Industry ETF (IGV) jumped 3%. VanEck Vectors Semiconductor ETF (SMH) increased by 3.3%. Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) jumped 5.2%, and the ARK Genomics ETF (ARKG) 4.1%. Tesla stock is a key asset in Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) increased by 1.9%. US Global Jets ETF (JETS) rose 2.65%. SPDR S&P Homebuilders ETF (XHB) rose 2.4%. Energy Select SPDR ETF (XLE) rose just over 1%, and the Financial Select SPDR ETF (XLF) rose 1.4%. Health Sector Selected SPDR Fund (XLV) rose 1.1%.
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Tesla Stock
Tesla stock rose 8.1% to 121.82 after Wednesday’s jump of 3.3%. TSLA stock is still down slightly during the week and is 37% in December. After such a big sell-off, Tesla stock would have made a splash, but it fell far below key levels.
Tesla Model Y Tax Credits
The Tesla bull case for 2023 is based on new US tax credits of up to $7,500 under the Inflation Reduction Act, fueling high-margin domestic sales, offsetting weak demand and prices in China and possibly Europe.
On Thursday, the Treasury Department listed vehicles eligible for US EV loans. Most versions of Model Y will have a price of $55,000 to get EV credits. $80,000 cap for SUVs, pickup trucks and vans.
But non-bestselling seven-seat Model Y vehicles will be available for up to $80,000.
With the current Model Y base in the US starting at $65,990, Tesla will perhaps need to lower the price by re-introducing a lower-range Model Y SR+ to get the tax credit – if it’s not a seven-seat variant.
However, there is another twist! The Treasury also said that EVs rented by consumers may qualify for commercial EV tax credits. This makes it suitable for EVs assembled outside of North America, including the Hyundai Ioniq 5 and Kia EV6. Foreign automakers and the US’s allies in Europe and Asia were vehemently opposed to the North American assembly requirement. But the rental rules also seem to allow any EV to qualify for any price with no income cap.
It will be interesting to see what Tesla and other automakers do with variants and pricing to get the maximum benefit from the new tax credits.
However, investors seemed satisfied with the overall picture.
TSLA stock rose.
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Stocks Close to Buying Points
Medpace stock rallied 3.4% to 215.62, rebounding from the 21-day and 50-day lines, breaking the downtrend line. MEDP stock consolidated nicely, forming a 16% deep consolidation near the top of a long, deep bottom. Formal point of purchase 235, but Thursday offered early entry.
KLAC stock jumped 3.3% to 379.86, bouncing from its 10-week mark. A move above the 21-day line could offer a chance to buy KLAC stock as the Long Term Leader.
SBUX stock was up 1.2% to 99.77, rebounding from a 10-week high and breaking above a 21-day high. This may be an early introduction to a not-so-essential short period. This can be seen as an arm of the 17-month deep consolidation for Starbucks stock.
URI stock rallied 1.2% to 356.21, rebounding from the 21-day line. United Rentals briefly peaked earlier this month, close to the buy point of 368.04 in a 13-month consolidation. URI stock traded very tight up its sleeve. This relative power line It’s at a new high, reflecting the performance of United Rentals stock. S&P 500 index.
MBLY stock rose 2.8% to 34.51, rebounding from the intraday lower part of its 21-day moving average. Mobileye IPO went public in late October at 21 per share. MBLY stock showed strength in a weak market, but as with many recent IPOs, there have been big whiplash moves. Shares began to calm down. An aggressive investor may look for a break in the trendline for an entry, but ideally Mobileye stock will break new ground.
FLR stock rose 0.8% to 34.95 and remains tightly traded, working on a possible drop. flat solewhich would diametrically pleasing pattern. Fluorine earnings appear to increase by 80% in 2023 as infrastructure stocks show strength in public and private projects.
SMCI stock rose 1.6% to 81.91, rebounding from the 50-day line but found resistance in 21 days. A strong move above 21-days could provide an early entry, clearing Wednesday’s high of 84.35. Super Microcomputer stock, one of the strongest growing stocks of 2022, has been consolidating for several weeks after November 1. Earnings spread burst with continued progress to 95.22 on Nov. 25. SMCI stock could have a new bottom by the end of next week.
the market research
The stock market rebounded solidly after Wednesday’s sell-off. After rolling since December. 13-day highs, major indices definitely “due” for a bounce.
It remains to be seen whether they will follow suit in the coming days and weeks.
The market corrected on Wednesday as the Dow Jones fell below the 50-day moving average and the Nasdaq closed at its lowest in two years.
So Thursday was just the first day of a new market rally attempt. It will take much more than that to feel more secure.
The Dow Jones is above the 50-day line but still below the 21-day line.
The S&P 500 is still below 50 days, with more resistance at the 200-day line and December tops.
Tesla stock, Apple, and many beating chip and software names led Thursday’s bounce, while some leading stocks such as MEDP stock gave glowing buy signals or moved into position.
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what to do now
It’s tempting to return to the market when indices rise sharply and there’s a sea of green among leading and notable stocks.
But since the bear market bottomed out on Oct. On December 13, tweens and buy signals were largely unsuccessful.
Some sectors, including industrial, metals, and medical, have been doing better in recent weeks, so it’s easier to justify gnawing in those areas with certain stocks or industry ETFs. But keep the risks small and be quick to take profits and cut losses.
Bottom line: This is a market correction. Do not trade under bull market rules, especially 2020-esque mad bull rules.
Invest as if you were driving on an icy, windy road rather than an open highway. Drive carefully or wait by the side of the road.
More time to plan your trip. Going out Work on watch lists. Numerous stocks from various sectors are showing strength.
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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