Dow futures were little changed Wednesday morning, along with S&P 500 futures and Nasdaq futures. The midterm election results indicated that the Republican Party was home while Tesla CEO Elon Musk sold more shares of TSLA. The focus has also been on Disney, Meta Platforms, and Tesla, along with Bitcoin.
The stock market rallied higher on Tuesday morning, buoyed by lower Treasury yields and a weaker dollar. Major indexes pared strong gains as Bitcoin and other cryptocurrencies slipped in a surprise acquisition of Binance-FTX. But stocks rebounded somewhat with the closing.
Bitcoin-related stocks like cryptocurrency exchange Queen Piece (Currency), trading application Robinhood Markets (Hood), custodian of cryptocurrency Silvergate Capital (SI) and a bitcoin miner Digital Marathon (Mara) sold.
Looking to the future, the CPI is looming large.
Disney stock fell solidly in premarket trading on earnings and pulled back, though Increase the number of Disney + subscribers It was strong. OXY, over 20% owned by Warren Buffett’s Berkshire Hathaway (BRKB), decreased in mixed earnings. LCID stock fell amid weak results for the third quarter and Lucid Air Reservations Rejected. ARRY stock rose sharply in Strong earnings and guidance.
Descriptive job cuts
Facebook Parent meta pads (dead) will lay off more than 13,000 employees, or 13% of employees, CEO Mark Zuckerberg told employees Wednesday morning, taking responsibility for the company’s gaffes. The layoffs were widely expected on Wednesday. META stock, which hit multi-year lows recently, is up more than 3% in pre-market trading.
Tesla stock rose nearly 2% Wednesday morning. Late Tuesday, Tesla CEO Elon Musk revealed that he sold 19.5 million shares for $3.95 billion on November 4, 7 and 8. That may be to help advance his latest deal on Twitter, although Musk said in early August that the stock sales were his last. will need.
Musk has yet to say that he has finished his last sale round.
Musk’s recent stock sales likely helped propel Tesla’s stock lately. Increased Chinese support and concerns about the Elon Musk era on Twitter may also have a negative impact on TSLA stock.
Tesla stock fell 2.9% to 191.30 in the Tuesday session after falling to 186.75 on the day, above its May 2021 lows.
Midterm results are still out. Republicans would likely take back the House, but the potential Republican wave was hardly a ripple. The Senate is still election-ready, and the Georgia race is likely headed into the runoff. Another 50-50 Senate is possible.
Whatever the end result, it is likely that President Joe Biden and the Democrats will not have complete control of the White House and Congress. Financial markets tend to do better with gridlock in Washington. And stocks have traditionally done well in the third year of a presidency.
A divided government could be a positive thing for Wall Street, and good news for defense companies, private prisons, and drugmakers in particular. Then again, the markets may have already pricing some of that.
Dow jones futures contracts today
Dow Jones index futures are down 0.3% against fair value, with DIS shares weighing on blue chips. S&P 500 futures lost 0.15%. Nasdaq 100 futures changed little, even with META and Tesla stocks saving.
Crude oil futures were down about 1%. Copper decreased by 1%.
Bitcoin slipped again, sending Bitcoin-related stocks like Coinbase down.
Consumer price inflation in China rose less than expected. Wholesale prices fell.
stock market rise
The stock market rally moved higher on Tuesday morning, but triggered it again in the afternoon as Bitcoin’s crash spilled over into stocks. The S&P 500 and Nasdaq indexes briefly turned negative before recovering.
The Dow Jones Industrial Average rose 1% on Tuesday stock market trading. The S&P 500 rose 0.6%. The Nasdaq Composite advanced 0.5%. The Russell 2000 small cap made gains.
Tesla stock sank close to its May 2021 lows during the day.
Apple and Microsoft rose 0.4%, Google rose 0.5% and Amazon fell 0.5%. Everything is up this week but after a faltering last week.
The 10-year Treasury yield fell 9 basis points to 4.13%.
The US dollar fell significantly for the third day in a row, hitting its lowest level since late September.
US crude oil prices fell 3.1% to $88.91 a barrel. Natural gas futures fell 11.6%, continuing the huge daily volatility.
Despite the dollar’s weakness, bitcoin slumped as Binance agreed to buy rival FTX, which has faced a liquidity crunch. These are doubts that the Binance-FTX deal will actually happen, as FTX has been facing massive withdrawals in the past two days. Just a few months ago, FTX founder and co-founder Sam Bankman-Fried appeared as potential saviors for other ailing crypto companies.
Bitcoin crashed to $17,484.20 on Tuesday, its lowest since November 2020. While it rebounded somewhat on Tuesday afternoon, it is now trading below $18,000 after hitting $17,266 overnight. The leading digital currency broke below $20,000 on Monday night. Ethereum, Dogecoin and other cryptocurrencies have shown similar or even greater losses as well.
The FTX token collapsed by 80% on Tuesday after heavy losses in recent days and weeks.
COIN stock fell 10.8% to a four-month low. Buying Binance FTX could pose a major new competitor to Coinbase, which is also plagued by Bitcoin issues and concerns about crypto-related institutions.
HOOD stock, which includes Bankman-Fried as an investor, is down 19%. Shares in Mara fell 5.3 percent to their lowest level since July. After the shutdown, Marathon Digital reported a larger-than-expected loss while revenue fell 75%.
SI stock is down 23% to its lowest level since December 2020.
Tesla still owns some Bitcoin, while Elon Musk holds Dogecoin for some time.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) is down 0.3%, while the Innovator IBD Breakout Opportunities ETF is downfit) rose 0.1%. iShares Expanded Technology and Software Fund (ETF)IGV) rose 1.3%, with MSFT stock a key component. VanEck Vectors Semiconductor Corporation (SMH) rose by 2.2%.
Market Rise Analysis
The stock market rally looked hard hit last Thursday in the wake of Fed Chairman Jerome Powell’s hawkish comments. But it has been recovering over the past three sessions, even with bitcoin’s problems.
The Dow crossed last week’s high after recovering the 200 line on Monday.
The S&P 500 moved slightly higher above the 50-day line, although it is still below its November 1 high in the short term.
The Nasdaq, weighed down by Tesla and technical problems, hit resistance at its 21-day moving average. It’s still below 50 days and far from the 200 day streaks.
But the Direxion Nasdaq-100 ETF is equally weighted (QQQE) rose just over 1% to cross the 50-day streak.
Falling Treasury yields helped stocks rally on Tuesday, while a falling dollar has been a major driver in the past three sessions.
The midterm election results may spur market moves, but Thursday’s CPI inflation report could be key. A weak CPI reading could fuel hopes of a slowdown in interest rate hikes by the Federal Reserve And the lower peak rate. But still, another hot inflation number could lead to a massive sell-off in stocks and bonds.
There weren’t many new buying opportunities on Tuesday.
GlobalFoundries (GFS) above the trend line and a very low handle after profits.
Albemarle (ALB) an early entry, but quickly hit the official buy point, and closed just below that key level. However, ALB stock is well above the 50-day line after a huge move from its November 3 lows on the day.
Many LNG stocks are close to buying points.
Poor technology remains a concern. Chip stocks are rebounding, with the SMH ETF convincingly above the 50-day line. Megacap technologies such as apple (AAPL) trying to bounce back, but after a huge sell-off. The same goes for cloud software.
What are you doing now
The stock market rally shows resilience after sharp losses last week, with the Dow Jones and S&P 500 regaining key levels. Investors may still want to be cautious, with the CPI inflation report looming. Also, there aren’t a lot of actionable stocks currently, although many have been created.
Investors should be ready to take action, by staying in touch and building your watch lists. Growth stocks are still not generally favored, so make sure you cast a wide net to find stocks and sectors that are emerging leaders.
Be sure to be aware of earnings that remain active. Some stocks were big dividend winners, while others rebounded strongly after initially falling. But there were also high-profile sell-offs, as Disney and Lucid’s stock showed overnight.
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