The Dow is up 1,300 points from its bear market lows after the sharp inflation report. What are you doing now

Dow futures were little changed Friday morning, along with S&P 500 futures and Nasdaq futures. Earnings headlines for giants Dow UnitedHealth and JPMorgan Chase ahead of the opening.




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The stock market fell Thursday morning on a Hot CPI inflation report, but then roared again. The Dow Jones rose more than 1,300 points from the lowest intraday bear market levels. The 10-year Treasury yield pared gains after rising above 4% to a 13-year high.

However, it is just a good day. Investors should stay on the sidelines, but look for potential new leaders.

There is an argument that the market can’t even reach the lowest level Tesla (TSLA), which is the largest and most followed high-growth stock, collapses. It is too early to say whether the market or the TSLA has bottomed. But on Thursday, Tesla stock fell to only trim its May lows before quickly rebounding.

Meanwhile, megacap . technologies apple (AAPL), Microsoft (MSFT) and the father of Google the alphabet (The Google) Organized external bullish reversals. Not only did they surpass the previous day’s highs and lows, they swept the weekly range.

Microsoft and Google shares work Long-term leaders of IBD.

Main earnings

United Health (United nations) Health insurance company earnings on Friday morning with better-than-expected profits for the third quarter. United Nations stock rose before the opening. UnitedHealth has been going downhill and not leading its group, but line relative force Right at the heights. Shares hit their lowest level in nearly four months before rebounding to regain the 200-day streak.

UnitedHealth Earnings And guidance will be important to competitors, including Cigna (CI).

c. B. Morgan Chase (JPM), City Group (c), Morgan Stanley (Ms) And the Wells Fargo (WFC) them too Due before opening.

JPM, Citigroup, Wells and Morgan Stanley shares rebounded Thursday, but are near bear market lows amid tough economic conditions.

Dow jones futures contracts today

Dow futures rose 0.2% against fair value. S&P 500 futures rose and Nasdaq 100 futures declined 0.1%.

The 10-year Treasury yield fell 5 basis points to 3.9%.

The Bank of England is set to end its latest emergency bond purchase on Friday. It comes at a time when the new British government is said to be preparing to scuttle many of the tax cuts and budget plan that have upset the British pound and gold. PM Liz Truss is set to hold a press conference at 9 a.m. ET.

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People’s Bank of China Governor Yi Gang said overnight that the central bank will provide more economic support, with an emphasis on infrastructure.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.


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Thursday stock market

Before the opening, the CPI inflation report came out much hotter than expected. Core inflation reached a 40-year high in September, with no real sign of underlying pressures easing. Futures contracts, which were strongly higher, fell on the basis of CPI data.

The stock market opened sharply lower, with all major indexes hitting their lows, but came back strong with solid gains.

The Dow Jones Industrial Average jumped 2.8% on Thursday stock market trading. That was up 828 points, or 1,378 points from the day’s low. The S&P 500 jumped 2.6%. The Nasdaq Composite Index is up 2.2%. Small cap Russell 2000 rose 2.5%.

Apple stock rose 3.4% to $142.99, but after falling to 134.38 on the day, its lowest level since the end of June. Microsoft shares jumped 3.8% and Google shares 1.5%, after both rebounded from bear market lows.

The 10-year Treasury yield rose 5 basis points to 3.95%. But that’s after climbing to a 13-year high of 4.06% on the day. Markets closed the Fed’s fourth straight rate hike by 75 basis points in November, and are now seeing a fifth such hike likely in December. But there may be growing concern of a global recession or financial shock. The two-year yield, more closely tied to Fed policy and less to the economy, jumped 19 basis points to 4.48%.

The US dollar initially rose due to higher Treasury yields, but then reversed lower.

US crude oil prices rose 2.1% to $89.11 a barrel.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose by 2.5%. iShares Expanded Technology and Software Fund (ETF)IGV) by 1.4%, with MSFT stock being its largest holding. VanEck Vectors Semiconductor Corporation (SMH) popped 3.1%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) is down 0.2% after dropping to a 30-month low on the day. ARKK is close to downgrading the Covid crash. ARK Genomics ETF (ARKG) closed 0.7%. Tesla stock is the number one stock held via Ark Invest’s ETFs. The TSLA Index rose 2.1% to 221.72 after hitting a 15-month low of 206.22 shortly after the opening.

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SPDR S&P Metals & Mining ETFs (XME) rose by 1.7%. US Global Gates Foundation (ETF)Planes) up 2.25%, backed by strength Delta Airlines (DA) direct profits. SPDR S&P Homebuilders ETF (XHB) rose 0.25%. SPDR Specific Energy Fund (SPDR ETF)XLE) and the Financial Select SPDR ETF (XLF) Both jumped 4.1%. SPDR Healthcare Sector Selection Fund (XLV) rose 2.3%, with UN stock holding the top.


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stock market analysis

What a wild session. The stock market sold hard at the open in the hot September inflation report, as all major indexes and the Russell 2000 all dented bear market lows. But with the 10-year Treasury yield tumbling from its highs and the dollar weakening, stocks rebounded, too.

The inflation report was grim, while expectations for a Fed rate hike worsened. Perhaps stocks – or treasury prices – were simply due to the rebound. Contrary to the August CPI, and many other Fed related events, the market did not attempt a rally in the September CPI data. The Nasdaq has fallen for six consecutive sessions. If the indices rise to the 21-day line at Wednesday’s close, the market’s performance on Thursday could be very different.

Long-term charts provide hints that a bear market could be at least close to the bottom. The Dow Jones and Russell 2000 indexes cut their pre-Covid highs. The S&P 500 and Nasdaq are not far from the February 2020 highs, with the former finding support at 3,500 on Thursday while the latter rebounding just above the 10,000 level. But there’s no reason why stocks shouldn’t drop that much.

Anyway, while a strong bullish reversal is welcome, keep it in perspective. The best days in stock market history come from bear markets. If the Nasdaq soon drops to new lows, Thursday’s gains will be just a picture.

Thursday marks the first day of a new stock market rally attempt for the Dow Jones, S&P 500 and Nasdaq indices. All major indices are still below their 21-day moving averages, with only the Dow Jones close to that short-term level. There are many other resistance levels above 21 days, but for now, let’s see if the market’s bullish attempt can pass through the second day. Follow-up day To confirm that the attempt to rise the new market cannot occur until next week at the earliest.

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Major sectors, stocks

The energy sector was the first to become positive, with chevron (CVX) and many other higher devices. Vertex Pharmaceuticals (VRTX), Cardinal’s health (CAH) and stock CI are among many powerful healthcare names. Some steel plays look good, including commercial metal (CMC), but market conditions increase the risk significantly. The chips rebounded from sharp early losses, but most of them were hit hard. Shares of JPM, Citigroup, and other financial institutions are very similar.

double check (DVThere was a nice turnaround while beauty elf (dwarf) is trading tightly close to highs. world wrestling entertainment (WWE) Right buy point. AutoZone (AZO) And the CF . Industries (CFIt’s also worth looking into.


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What are you doing now

There is no reason to rush into the stock market yet. Yes, indices and many stocks made solid gains, especially from intraday lows, but we have no idea if Thursday saw a bear market or just a short bounce. If this ends up being a bull market with real legs, investors will have plenty of time to increase exposure. If the indexes quickly reach new lows, you’ll be glad you were all or all in cash. This is why a follow-up day makes so much sense. It’s a way to get into a new rally quickly without trying to guess the absolute bottom.

In practice, there weren’t many stocks flashing buy signals on Thursday. But a lot can be done in a good few days. So work on those watchlists. Focus on relative strength. Look for stocks that are approaching or regaining their 50-day lines or other major support. But many relatively strong stocks will be below the 50-day and even the 200-day lines. Don’t ignore them.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

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