Dow Jones futures declined along with S&P 500 futures and Nasdaq futures on Tuesday night as Apple stock fell on a report that chip shortages will force iPhone production cuts. Crispr Therapeutics (CRSP) stumbled across the study results.
The stock market rally attempt had another weak closing price and ended with slight losses on Tuesday.
Apple iPhone Cut
Apple stock fell more than 1% in overnight trading, with the iPhone production report perhaps not surprisingly. Stocks are working towards recent lows. AAPL stock closed 0.9% to 141.51 after the tech giant announced a product event on October 18.
The exception was the QCOM share, which rose slightly in extended trading. Qualcomm (QCOM) announced a $ 10 billion QCOM share buyback program.
Crispr stick scorched
The CRSP share fell 8% in extended trading Release of the test results of phase 1 of a gene-edited cancer drug. Crispr Therapeutics said Tuesday it was planning to begin a pivotal trial of its gene-edited cancer drug CTX 110. Of the 26 lymphoma patients, 38% had no detectable cancer after treatment. There were no major side effects.
Mixed market news
But a number of high beta growth stocks like Tesla stocks Upstart stocks (UPST), Zscaler (ZS) and Airbnb (ABNB) made strong moves and flashed various buy signals during Tuesday’s session. Solar stocks continued to rebound, while US-focused casino games such as MGM resorts (MGM) and Boyd Gaming (BYD) also recovered and triggered buy signals. Tesla (TSLA) Rivals General Motors (GM) and ford (F.) continued, with GM stocks getting in early and Ford nearing the top of a base. Matson (MATX) blown up over a brief consolidation.
The video embedded in this article discussed Wednesday’s market moves and analyzed ZS stocks, Matson and Boyd Gaming.
Dow Jones Futures today
Dow Jones futures fell 0.1% from fair value. S&P 500 futures were down 0.2%. Nasdaq 100 futures were down 0.15%. Apple stock is a component of the Dow Jones, S&P 500, and Nasdaq.
The German software giant is positive JUICE (JUICE) delivered preliminary third quarter results that were above consensus and higher for the full year.
The September Consumer Price Index will be released at 8:30 a.m. ET. Economists expect headline consumer inflation to stay at 5.3% while core inflation will stay at 4%. At 2 p.m. ET on Wednesday will release the Fed minutes from September’s monetary policy meeting, which will provide further insight.
Atlanta Fed President Raphael Bostic, one of the more restrictive Fed officials, said Tuesday that US inflation is widening, and not just temporary. Fed Vice President Richard Clarida said inflation risks are on the upside. He also added that the conditions for a bond rejuvenation to begin were “as good as met”.
Stock market rally
The stock market rally attempt hovered between modest gains or losses for most of Tuesday’s session before closing on a bitter note.
The Dow Jones Industrial Average fell 0.3% on Tuesday Stock exchange trading. The S&P 500 index lost 0.2%. The Nasdaq composite lost 0.1%. The small-cap Russell 2000 rose 0.6%.
The 10-year government bond yield fell 3 basis points to 1.58% after bond markets closed on Monday. The 10 year return has been rising for several weeks.
Google parents alphabet (GoogL) declined 1.8% on Tuesday, pulling back from its 50-day moving average and weighing on the S&P 500 and Nasdaq. Memory chip giant Micron technology (MU) – slumped by 3.6% due to another gloomy price forecast from TrendForce. Several memory-exposed chip device manufacturers including Applied materials (AMAT), KLA Corp. (KLAC) and Lam research (LRCX) bordered at the bottom.
Under the best ETFs, the innovator IBD 50 ETF (FFTY) gained 1.65%, while the innovator IBD Breakout Opportunities ETF (STRUGGLE) brought forward by 0.7%. The iShares Expanded Tech-Software Sector ETF (IGV) rose by 1.1%.
The VanEck Vectors Semiconductor ETF (SMH) decreased by 1%. Micron stock has been a notable drag on SMH.
SPDR S&P Metals & Mining ETF (XME) increased by 0.25% and Global X U.S. Infrastructure Development ETF (PAVING) ended just above break-even. US Global Jets ETF (JETS) rose by 0.8%. SPDR S&P Homebuilders ETF (XHB) ended essentially flat. The Energy Select SPDR ETF (XLE) 0.1% higher and the Financial Select SPDR ETF (XLF) gave up 0.3%.
JPMorgan profits are due prior to opening on Wednesday, which starts this week with bank results.
On Tuesday, JPMorgan stock retreated towards a buy point as the broader market and government bond yields fell. Bank of America (BAC), on Thursday, is currently in the buying area. Wells Fargo (WFC), Goldman Sachs (GS), Morgan Stanley (MRS) and City group (C.) are all in consolidations.
Delta earnings are also early Wednesday. Other airlines will follow in the next few weeks, but several, including American Airlines (EEL) have given some initial hints.
Delta Stock, American, and several other major airlines are trying to find support for their 200-day lines.
In a broader sense, Delta’s revenue will provide early insight into the travel sector, including hotels, casinos like MGM, and “tech” travel names like Expedia (EXPE) and ABNB shares. With Covid cases dropping sharply and restrictions easing, travel should have a tailwind.
Stocks flashing buy signals
Tesla stock rose 1.7% versus 805.72 strong sales of electric vehicles in China for September. The EV giant pulled back from its intraday highs but closed above the 800 mark for the first time in eight months. The TSLA inventory is now slightly expanded by a 764.55 handle Buy point. Intraday it cleared a three weeks tight Entry from 7807. But with Tesla stocks on hand for seven straight weeks and on the way for an eighth, it seems a bit prolonged.
UPST stock rose 7.1% to 333.05 and rebounded from its 21-day line and a brief downtrend. However, the volume was below average. Emerging stocks have been a big winner in recent months and have held up well, but a 21-day rebound in a market correction is high risk. After Tuesday’s big move, UPST stock appears to have expanded even from that perspective.
Zscaler stock climbed 3.7% to 277.72, rebounding from near its 50-day line and breaking a trend line. The ZS share does not look extended yet and should have a new base after this week. the relative strength line is already at a new high, well ahead of the ZS share.
The ABNB share rose 3.65% to 172.75. It is likely to break a short or long trend line with 177.06 as the resistance point. But it’s also well above its 50-day line.
The MGM share rose 9.6% to 48.69 due to bullish analyst comments. After consolidating in a buy range, the casino giant blew up an alternative entry of 46.16. It now appears expanded.
Matson’s stock rose 8.35% to 89.57 after the company released preliminary figures above consensus. MATX stock has seen a brief consolidation above an earlier base, breaking a buy point of 88.09, although investors likely could have grabbed an entry earlier in the day.
GM stock rose 1.5% to 58.96, just over 58.70 Double floor Buy point. There has been resistance in this area for a few days. Perhaps GM could pause or hold a grip around these levels to allow a safer entry. On Wednesday, LG agreed to pay General Motors up to $ 1.9 billion and cover most of the costs over the Bolt EV battery fires.
Analysis of the market rally
The attempt at a stock market rally did not move much on Tuesday, but it still closed poorly. The major indices settled in the lower half of their ranges after ending at or near the session lows in the previous three sessions.
Trying to rally the market has still not worked. None of the major indexes had one The following day, confirms the new rally.
The Nasdaq is no longer reaching its 21-day moving average. The Dow Jones and S&P 500 have also declined from their 50-day lines to below their 21-day lines.
Some leading stocks are doing well, especially software and travel-related names, but others are not.
Not only technically, leading stocks and the market as a whole are on the move, big news in the coming weeks could shake the markets. Wednesday’s consumer price index and Fed minutes are part of an ongoing discussion about inflation and future Fed policies, with huge implications for government bond yields and thus the stock market.
In the meantime, the reporting season is about to start. Not only will we be seeing a flurry of official earnings reports over the next few weeks, but companies like Matson, In mode (INMD) and Avantor (AVTR) are the advance notice of the results. While MATX stocks and InMode hit the news, Avantor slumped in inline sales.
Even if the market rally solidifies or stalled for a while, the violent news cycle could trigger a reversal or accelerate the existing trend. That goes double or triple for leading stocks.
When investors from Zscaler to. See everything Louisiana Pacific (LPX) through Matson to UPST stocks bouncing off key levels, it’s hard not to get into this market. If you already own some stocks that are winning, that’s great. If they have risen sharply, you may want to consider securing some partial profits.
But investors might want to wait for the Nasdaq to make new purchases at least exceed and hold the 21-day moving average as the S&P 500 hits its 50-day line. It is also a sensible strategy to wait for a confirmed stock market rally to add exposure.
If this market rally has real legs, you have plenty of opportunities to capitalize on it. But if the market slips and drops below recent lows, you’ll be glad to have cash or minimal exposure.
If you do decide now to increase your exposure, you should possibly treat new positions as swing trades, making relatively quick partial profits, and possibly holding remaining stocks if the stock continues to perform well and the market picks up. Whatever you do, be sure to be quick to reduce losses.
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