The Dow Jones futures rose slightly on Wednesday evening, as did the S&P 500 futures and the Nasdaq futures. The stock market rally attempt had a decent session on major indices and closed near highs as 10-year government bond yields fell.
Once again, a large number of growth stocks showed strength in what was, at best, a lackluster market. This offset weakness in Apple stocks, as well as financials and airlines.
AMD stock, CrowdStrike (CRWD), Bill.com (INVOICE) and Sea Limited (SE) moved over purchase points. All four bounced back from their 50-day or 10-week lines as they broke downtrends. In the meantime, Snowflake (SNOW) cleaned up a mini-consolidation that could be seen as a handle on a long, deep base.
Taiwan semiconductor (TSM) the income is available. While TSM stock has struggled since its high in February, the world’s largest chip foundry is still a frontrunner for its industry. It makes chips for modern micro devices (AMD), Apple (AAPL), Nvidia (NVDA) and many more.
TSM’s insights into chip scarcity and its own investment plans will be important to the industry and beyond, even if TSM stock doesn’t make big changes.
UnitedHealth (UNH) and Dominos pizza (DPZ) also report early Thursday. Then do it Bank of America (BAC), City group (C.), Morgan Stanley (MRS), Wells Fargo (WFC) Results report early Thursday. You are following better than expected gains from the Dow Jones giant JPMorgan Chase (JPM).
Financials were notable losers on Wednesday, likely due to declining 10-year government bond yields for the second consecutive year. JPM stock fell 2.4% from a recent buy point. BofA, Citigroup and Wells Fargo fell slightly while Morgan Stanley climbed higher.
Delta Airlines (DAL) led to a sell-off of airline shares. Delta reported profits after six quarters of pandemic losses, but forecast a small loss in the fourth quarter due to rising fuel costs. DAL shares fell 5.8%, the day’s biggest loser in the S&P 500 index. Other airlines also slumped solidly.
The video embedded in this article examined and analyzed Wednesday’s market rally Data dog (DDOG), Sea Ltd. and CRWD shares.
Dow Jones Futures today
Dow Jones futures rose 0.35% above fair value. S&P 500 futures rose 0.35% and Nasdaq 100 futures rose 0.5%.
Stock market rally
The stock market rally attempt ended with slight to solid gains on Wednesday, but best of all, the indices eventually closed near the session highs.
The Dow Jones Industrial Average closed on Wednesday Stock exchange trading. JPMorgan and American Express (AXP) weighed on the Dow. The S&P 500 index rose 0.3% despite financials, airlines and many energy stocks weighing on the broad index. The Nasdaq composite gained 0.7%. The small-cap Russell 2000 rose 0.5%.
The consumer price index got a bit hot, with inflation reaching a 13-year high again at 5.4%. But core inflation was in line and stayed steady at 4%.
The 10-year government bond yield rose briefly to 1.6% after the CPI report and before the stock market opened, but it reversed and closed 3 basis points down from 1.55%.
The 10-year yield hasn’t moved much after the Fed minutes were released from the 2pm September meeting. ET. Policy makers said a “gradual tapering process” could begin in mid-November, with asset purchases being completely halted by mid-2022. Several members advocated a more aggressive bond taper. The Fed minutes provided a little more detail but did nothing to change expectations for an official decision to cut bonds at the early November meeting.
US crude oil prices fell slightly but rebounded from lows and stayed above $ 80 a barrel. Copper futures rose nearly 4%.
Under the best ETFs, the innovator IBD 50 ETF (FFTY) rose 1.7% to close just above its 50-day line. The innovator IBD Breakout Opportunities ETF (STRUGGLE) decreased by 0.35%. The iShares Expanded Tech-Software Sector ETF (IGV) burst just over 2%. CRWD Stock and Bill.com are IGV components. The VanEck Vectors Semiconductor ETF (SMH) was up 0.85% on TSM stocks and key AMD holdings.
SPDR S&P Metals & Mining ETF (XME) gained 1.5% and Global X U.S. Infrastructure Development ETF (PAVING) increased by 0.3%. US Global Jets ETF (JETS) slumped 2.5% as DAL stocks and other airlines took their toll. SPDR S&P Homebuilders ETF (XHB) increased by 0.5%. The Energy Select SPDR ETF (XLE) fell 0.1% and the Financial Select SPDR ETF (XLF) slipped by 0.6%.
Shares in buy zones
Bill.com stock rose 5.2% to 294.71, which was a move from the 21-day and 10-week lines. The volume was slightly below the average trading volume. By the end of the week, BILL could base it at 302.09. to have Buy point.
CRWD stock rose 7% in volume to 270.44, recovering from its 50-day line and breaking a trend line, allowing early entries. The official buy point for CrowdStrike stock is 289.34 from a base that began in late August.
The SE share rose 7.5% to 349.35, jumped off its 21- and 50-day lines and easily broke a downtrend. Both offered early entry into the Southeast Asian e-commerce giant. Volume was strong. the relative strength line reached a new high while the SE share remains in its base. This is a bullish sign that identifies it as a “blue dot” stock MarketSmith.
AMD stock rose 3.9% to 109.16, hitting its 50-day line again, crossing a short-term resistance this time. Investors could use 107.95, October 7th high, as an early entry. Volume ended up underperforming for AMD stock, but it was its strongest in a month.
AMD has one Raised floor plinth with a buy point of 115.59.
The SNOW share rose by 4.8% to 327.85, the highest closing price of the year. During the day, Snowflake shares hit 329.75, above the high of a brief consolidation. This could be viewed as a grip on a huge low base that dates back to last December when SNOW stock hit a record high of 429. But stocks overcame tiny resistance within the “handle” and broke a trend line. Volume was below average but picked up speed in the late afternoon.
Analysis of the market rally
The stock market rally attempt eventually closed near session highs, with the Nasdaq leading the way even as Apple’s Megacap stock fell slightly. This closed a four-day series of the most important indices, especially the Nasdaq, poorly. But the major indices all stay below their falling 21-day moving averages, with the 50-day line even further ahead. There was nothing near a The following day to confirm the new rally attempt.
Some of this reflects the weakness of the tech megacaps. Apple stock trimmed losses on Wednesday but is near recent lows and not far from its 200-day line. Microsoft (MSFT) is the only one of the trillion-dollar stocks above their 50-day line, and just barely.
The market remains in correction.
But don’t tell the leading stocks. The number of growth stocks that have shown buy signals or expanded gains in the past few days has been impressive. With the Nasdaq actually rising and closing near intraday highs, it’s not surprising that growth had another strong session as AMD, CRWD stocks and others showed.
Financial stocks are wilting with government bond yields, though 10-year yields have still risen sharply in recent weeks. Energy stocks and fertilizer stocks are also pausing, but that could be healthy after moving heavily over the past few weeks.
Still, the major indices remain below their 21 and 50 day lines. The market has not yet proven itself. The major indices could easily take a major dip in the next few sessions – perhaps after a promising head forgery – to break the recent lows. By then, many of the growth stocks that have done so well recently would likely come under pressure.
There is no doubt that buying opportunities have increased this week. In general, these trades have proven their worth in the short term.
If the temptation to add exposure was great on Monday and Tuesday as major indices closed near the lows, it could have been all but irresistible on Wednesday.
If you’ve made some new purchases in the past few days, after relatively modest wins, take partial profits with you to ensure that you make a profit. Reduce losses quickly.
For those who have largely stayed on the sidelines, there will be a time, whether tomorrow, next week, next month, or even next year, that there will be a confirmed market rally. Then there will be many opportunities.
Read The big picture every day to stay in sync with market direction and leading stocks and sectors.
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