Connect with us

Business

Dow Jones futures: Is the jobs report the last hurdle to the market’s rally; Tesla midterm deliveries kick off

Avatar

Published

on

Dow futures tilted lower early Friday, along with S&P 500 futures and Nasdaq futures, as investors await the November jobs report before the market opens.




X



The Tesla Semi Truck Delivery event was held Thursday night with Tesla (TSLABYD launches booming EV sales in November overnight.

The stock market rally showed a strong move on Thursday, with mixed indicators, but it consolidated the huge gains made on Wednesday after the comments of Federal Reserve Chairman Jerome Powell. Thursday’s PCE inflation report, the Fed’s preferred rate measure, showed smaller-than-expected monthly increases as headline and core inflation eased slightly again.

Advertisement

Ulta Beauty (Ulta) headlined earnings reports Thursday evening. ULTA stock was little changed overnight after announcing strong earnings and raising guidance. Shares of the beauty products retailer have already hit record highs, stretching from points of purchase. Veeva systems (VEEV) beat the third quarter financial views, but fourth quarter guidance was just below the midpoint of the consensus. VEEV stock fell modestly in the extended trade. The stock closed above the 200-day line, near an early entry.

Meanwhile, Giant Dao Larva (cat) continues to appear robust, with a CAT stock just below a Point purchase. Cyber ​​Security Leader Palo Alto Networks (Banu) And the Marriott International (MarchBuy signals are also flashing.

Boeing stock works SwingTrader. It was a caterpillar on Thursday IBD stock today.

Dow jones futures today

Dow futures fell 0.1% against fair value. S&P 500 futures fell 0.2%. Nasdaq 100 futures fell 0.3%.

The 10-year Treasury yield fell 1 basis point, to 3.52%.

Advertisement

Dow futures, Treasury yields and more will swing on the November jobs report, due at 8:30 a.m. ET.

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

Jobs report

Economists expect the November jobs report to show an increase in nonfarm payrolls of 200,000, down from 261,000 in October. Pay attention to the household survey, which showed jobs fell by 328,000 in October. The unemployment rate, based on the household survey, is expected to remain steady at 3.7%, with the labor force participation rate rising to 62.3%.

Other employment data this week generally indicated a gradual slowdown. Initial jobless claims unexpectedly fell, but continuing claims rose again. ADP reported a sharp slowdown in private sector hiring last month, while the JOLTS survey for October saw job openings decline slightly.

Tesla Half delivery event

The Tesla Semi Model Truck delivery event began shortly after 5 p.m. PST.

Advertisement

Tesla CEO Elon Musk will deliver some Tesla Semi EVs to… PepsiCo (PEP) Thursday night. Recently, the Tesla Semi was unveiled for the first time in six years and was supposed to enter production in 2020.

Musk says the Tesla Semi, which will use the same Plaid drive units as the high-end Model S, has a range of 500 miles on a single charge. Investors will be looking for accurate price, range and merchandise specifications, as well as Tesla costs. That will be important because Tesla Semi takes on the large electric vehicles already on the market from Volvo, Nikola (NKLA), BYD (BYDDF) and more.

Another major question is what will be the production of the Tesla Semi in the coming months. Musk has not provided clarity on that front.

Meanwhile, Tesla is now offering discounts of $3,750 for the Model 3 and Model Y in the US this month. The idea is to encourage people to deliver now. On January 1st, new US tax credits of $7,500 went into effect, subject to certain price and income caps, keeping many potential buyers waiting. The tax credits should apply to most Model 3 sedans and Model Y crossovers, though the government has yet to provide clarity.

Tesla also halved the 8,000 yuan ($1,133) insurance subsidy for December purchases, as planned, but is now offering free tolls and other perks said to be more than 15,000 yuan.

Advertisement

Tesla stock rose slightly Friday morning after closing unchanged Thursday at 194.70. On Wednesday, TSLA stock rose 7.7%, regaining its 21-day streak, amid a market rally and as China EV stocks rose.


Tesla vs. BYD: Which EV giant is the best to buy?


BYD sales

China EV giant BYD sold 230,427 new energy vehicles in November shipments, up 153% from a year earlier and 5.8% from October. This includes 229,942 personal vehicles and 485 commercial units, including trucks. Of those personal vehicles, there were about 113,915 fully electric vehicles, or battery electric vehicles (BEVs), up 147% compared to November 2021. The number of plug-in hybrid vehicles rose 164% to 116,027.

BYD’s total sales handily top Tesla’s sales, quickly closing the gap in BEV sales.

BYD is expected to be the No. 1 automobile brand in China for this month, overtaking Volkswagen (VWAGY). It is likely to remain Volkswagen Group No. 1 including Audi.

Advertisement

On Thursday, BYD stock fell 2.2% to 25.07, but it is still above the 50-day line. BYDDF jumped 9.9% on Wednesday, along with other China EV stocks.


Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live


Stock market rise

The stock market rally saw a 30-minute decline Thursday morning, but gradually improved to mixed, a solid performance after Wednesday’s big gains.

The Dow Jones Industrial Average fell 0.6% on Thursday Stock market tradingwith Salesforce.com (CRM) big negative. The S&P 500 fell 0.1%. The Nasdaq Composite Index rose 0.1%. Small cap Russell 2000 declined 0.2%.

US crude oil prices rose 0.8% to $81.22 a barrel.

Advertisement

The 10-year Treasury yield fell 17 basis points to 3.53%, the lowest since late September. On the heels of Fed Chair Powell’s comments and the PCE inflation report, markets came close to a 50bp rate hike on December 14, ending a series of four 75bp meetings. Moreover, there is now a 50-50 chance of a rate hike of only a quarter point in February.

The dollar, moving with the returns, fell to its lowest level in nearly three months.

Stocks near buy points

CAT shares fell 0.3% to 235.69. Stocks pause around a still valid 238 buy point of A cup base Back in April, according to MarketSmith Analysis. Investors could see 239.95 as another buy point, either as a higher handle for the 7-month cup base or as a traditional handle for a larger consolidation starting in June 2021.

Cybersecurity firm Palo Alto Networks rose 5% to 178.40, jumping above its 200-day line, and regaining that key level for the first time since mid-September. It comes after it bounced off the 50-day line during the day on Wednesday, shrugging off a large profit sell-off in peers. CrowdStrike (CRWD). Investors can consider PANW shares to be of great size, Double bottom base With 193.01 buy points. But the stock is already actionable from crossing the 200 day line and the downward sloping trendline from the April peak.

MAR fell 0.1% to 165.19, and remained above the 164.99 handle buy point from the bottom base as of August 16th.

Advertisement

Exchange Traded Funds

between the The best mutual fundsand the iShares Expanded Tech-Software Sector ETF (IGV) down 1.1%, even with the sale of shares of CRM Holdings Big. VanEck Vectors Semiconductor Corporation (SMH) decreased by 0.3%.

SPDR S&P Metals & Mining ETFs (XME(down 0.8% and US Global X Infrastructure Development Fund)cradle) increased by 0.1%. US Global Gates Foundation ETF (Planes) decreased by 0.4%. SPDR S&P Homebuilders ETF (XHB) increased by 1.25%. Energy Defined Fund SPDR ETF (xle(Down 0.3% and Financial Select SPDR ETF)XLF) sank 0.6%. SPDR Health Care Sector Selection Fund (XLV) advance 0.3%

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(up 1.1% and the ARK Genomics ETF)ARKG) increased by 0.6%. Tesla stock represents significant weighting across Ark Invest ETFs. Cathie Wood’s Ark also has a small position in BYD stock.


Top five Chinese stocks to watch now


Market rally analysis

The stock market rally showed a constructive move on Thursday, essentially holding on to the big gains on Wednesday.

Advertisement

The S&P 500 rebounded intraday from a pullback to its 200-day moving average, after finally reclaiming that key level on Wednesday. The Russell 2000 also held the 200-day streak. Nasdaq still has work to do to get back to 200 days.

Dow Jones gave up only a portion of its gains on Wednesday, largely due to Salesforce. Several Dow Jones stocks, including those of Caterpillar, Boeing and United Nations, are showing strength. This reflects broader strength in the industrial, financial, health services and other fields.

The PCE inflation report for October was slightly better than expected. After a strong rebound in the market on Wednesday on Federal Reserve Chairman Jerome Powell – who didn’t sound particularly dovish – just holding on to those gains on Thursday was constructive.

Friday’s jobs report is another hurdle. If employment data indicates some slack in the labor market, it could provide an additional tailwind for stocks. But a hot job market can lead to a big sell-off.

Treasury yields and the dollar have fallen sharply in the past two days and the past few weeks, providing a significant tailwind for stocks. Yields rebound and the dollar will not be surprising.

Advertisement

Consider that a market rally has a number of large gains in one day, followed by a sideways movement or a sliding movement. This has made it difficult for investors to make progress even as indices have trended higher over the past several weeks.


It’s time to market with IBD’s ETF Market Strategy


What are you doing now

There were reasons to buy or not to be indifferent to Wednesday’s big move. On Thursday, investors could have added a little exposure, but the jobs report is a big question mark.

Friday’s market rally in the November jobs report could lead to a number of buying opportunities. But don’t cheat on promising stocks before the big news. Instead, work on your watchlists until you are ready to go. But also be prepared to reduce your exposure if your market or property goes sharply south.

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

Advertisement

Please follow Ed Carson on Twitter at @tweet For stock market updates and more.

You may also like:

Why simplify this IBD tool burntthe classroom for top stock

Best growth stocks to buy and monitor

IBD Digital: Unlock IBD blue-chip stock listings, tools and analytics today

Advertisement



Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Business

Morgan Stanley reiterates the overweight rating on Fu Shuyuan International Group

Avatar

Published

on

By


Morgan Stanley reiterates the overweight rating on Fu Shuyuan International Group

Source link

Continue Reading

Business

Elon Musk and Kathy Wood are almost right about the Fed

Avatar

Published

on

By

Both are correct that higher rates reduce the impact of technology, but that’s not all there is to it

Source link

Continue Reading

Business

start trying to recover in the stock market; Tesla jumps amid electric vehicle credit guidelines

Avatar

Published

on

By

Dow futures tilted lower after hours, along with futures for the S&P 500 and Nasdaq, heading into the final trading day of 2022. Major indexes rose strongly Thursday on the back of jobs data, an Apple (AAPL) iPhone news and Tesla (TSLA) continue to bounce.




X



However, the market is in a correction after breaking the 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.

midpiece (MEDP) flashed a buy signal on Thursday, while KLA Corp. (KLAC), Starbucks (SBUX), United Rentals (URI), Mobileye (MBLY), Super microcomputer (SMCI) And the Fluor (FLR). But these stocks are likely to go up or down with the market.

Advertisement

MEDP, Fluor, and United Rentals stocks in the running IBD Leaderboard. KLAC stock is running Long-term leaders of IBD. MBLY stock is on file IBD 50. KLA Corp. and URI are in IBD Big Cap 20.

Meanwhile, new Treasury guidance said many Model Y vehicles would not be eligible for US tax credits starting Jan. 1 without sharp price cuts. But there is a loophole that could allow all Tesla cars — and any electric vehicles — to qualify for massive tax credits at any price.

Dow jones futures today

Dow futures fell 0.1% against fair value. S&P 500 futures fell 0.2%. Nasdaq 100 futures were down 0.15%.

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


Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live

Advertisement

Market rally attempt

The stock market has had a strong rebound, rallying during the morning and then holding those gains into the afternoon.

The Dow Jones Industrial Average rose just over 1% on Thursday Stock market trading. The S&P 500 jumped 1.75%. The Nasdaq Composite and Russell 2000 Composite jumped 2.6%.

Initial claims rose slightly more-than-expected in the week ending Dec. 24, but remained low at 225,000. Continuing claims rose 41,000 to 1.71 million in the latest week, the highest level since early February.

AAPL stock jumped 2.8% to 129.61 after sliding 3.1% Wednesday to a bear market low. Apple iPhone production is rebounding, according to the Wall Street Journal, after another report on recent iPhone production problems.

US crude oil prices fell 0.7% to $78.40 a barrel.

Advertisement

The 10-year Treasury yield fell 5 basis points, to 3.83%.

Exchange Traded Funds

between the The best mutual fundsInnovator IBD 50 ETF (fifty(up 1.1%, while the Innovator IBD Breakout Opportunities ETF is up)fit) by 0.9%. IShares Expanded Technology and Software Fund (ETF)IGV) rebound 3%. ETF VanEck Vectors Semiconductor (SMH) increased by 3.3%. Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(jumped 5.2% and the ARK Genomics ETF)ARKG) 4.1%. Tesla stock is a major holding across Ark Invest’s ETFs.

SPDR S&P Metals & Mining ETFs (XME) an advance of 1.9%. US Global Gates Foundation ETF (Planes) rose 2.65%. SPDR S&P Homebuilders ETF (XHB) increased by 2.4%. Energy Defined Fund SPDR ETF (xle(up just over 1% and Financial Select SPDR ETF)XLF) increased by 1.4%. SPDR Health Care Sector Selection Fund (XLV) by 1.1%.


Top five Chinese stocks to watch now


Tesla stock

Tesla stock jumped 8.1% to 121.82 after bouncing 3.3% on Wednesday. TSLA stock is still down slightly for the week and up 37% in December. After this sell-off, Tesla stock was set to rebound, but it remained well below key levels.

Advertisement

Tesla Model Y tax credits

Tesla’s bull case for 2023 relies heavily on new US tax credits of up to $7,500 under inflation-lowering law that fuel high-margin domestic sales, offsetting weaker demand and prices in China and possibly Europe.

On Thursday, the Treasury Department listed vehicles that qualify for US motor vehicle credits. Most Model Y versions will have a maximum of $55,000 to receive EV credits, versus $80,000 for SUVs, vans and vans.

But seven-seat Model Y cars, which weren’t big sellers, would qualify up to $80,000.

The current base Model Y in the US starts at $65,990, and Tesla will need to lower the price, possibly by reintroducing the lower-range Model Y SR+, to get tax credits—unless it’s a seven-seat variant.

But, there is another twist! The Treasury also said that electric vehicles leased by consumers could qualify for commercial electric vehicle tax credits. This makes electric vehicles assembled outside North America eligible, including the Hyundai Ioniq 5 and Kia EV6. Foreign automakers and US allies in Europe and Asia adamantly opposed assembly requirements in North America. But the rental rules also seem to allow any electric vehicle to qualify at any price, with no income restrictions, either.

Advertisement

It will be interesting to see what Tesla and other automakers do in terms of variants and pricing to maximize the benefits of the new tax breaks.

But investors seem happy with the overall picture.

TSLA stock rose.


Tesla vs. BYD: Which EV giant is the best to buy?


Stocks near buy points

Medpace rose 3.4% to 215.62, breaking the downtrend line as it bounced from the 21-day line and the 50-day line. MEDP stock has held up well, consolidating a deep 16% right next to the top of a long, deep base. the official Point purchase It is 235, but Thursdays offer early entry.

Advertisement

KLAC rose 3.3% to 379.86, bouncing back from the 10-week line. A move above the 21-day line could provide an opportunity to buy KLAC stock as a long-term leader.

SBUX stock rose 1.2% to 99.77, rebounding from a 10-week break from its 21-day high. This may be an early entry into a shortstop rather than quite a base. This, in turn, can be seen as an indication of a deep 17-month consolidation for Starbucks stock.

URI stock advanced 1.2% to 356.21, rebounding from the 21-day line. United Rentals has approached the 368.04 buy handle point on a 13-month consolidation period, and briefly surpassed it earlier this month. URI stock traded very tightly in its handle. the line of relative strength reached a new high, reflecting United Rentals’ outperformance against the S&P 500.

MBLY stock rose 2.8% to 34.51, rebounding from the intraday decline from the 21-day moving average. Mobileye’s IPO went public in late October at 21 shares. MBLY stock showed strength in a weak market, but like many new IPOs it saw big moves. Stocks are starting to cool off. An aggressive investor could look for a break of the trend line to get in, but ideally, Mobileye shares would form a new base.

FLR rose 0.8% to 34.95, continuing to trade tightly, working out the prospect Flat basewhich will be a file Base pattern on base. Fluor’s earnings are expected to rise 80% in 2023, as infrastructure stocks show strength in public and private projects.

Advertisement

SMCI rose 1.6% to 81.91, bouncing from the 50-day line but finding resistance at 21-days. A strong move above 21 days, past Wednesday’s high of 84.35, could provide an early entry. One of the strongest-growing stocks of 2022, Super Micro Computer stock has been consolidating for several weeks after breaching the earnings gap on November 2nd, with a continued advance to 95.22 on November 25th. SMCI stock could have a new base at the end of next week.

Market analysis

The stock market experienced a strong rebound after Wednesday’s sell-off. After retreating since the intraday high on Dec. 13, the major indices were definitely “due” for a bounce.

The question is whether they will follow through in the coming days and weeks.

The market moved towards a correction on Wednesday as the Dow lowered its 50-day moving average and put the Nasdaq at a closing low in two years.

So Thursday was only the first day of a fresh bullish attempt in the market. It will take a lot more than that to feel more confident.

Advertisement

The Dow Jones is back above the 50-day line, but it is still below the 21-day line.

The S&P 500 is still below 50 days, with more resistance at the 200-day line and the December highs.

While Tesla, Apple and several battered chip and software names led Thursday’s rebound, some leading stocks gave buy signals or moved into a position, such as MEDP stock.


It’s time to market with IBD’s ETF Market Strategy


What are you doing now

It’s tempting to get back into the market when the indices are rising sharply and there’s a sea of ​​green among the leading and notable stocks.

Advertisement

But since the bear market low of Oct. 13, the buy and breakout signals have largely faded.

Certain sectors, including industrial, metals, and medical, have held up better in recent weeks, so it’s easier to justify nibbling in these areas, either with specific stocks or sector-specific ETFs. But make any exposure small and be quick to take profits and cut losses.

Conclusion: This is a market correction. Don’t act according to the bull market rules, especially the 2020 crazy bull rules.

Invest as if you were driving on an icy and windy road and not on an open highway. Proceed carefully, or wait on the side of the road.

It’s more time to plan your trip versus adventure. Work on watchlists. A number of stocks from a variety of sectors are showing strength.

Advertisement

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

Please follow Ed Carson on Twitter at @tweet For stock market updates and more.

You may also like:

Catch the next winning stocks with MarketSmith

Do you want to get quick profits and avoid big losses? Try SwingTrader

Advertisement

Best growth stocks to buy and monitor

IBD Digital: Unlock IBD blue-chip stock listings, tools and analytics today

What’s in the market forecast for 2023?



Source link

Advertisement
Continue Reading
Advertisement

Trending