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Dow Jones Futures: Why Is This Market Rally So Dangerous? Tesla Nears bear lows in this move

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Dow Jones futures rose early Thursday, along with S&P 500 futures and Nasdaq futures. The stock market rally saw a flat to lower trading session on Wednesday.




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The Nasdaq led the declines apple (AAPL), a parent from Google the alphabet (The Google) And Tesla stock extended to big weekly losses. Apple and Google stock broke below some support levels during this Tesla (TSLA) is approaching the lows of a bear market.

Tesla continued to slide Thursday on various headlines.

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The sideways action over the last several weeks has been difficult to buy aggressively. Volatile markets cut off investors. It’s not the time to add exposure.

Late Wednesday, the Pentagon said so Amazon.com (AMZN), The Google, Microsoft (MSFT) And the inspiration (ORCL) won cloud computing contracts that could reach a combined $9 billion through 2028. In 2019, the Department of Defense was awarded a $10 billion cloud computing contract, but canceled that deal in 2021 amid Amazon’s objections.

The four tech giants are little changed in after-hours trading.

Dow jones futures today

Dow futures rose 0.4% against fair value. S&P 500 futures rose 0.4% and Nasdaq 100 futures rose 0.4%.

The 10-year Treasury yield rose 6 basis points, to 3.47%.

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Crude oil futures rose more than 3% after tumbling to a 2022 low on Wednesday. The Keystone pipeline has been closed due to the spill.

Copper rose 1%.

Hang Seng bounced back 3.4%, resuming its recent bullish trend as local media reported that Hong Kong is considering ending the outdoor mask rule. Chinese stocks listed in the US were pointing to a strong rally.

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.


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Stock market rise

The stock market traded slightly lower for most of the Wednesday session, closing generally in the red.

The Dow Jones Industrial Average rose less than 2 points on Wednesday Stock market trading. The S&P 500 fell 0.2%. The Nasdaq Composite Index fell 0.5 percent. Small cap Russell 2000 fell 0.3%.

US crude oil prices fell 3% to $72.01 a barrel, continuing to fall on global demand concerns. Gasoline futures fell 3.4% to a one-year low. Natural gas prices rose 4.6% after a sharp drop in five sessions.

The 10-year Treasury yield fell 10 basis points to 3.41%, hitting a nearly three-month low.

The inverse relationship between stocks and bond yields is diminishing because Treasury yields are now falling further as recession fears ease inflation pressures. And the tamed CPI report for November on December 13th will still be welcome. While a half-point rate hike looks very likely on December 14, progress on inflation should raise hopes of smaller increases in early 2023 and an early end to tightening. This would reduce the risk of a recession, or at least a hard landing.

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Exchange Traded Funds

Among the growth ETFs is iShares Expanding Technology and Software Sector Fund (IGV) fell 0.5%. VanEck Vectors Semiconductor Corporation (SMH) is closed directly below the break-even point. Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(down 0.8% and the ARK Genomics ETF)ARKG) increased by 0.3%. TSLA stock is a major holding via Ark Invest’s ETF.

SPDR S&P Metals & Mining ETFs (XME(down 0.3% and the Global Infrastructure Development Fund (ETF) in the USA)cradle) lost a small part. US Global Gates Foundation ETF (Planes) decreased by 3.3%. SPDR S&P Homebuilders ETF (XHB) increased by 1.8%. Energy Defined Fund SPDR ETF (xle(Down 0.2% and Financial Select SPDR ETF)XLF) decreased by 0.4%. SPDR Health Care Sector Selection Fund (XLV) increased by 0.8%.


Top five Chinese stocks to watch now


Apple Stock and Google Stock

Apple stock fell 1.4% on Wednesday to 140.94, marking its lowest level since Nov. 10. So far this week, AAPL stock is down 4.65%, crossing the 50-day line. The tech giant is approaching the Dow Jones low of October 13 at 134.37 but is still far from the bear market low of 129.04 set on June 16.

Google shares fell 2.1% to 94.94, below the 50-day line. GOOGL stock is down 5.4% so far this week, erasing gains from the previous three weeks. Shares are still comfortably above their November 3 bear market lows of 83.34.

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Tesla stock

Tesla stock fell 3.2% to 174.04 Wednesday, closing at a bear market low of 166.19 set on November 22. Shares are down 10.7% so far this week. TSLA stock fell more than 50% in 2022.

On Wednesday, Tesla cut China prices by 6,000 yuan for cars in stock. Besides insurance subsidies, free fees, and other goodies, Tesla is offering more than 21,000 yuan in incentives for cars in the lot. This follows price cuts in late October in China. It comes before government subsidies for electric cars expire on December 31, which should drive demand forward. This also comes amid widespread reports – denied by Tesla – of looming production cuts in Shanghai.

Sources told Bloomberg that Tesla’s Shanghai plant will reduce production shifts and delay hiring some new hires due to weak Chinese demand. It follows widespread reports recently, denied by Tesla, that the electric vehicle giant would cut Shanghai production by 20%.

Meanwhile, Tesla China chief Tom Chu has been tapped to run the Austin plant and ramp up production there, Bloomberg reported Thursday.

Bloomberg reported Wednesday evening that Elon Musk’s bankers may offer him new marginal loans backed by Tesla stock to replace some of Twitter’s high-interest debt. Banks struggled to get rid of Twitter’s debt. Musk has already put up much of his Tesla stock holdings as collateral.

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TSLA stock fell modestly early Thursday.


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


Market rally analysis

The stock market rally continued its decline, although the technical picture did not change significantly.

The Nasdaq tested the 50-day line, the day after it fell below the 21-day moving average. Apple, Google and Tesla stocks affected the indexes of major companies, but the underlying trend was also slightly lower.

Major indices have generally headed higher from their October 13 lows, especially the Dow Jones and the S&P 500. The market rally seemed to have gained momentum late last week, with the S&P 500 above its 200-day line and the Dow Jones reaching higher level in seven months.

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But with the recent decline, the leading indices and the Russell 2000 are basically where they were in early November or late October.

Sideways markets are among the most dangerous for investors, especially when there is both up and down volatility. There is enough strength on the upside to attract buyers, but then the market swings lower for quite some time. This forces investors to either cut their losses when they are small – with a good chance that stocks will rebound – or risk a much larger decline.

The current volatile market rally has an additional hurdle. Most of the progress has come in just a few sessions of a day, so it’s hard to have even small upsides to build gains on new positions.


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


What are you doing now

The stock market rally has hit resistance and is testing some key levels, but is not seriously damaged yet. If you have a modest exposure with positions that work, you don’t need to go out. Taking partial profits is not a bad idea in this market of course.

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But there is a strong chance that anyone who has been buying stocks over the past several weeks when they break out or get early buy signals is falling into those holdings. In a sideways, choppy market, when stocks start to look interesting, they may be about to peak.

Investors should beware of increasing exposure until the market can clear its recent trading range, with the S&P 500 decisively above its 200-day line. That may not happen until after next week’s CPI inflation report and the Fed meeting.

Even then, investors should slowly increase positions, in case the major indexes fall again after reaching short-term peaks.

But keep working on those watchlists. Industrial plays and infrastructure looks good, along with a variety of medicines. Some brokerages hover around buy points. The chip equipment names show relative strength, with a number of semiconductor plays holding up quite well.

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

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

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Commuters from the Southwest threatened arrest at Christmas in a viral video

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Southwest Airlines He already had it Terrible end of the year After a massive winter storm forced it to cancel flights that had outsold its industry competitors. Then, somehow, the PR nightmare got worse.

At Nashville International Airport on Christmas Eve, a police officer threatened to arrest stranded Southwest passengers if they did not leave a secure area of ​​the airport. A video of the incident went viral on social media after it happened Posted by passenger to TikTok. Other videos circulating on social media also captured parts of the incident.

In the video, which has been viewed more than 910,000 times since it was posted two days ago, the officer warns passengers that they must leave the area or they will be “arrested for trespassing.”

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“Now,” he continued. “Everyone to the unsafe side. The ticket counter will help you answer any questions you have.”

Shelly Morrison, who was among the passengers with her three daughters, was queuing at the southwest gate hoping to get more information about what was going on with her flight, to me the Tennessee.

After she and others waited nearly an hour for an explanation, one of the workers announced via the intercom that she was leaving – and called security. Morrison told the local newspaper that he did not tell a passenger that they had to leave if they had a canceled ticket.

“The Southwest is calling us”

Soon, two police officers from the airport’s Department of Public Safety arrived at the scene, just as Morrison’s daughter, Amani Robinson, began recording a video.

An officer tells passengers in the video, “If you don’t have a ticket, you don’t have to be on the safe side.” To someone who said they had tickets, he replied, “Your tickets just got cancelled.”

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Morrison asked the officer again if he might be stopped, and he repeated to him: “If you don’t have a valid ticket and you’re on the safe side and you refuse to leave, you’ll be arrested… If your ticket’s canceled, they don’t have a ticket anymore. You understand that, right?”

He added, “Right now, Southwest is calling us because you guys are congregating here, and they’re trying to close that gate.”

The officer grew impatient when Morrison again tried to “establish a legal connection,” as she puts it in the video, and told him she was an attorney.

“Do you refuse to leave the safe side?” he asked clearly.

She replied, “No, I don’t refuse to leave.” “I ask for additional information. Can you mention the statue to me?”

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He replied, “It is the security of airports and planes.”

“Don’t you have a department?” she asked.

“I don’t need to give you the code. If you’re a lawyer, you can look it up.”

Morrison thanked him and went with the others to where he had indicated.

Southwest responds

when called luckA Southwest spokesperson said that employees “did not request that customers be escorted outside the gate area.” Instead, the company required “that local law enforcement be present at the gate to assist with crowd control efforts while our team works with customers.”

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A spokesperson for Nashville International Airport, also known by the airport code BNA, responded:

“The sheer number of flight cancellations over the past week has caused great stress for our passengers, and included an unfortunate incident involving a passenger, airline staff and an LNA officer. We are very sorry this happened and we take this situation very seriously. We are working with Southwest Airlines and our other airlines to promote better communication between team members so that every traveler enjoys the optimal experience at BNA:

luck She also contacted the Ministry of Transport regarding the airport incident, but did not receive any immediate response.

Southwest passengers trying alternative routes faced higher fares from other airlines, some of which — faced public backlash —Announce a price cap on the affected roads.

The Department of Transportation said this week it would open an investigation into Southwest Airlines. He. She he wrote in a tweet It was “concerned by Southwest’s unacceptable rate of cancellations, delays, and reports of a lack of prompt customer service. The department will study whether cancellations are manageable and whether Southwest is complying with its customer service plan.”

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This article has been updated with responses from Southwest Airlines and the airport.

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Why Trump didn’t want you to see his tax returns

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What was he hiding?

We’re finally starting to find out, now that the House Ways and Means Committee has released six years of Donald Trump’s personal and business tax returns. Trump’s returns are complex and it could take weeks for experts to realize whether Trump cheated or used overly aggressive tactics to lower his tax bill. The committee did not release any tax documents for some of Trump’s business entities, so puzzles may remain.

But a few things soon emerge from the assessment of the leading figures in Trump’s comeback. When Trump announced his candidacy for the presidency in 2015, he described himself as a builder and businessman who could go to Washington and fix what politicians had destroyed. Trump’s stated status was as a political outsider and business titan crucial elements in his appeal to voters.

But Trump’s tax returns suggest his businesses are always losing money, while raising questions about how he manages to fund a gilded lifestyle. In each of the six years from 2015 through 2020, DJT Holdings, one of Trump’s main business entities, lost millions of dollars. The smallest loss was $34 million in 2015. The largest loss was $64 million in 2016. Combined, these losses totaled $314 million from 2015 through 2020.

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This is not an entirely new revelation. Glimpses of Trump’s finances have long revealed that Trump is capitalizing heavily on losses incurred in one part of his business portfolio, to offset gains elsewhere and significantly reduce his tax bill. Documents leaked to the New York Times in 2016 showed that Trump declared a loss of $916 million in 1995. lowered his tax bills for nearly two decades. When Trump began earning millions from The Apprentice TV show in the 2000s, losses from faltering real estate ventures, such as his casinos in Atlantic City, helped keep his income tax payments down. These practices are generally legal, although some tax experts believe Trump could have expanded the legal boundaries.

Members of the US House of Representatives Ways and Means Committee move boxes of documents after a panel meeting to discuss former President Donald Trump’s tax returns on Capitol Hill in Washington, US, December 20, 2022. REUTERS/Jonathan Ernst

When Trump ran for president in 2016, he said he would release his tax returns once the IRS finished auditing them. Of course Trump never released any tax returns, and the IRS audit wouldn’t have stopped him from doing so in the first place. Ways and Means Committee Finally got Trump’s payout from the IRS on Dec. 20, after Trump lost a four-year legal battle to keep them secret. He found justices all the way up to the Supreme Court Congress had the right to see the proceedsbecause it can contribute to legislative activity.

[Follow Rick Newman on Twitter, sign up for his newsletter or sound off.]

If Trump had released his comeback in 2015 while running for president in 2016, journalists and political opponents would have been mired in what appears to be huge business and personal losses. His return to DJT Holdings shows total revenue of $25.1 million but a net loss of $34.1 million. It is reasonable for a company to incur losses greater than revenue, since tax code allows for carry-over losses from prior years. But it’s very bad looks to tell voters you’re a business owner while reporting large losses to the IRS.

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Trump and his wife Melania’s 2015 comeback undermines his commercial credibility. Trump’s adjusted gross income in 2015 was $31.8 million. In other words, he supposedly lost $31.8 million, because he was allowed to claim losses from his business against his personal income. His taxable income was $0 and he owed $0 in federal income tax. It is difficult for average workers who earn most of their income from work to declare passive income, unless they have capital losses or other types of losses beyond what they earn from their employer.

Hillary Clinton, Trump’s Democratic opponent, She released her tax return for 2015 on August 12, 2016. The report showed that she and her husband, Bill Clinton, had an adjusted gross income of $10.6 million, and paid $3.6 million in federal income tax, for an effective tax rate of 34%. While the return showed the Clintons wealthy, they claimed no mysterious tax breaks except for a small capital loss of $3,000. Trump was the nominee going after meat-and-potatoes voters in 2016, but Clinton’s taxes were more involved.

DJT Holdings reported business losses for each of the next five years, through 2020. In terms of Trump’s personal returns, his adjusted gross income has been negative for three years and positive for two years. Over the six years combined, those business losses have pushed Trump’s total adjusted income – $53.2 million, or a loss of $53.2 million. His taxable income was $0 for four out of six years.

Trump has hit one snag with regard to federal income tax payments — the alternative minimum tax, which raises the tax liability of some, mostly wealthy, depositors who use the deductions to significantly lower their taxable income. During four of those six years, the federal tax code started to push Trump’s federal tax bill. Including regular income tax and AMT payments, Trump appears to have paid about $4.1 million in federal income taxes from 2015 through 2020.

If voters had been able to see several years of Trump’s tax returns during the 2020 presidential election, it would have been clear that Trump’s corporations lose money every year and that Trump as an individual loses more money than he earns, overall. This isn’t really how it works. Trump has very few regular sources of income, such as millions of dollars in interest each year, and the capital gains that would come from the countless deals to license the Trump name. This income appears to be constant and recurring, while losses may occur in a particular year or two, but are spread across many years, for tax purposes.

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Trump has sometimes bragged about the low taxes he’s paid, saying he’s drastically undercutting his tax bill It makes him smart. Maybe so. It will be interesting to see if that makes him more or less electable.

Rick Newman is a senior columnist for Yahoo Finance. Follow him on Twitter at @tweet

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Chinese education files Ruanyun Edai to raise up to $35 million via US IPO (pending: RYET)

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da-cook

Chinese education technology Ruanyun Edai Technology (Rhett) Apply to raise up to $35 million through an initial public offering in the United States.

Ruanyun said in file that she was considering offering 5 million common shares at between $5 and $6 a share, which might happen

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