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Dow Jones Higher on Unemployment Claims Following Inflation Data; Tesla Stock Skated Near 2022 Lows

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The Dow Jones Industrial Average rose Thursday morning as energy stocks and China exposed issues boosted early trade. The weekly jobless claims data released by the Labor Department proved to be higher than expected. Tesla stock fell nearly 3%. After the Bloomberg report The company has shortened shifts at its Shanghai plant and delayed new hires due to slowing demand in China’s auto market.




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The Labor Department said first-time jobless claims rose to 230,000 from 225,000 in the previous week. This was higher than economists’ estimate of 228,000. On Friday, wholesale inflation data is due along with the Producer Price Index, or PPI.

chevron (CVX) led the Dow Jones Industrial Average, up 2% as oil prices rebounded. It also announced a 25% increase in its capital spending for 2023. Exxon Mobil (xom) rose nearly 3% thanks to expanded earnings guidance, and after increasing its share repurchase program to $50 billion.

while, Sina (CIEN) And the Jim Stop (GME) reported earnings before the market opened on Thursday. Ciena rose more than 16%. GME stock rose 1.5% after reporting a quarter-over-quarter decline in sales and a smaller loss compared to a year ago.

electric car giant Tesla (TSLA) fell 2.8% on Thursday. Technology pioneers at Dow Jones apple (AAPL) And the Microsoft (MSFT) was mixed after stock market today Open.

Celsius (CELH), IBD Leaderboard stock dexcom (DXCM), Kosovo Liberation Army (KLAC) And the Trane Technologies (TT) – as well as the names of the Dow Jones Larva (cat), chevron f Home Depot (HD) – among the top stocks to buy and watch.

Dexcom and Trane are the two IBD Leaderboard Stores. Caterpillar and Home Depot appeared In this week Arrows near the buy zone column. The percentile was recent IBD 50 shares to watch and a New America stock. Caterpillar was modern IBD stock today.


IBD MarketDiem’s ​​latest newsletter gives you actionable ideas for stocks, options and cryptocurrencies right in your inbox.


Dow jones today: oil prices and treasury yields

After Thursday’s opening bell, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq Composite fell 0.15% in the morning’s move as Chinese stocks rallied to the top.

within Exchange traded fundsNasdaq 100 Invesco QQQ Trust Tracker (QQQ(losing 0.2% and the SPDR S&P 500 ETF)spy) gained 0.1% early Thursday.

The 10-year Treasury yield rose to 3.48% Thursday morning. On Wednesday, the 10-year Treasury yield fell to 3.4%, its lowest close since Sept. 12.

Meanwhile, US oil prices rebounded after four straight heavy losses, which saw WTI futures drop to a new low in 2022. WTI futures were trading up 2% to over Just under $74 a barrel early Thursday.

Stock market rise

On Wednesday, the Nasdaq Composite fell for the fourth consecutive session, while the S&P 500 extended its losing streak to five sessions. The Dow Jones Industrial Average rose slightly, snapping a three-day losing streak.

Wed column big picture He commented, “Bull markets need expanded participation to survive. It hasn’t happened in the latest attempt to rally, at least not yet, so a more defensive stance may be needed. An inverted yield curve seems to support this view, predicting weaker economic conditions in 2023.”

Now is an important time to read IBD’s The Big Picture column Amidst the constant fluctuations in the stock market.


Five Dow Jones stocks to buy and watch now


Dow Jones stocks to buy and watch: Caterpillar, Home Depot, Chevron

Dow Jones member Caterpillar continues to move away from the 238 cup base Point purchaseAnd the to me IBD MarketSmith Pattern Recognition, following Wednesday’s 0.3% gain. CAT stock rose 0.8% Thursday.

CAT stock It shows 94 constants from a perfect 99 IBD composite classification, per IBD stock check.

Energy giant Chevron rose 0.3%. Wednesday, is still directly below 182.50 buying points on the consolidation base. Stocks are trying to stop their current slide around the 50-day line. Shares of CVX rose 2% Thursday morning, as oil prices rebounded amid this week’s decline.

Home improvement retailer Home Depot has been wound up Wednesday About 5% below the 333.08 buy point of the cup base. The stock is about to add a handle to the base of the cup, which will lower the valid buy point to 329.77. HD shares were trading up 0.1% on Thursday.


4 growth stocks to watch in Cursstock market rally


Top stocks to buy and watch: Celsius, Dexcom, KLA, Trane

Energy drink maker Celsius triggered a 7%-8% loss from its 118.29 cup base buy point during Wednesday’s decline. While the stock may add a handle to the base of the cup, investors who bought during Friday’s breakout move should reduce their exposure. The stock rose 2.4% Thursday.

IBD Leaderboard Dexcom stock is close to entering a flat bottom at 123.46 and is about 4% away from that Point purchase After, after Wednesday 0.9% rise. Dexcom shares rose 3.5 percent early Thursday.

The Chip KLA leader finished Wednesday just under 392.60 buy points, according to Chart analysis IBD MarketSmith. The main technical force is the stock’s strong RS line, which reached another new high during Wednesday’s move. KLA stock rose 0.6% on Thursday.

Trane Technologies ended Wednesday about 3% below 181.72 buy points in a cup with handle after rising 1.2% for the session. Stocks fell slightly Thursday morning.


Join IBD experts as they analyze the leading stocks of the current stock market rally on IBD Live


Tesla stock

Tesla stock It slid another 3.2% Wednesday, down sharply for the third straight session. Stocks are already down more than 10% this week.

Despite the losses, the stock is holding above its 52-week low, which was set in mid-November. Shares are down 57% from their 52-week high. Meanwhile, the stock seems to be seeing some resistance around the 200 price level, which is a key area to watch if the stock is able to make another bullish attempt. For now, the stock appears to be heading for a 2022 low.

Shares fell nearly 3% Thursday morning to about 169.50 a share, just a few points off their 52-week low of 166.19.

Dow Jones leaders: Apple and Microsoft

within Dow Jones stockApple shares sold off 1.4% Wednesday, where it reached its lowest level recently and fell further below the 50-day line. The stock is up about 23% from its 52-week high. Apple stock was trading up 0.7% Thursday.

Microsoft fell 0.3%. Wednesday, as stocks continue to walk above the 50-day line. The software giant is still about 30% off its 52-week high. Shares of Microsoft fell 0.2% early Thursday.

Be sure to follow Scott Lehtonen on Twitter at @tweet Learn more about developing stocks and the Dow Jones Industrial Average.

You may also like:

Top growth stocks to buy and monitor

Learn how to time the market with IBD’s ETF market strategy

Find the best long-term investments with IBD’s long-term leaders

MarketSmith: Research, charts, data and training in one place

How to Find Growth Stocks: Why the IBD Tool Simplifies Your Search for Top Stocks



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Stock, bond and cryptocurrency investors remain on edge after a rough year for the markets

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This version is for personal, non-commercial use only. Distribution and use of this material is subject to our Subscriber Agreement and copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.

https://www.wsj.com/articles/stock-bond-and-crypto-investors-remain-on-edge-after-brutal-year-for-markets-11672403124

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Dow Jones losses are heading towards the closing bell as US stocks approach their worst year since 2008

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US stocks were trimming losses heading towards the closing bell on Friday, but were still on track to post their worst annual loss since 2008, as the harvest of tax losses combined with concern over the outlook for US corporate and consumer earnings took its toll.

How are stock indices traded?
  • Dow Jones Industrial Average
    DJIA,
    -0.22%

    It fell about 182 points, or 0.6%, to 33,039 points.

  • S&P 500 index
    SPX,
    -0.25%

    It fell nearly 26 points, or 0.7%, to about 3,824.

  • The Nasdaq Composite Index fell 72 points, or 0.7%, to about 10,406 points.

Stocks posted their biggest gains of the month on Thursday, with the Dow Jones rising 345 points, or 1.05%, to 33,221 as major stock indexes rebounded after losses incurred earlier in the week that pushed the Nasdaq Composite to a new closing low for the year. . The S&P 500 was on track on Friday to wrap up its fourth consecutive losing week, the longest streak of weekly losses since May, according to FactSet data.

What drives the markets

US stocks traded lower on Friday afternoon, on pace to close the last trading session of 2022 with weekly and monthly losses.

Stocks and bonds have been crushed this year as the Federal Reserve raised its benchmark interest rate more aggressively than many expected, as it sought to crush the worst inflation in four decades. The S&P 500 is on track to end the year with a loss of nearly 20%, its worst annual performance since 2008.

“Investors were on edge,” Mark Heppenstahl, chief investment officer at Penn Mutual Asset Management, said in a phone interview Friday. “It seems as if being able to bring prices down might be a little easier given how bad the year has been.”

Stock indices have fallen in recent weeks as the recent rally inspired by hopes in the Fed’s policy focus faded in December after the central bank indicated it would likely wait until 2024 to cut interest rates.

On the last day of the trading year, the markets were also hit by selling to capture losses that could be written off from tax bills, a practice known as tax harvesting, according to Kim Forrest, chief investment officer at Bouquet Capital Partners. .

Forrest added that an uncertain outlook for 2023 has also weighed in, as investors worry about the strength of corporate earnings, the US economy and consumer as the fourth-quarter earnings season approaches early next year.

“I think the Fed, and then earnings in mid-January — they’ll set the tone for the next six months. Until then, it’s anyone’s guess.”

The US central bank has raised its benchmark interest rate by more than four percentage points since the start of the year, pushing borrowing costs to their highest levels since 2007.

The timing of the first Fed rate cut will likely have a significant impact on markets, according to Forrest, but the outlook remains uncertain, even as the Fed tries to signal that it plans to keep interest rates higher for longer.

On the economic data front, the Chicago PMI for December, the latest major data release for the year, Came stronger than expected. Climbing to 44.9 from 37.2 in the previous month. Readings below 50 indicate contraction.

In the coming year, Heppenstahl said, “we are likely to shift toward concerns about economic growth rather than inflation.” “I think the decline in growth will eventually lead to an even greater drop in inflation.”

Read: Stock market investors face 3 recession scenarios in 2023

Eric Sterner, chief information officer at Apollon Wealth Management, said in a phone interview on Friday that he expects the US to fall into a recession next year and that the stock market could see a new bottom as companies likely review their earnings. “I think the earnings outlook for 2023 is still very high,” he said.

The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite were all on pace Friday afternoon posting weekly losses of around 1%, according to FactSet data, at last check. For the month, the Dow was down about 5%, the S&P 500 was down about 7% and the Nasdaq was about to crash down about 10%.

Read: Value stocks are outperforming growth stocks in 2022 by a large margin historically

As for bonds, Treasury yields rose on Friday as the US sovereign debt market was set to post its worst year since at least the 1970s.

The yield on the 10-year Treasury note
TMUBMUSD10Y,
3.879%

It rose about four basis points on Friday at 3.88%, according to FactSet data, in the latest check. Ten-year yields jumped about 2.34 percentage points this year through Thursday, on track for the biggest annual gain ever based on data going back to 1977, according to market data from Dow Jones.

Meanwhile, the yield on the two-year note
TMUBMUSD02Y,
4.423%

Up about 3.64 percentage points in 2022 through Thursday to 4.368%, 30-year return
TMUBMUSD30Y,
3.971%

It jumped 2.03 percentage points over the same period to 3.922%. That marks the largest increase in a calendar year for each based on data going back to 1973, according to market data from Dow Jones.

Outside the US, European stocks capped their biggest percentage drop in a calendar year since 2018, with the Stoxx Europe 600
xxxp,
-1.27%
And the
It is an index of euro-denominated stocks, down 12.9%, according to market data from Dow Jones.

Read: A downturn in the US stock market is trailing these international ETFs as 2022 draws to a close

Companies in focus

Steve Goldstein contributed to this article.

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Fed’s reverse repo facility reaches $2.554 trillion by Reuters

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© Reuters. FILE PHOTO: The Federal Reserve Building in Washington, US, January 26, 2022. (Reuters)/Joshua Roberts/File Photo

Written by Michael S Derby

NEW YORK (Reuters) – A key facility used by the Federal Reserve to help control short-term interest rates saw record inflows on Friday, the last trading day of the year.

The New York Fed said its reverse repo facility took in $2.554 trillion in cash from money market funds and other eligible financial firms, beating the previous high seen on Sept. 30, when inflows totaled $2.426 trillion.

The cash rally was almost certainly tipping into record territory in the usual end-of-quarter pattern that could worsen further towards the end of the year. On those dates, for a variety of reasons, many financial firms prefer to deposit money in the central bank rather than in the private markets.

The Fed’s reverse repo facility has been very active for some time. After seeing almost no absorption for a long time, money began to gravitate toward the central bank in the spring of 2021 and then grew steadily. Daily reverse repo usage has been steadily above the $2 trillion mark since June.

The reverse repo facility takes cash from qualified financial firms in what is an actual loan from the Federal Reserve. The current rate is 4.3%, a yield that is often better than rates for short-term private sector lending.

The reverse repo facility is designed to provide a soft floor for short-term rates and the federal funds target rate, and is the Fed’s primary tool for achieving its function and inflationary mandates. To mark the higher end of the range, the Fed is also pushing deposit-taking banks to deposit cash at the central bank, where the interest rate on reserve balances is now 4.4%.

The federal funds rate is currently set between 4.25% and 4.5% and is trading at 4.33% as of Friday, sandwiched between the reverse repo rate and interest on reserve balances.

There are no signs of shrinkage

Even with the heavy use of reverse repo, Fed officials have always remained unconcerned about large outflows, even as some in financial markets worried about the potential for the Fed to drain the borrowing and lending lives of private money markets.

Fed officials also expected that as the central bank continues to raise interest rates with the goal of bringing down very high levels of inflation, the use of the reverse repo facility should decrease. But that hasn’t happened yet, and some in the markets now believe that the consistently high utilization of the Fed facility will be around for some time to come.

Research by the Federal Reserve Bank of New York indicated that banking regulation issues make demand for the Fed’s reverse repo instrument high. Meanwhile, the Kansas City Fed added its view that large inflows are related to limited private market investment opportunities and policy uncertainty.

Strong cash flows to the central bank may not have alarmed central banks, but they have driven their operations to an actual loss. The Federal Reserve finances itself through interest on the bonds it owns as well as the services it provides to the financial community. It usually makes a noticeable profit and by law returns it to the treasury.

Currently, the cost of paying interest on reverse repo agreements and reserve balances outweighs income. The Fed reported Thursday that as of Dec. 28, the accounting metric it uses to track losses was $18 billion. Many observers expect that the Fed’s plans to raise interest rates further and keep them at high levels will mean fairly large losses for the central bank over time, even if these losses will not affect the action of the Fed’s monetary policy.

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