Dow futures drop after ‘perfect’ market move; Inflation report due

Dow Jones futures fell strongly Thursday morning, along with S&P 500 and Nasdaq futures, while crude oil prices rebounded somewhat. High-level Russian-Ukrainian talks in Turkey ended in failure, with Ukraine’s foreign minister saying that Russian officials were “living in their reality.”




X



Amazon rebounded on the back of large stock splits and buybacks, while the February consumer price inflation report looms large.

The stock market rally attempt made significant price gains on Wednesday, but none of the major indicators had a follow-up day. Crude oil prices fell, while many other commodities fell after massive gains in recent days and weeks.

In many ways, Wednesday’s move was perfect. a Follow-up day Confirmation of the new market rally could have come with a slew of caveats. Major indicators moving up to or beyond key resistance levels before the follow-up day may be more important.

Apple stock Arista Networks (Network), National anthem (ANTME), a parent of Google the alphabet (Google), And the Eli Lilly (LLY) are five stocks showing some positive signs, but they haven’t entered yet buy areas. Anthem and LLY stock were above the 50 day moving averages, but an Apple (AAPL), and Google and ANET stocks are not.

Tesla (TSLA), meanwhile, continues to hold out better than most electric vehicle rivals and has strong growth trajectories, although Wednesday’s recovery was relatively modest. Shares rose 4.2% to 858.97. Tesla stock remains a small part of the 21-day exponential moving average, with other key resistance levels closed.

late on wednesday, Amazon.com (AMZN) reported a 20-for-1 stock split. The e-commerce and cloud computing giant will also buy back $10 billion in Amazon stock. AMZN stock is up 5% early Thursday. Shares rose 2.4% to 2,785.58 on Wednesday. During Tuesday, Amazon stock hit its lowest level since July 2020.

Consumer Inflation Report

The February CPI is due before the market opens on Thursday.

Economists expect consumer prices to rise 0.7% from January and 7.9% from a year earlier, surpassing a 39-year high in January of 7.5%. Core CPI, which excludes food and energy, is expected to rise 0.5% compared to January. Core inflation should accelerate to 6.4% from 6%.

With the price of crude oil and many commodities soaring amid the Russian invasion of Ukraine and Western sanctions – despite Wednesday’s heavy selling – inflation may continue to rise in the near term.

Consumer inflation data will come ahead of the Federal Reserve’s meeting next week, when policy makers are expected to start a major interest rate hike cycle. Soaring inflation could conceivably lead to a half-point move.

See also  Dow futures rise after market falters on hawkish Fed signal; What are you doing now

Federal Reserve Chairman Jerome Powell said last week that he favors a quarter-point rate hike at the March 15-16 meeting.

Tesla and ANTM stock in the works IBD Leaderboard, while LLY stock is on the Leaderboard watchlist. Google Inventory is on Long-term leaders of IBD.

The video included in this article highlights Wednesday’s price and volume action, as well as ANET, Google, and Eli Lilly stock analysis.

Dow jones futures contracts today

Dow futures are down 1.15% against fair value. S&P 500 futures fell 1.15%. Nasdaq 100 futures fell 1.5%, even as Amazon’s stock supported.

The CPI report is due out Thursday morning at 8:30 AM ET. This will likely cause Dow futures to swing ahead of the open.

US crude oil futures are up 3% after Wednesday’s decline. Gold has rebounded somewhat as well, while Bitcoin is pulling back.

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


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


stock market rise

Wednesday’s stock market rally started strong and closed near session highs. The Dow Jones Industrial Average rose 2% on Wednesday stock market trading. The S&P 500 Index jumped 2.6%. The Nasdaq Composite Index rose 3.6 percent. Small cap Russell 2000 jumped 2.8%.

Crude oil prices fell 12.1% to $108.70 a barrel. The United Arab Emirates urged OPEC+ to increase crude production further, while various comments about Russian-Ukrainian diplomacy affected oil prices and many other commodities. Crude oil futures have risen significantly in recent weeks, along with base metals, wheat and gold, so the pullback can be said to be overdue.

The 10-year Treasury yield rose 8 basis points to 1.95%.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 3.1%, while the Innovator IBD Breakout Opportunities ETF (fit) rose 0.5%. iShares Expanded Technology and Software Fund (ETF)IGV) jumped 4.85%. VanEck Vectors Semiconductor Corporation (SMH) popped 4.3%.

SPDR S&P Metals & Mining ETF (XME(Constantly closed and Global X US Infrastructure Development ETF)cradle) offer 2%. US Global Gates Foundation (ETF)Planes) climbed 5.5%. SPDR S&P Homebuilders ETF (XHB) rose by 3.7%. SPDR Specific Energy Fund (SPDR ETF)XLE) down 3.1% and the Financial Select SPDR ETF (XLF) jumped 3.7%. SPDR Healthcare Sector Selection Fund (XLV) by 1.9%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) jumped 5.3% and the ARK Genomics ETF (ARKG) 5.2%. Tesla stock continues to rank number one among Ark Invest’s ETFs.

See also  Dow Jones futures: what to do when the market rally dips; Tesla delivery due

Top 5 Chinese stocks to watch right now


Stock preparation

Arista Networks stock rose 5.2% to 120.61, but hit some resistance near the 21-day line. ANET stock consolidates at 148.67 buy point. But investors can use a trendline entry just above the 50-day moving average. Another early entry – with some characteristics of the double bottom case – would be 133.97, above the short-term high in February. The Relative force line As for the ANET stock, it has been stable near its highs for a few months. Another positive thing is that Juniper Networks (JNPR) And the Cisco Systems (CSCO) also hold up relatively well.

Apple stock rose 3.5% to 162.95, a solid gain on below average volume. Stocks run at 176.75 double bottom Point purchase. Investors can use the trend line breakout around the 50 day line as a strong entry. AAPL’s RS line has remained flat at high levels.

Google stock jumped 5% to 2668.40. The shares will soon have a new base at 3,031.03 buying point, but it has been consolidating since mid-November or even earlier. As a long-term leader, investors can use a move above the 50-day and 200-day lines as a buying opportunity. GOOGL stock’s RS line has moved sideways for about six months, but it’s not far from highs.

Anthem stock rose 2% to 465.37. This is just below the buy points at 470.12 or 472.12. Stocks broke last Friday and fell on Monday, but found support at the 50-day line. ANTM’s RS line recorded new highs for weeks. Many other health insurance companies do well. Anthem plans to change its name to Elibility, and The Wall Street Journal reported on Thursday.

Eli Lilly’s stock rose 1.1% to 262.79. LLY stock consolidates next to failing stocks cup with handle stationed. The buy point is 284. Ideally, the LLY stock will form a handle before reaching new highs. Eli Lilly’s RS line is already at an all-time high.


Get the next winning stocks with MarketSmith


Market Rise Analysis

The stock market’s rally attempt was strong ahead of Wednesday, ending several days of losses. While the major index price gains were more than enough to qualify for Follow-up dayTrading volumes on the New York Stock Exchange, the New York Stock Exchange and the Nasdaq were significantly lower than on Tuesday.

This might be for the better. Follow-up days where indicators close below the 10-day moving average and close the first day of trying to rally have a poor track record.

See also  Pfizer seeks permission for a second booster injection for older Americans

A break above the 21-day moving average and early March highs should provide more evidence that the current market rally has legs. There are several other major obstacles above the initial resistance areas.

In another sign that the market’s attempt to rally wasn’t “ready” to be a confirmed uptrend, there weren’t many actionable stocks on Wednesday.

Aggressive growth stocks in general led Wednesday’s gains, but they are nowhere near buying opportunities. datadog (DDOG), which was created a week ago, is up 12% on Wednesday but is still far from execution.

Meanwhile, the Tesla bulls will likely push themselves to buy into the EV leader with a small portion of the extra strength, but the 50-day streak and February highs will likely offer a safer but still aggressive entry.

Other tech names with lower PE percentages, such as Google stocks and Arista Networks, still need another big day or two before they can make early posts.

A number of medical stocks are being built, including Anthem and LLY stocks, but they haven’t issued quick buy signals.

Shipping companies were mixed with ZIM Integrated Shipping (ZIM) for profits and great returns.

Energy stocks fell along with crude oil prices. Fertilizer stocks also extended recent declines, but came from morning lows. Steel and metal mining companies fell back to the top, with few on offer for a while.


Time to Market with IBD’s ETF Market Strategy


What are you doing now

The day-to-day stock market rally didn’t start, and there weren’t many buying opportunities. There is no reason to increase your exposure under these conditions.

The stock market has not been kind in recent months with investors rushing in when the first positive signs appear.

Being an active investor takes a lot of work, and that doesn’t just mean a lot of trading. Controlling and preparing for your emotions is crucial. So be patient and do your homework. Keep working on these watchlists and stay connected.

Read The Big Picture Every day to stay in sync with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

You may also like:

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

Best growth stocks to buy and watch

IBD Digital: Unlock IBD Premium Stock Listings, Tools & Analysis Today

200-day average: the last support line?

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

Leave a Reply

Your email address will not be published.