Overnight Dow Jones futures are up slightly, along with S&P 500 futures and Nasdaq futures, with Adobe reporting earnings after the close. The stock market plunged to new lows on Thursday, erasing the initial rally led by the Fed on Wednesday, and then some as recession fears escalated.
New reports released Thursday pointed to a rapidly cooling economy, but the Federal Reserve is focusing on severe inflation that will be difficult to bring down.
Investors should stay out of harm’s way, but they should stay engaged, and keep looking for promising stocks. ExxonMobil (XOM), Northrop Grumman (No objection certificate), general dollar (DJ), world wrestling entertainment (WWE), giant China EV and rival Tesla BYD (BYDDF) Everyone owns Lines of relative force At or near altitudes.
Tesla (TSLA) Executive Director Elon Musk set up City Hall with Twitter (TWTR) employees Thursday after weeks of belittling the social media company and giving the impression that it wanted to exit a $44 billion deal or renegotiate a much lower price. Musk hasn’t said explicitly that he’s committed to the Twitter deal. But he said he wanted to dramatically increase the number of users to 1 million, but was also charging a fee, in part to discourage fake accounts. He also hinted at job cuts on Twitter.
Twitter stock fell 1.55% to 37.40. That’s well below Musk’s acquisition price of $54.20 per TWTR share.
Tesla stock fell 8.5% to 639.30. Tesla early Thursday announced significant price increases in the United States, amid rising material costs.
TSLA stock, unlike the major indices and most caps, did not cut its recent lows. But the shares are just above their May 24th low of 620.57.
after closing, Adobe (ADBE) reported second-quarter earnings and sales that barely beat estimates. But the software giant Less direction in terms of full year profit and revenue.
ADBE stock fell modestly overnight. Adobe stock fell 3.1% Thursday to close at 89.59, its lowest level in two years.
Dow jones futures contracts today
Dow futures are up 0.15% against fair value. S&P 500 futures rose 0.15%. Nasdaq 100 futures rose 0.25%. ADBE stock is a component of the S&P 500 and Nasdaq 100.
The 10-year Treasury yield fell 6 basis points to 2.25%. The two-year yield rose one basis point to 2.17%.
US crude oil prices fell slightly.
Bitcoin traded below $20,500, just above the 18-month low of $20,087.90 set earlier this week.
stock market thursday
The stock market sold solidly on open and extended losses, with all major indexes reaching 52-week lows. The Dow Jones Industrial Average is down 2.4% on Thursday stock market trading. The S&P 500 fell 3.25%. The Nasdaq Composite Index is down 4.1%. Small cap Russell 2000 collapsed by 4.6%.
US crude oil prices rose 2% to $117.58 a barrel, amid new US sanctions against Iran’s petrochemical industry.
The 10-year Treasury yield fell 8 basis points to 3.31%. The two-year yield fell 12 basis points to 3.16%. Treasury yields have fluctuated wildly in recent days, with investors’ focus shifting back and forth between inflation and recession risks.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) slipped 5.8%, while the IBD Breakout Opportunities ETF innovatorfit) down by 3.55%. iShares Expanded Technology and Software Fund (ETF)IGV) fell 4.4%. VanEck Vectors Semiconductor Corporation (SMH) decreased by 5.9%.
SPDR S&P Metals & Mining ETF (XME) fell 4.3% and the Global Infrastructure Development Fund (ETF) in the USA (cradle) 4.9%. US Global Gates Foundation (ETF)Planes) down 5.9%. SPDR S&P Homebuilders ETF (XHB) 6.6%. SPDR Specific Energy Fund (SPDR ETF)XLE) lost 5.6% and the Financial Select SPDR ETF )XLF) decreased by 2.5%. SPDR Healthcare Sector Selection Fund (XLV) fall 1.5%.
Shares reflect more speculative stories, the ARK Innovation ETF (see you(Sold at 6.2%, ARK Genomics ETF)ARKG) 3.55%. Tesla stock remains a major ownership across Ark Invest’s ETFs, with fund manager Cathy Wood buying shares again in recent weeks. ROKU stock is also a major Ark property. Ark also owns some shares of BYD.
stock to watch
XOM stock fell 3.7% to 91.39 Thursday, but found support at the 50-day/10-week moving averages. Technically, the Exxon stock is in the 89.90 range for a teacup base with a handle buy point. But investors, if they choose to buy any stocks in the current climate, may want to wait for a stronger bounce off the 50-day line.
Northrop stock fell 2.1% to 449.02, hitting resistance at the 50-day line but holding up relatively well. Unusual escape cup with handle Base quickly faltered earlier this month. Technically, the handle purchase point 477.36 is still valid. A strong rebound above the 50-day line could provide an early entry. One concern: Other defensive stocks have struggled more than Northrop.
The general dollar stock closed down 2 cents at 232.23, near the 50-day line. As of Thursday’s close, DG stock has a handle in line with the base of the cup, giving it a new buy point of 240.07. fellow dollar store dollar tree (DLTR) You also behaved well, while the closed retailer Initial deal executor (OLLI) in the buy area.
WWE stock fell 3.4% to 64.87, but it’s still well below 68.82 buying points at the base of a tall cup with a handle, according to MarketSmith Analysis. World Wrestling Entertainment previously cleared a flat base and is technically in the range of 63.81.
BYD stock fell 4.9% to 36 on Thursday, just above the 21-day line, after falling 4.4% on Wednesday. Shares of China EV and battery giant could handle their deep cup base by 48% after rising over the previous five weeks. The handle should appear on the weekly chart after Friday, offering 39.81 buying points. Ideally, the BYD would form a long handle, perhaps long enough to be its shallow base, allowing the main averages to catch up. Shares of other electric vehicles in China have rebounded in recent weeks, with Lee Otto (LI) Racing up on the right side is a very deep merger.
BYD is traded over the counter in the United States, so the size of BYDDF itself is rather light. But BYD is listed in Hong Kong and Shenzhen, so its actual turnover is high.
The stock market rebounded on Wednesday after Fed big meeting, then sold hard on Thursday, erasing the day’s gains and then some. Major indexes slumped to new lows in heavy volume, resulting in an emerging market rally attempt.
Day two reversals of the initial market reaction to the Fed meeting are all too common. The rally and selling this week is similar to the market action after the May 3rd and 4th Fed meeting. Major indexes rose strongly on May 4, but then fell back in the following session.
Fears are growing that the Fed will have to push the economy into recession to control inflation. The plummeting housing starts and a negative reading of the Philadelphia Fed Manufacturing Index began Thursday following a sudden drop in retail sales earlier this week, indicating that the economy is already slowing rapidly.
But slower growth may not do much to rein in energy prices, with gasoline and especially diesel in short supply. The rise in Crude Oil and Gasoline futures on Thursday on such a bad market day confirms this dynamic.
So reining in general inflation – and inflation expectations – will be a challenge. A mild recession with a cold but uncomfortably high inflation may be the best case scenario right now for the economy and the stock market.
Of course, it is the market reaction that ultimately matters, not the news. At some point, the stock market will shrug off the negative news and look to a brighter future.
One possible support area is the pre-Covid peak. For the Nasdaq, that was 9838.37, just below the 10,000 level. The Dow Jones and S&P 500 are also heading towards their pre-Covid highs.
Of course, a bear market does not have to go down at those levels. Russell 2000 has already reduced its pre-Covid peak.
Very few stocks are holding up in the current angry sell-off. Even energy stocks are falling. Some, like XOM stock, are trying to find support at the 50-day line or other key levels.
What are you doing now
Investors should be on the sidelines now. It’s a horrible environment. Yes, the market may see a comfortable rally for a day or two, but that won’t signal a fundamental shift.
After a lot of selling in recent days, weeks and months, even stocks with strong RSI lines could be hurting hard in the charts right now. But they still watched them.
Keep it engaged, keep your powder dry, and continue to identify potential leaders.
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