Dow Jones futures rose early Wednesday, along with S&P 500 and Nasdaq futures. A stock market rally opened strongly on Tuesday as the Consumer Price Index raised hopes that inflation had peaked, but leading indicators reversed lower as a senior Federal Reserve official signaled strong interest rate increases and that other actions were ahead.
Crude oil prices jumped as Shanghai eased COVID lockdowns in some areas, although the city remains largely closed. Cases in Shanghai continued to rise on Tuesday. There is increasing speculation that the city, and much of its industry, may be closed until mid-May.
Dow jones futures contracts today
Dow Jones futures are up 0.5% against fair value. S&P 500 futures rose 0.5% and Nasdaq 100 futures rose 0.7%.
Crude oil prices rose.
The 10-year Treasury yield rose 2 basis points to 2.75%.
c. B. Morgan Chase (JPM) And Delta Airlines (DA) early Wednesday, as bank and airline results kick off as earnings season kicks in. JPM stocks and DAL stocks are very good, along with most of their peers.
Tesla (TSLA) and Apple shares rebounded Tuesday morning, breaking again above the 21- and 50-day lines, respectively, inside the handles. But apple (AAPL) And Tesla stock pared its gains as the overall market faltered.
The video included in this article analyzes market action and reviews Shell, Devon Energy and Raytheon stocks.
stock market rise
The stock market rally attempted to bounce on Tuesday, but not for long.
Before the opening, the Labor Department reported that consumer inflation jumped to 8.5% in March, its highest rate since 1981. But core inflation, although at a long-term high of 6.5%, came in just below estimates. Combined with lower gasoline prices and tougher comparisons throughout the year, there is growing hope for March Represents peak inflation. That could ease the pressure on consumers and mean the Fed doesn’t have to raise rates as much.
But any Fed turnaround will be on the way. Fed Governor Lyle Brainard said after the CPI inflation report on Tuesday that the Fed will move “urgently” to raise interest rates and reiterated that the decision to cut the balance sheet could come “as soon as possible” as the actual cuts begin in June.
The Dow Jones Industrial Average closed down 0.3% on Tuesday stock market trading. The S&P 500 and Nasdaq Composite were also down 0.3%. Small cap Russell 2000 rose 0.3%.
US crude oil prices jumped 6.7% to $100.60 a barrel.
The 10-year Treasury yield fell 5 basis points to 2.73%, albeit far from intraday lows.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 0.6%, while the Innovator IBD Breakout Opportunities ETF (fit) rose 0.8%. iShares Expanded Technology and Software Fund (ETF)IGV) sank 0.7%. VanEck Vectors Semiconductor Corporation (SMH) down 0.5%.
SPDR S&P Metals & Mining ETF (XME) increased by 2.5% and the Global Infrastructure Development Fund (ETF) in the USA (cradle) rose 0.4%. US Global Gates Foundation (ETF)Planes) by 0.8%. SPDR S&P Homebuilders ETF (XHB) decreased by 0.3%. SPDR Specific Energy Fund (SPDR ETF)XLE) rose 1.7%, with DVN shares holding XLE. SPDR Financial Choice Fund (SPDR)XLF) lost 1.1%. SPDR Healthcare Sector Selection Fund (XLV) give up 1%.
Shell stock rose 1.2% to 55.99, but faded from a new high of 56.73. Integrated Energy Giant Stock Tested 56.23 Flat Base buy point. The line relative force It hit multi-day highs, reflecting SHEL’s outperformance against the S&P 500.
DVN stock rose 3.7% to 62.26, rebounding from the 21-day moving average and near the 10-week line. Intraday, stocks reached 63.42, to liquidate the short consolidation after a big push. Investors can buy Devon stock now from its moving averages or after reaching a high on Tuesday intraday.
RTX stock rose to 103.92 on the day, just below 104.44 flat base A buy point and above an early entry at 103.97, just above the March 25 high. But Raytheon stock faded with the market, closing up 0.5% at 102.60. Stocks just 4.1% crossed the 10-week streak. RTX stock RS line rose sharply again, close to the highs.
The flat base is part of the base pattern on the base. Raytheon stock and other defense names broke decisively from longer mergers at the start of the Russian invasion of Ukraine. They’ve been uniting for weeks.
Market Rise Analysis
The stock market rally saw a strong rebound Tuesday morning after the release of the CPI inflation report, with the Dow and S&P 500 recovering their 50-day moving averages briefly. But the major indices all reversed, closing modestly lower, with the Nasdaq making an external reversal after Monday’s sharp losses.
Even at intraday highs, major indicators have not broken through sharp downtrends since late March.
Small cap Russell 2000 rallied, but came away from the highs after hitting resistance at the 50-day line.
Until the Nasdaq regains the 50-day line and the S&P 500 regains the 200-day line, the short-term trend will remain negative. Even the restoration of these levels is likely to leave the bullish market “under pressure”.
But for now, the Nasdaq has given up more than half of its recent gains from its March 14th low.
The energy and commodity sector are still the leading areas. Defense, pharmaceuticals and some retail pockets work well. Technology and growth hit hard.
Apple and Tesla stocks are among the best-looking growth names, and they don’t look very doable at the moment. TSLA stock is trying to reverse even with Tesla Shanghai closed since March 28. Tesla’s first-quarter earnings are due on April 20, but investors are likely to focus on short-term expectations and long-term initiatives. Apple earnings come on April 28.
What are you doing now
Aside from the Commodities, Defense and Medicine sectors, there is no good reason to play in this market other than long-term profitable positions. Don’t indulge in short gatherings, like the Tuesday morning bang.
If and when the market has a sustainable uptrend, there will be plenty of opportunities. So don’t try to fight the market when it is in a downtrend.
Work on your watch lists. Look for stocks that are building among the leading sectors, while also building broader lists that are reasonably resilient.
Read The Big Picture Every day to stay in sync with the trend of the market, stocks and leading sectors.
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