November 29, 2022

Dow Jones Futures: Market sells amid yellow default alert; Growth stocks are on track for the worst week since the corona virus crisis

The Dow Jones futures rose moderately on Tuesday night to the S&P 500 futures and the Nasdaq futures. The stock market rally suffered a sharp loss amid rising treasury yields as Treasury Secretary Janet Yellen warned of the government’s mistakes next month. Micron revenue was focused on overnight.




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The S&P 500 and Nasdaq combination fell sharply above their 50-day moving average, signaling a change in the nature of the stock market rally.

Leading stocks were even worse with the Innovator IPT50 ETF (FFTY) On the path to the worst weekly loss after a corona virus accident.

Tech Titans, Growth Leaders Fall

Such as technical titans Microsoft (MSFT), Google Parent letters (GOOGL), Apple (AAPL) Facebook (FB) And Amazon.com reduced the latest cuts or set the latest closed lows Nvidia (NVDA), ASML (ASML), Application materials (AMAT) And ServiceNow (Now)

Cloudflare (Net), Fell to its 50-day level on Monday, falling 7.9% on Tuesday, decisively breaking the 50-day line. Net share has now fallen 17% in the last four sessions as software names came under heavy pressure. Medical product stocks – from biotechs to testing companies to computer makers – continued to struggle. Even InMode (INMD), Pushing the latest market weakness, down 13%.

Energy stocks were good, retaining recent gains, even as crude closed slightly lower than perennial highs. Funding was also good, providing rising treasury yield support.

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Janet Yellen US Default Warning

Treasury Secretary Yellen told the Senate Banking Committee that a U.S. installment credit limit may not be increased by October 18, which is the first time a specific date has been set. Meanwhile, the government faces a partial shutdown after September 30 without new funding. The Senate Republicans blocked the credit limit increase and short-term fiscal action late Monday, while Democrats said they wanted to raise the credit limit themselves.

Senate Democrats aim to hold a referendum on Wednesday on extending government funding without raising the debt limit. If such a measure is passed, the council must approve it as well.

All of this is coming as House Speaker Nancy Pelosi plans to vote Thursday on the bilateral infrastructure bill. It is unclear whether a small number of GOP supporters will compensate the left-wing Democrats for finishing the infrastructure bill with a larger tax and cost compromise package.

Meanwhile, central bank chairman Jerome Powell testified at the same Senate bank inquiry by Treasury Secretary Yellen that inflation would be higher than previously expected.

The Federal Reserve and the European Central Bank are trying to recoup property purchases, although a real rate hike could be as early as a year.

All these help to increase the treasury yield. The 10-year treasury yield is up five basis points to 1.53%. Intraday, 10-year yields reached almost 1.57%, the highest since June.

Micron revenue

Micron technology (MU) Better-than-expected earnings were announced late Tuesday. But the The memory-chip giant is guided down sharply.

Micron shares fell nearly 4% overnight. Shares fell 2.8% to 73.10 on Tuesday, again below the 50-day tax. MU stock has been in a slump since mid-April.

The micron overview is not a good sign for the semifinals or the overall market rally, but it is very important for chip equipment makers to express memory Lam Research (LRCX) AMAT stock and lam research slightly changed in extended trading. AMAT stock fell 6.9% on Tuesday, below its 50-day mark. LRCX shares fell 5% and closed below its 50-day and 200-day lines.

The future of Dow Jones is today

Dow Jones futures rose 0.4% to a reasonable value. The S&P 500 futures are up 0.5%. The Nasdaq 100 futures advanced 0.6%.

Crude oil prices fell slightly on Tuesday, falling overnight after the U.S. Petroleum Corporation announced a surprising build in U.S. inventories last week. The Energy Information Administration will release official figures for crude and petrol products and production on Wednesday morning.

Remember the action overnight Dove Future And elsewhere does not need to be translated into the next regular regular trade The stock market Session


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Stock market rally on Tuesday

The stock market rally started weak and closed weak, on a broader basis in sales.

The Dow Jones Industrial Average fell 1.6% on Tuesday Stock market trading. The S&P 500 index fell 2%. The Nasdaq compound fell 2.8%, the worst loss since March. Small cap Russell 2000 retreated 2.25%.

Apple shares fell 2.4%, not down from last week’s intraday low but released its worst result since July 2.

Microsoft shares fell 3.6% and Google shares fell 3.7%, both of last week’s low values ​​breaking below the 50-day line.

Shares of FB, which had been retreating from its 50-day line on September 20, fell 3.7% on Tuesday, down from last week’s low.

AMZN shares, trying to recover from its disappointing Q2 earnings report, fell 2.6% to a 200-day low.

NVDA stock cut its 50-day mark, down from last week’s low of 4.4%.

ASML stock, which was a big cap semiconductor superstar in 2021, fell 6.6%. It represents ASML’s first decisive 50-day undercut since March.

Now the stock is down 5.7%, closing below its 50-day tax for the first time since the beginning of June.

ETFs

In the middle The best ETFsInnovation IBD 50 ETF (FFTYInnovation IBD Breakout Opportunities ETF (5.4%)But) Slipped 3.9%.

IShares Extended Technology Software Industry ETF (IGVIt fell 3.6%, falling below its 50-day low for the worst level since the August 19 bounce. MSFT Stock and ServiceNow are key IGV components; Net Stock is a holding. WanEx Vectors Semiconductor EDF (SMH) Fell 4%. Nvidia stock and chip gear makers ASML, AMAT and LRCX are all notable components.

Sector ETFs were generally low, but losses were small.

SPDR S&P Metals & Mining ETF (XME0.5% Decrease and Global X US Infrastructure Development ETF (Pave1.5% handed over. US Global Jets ETF (Jets1.3% retreated. SPDR S&P Homebuilders ETF (XHB2.5% gave up. Energy Select SPDR ETF (XLE) Increased by 0.3%. Financial Examination SPDR ETF (XLF) Fell 1.65%.

Representing stocks with more speculation, ARK Innovation ETF (Arc) 3.8% and ARK Genomics ETF (ARKG) Lost 4.2%. ARKK is at its lowest level since the beginning of June, while ARKG ends at its May low.


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Market Rally Analysis

The stock market rally revived last weekend, but is now showing real damage in key indices and leading stocks. The S&P 500, which has seen support for several months in its 50-day line, now seems to be hitting resistance at the core level. The Nasdaq did not cut last week’s low — the big cap did the Nasdaq 100 — but the session ended near the minimum with the worst crisis since August 19th.

Despite their energy and financial components, the Dow Jones and Small-Cap Russell 2000 still fell sharply. The Dow Jones is moving away from its 50-day lineup, while the Russell 2000 has closed a section below that key level.

FFTY has not fallen below its 50-day mark, but is down 7.6% so far this week. That’s right, this is Tuesday only, FFTY is experiencing its worst weekly loss since the March 2020 Corona virus crash. From highflyers to enterprise professionals, development names are being refined. Even those who found key support such as NetStack, ASML, Microsoft and Google are not doing so now.

Energy, fertilizer, finance and travel-related stocks were relatively good. While there is a big difference between an overall rise and a downturn in the market, we may be in the middle of a sector cycle from growth stocks. Moreover, the decline in energy prices and treasury yields will not be surprising, only for a short period of time.


When it comes time to sell your favorite stock


What to do now

If you have working stocks – especially in healthy sectors like energy and banks – you probably don’t need to take any action. But with growth stocks and your portfolio overall, you need to take a defensive approach. Recent breakouts or 50-day tax recovery fail. Big winners cut profits. It’s time to re-measure your exposure and wait for the healthy market rally to return.

The stock market rally will rise very quickly and key indices are likely to roar above the 50 day level. Nevertheless, investors should gradually return to that situation.

For now, focus on safety. But you should always be prepared to commit crime. Change your watchlist once again.

According to The big picture Every day to stay in tune with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter @IBD_ECarson Stock market updates and more.

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