Dow futures were little changed early Thursday, along with S&P 500 futures and Nasdaq futures. The stock market suffered more losses on Wednesday as rising Treasury yields, Apple iPhone woes, and rising China Covid cases added selling pressure on major indexes.
The Nasdaq is nearing bear market lows, posting its worst close in more than two years. The Dow Jones broke a key level.
an Apple (AAPL) fell again, resulting in a new bear level drop. AAPL stock is in danger of falling below $2 trillion. Tesla (TSLA), which also triggered another bear market decline, rose modestly. But that only trimmed a sharp weekly loss.
Energy stocks fell as crude oil and natural gas prices fell, with natural gas and coal producers hardest hit.
But whether these stocks make real progress from here depends largely on whether volatile energy prices rise.
After closing the egg product Cal Maine (calm) reported gains in earnings that were slightly unfulfilled in the second-quarter financial views. CALM stock fell 5% in extended trade, even as revenue rose 110% and the egg producer announced a dividend of $1.35 per share. Shares fell 2.5 percent to 62.19 in Wednesday’s regular session. This pulled CALM stock back within the 5% chase zone from the 60.11 handle buy point. But Cal-Maine can open on Thursdays without this entry.
Dow jones futures today
Dow Jones futures lost a fraction of their fair value. S&P 500 futures rose 0.1% and Nasdaq 100 futures rose 0.4%.
The 10-year Treasury yield fell 3 basis points, to 3.86%.
stock market wednesday
The stock market continued to slump, with all major indexes down more than 1%.
The Dow Jones Industrial Average fell 1.1% on Wednesday Stock market trading. The S&P 500 fell 1.2%. The Nasdaq Composite lost 1.35%. Small-cap Russell 2000 shed 1.6%.
Apple shares fell 3.1 percent to 126.04, an 18-month low. TrendForce lowered its forecast for iPhone shipments for 2022 due to recent closures at Foxconn’s Zhengzhou base. It also cut its forecast for early 2023 shipments, citing a labor shortage at Foxconn.
Tech giant Dow Jones is on track for its sixth straight weekly loss and its worst monthly loss in four years. AAPL stock valuation closed at $2.005 trillion.
Tesla rose 3.3% to 112.71 after falling 11.4% on Tuesday, ending a seven-day losing streak. The electric vehicle giant is still down about 15% for the month. Late Wednesday, Morgan Stanley analyst Adam Jonas slashed his TSLA stock price to a whopping 250, but also lowered his fourth-quarter delivery target to just 399,000 electric vehicles. Tesla rose 1% overnight.
US crude oil prices fell 0.4% to $79.23 a barrel. Natural gas futures fell 5.8%.
The 10-year Treasury yield rose 3 basis points, to 3.89%. That’s 49 basis points higher than the Dec. 7 low of 3.4%, with almost all of the gain since Dec. 15.
Exchange Traded Funds
Among the growth ETFs is iShares Expanding Technology and Software Sector Fund (IGV) down 1.1%. VanEck Vectors Semiconductor Corporation (SMH) declined 1.3%. Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark) fell 0.5%, hitting a five-year low. ARK Genomics ETF (ARKG) gave up 0.6%, above its June low. Tesla stock remains a large holding via Ark Invest ETFs.
SPDR S&P Metals & Mining ETF (XME(down 4% and US Global Infrastructure Development Fund X)cradle) decreased by 1.75%. US Global Gates Foundation ETF (Planes) fell 2.4%. SPDR S&P Homebuilders ETF (XHB) decreased by 2%. Energy Defined Fund SPDR ETF (xle) fell 2.2%, with XOM and CVX stocks easily taking the top components, and SLB stock coming in third. SPDR Financial Selection Fund (XLF) decreased by 0.35%. SPDR Health Care Sector Selection Fund (XLV) concession of 0.65%.
Energy stocks to watch
Exxon stock fell 1.6% to 108.38, back below the 50 line on the day after recovering this key level recently. XOM stock has a value of 114.76 Point purchase From a flat base over a previous consolidation. However, a move above Tuesday’s high of 110.47 may provide an early entry.
Chevron stock looks like Exxon Mobil stock. Shares fell 1.5% to 176.98, back below the 50-day mark. CVX stock contains a file Flat base Next to the previous consolidation, with 189.78 buy points, according to MarketSmith Analysis. Investors can use 180.33, just above Tuesday, as an early entry for CVX stock.
Schlumberger fell 1.7% to 52.60, and found support near the 10-week line. SLB stock has a deep consolidation of 16% above/beside depth cup base. The official buy point is 56.14. But investors can use 54.28, just above Dec. 5’s 54.18, as an early entry for SLB stock.
Valaris shares fell 2.6% to 64.74, up slightly from testing the 10-day, 21-day, and 50-day lines. The offshore contract drilling company has 70.27 buy points of a deep cup base of 17% over depth mug with handle pattern. The buy point is 70.27. Investors can use 67.75, just above Tuesday’s high, as an early entry. This could develop into a suitable point of purchase in a few days.
First Solar sank 2.7% to 146.17, losing more ground from the 50-day line, but breaking off an intraday low of 142.35. The FSLR stock needs some work, and can easily fall apart from this point. Ideally, other solar stocks, which are hardest hit, would also improve. But watch to see if First Solar can regain its 50-day and 21-day streaks. There could then be a trend line, or perhaps a move above the 21st December high of 162.20, to provide an early entry. FSLR stock could have a new base at the end of next week.
The stock market had another rough session on Wednesday.
The Dow, which posted gains on Tuesday, was unable to resist on Wednesday. The Dow closed below its rising 50-day moving average for the first time since October 21st.
The S&P 500 continued to slide from the 50-day high line. The benchmark held above last Thursday’s lows but ended with its worst close since November 9th. Generac (GNRC) and Tesla stock, were the biggest losers for the S&P 500 in 2022. That’s not exactly inspiring.
The Russell 2000 snapped Thursday’s lowest, marking its worst level in two months.
The Nasdaq Composite fell to within 135 points of its bear market low on Oct. 13. The tech-heavy index finished with its weakest close since July 2020. Shares of Apple and a slew of other growth names fell.
Until there is clarity on the Fed’s rate endgame and economic outlook – including a Covid rally in China – the stock market is likely to be volatile at best. The major indices are doing much worse than that now.
What are you doing now
The stock market is not doing well. While some sectors are holding up better than others, it’s hard for any stock to make significant headway. Individual sectors and stocks can deteriorate quickly, too.
Investors can have small positions in some promising sectors but should avoid growth for now. There is nothing wrong with being all in cash. Preserving your financial and mental capital is paramount.
But work on your watchlists. Many stocks from various sectors are close to buying points, or they can be quick if the market goes up. Focus on stocks with strong relative strength and hold onto key levels. Don’t discount flexible names that don’t yet have a clear point of purchase.
If you had a bad year, you won’t make it up in the last two trading days of 2022 as the market suffers. Learn from your mistakes and get ready for the next sustainable market rally in 2023.
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