Overnight Dow Jones futures were slightly lower, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) and Nio news available before Thursday’s opening. Major indexes fell on Wednesday due to economic concerns.
The Organization for Economic Co-operation and Development lowered its forecast for US and global economic growth on Wednesday, in the wake of a new Tuesday targeting (TGT) Warning. Intel Corporation (INTC) and Altria (MO) declined as analysts became increasingly concerned about the current environment.
sea freight stock like ZIM Integrated Shipping (ZIM) and Star Bulk Carriers (SBLK) dropped to lines 50 days and beyond, erasing a few weeks of gains. It is not clear if the sector is facing a long slip or just a short pause, but Wednesday’s action was ugly. Railroad, truck and other freight stocks also fell.
Travel and mining, especially steel stocks, were among the main losers amid widespread selling.
at the same time, Eli Lilly (LLY), Summary (SNPS), Equinor (EQNR), West Lake (WLK) and gallon petroleum (CPE) are all close to points of purchase. LLY stocks are among the many big drug companies that hold up well. Synopsys is a rare growth stock that shows some strength. Norwegian state-owned oil and gas company Equinor and operator Callon shale are playing in the energy field. WLK stock is among many solid chemical names.
Eli Lilly’s stock is on the IBD Leaderboard. SNPS stock is in IBD for the long term. ZIM, Westlake, Synopsys, and CPE stock are available in 50 IBD. Westlake was Wednesday’s stock IBD.
Dow jones futures contracts today
Dow futures were down 0.2% against stocks. fair value. S&P 500 futures dropped 0.25% and Nasdaq 100 futures lost 0.3%.
The 10-year Treasury yield rose 2 basis points to 3.05%.
The European Central Bank is likely to end asset purchases at Thursday’s policy meeting, with an announcement ahead of the opening bell. This would pave the way for a rate hike in July.
The Labor Department will release weekly jobless claims data at 8:30 AM ET, followed by the Consumer Price Index on Friday morning. It comes ahead of the Fed’s policy meeting next week, with another rate hike by half a point.
Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Investors will get Tesla China sales figures for May as part of industry data from the China Passenger Vehicle Association. Tesla Shanghai’s production improved in May after the plant was closed for most of April, but it’s still well below normal. Tesla’s production may reach full capacity sometime in June.
It came as a giant China EV BYD (BYDDF) said it would supply batteries to Tesla. BYD, which surpassed Tesla in auto sales for the first time this quarter, rose 1.8% to 38.80. On track for a fifth consecutive weekly gain, BYD stock is still far from record highs.
Tesla CEO Elon Musk Twitter The takeover saga (TWTR) has affected TSLA shares, amid fears that Musk will be forced to sell more shares. On Wednesday, it was reported that Twitter’s board of directors would give Musk access to all of his internal data. Musk, after signing a $44 billion Twitter deal and awaiting due diligence, has threatened to try to walk away unless he gets more data about fake users. TWTR stock rose 0.8% to 40.44, hitting its highest intraday level since May 13. But Twitter is still well below Musk’s acquisition price of $54.20.
Tesla stock rose 1.25% to 725.60 on Wednesday but is far from morning highs after hitting resistance at the 21-day line. TSLA stock is well below the 50-day and 200-day streaks.
Tesla vs. BYD: Meet the new king of EV
New أرباح Profits
Most Chinese electric car manufacturers have already reported production and delivery data in May, including BYD and New (NIO). Nio will release first-quarter earnings before Thursday’s opening, although the focus will likely be on guidance for the second quarter and beyond. Nio stock rose 3.7% to 20.38 on Wednesday, continuing to rise from its long-slipping 50-day streak.
AMD Analyst Day
Advanced Micro Devices (AMD) held Thursday Analyst Day. On Wednesday, AMD stock fell 3.2% to 101.90, heading towards its descending 50-day line. Several analysts lowered earnings estimates for arch-rival Intel on Wednesday, following cautious comments from management. INTC stock fell 5.3 percent to its lowest closing level since late 2017.
Join IBD experts as they analyze actionable stock market actionable shares on IBD Live
stock market rise
The stock market rally was mixed most of the morning, but the major indexes closed with solid losses.
The Dow Jones Industrial Average is down 0.8% in the stock trading session on Wednesday. The S&P 500 fell 1.1%. The Nasdaq Composite lost 0.7%. Small cap Russell 2000 fell 1.55%.
US crude oil prices rose 2.5 percent to $ 122.11 a barrel, the highest level in three months. Gasoline futures are just below record levels. Natural gas is down 6.4%, still near a 14-year high. The drop on Wednesday came due to a fire at a Texas LNG export terminal. LNG-related stocks fell on Wednesday.
The 10-year Treasury yield rose 6 basis points to 3.03%.
Among the top ETFs, the Innovator IBD 50 ETF (FFTY) lost 2.3%, while the Innovator IBD Breakout Opportunities ETF (BOUT) lost 1.7%. The iShares Expanded Tech-Software ETF (IGV) index was down 0.7%. The VanEck Vectors Semiconductor Index (SMH) was down 2.1%. AMD and Intel stocks are notable SMH components.
The SPDR S&P Metals & Mining Index (XME) tumbled 3.8% and the US Global X Infrastructure Development Fund (PAVE) (PAVE) tumbled 2.5%. The US Global Jets ETF (JETS) fell 2.6%. The SPDR S&P Homebuilders ETF (XHB) is down 2%. The Energy Select SPDR ETF (XLE) is up 0.2% and the Financial Select SPDR ETF (XLF) is down 1.8%. SPDR Healthcare Sector Choice Fund (XLV) down 0.8%
Reflecting speculative stories stocks, the ARK Innovation ETF (ARKK) is up 2.7% and the ARK Genomics ETF (ARKG) is up 2.4%. Tesla stock remains the number one. 1 contract for Ark Invest. Ark, which has sold a significant amount of TSLA stock over several months, has been buying a lot of stock since late May, including on Tuesday. The Cathy Wood fund also owns some shares of BYD and Nio.
Top 5 Chinese stocks to watch right now
Stocks near the points of purchase
Eli Lilly’s stock rose 0.4% to 313.47 Wednesday, hitting resistance around its old buy point at 314.10. LLY stock rebounded this week from its 21-day and 10-week streaks, after pulling back last week amid an uproar over price control. Lilly stock’s relative strength line is just below record highs. The RS line, the blue line in the provided charts, tracks the stock’s performance against the stock’s performance. S&P 500 Index.
SNPS stock fell 2% to 322.89. Investors can treat the current consolidation as a double bottom base with 342.69 buy points. It is possible that Synopsys stock will start working on a handle, which would lower the official entry. While SNPS stock is off highs, RS line is at record highs.
EQNR stock fell 0.3% to 37.75, with a working entry of 38.80 cups with a handle, according to MarketSmith analysis. Equinor’s RS line is at an all-time high.
WLK stock fell 1.5% to 131.92, consolidating near the 10-week streak. Westlake Chemical stock is on track to have a flat base at 141.29 buying points at the end of the week. Investors may make an early entry above the short-term highs at 136-137. The RS line is at altitudes.
CPE stock rose 0.1% to 62.50. On the day, Callon stock hit 63.96, making a buy point of 63.44 cups with a handle. On Wednesday, major indexes fell, weighing on the shale oil producer. But CPE stock has a recent history of big intraday gains that fade or turn into losses at the close. CPE stock RS line is at high levels.
Market Rise Analysis
The stock market rally fell sharply on Wednesday. Nasdaq volume increased against stocks. Previous meeting, on the occasion of the new distribution day.
In general, the major indicators continue to show sideways movement, finding support at the 21-day moving averages. However, the S&P 500 and Dow Jones hit resistance at the 10-week lines, while the Russell 2000 fell back below the 50-day 10-week lines.
Additional side actions may be constructive to the rise of the market, allowing for the formation of more bases and handles. But with the single 21-day line trending higher, and the 50-day and 10-week lines steadily declining, the major indicators could come under pressure to break higher or lower.
Energy stocks remain a standout, although individual names can certainly have some big daily or weekly swings. Meanwhile, other sectors are struggling to show leadership for any length of time. The relative shortage of stocks that can be bought – and the high failure rate among new buying opportunities – has been a worrisome aspect of the current market rally.
ZIM and Star Bulk gave up a few weeks of gains on Wednesday, while Timken Steel (TMST) and Amphastar Pharmaceuticals (AMPH) slipped back below buying points after Tuesday’s impressive breaches.
Time to Market with IBD’s ETF Market Strategy
What are you doing now
If you’ve built a mediocre view over the past two weeks, there’s no good reason to add jobs at the moment. The market rally is range-bound, with the May CPI report due on Friday and the Federal Reserve meeting next week. Investors should quickly cut losses and consider taking at least partial profits relatively early.
A market rally could deteriorate, pushing investors to the sidelines. Or it could improve quickly, resulting in a flurry of buying opportunities. Investors must be alert to market changes and be prepared to act.
Read the big picture every day to stay in sync with market trend, 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