Dow Jones rises, tech companies lead after market shorts; Alibaba, these Chinese stocks are winning | daily business investor

The Dow and S&P 500 turned slightly lower on Friday morning, while the Nasdaq pared gains, after a massive market sell-off sent major indexes to their worst levels since late 2020.




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Futures had pared or reversed gains after Federal Reserve Chairman Jerome Powell said policy makers were “very focused” on getting inflation back to its 2% target. Stocks rebounded quickly from a volatile start but fizzled out again.

Adobe (ADBE) shares fell on the back of earnings guidance, while US Steel (X) rose on initial second-quarter earnings.

US-listed Chinese stocks were big early gainers. Hopes for China’s Economic Improvement, Positive Verdict for Ant Group, the closely related digital financial giant Ali Baba (BABA) and its founder, Jack Ma, boosted the stock.

BABA stock popped up after the opening, along with other e-commerce giants JD.com (dinars) and Bindudu (PDD), although it pared early gains. The iShares MSCI China ETF (MCHI) is up 1.7%. The KraneShares CSI China Internet ETF (KWEB) is up 2.8%.

Electric vehicle start-up in China New (NIO), Exping (XPEV) and Lee Otto (LI) Everyone is up in pre-market trading, too. China EV and battery giant BYD (BYDDF) is not yet active, but it is close to recording highs.

Tesla (TSLA) rose modestly in morning trading. The EV giant raised Model Y prices in China, a day after massive US price increases on most of its electric vehicles. TSLA stock fell 8.5% Thursday to just above an 11-month low set on May 24.

Fellow Megacap Stock apple (AAPL), Microsoft (MSFT) The Facebook Parent ID pads (META) all cut 52-week lows, along with leading indicators. All roses on Friday morning.

MSFT stock is at IBD Long-Term Leaders. LI stock is at IBD 50.

Dow Jones today

The Nasdaq rose 0.6%. S&P 500 futures are down a bit. Dow futures lost 0.3%. ADBE stock’s losses weighed slightly against the S&P 500 and Nasdaq.

Futures pared gains after Powell’s comment on inflation.

“The Fed’s strong commitment to our mandate for price stability contributes to broad confidence in the dollar as a store of value,” Powell said at a Fed-sponsored conference before the market opened. To that end, my colleagues and I are highly focused on getting inflation back to our 2% target.

The 10-year Treasury yield remained unchanged at 3.31%, after falling earlier.

US crude oil prices fell about 4%.

Bitcoin traded below $21,000, just above an 18-month low of $20.087.90 earlier this week.


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China stock

US-listed Chinese stocks were the biggest gainers in the morning.

Reuters reported, citing unnamed sources, that China’s central bank accepted Ant Group’s request to become a financial holding company. This could be a step towards the long-awaited initial public offering of the digital financial giant. China’s last-minute halt to Ant’s initial public offering in late 2020 marked the start of the country’s security crackdown.

BABA stock is up 2%, although far from opening and pre-market highs, moving towards another test of resistance at the 200-day line, after reclaiming the 50-day line a few weeks ago.

JD.com stock is up 5%, also advancing toward the 200-day streak. The stock advanced even though CEO Shane Lijun told Bloomberg overnight Friday that consumers are curbing discretionary spending, even after Shanghai ended shutdowns on June 1. But it saw a rebound during the second half of the year.

PDD stock is up 1%. Pinduoduo is China Number. 3 e-commerce companies after Alibaba and JD.com.

China’s EV stock rises

As for electric vehicle stocks, Nio is up 5% and Xpeng is up 9%. Both hold support at the 50-day lines, but they have some distance to come back above the 200-day lines. This week Nio unveiled its newest electric vehicle, the ES7 SUV. This will be Nio’s third new electric vehicle this year for a group of five.

Li Auto stock rose 6% to 33.62, with the electric car maker heading for its sixth weekly gain. Stocks are in deep and long consolidation at 37.55 buy points. The handle, the higher the better, the build will be. LI stock’s relative strength line is at a 52-week high.

Li Auto will reveal a second hybrid sports utility vehicle, the L9, next week, with deliveries beginning in the third quarter.

BYD stock is up 3%. Stocks fell this week after approaching record levels. According to MarketSmith analysis, BYD stock has 41.24 buying points from a deep cup base. But it is working on the handle, which should appear on the weekly chart after Friday, with 39.81 buying points. BYD’s RS line just fell from a record high.

BYD, which has not been greatly affected by the Covid shutdown, will launch several new models in the next several weeks. Deliveries in Australia will begin in the third quarter.


Top 5 Chinese stocks to watch right now


Adobe earnings

Adobe’s earnings rose 11% in the second quarter, while revenue rose 14%, both modestly topping analysts’ opinions. But the software giant has led to lower results for the entire year. ADBE stock is down 3% Friday morning. Adobe stock hit a two-year low on Thursday.

Dow futures: US steel earnings guidance

US Steel was guided by second-quarter earnings late Thursday. This came after strong preliminary results in the quarter ending in June of Nokor (NUE) and steel dynamics (STLD) earlier in the week.

US Steel jumped 1%, off its intraday highs and still heading for big weekly losses. Nucor and STLD stock also fell during the week amid a broad market sell-off. If the economy enters a recession, steel demand and prices are likely to weaken significantly.

Tesla Stock

Tesla’s stock rose slightly. On Thursday, shares fell 8.5% to 639.30. TSLA stock is almost down from its May 24th low of 620.57.

Dow Jones Index Futures: Megacap Techs

Apple shares rose less than 1%. So did Microsoft and META stocks. All slides hit 52-week lows on Thursday.

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