Dow Jones Futures Rebound Strong On China News; Does 2019 Stock Market Rally Have Ben?
On Friday morning, Dow Jones futures increased along with the S&P 500 futures and Nasdaq futures, amidst the joy of positive China news and ahead of the December job report and Fed Chairman Jerome Powell comments. In Thursday's stock market, the Dow Jones dumped the 2.8%, the S&P 500 index 2.5% and the Nasdaq composite 3%. Warnings from Apple (AAPL) and Delta Air Lines (DAL) and a large drop in a key production meter triggered the sale. The Apple stock tumbled 10% and the Delta share dived 9%, while iPhone vendors and other airline shares were sold. 2019 stock market rally attempts are still on. But for now there is still a stock market correction.
Dow Jones Futures Today
Dow Jones futures were 1.4% above fair value. S & P 500 futures climbed 1.5%. Nasdaq 100 futures jumped 2%. Keep in mind that taking over in Dow futures and elsewhere may not necessarily translate into actual trading in the next ordinary stock market session. However, Dow Jones futures signal the sharp Apple-led sales Thursday.
China News Spurs Global Stock Market Rebound
A trio of positive China news headlines asked for a global stock market swing. First, the Caixin service provider's index came out stronger than expected. Second, China's Central Bank deleted 100 basis points reserve requirements to support more lending and economic growth. It came after Premier Li Keqiang visited several Chinese bank giants and promised support for the economy. Third, China-confirmed negotiations in China and China will take place in Beijing on 7-7. December.
All this came after the Caixin factory meter this week signed contraction for the first time in almost two years. And of course, Apple became the last remarkable company to warn against China's weakness.
Concerns about the Chinese economy and the trade wars between the United States and China have been among the biggest winds on the stock market.
Shanghai composite, which is in a long bear market, rose 2.05% on Friday. The European stock markets are also trading sharply higher.
Stock Market Adjustment: Short Market Trials
Market adjustments and stock markets often have large fluctuations, and that has certainly been true in the recent downturn.
Apart from three-day upheavals in mid-October, Nasdaq has had three stock market collections. At the end of October to the beginning of November, Nasdaq trained higher than seven sessions. At the end of November to the beginning of December, Nasdaq moved over eight days. In both cases, they were capped by a day of compliance confirming the new market rally. Confirmed market collections sometimes fail, and when they do, it's usually soon apparent. Nasdaq immediately went southwards in both cases and entered new downs in a bear market at the end of December.
After the melting of Christmas Eve, the Nasdaq composite shifted up 5.8% on December 26. Nasdaq expanded its winning line to five sessions. Then came Thursday's sharp stock market of sales, led by Apple warehouse, Delta warehouse and many others. Apple is a member of the Dow Jones, S & P 500 Index and the Nasdaq Composite.
Until the market confirms a clear, positive direction, investors should remain on the sidelines. The stock market could go down again. But when it is a confirmed stock market collection, be ready to act, but don't be furious.
Stock Market Catalysts Friday
In addition to China news headlines overnight, US jobs and comments from Fed Chairman Powell report will be closely monitored Friday morning. Bulls would like to see strong job growth as a sign of a healthy economy, followed by Fed Chairman Powell, taking a more dovish tone on the economy, stock market and Fed policy.
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