Dow Jones Futures: Technology Rises in Volatile Market Stocks; Has the inflation fever reached its peak?

Dow Jones futures rose modestly overnight, along with S&P 500 futures and Nasdaq futures, with a major inflation report in print. The stock market had an up-and-down session on Tuesday, with technologies closing higher as the Dow Jones fell.


Coin base (COIN) and Unity software (U) plunged late on weak results for the first quarter. COIN shares and Unity are notable Ark Invest holdings

Meanwhile, the Merck stock, Dollar tree (DLTR) is among the shares worth following in the ongoing market correction.

Inflation report

The Ministry of Labor will release the consumer price index for April at 8:30 ET on Wednesday. Economists expect the CPI to show an increase of 0.2% compared with March. The core CPI, which excludes food and energy, should rise by 0.4%. Year over year, consumer prices should rise 8.1%, down from the March 40-year high of 8.5%. Core inflation should decline to 6% from March 6.5%. Year-on-year comparisons are getting tougher.

In the meantime, the Ministry of Labor will release the producer price index for April on Thursday.

Stocks to see

Dow fight Merck (MRK), Louisiana-Pacific (LPX), Atkore (ATKR), Anthem (ANTM) and DLTR shares are all worth seeing right now.

The Merck share holds just below a buy point for cup with handle. LPX shares and possibly Atkore are working on handles after both went up in earnings last week. ANTM stock and Dollar tree (DLTR) has withdrawn to its 50-day lines around the top of previous buying zones. This can offer a buy opportunity or a sell signal.

Meanwhile, the relative strength line is for apple (AAPL) continues to reach new highs, as shares rose 1.6% on Tuesday. The AAPL stock is struggling to get back to its 200-day line, but it’s easily the coolest megacap.

Microsoft (MSFT) looks much worse than Apple stock, but returned 1.9% on Tuesday after falling below the 2022 lows. Cyber ​​security game Fortinet (FTNT) jumped 6.8% on Tuesday after also falling below its lowest levels in 2022. It may be a hopeful sign for these institutional quality software leaders, but they are nowhere near being able to act.

Anthem and Microsoft stocks are on the IBD Leaderboard. The MRK share is on SwingTrader. Microsoft and FTNT stocks are long-term IBD leaders. The ATKR stock is at IBD 50. Dollar Tree was Tuesday’s IBD Stock Of The Day.

The video embedded in the article reviewed Tuesday’s market action and analyzed Merck shares, Louisiana-Pacific and Anthem.

Dow Jones Futures today

Dow Jones futures rose 0.2% vs. fair value, trading between small gains and losses. S&P 500 futures rose 0.3% and Nasdaq 100 futures rose 0.6%.

Crude oil futures rose 1 percent.

The CPI Inflation Report is guaranteed to move Dow Jones futures and government interest rates before opening.

China’s consumer prices rose 2.1% in April compared with the previous year. Producer prices rose by 8 per cent. Both were slightly higher than expected. It comes amid severe Covid shutdowns that have reduced production and demand.

Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

Join IBD experts as they analyze powerful stocks in the stock market rally on IBD Live

Stock exchange Tuesday

The stock market opened sharply higher, soon turned lower, and then picked up again before fading to mixed.

The Dow Jones Industrial Average fell 0.3 percent in Tuesday’s trading session. The S&P 500 index climbed 0.2%, led by the FTNT stock. The Nasdaq composite rose 1 percent. Small-cap Russell 2000 closed little changed.

The US crude oil price fell 3.2% to 99.76 dollars per barrel, back below 100 dollars. Oil prices fell 6.1 percent on Monday.

The 10-year government interest rate retreated nine basis points to 2.99%. The 10-year interest rate reached 3.17% intraday Monday before the reversal lower.

Among the best ETFs, Innovator IBD 50 ETF (FFTY) fell 0.2%, while Innovator IBD Breakout Opportunities ETF (BOUT) fell 0.5%. iShares Expanded Tech-Software Sector ETF (IGV) rose 1.3%, with MSFT stock as No. 1 and Fortinet also a component. VanEck Vectors Semiconductor ETF (SMH) up 2.5%.

The SPDR S&P Metals & Mining ETF (XME) fell 1.1% and the Global X US Infrastructure Development ETF (PAVE) lost 1%. US Global Jets ETF (JETS) rose 0.9%. SPDR S&P Homebuilders ETF (XHB) fell 1.4%. Energy Select SPDR ETF (XLE) rose 0.9% and Financial Select SPDR ETF (XLF) fell 0.9%. Health Care Select Sector SPDR Fund (XLV) rose 0.4, with MRK shares and Anthem both holdings.

Sheet shares fall

ARK Innovation ETF (ARKK) reflects more speculative history shares, and fell 0.1% in Tuesday’s ordinary session and ARK Genomics ETF (ARKG) fell 3.1%. But both fell in trade overnight.

Coinbase and Unity shares are top 10 Ark Invest holdings. The COIN share and Unity reported weaker-than-expected results for the first quarter and provided weak guidance, with Coinbase also applying for a mixed shelf offer. Coinbase plunged 16% overnight while Unity shares crashed 29%. Both already fell to fresh record lows on Tuesday.

Five best Chinese stocks to see now

Market analysis

The stock market got a big boost on Tuesday’s open, reversed lower, rebounded again before fading to close mixed. The Nasdaq rose solidly but well outside intraday highs, while the S&P 500 rose and the Dow Jones fell slightly.

The market was supposed to bounce, but Tuesday’s action was hardly inspiring. At best, it marked day one of a stock market rally attempt for the Nasdaq and S&P 500 index.

If the major indices continue to rise, investors can look for a follow-up day from next week.

There is little in the way of market leadership right now.

Energy, fertilizer and other commodity stocks tried to pick up on Tuesday after Monday’s serious losses, but the rise faded or even turned into a loss. The mine and metal stocks have already crumbled.

A few drug manufacturers like Merck are doing well, while some medical service companies like the ANTM stock are hanging on. Some wood and building materials companies are trying to establish themselves, including LPX warehouse.

Consumer goods, such as food producers and low-cost retailers, are holding up or going higher. But will these defensive games leave behind when a new market rally takes hold?

Growth stocks are still in brutal downturns. While investors should still look at Apple stocks and a few giants like Microsoft, they are definitely not buying right now.

The major indices may react positively to Wednesday’s inflation report, but it will not be a game changer for the Federal Reserve. Fed rate hikes are likely to continue at a rapid pace until a downward trend in inflation is in place over several months. Nevertheless, a relatively tame inflation report may ease fears that the Fed will not be able to construct a soft landing.

Time market with IBD’s ETF market strategy

What to do now

Investors should not be tempted to add exposure until there is clear evidence of a market uptrend.

Just last week, the major indices rose for three days in a row, and the rise on March 4 at the Federal Reserve meeting was particularly encouraging. We know how it ended.

At this point, investors should wait for a follow-up day before making new purchases. Even then, investors should be careful, gradually adding exposure as a new market trend accelerates, and quick to withdraw if the rally lags.

There may be few shares to buy on an FTD. Even many stocks with strong relative strength are far from highs or have damaged charts.

See the market action on the sidelines and keep your watch lists fresh.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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