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Dow Jones Futures: 5 Stocks Near Buy Points In Market Rally; Tesla FSD Beta Expands Widely

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Dow Jones futures rose slightly Thursday afternoon, along with S&P 500 futures and Nasdaq futures, with U.S. markets closed for the Thanksgiving Day holiday. Apple, Microsoft and Tesla are in the news.




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The stock market rally was positive for a second straight session on Wednesday. Fed officials see slower rate hikes coming “soon,” according to Fed minutes from the November meeting released Wednesday afternoon.

The Nasdaq led, buoyed by a rebounding Tesla (TSLA). The major indexes are all up solidly so far in this holiday-shortened week. But a longer holiday for the market rally could be constructive.

Investors should be cautious about adding exposure given key technical resistance and notable economic reports up ahead.

However, Dexcom (DXCM), UnitedHealth (UNH), Neurocrine Biosciences (NBIX), Medpace Holdings (MEDP) and Shockwave Medical (SWAV) are five health care stocks showing interesting action.

DXCM stock and Neurocrine Biosciences are on IBD Leaderboard, with MEDP stock on the Leaderboard watchlist. NBIX stock and Medpace are on the IBD 50.

Tesla FSD Beta Release

Tesla CEO Elon Musk tweeted Thursday that Full Self-Driving Beta is now available to any FSD owners in North America who request it.

That could allow Tesla to recognize more deferred revenue from FSD.

Despite its name, Full Self-Driving does not offer full self-driving, but is a Level 2 driver assist system. The National Highway Traffic Safety Administration is investigating Autopilot and FSD safety. The Justice Department reportedly is conducting a criminal probe of Tesla’s self-driving claims.

Tesla stock jumped 7.8% to 183.20 on Wednesday, rebounding from Tuesday’s bear market lows as Citigroup upgraded the EV giant from a sell to a hold. TSLA stock is still down 19.5% so far this month and has roughly halved in 2022.

Dow Stock Deal News

In Dow Jones stock news, Apple (AAPL) reportedly is interested in buying U.K. soccer giant Manchester United (MANU). The Federal Trade Commission may try to block the Microsoft (MSFT) deal to buy Activision Blizzard (ATVI) for nearly $69 billion.

Dow Jones Futures Today

Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures climbed 0.4%.

Mainland China reported more than 31,000 Covid cases, including those without symptoms, topping the mid-April levels during the Shanghai lockdown.  Covid infections with symptoms are still below April peaks.

U.S. stock exchanges will be closed Thursday for the Thanksgiving Day holiday. On Friday, U.S. exchanges will close early at 1 p.m. ET. But other exchanges around the world are open normally on Thursday and Friday.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


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


Stock Market Rally

The stock market rally had some wobbles Wednesday, but extended gains, led by techs.

Initial jobless claims rose to a three-month high while continuing claims hit an eight-month best. S&P Global’s purchasing managers indexes for U.S. manufacturing and services both signaled contraction.

The Fed minutes reinforced expectations of a 50-basis point rate hike at the Dec. 14 meeting. Markets still favor another half-point move in February, but there’s a decent chance of a quarter-point hike.

The Dow Jones Industrial Average rose 0.3% in Wednesday’s stock market trading. The S&P 500 index climbed 0.6%, led by TSLA stock. The Nasdaq composite popped 1%. The small-cap Russell 2000 edged up 0.1%.

U.S. crude oil prices tumbled 3.7% to $77.94 a barrel. Natural gas futures jumped 7.2%.

The 10-year Treasury yield sank 5 basis points to 3.71%. The two-year Treasury yield, more closely tied to the Fed rate hike outlook, dipped below 4.5%.

The U.S. dollar fell significantly for a second straight session, back near recent lows.


Why This IBD Tool Simplifies The Search For Top Stocks


ETFs

The iShares Expanded Tech-Software Sector ETF (IGV) climbed 1.5%. The VanEck Vectors Semiconductor ETF (SMH) gained 0.9%.

SPDR S&P Metals & Mining ETF (XME) edged up 0.3%. U.S. Global Jets ETF (JETS) nudged 0.1% higher. SPDR S&P Homebuilders ETF (XHB) climbed 0.5%. The Energy Select SPDR ETF (XLE) fell 1.1%. The Health Care Select Sector SPDR Fund (XLV) rose 0.4%. Dow Jones giant UNH stock is the top holding in XLV.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) popped 2.9% and ARK Genomics ETF (ARKG) 0.9%. TSLA stock is a major holding across Ark Invest’s ETFs.


Five Best Chinese Stocks To Watch Now


Stocks To Watch

Dexcom stock advanced 1.7% to 112.92, finding support at the 21-day moving average. DXCM stock has been pausing this month after gapping up on earnings on Oct. 28. Dexcom stock arguably has a long handle with a 123.46 buy point from a seven-month consolidation. Investors could buy DXCM stock from an early entry off the 21-day line, perhaps using Tuesday’s high of 113.88 as a specific buy point.

Medpace stock fell 1.3% to 218.81 on Wednesday. Shares have been consolidating near record highs since skyrocketing 38% on Oct. 25 following earnings. Since then, MEDP stock has been forging a messy handle on a deep, yearlong cup base. While shares have had some big intraday swings, MEDP stock is currently on track to forge a three-weeks-tight pattern by Friday’s close. Investors might use the Nov. 15 close of 226.57 as an early entry, above the bulk of recent trading.

NBIX stock sank 1.5% to 118.97. Shares are consolidating near multiyear highs, extended from an October breakout. Despite a plunge to the 50-day line last week, Neurocrine stock has a three-weeks-tight pattern that’s on track to go for a fourth week. Technically, that has a 126.09 buy point, though investors may want to wait for some quieter action.

Shockwave stock popped 4.7% to 264.06 on Wednesday, back above its 21-day line but hitting resistance at the 50-day line. After a failed breakout in late October and sharp sell-off that continued through earnings, SWAV stock has bounced back over the past week. A new base will take more time, but aggressive investors could use a strong move above the 50-day as an early entry.

UNH stock climbed 1.3% to 529.71, rebounding above its 50-day and 21-day lines after briefly undercutting its 200-day line last week. UnitedHealth stock used to be an IBD Long-Term Leader and still shares many characteristics. Investors could use a bounce from the 50-day line as either an early entry or a Long-Term Leader entry. UNH stock needs to forge a new base after a breakout from a cup-with-handle base quickly failed last month.


Tesla Vs. BYD: Which EV Giant Is The Better Buy?


Market Rally Analysis

The stock market rally added to Tuesday’s gains. The S&P 500 just topped its Nov. 15 intraday high and closed within 1% of its 200-day line.

The Russell 2000 came right up to its 200-day line.

The Nasdaq added to Tuesday’s rebound from the 21-day moving average, though it’s still below its Nov. 15 short-term high and well below its 200-day.

The Dow Jones came within 20 points of its Aug. 16 intraday high.

The S&P 500 moving decisively above its 200-day line — which coincides roughly with a yearlong declining-tops trendline — is a huge test for the market rally.

A slew of economic data could swing Fed rate expectations and thus the stock market. On Wednesday, Nov. 30, the October JOLTS report will show job openings, with Fed chief Jerome Powell speaking later in the day. On Thursday, the PCE price index, the Fed’s favorite inflation gauge, will be released, along with jobless claims and the ISM manufacturing index. The November jobs report is due on Friday, Nov. 2.

Ideally, the market would move sideways for a few days, letting at least the 21-day line catch up, heading into those economic reports.


Time The Market With IBD’s ETF Market Strategy


What To Do Now

The market rally has shown some nice gains this week, with more stocks flashing buy signals in the past few days. Investors could have added a little more exposure as a result.

But they may want to be cautious about making significant new buys with the S&P 500 hovering below its 200-day line and so much Fed-critical economic due next week.

Also consider taking some partial profits in stocks that run up quickly. Stocks have been making short-lived advances amid a choppy uptrend and sector rotation.

Still, investors should be working hard on their investing shopping lists, looking for set ups and actionable names across a variety of sectors.

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

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

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Larry Summers Says Fed Will Need to Boost Rates More Than Markets Expect

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(Bloomberg) — Former Treasury Secretary Lawrence Summers warned that the Federal Reserve will probably need to raise interest rates more than markets are currently expecting, thanks to stubbornly high inflationary pressures.

Most Read from Bloomberg

“We have a long way to go to get inflation down” to the Fed’s target, Summers told Bloomberg Television’s “Wall Street Week” with David Westin. As for Fed policymakers, “I suspect they’re going to need more increases in interest rates than the market is now judging or than they’re now saying.”

Interest-rate futures suggest traders expect the Fed to raise rates to about 5% by May 2023, compared with the current target range of 3.75% to 4%. Economists expect a 50-basis point increase at the Dec. 13-14 policy meeting, when Fed officials are also scheduled to release fresh projections for the key rate.

“Six is certainly a scenario we can write,” Summers said with regard to the peak percentage rate for the Fed’s benchmark. “And that tells me that five is not a good best-guess.”

Summers was speaking hours after the latest US monthly jobs report showed an unexpected jump in average hourly earnings gains. He said those figures showcased continuing strong price pressures in the economy.

“For my money, the best single measure of core underlying inflation is to look at wages,” said Summers, a Harvard University professor and paid contributor to Bloomberg Television. “My sense is that inflation is going to be a little more sustained than what people are looking for.”

Read More: Job Market Is Too Tight for Fed Comfort as Labor Pool Shrinks

Average hourly earnings rose 0.6% in November in a broad-based gain that was the biggest since January, and were up 5.1% from a year earlier. Wages for production and nonsupervisory workers climbed 0.7% from the prior month, the most in almost a year.

While a number of US indicators have suggested limited impact so far from the Fed’s tightening campaign, Summers cautioned that change tends to occur suddenly.

“There are all these mechanisms that kick in,” he said. “At a certain point, consumers run out of their savings and then you have a Wile E. Coyote kind of moment,” he said in reference to the cartoon character that falls off a cliff.

In the housing market, there tends to be a sudden rush of sellers putting their properties on the market when prices start to drop, he said. And “at a certain point, you see credit drying up,” forcing repayment problems, he added.

“Once you get into a negative situation, there’s an avalanche aspect — and I think we have a real risk that that’s going to happen at some point” for the US economy, Summers said. “I don’t know when it’s going to come,” he said of a downturn. “But when it kicks in, I suspect it’ll be fairly forceful.”

Inflation Target

The former Treasury chief also warned that “this is going to be a relatively high-interest-rate recession, not like the low-interest-rate recessions we’ve seen in the past.”

Summers reiterated that he didn’t think the Fed ought to change its inflation target to, say, 3%, from the current 2% — in part because of potential credibility issues after having allowed inflation to surge so high the past two years.

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©2022 Bloomberg L.P.

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Prince William meets President Biden, awards climate prizes By Reuters

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© Reuters. Britain’s Prince William, Prince of Wales arrives at the John F. Kennedy Presidential Library, in Boston, Massachusetts, U.S., December 2, 2022. Charles Krupa/Pool via REUTERS

By Jeff Mason and Brian Snyder

BOSTON (Reuters) -Prince William greeted U.S. President Joe Biden at Boston’s waterfront on Friday, the final day of a visit by British royals trying to focus attention on tackling environmental issues.

William and his wife, Kate, attempted to keep the spotlight on climate and other causes they champion on their first overseas trip since taking on the titles of Prince and Princess of Wales after the death of Queen Elizabeth in September.

In the middle of their U.S. visit, however, Netflix Inc (NASDAQ:) released a trailer for an upcoming documentary series about William’s younger brother, Harry, and his American wife, Meghan, reviving talk about rifts in the royal family. Buckingham Palace also was dealing with a new racism controversy.

On Friday afternoon, William smiled as he met Biden outdoors in cold weather along Boston’s waterfront. The two men took a brief stroll before a private meeting at the John F. Kennedy Presidential Library and Museum.

The pair were expected to discuss “shared climate goals” and “prioritization of mental health issues,” White House spokeswoman Karine Jean-Pierre told reporters before the meeting.

Later on Friday, William and Kate honored winners of the Earthshot Prize, an award William established to recognize people working on solutions to problems caused by climate change.

“By supporting and scaling them, we can change our future,” William said on stage at the black-tie ceremony, which was attended by English soccer star David Beckham, James Bond actor Rami Malek and other celebrities.

Kate and William last visited the United States in 2014, when they were guests of then-President Barack Obama at the White House.

Their current trip came just days before Harry and Meghan looked set to steal the limelight at an awards ceremony in New York.

For many in the British media, Harry and Meghan have become the royal villains, turning their back on duty while using their royal status to forge out lucrative careers and earn millions, including from Netflix.

In contrast, William and Kate are usually portrayed in the British media as dutiful and earnest, reflecting the style of the late queen.

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Watch all of Friday’s big stock calls on CNBC

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