October 2, 2022

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Dow down ahead of Fed meeting minutes; Retail sales miss expectations

Dow futures drop: what to do after the stock market rally today;  Fed set to raise rates

The Dow Jones Industrial Average is trading slightly lower after reversing a five-day winning streak that cut across the 200-day moving average yesterday.




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The blue-chip index opened lower by 0.6% and fell 0.1% by noon, while the S&P 500, which was down 0.8%, lost another 0.2%. The Nasdaq Composite, which led the downside, slipped further by 1.7% led by small companies. The Russell 2000 benchmark small cap index, which fell 1.34% at the opening, was down another 0.5%.

The yield on the benchmark 10-year Treasury bond added 78 basis points to 2.90%. Crude oil stabilized after its recent sharp decline, settling at $87.18 a barrel.

Trading volume was slightly lower on the Nasdaq and New York Stock Exchange compared to the opening hours on Tuesday.

Retail sales delayed

Retail sales for July missed expectations, unchanged from June. However, LPL chief financial economist Jeffrey Roach noted that consumers had more money for discretionary spending in July. The company also noted that retail sales in July and an upbeat Walmart quarter show continued consumer spending, buoyed by a strong job market.

Investors are now focused on the release of the Fed’s minutes at 2pm from the July meeting, when central bankers raised interest rates by 75 basis points crucial to fighting inflation. Signs of slowing inflation now gave hope for an easing of the Fed’s tightening at the September meeting.

Stimulation on EV and healthcare

The Inflation Reduction Act was signed into law by President Joe Biden on Tuesday. There is now a $7,500 tax credit for eligible electric vehicle purchases and health care benefits for eligible people. EV pure plays like Tesla (TSLA) And the Rivian (countryside), health care companies such as United Health Group (United nations), and renewable energy stocks such as Energy Enphase (ENPH) And the Solar Edge (SEDG) is likely to benefit.

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United Nations is IBD Leaderboard Stock while Enphase is a file Sector Leader.

Lithium product and IBD Leaderboard stock, Albemarle (ALB) also takes advantage of the law, which requires a certain level of minerals for electric car batteries to be mined locally or from US Free Trade Agreement partners to qualify for a tax credit.

Dow Jones shares under watch

shares apple (AAPL) On Watch as the iPhone 14 launch approaches. The release date should be in September when Apple usually releases new phones and watches. The stock just got an upgrade to Outperform from Neutral by Credit Suisse analyst Shannon Cross.

The stock was also one of Warren Buffet’s biggest purchases in its second quarter Berkshire Hathaway a file. The stocks are building a double bottom base within a longer consolidation and showing 179.70 buying points.

Another leader of the Dow, Disney (dis) reaches its 200-day moving streak after a strong quarter. The media and entertainment giant recently overtook Netflix in subscriptions at the same time that revenue from its popular parks has skyrocketed.

Long-time technology leader and Dow shares Cisco (CSCO) announces second-quarter earnings after the market closes. In the previous quarter, the network giant reported revenue of $12.8 billion, flat in the same quarter of 2021, though profits rose 7%. company Expect slightly lower revenue, With a profit of 60-70 cents for the current quarter.

Overview of the US stock market today

index Code price win/loss % change
Dow Jones (0DJIA) 33898.42 -253.59 -0.74
Standard & Poor’s 500 (0S & P5) 4262.68 -42.52 -0.99
Nasdaq (0NDQC ) 12879.56 -222.99 -1.70
Contact 2000 (IWM) 196.45 -4.5 -2.2
defect 50 (fifty) 28.95 -0.49 -1.66
Last update: 12:00 PM Eastern Time 7/27/2022

Outside the Dow

Retail giants targeting (TGT) And the Louie (a little) missed the second quarter forecast. Lowes reported lower-than-expected same-store sales but earnings above estimates. Shares rose in early trading.

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Published goal A 39 percent per share profit, missing expectations of 79 cents by a wide margin. The company maintained its full-year forecast. Shares of Target, which rose yesterday after Walmart beat its earnings, tumbled, but were down from today’s lows.

retailers kohl (KSS) And the foot locker (FloridaAlso this week, with KSS tomorrow and Foot Locker on Friday. Kohl broke above the 50 day line yesterday. FL shares also rose.

Analog devices (ADI) recorded double-digit growth, with Revenues of $3.1 billion and profits of $2.52 for each share. However, shares are down more than 4%.

Perfect meme movement

Bed bath and outside (BBBY) in tears after the news of it Jim Stop (GME) CEO Ryan Cohen bought out-of-the-money options for $1.6 million, allowing him to buy the stock for between $60 and $80. The shares are trading at 20.65. In a perfect meme move, the news comes as BBBY struggles to keep the doors open after a bleak first quarter.

On the other hand, Elon Musk scored one small win after another Twitter (TWTRThe employee was asked to provide documents that might reveal the number of fake accounts on the social media platform.

Twitter posts and Tesla (TSLA) fell after the news.

IBD stock leaderboard, Costco Wholesale (cost) is still being monitored. The stock is at 552.81 buy point at the base of a teacup with a handle.

Make sure to follow Vidya on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.

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