August 16, 2022

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Dow futures drop: Inflation and jobs data could be a catalyst for a faltering market rally

Dow futures drop: Inflation and jobs data could be a catalyst for a faltering market rally

Dow futures fell sharply early Thursday, along with S&P 500 and Nasdaq futures, with some important jobs and inflation data due before the market opens.




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The stock market looked for an uptrend on Wednesday. The main indicators closed mixed with difficulty. But the details showed more weakness, with losers easily outperforming winners.

With the uptrend under pressure, it is not a good time to make new purchases or hold more than token exposure.

The medical sector continues to lead, rebounding from Tuesday’s losses. United Health (United nations) rose into the buy zone after the exit on Wednesday. Vertex Pharmaceuticals (VRTX) Reclaimed early entry after Tuesday’s dip. McKesson (MCK) keeps the main support at its shallow base, not far from the strong entry. Lanthius (LNTH) is trading around the 50-day line, consolidating after a huge rally earlier this year. Everyone has Lines of relative force Near record heights.

High end furniture retailer R (R) lowered full-year estimates, citing weak demand and a deteriorating economic environment. RH stock fell early Thursday, pointing to a two-year low. Stocks are already down 11% so far this week.

Simply good food (SMPL), which makes low-carb snacks and shakes, reported better-than-expected earnings for its fiscal third quarter early Thursday. SMPL stock rose before the opening. The stock rose 2% to 41.20 Wednesday, close to an early entry at 42.01 within consolidation.

Some other food and beverage stocks are doing well, reflecting the defensive mindset in the market. Cereal giant general mills (GIS) jumped 6.35% Wednesday to 74.72, outpacing earnings and dividend increases. Post collectibles (Mail) Right buy point While Kellogg (K) is preparing.

Tesla shares fell 1.8 percent to 685.47, down 7 percent since the beginning of the week. Stocks are continuing to pull back from their 10-week moving average and are heading back towards recent lows. LI stock rose 2.7% to 38.08, back above its buy point, but remained well above its major moving averages. Tesla (TSLA) and China EV startup Lee Otto (LI) will report second-quarter sales later this week.

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UN stock is running IBD Leaderboard. LNTH stock is in the leaderboard watch list. Simply Good Foods, UnitedHealth and VRTX stocks are available at defect 50. Vertex stock and MCK are on IBD Big Cap 20. It was Lanthus on Wednesday IBD stock today.

The video included in this article analyzes the market movement on Wednesday and discusses the shares of GIS, McKesson, Neurobiological Sciences (NBIX).

Dow jones futures contracts today

Dow futures are down 1.3% against fair value. S&P 500 futures lost 1.55% and Nasdaq 100 futures tumbled 1.8%.

Bitcoin dropped to $19,000. Late Wednesday, the Securities and Exchange Commission (SEC) rejected Grayscale’s offer to convert the Grayscale Bitcoin Trust (GBTC), which is the largest bitcoin fund, into a live ETF that tracks the spot price of bitcoin.

The 10-year Treasury yield fell 6 basis points to 3.04%.

Crude oil prices fell 1%, while gasoline futures sank more than 3%, continuing their decline from record levels. OPEC + meets today to discuss production quotas, but it is unclear how much actual production the organization and Russia can provide.

Copper prices fell more than 1%.

China’s manufacturing index for China rose 0.6 points in June to 50.2, moving back above the 50-point level for the first time in four months as the country recovered from the Covid lockdowns. But it was just under 50.5 views. The services index jumped to 54.7 from 47.8 in May.

The US ISM manufacturing index for June is due out Friday morning, after several negative reports from regional factories.

At 8:30 a.m. ET on Thursday, investors will get key US jobs and inflation data. The Labor Department will release weekly unemployment claims. The Commerce Department will release its Income and Expenditure Report for May, which includes the Fed’s preferred inflation measure.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.

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Join IBD experts as they analyze actionable stock market actionable shares on IBD Live


stock market rise

The stock market rally traded in a narrow range on Wednesday.

The Dow Jones Industrial Average fell less than 0.1% on Wednesday stock market trading. The S&P 500 lost a fraction. The Nasdaq Composite Index is up 0.3%. Small capital Russell 2000 lost 1%.

US crude oil prices fell 1.8% to $109.78 a barrel, reversing the morning’s strong gains. Gasoline futures fell 2.8 percent.

The 10-year Treasury yield fell 12 basis points to 3.09%. The two-year yield fell to 3.06%. The two- to 10-year yield spread has been reduced to 3 basis points, highlighting recession fears.

Federal Reserve Chairman Jerome Powell reiterated on Wednesday that the central bank’s priority is to fight inflation, even with the risk of a recession.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) is down 1.25%, while the Innovator IBD Breakout Opportunities ETF (fit) rose by 0.75%. iShares Expanded Technology and Software Fund (ETF)IGV) rose 0.2%. VanEck Vectors Semiconductor Corporation (SMH) sank 1.8%.

SPDR S&P Metals & Mining ETF (XME) fell 2.8% and the US Global Infrastructure Development Fund (ETF) (cradle) down 1.3%. US Global Gates Foundation (ETF)Planes) gave up 1.5%. SPDR S&P Homebuilders ETF (XHB) decreased by 0.4%. SPDR Specific Energy Fund (SPDR ETF)XLE) The Financial Select SPDR ETF slumped 3.5% and the Financial Select SPDR ETF (XLF) down 0.6%. SPDR Healthcare Sector Selection Fund (XLV) advanced 0.9%, with United Nations, Vertex and McKesson shares all in the ETF.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) ARK Genomics ETF slipped 1.6% and ARK Genomics ETF (ARKG) lost 0.6%. TSLA stock continues to lead across ETFs on Ark Invest.


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Market Rise Analysis

The stock market rally didn’t show an upward movement, it just ran a mixed session after Tuesday’s big losses.

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The details were less impressive, with losers outpacing rising stocks by about 2 to 1 on both the New York Stock Exchange and the Nasdaq.

The market moved into an “uptrend under pressure” on Tuesday as the Nasdaq Composite and S&P 500 closed below Friday’s lows. Follow-up day.

Research by Eric Kroll, co-author of The Lifecycle Trade, shows that there is a 90% chance that the rally will eventually fail when an index closes below its follow-up day low.

The rally is not officially over until indices break their recent lows.

The Dow Jones index did not close below a follow-up day low, but it’s not far off. Dow futures indicate blue chips open below FTD lows, but the close is what counts

For its part, the Russell 2000 index closed below Friday’s lows on Wednesday.

Medicines rebounded, while defensive food stocks performed well. But energy stocks, which rebounded earlier in the week, fell strongly on Wednesday.


Time to Market with IBD’s ETF Market Strategy


What are you doing now

The stock market rally has not ended, but the prospects are not high. The odds are simply not in your favor right now. Investors should focus on preserving their mental and physical capital and prepare for a sustainable upward trend in the market.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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