Dow Jones futures turned lower Wednesday morning, along with S&P 500 futures and Nasdaq futures, despite their strength Netflix (NFLX) Subscriber growth and other upbeat earnings reports. Futures jumped overnight but reversed as Treasury yields jumped to new highs. In the meantime, Tesla’s earnings loom large tonight.
An attempt to rally the stock market added to the gains on Tuesday but closed away from the highs in a volatile session. Reports apple (AAPL) iPhone production did not help. Apple shares fell briefly but managed to close slightly higher.
While the market rally is still underway, nothing has been confirmed yet. Investors should pay close attention and remain vigilant.
Netflix subscriber growth It was much stronger than expected in the third quarter, with the broadcasting giant also optimistic about its fourth-quarter customers. Profits also topped. Netflix stock is up, indicating a breakout. Disney (dis) And the Rocco (ROKU) also rose overnight.
intuitive surgical (ISRG) Outperformed third-quarter earnings per share and revenue forecasts. ISRG stock jumped overnight. Intuitive stocks are close to their lows. But the results for makers of robotic surgical systems could be a good sign for other medical equipment companies.
United Airlines (UAL) Delivered Strong third-quarter earnings and fourth-quarter guidanceafter looking up from Delta Airlines (DA) last week. UAL stock jumped in the extended trade, with delta adding to the regular session’s gains.
ASML (ASML) posted better-than-expected third-quarter earnings and strong build-up early Wednesday. The Dutch chip maker said it was not affected by the US ban on chip exports to China. L research (LRCX) followed on Wednesday night. ASML stock emerged ahead of the opening, with Lam Research also higher. ASML and LRCX stock are just above their lowest levels since 2020.
Meanwhile, there was new evidence of Elon Musk’s existence Twitter (TWTR) An acquisition could be imminent. TWTR stock is not far from the buy price of $54.20 per share.
Dow jones futures contracts today
Dow Jones futures are down 0.4% against fair value, even as P&G and DIS shares rise. S&P 500 futures sank 0.5%. Nasdaq 100 futures lost 0.45%. NFLX, Intuitive Surgical and United Airlines stocks are components of the S&P 500 and Nasdaq 100.
Futures pulled back from strong overnight gains, with Nasdaq futures up more than 1.5% at one point overnight.
The 10-year Treasury yield jumped 10 basis points to nearly 4.1%. The yield reached a 14-year high of 4.08% on Friday.
UK inflation jumped again to a 40-year high of 10.1% in September, pushing yields higher.
Crude oil futures are up more than 1%.
The United States may increase sales of the Strategic Petroleum Reserve during the winter, according to reports late Tuesday. The government will pledge to buy back crude reserves at or below $67 to $72 a barrel.
COVID-19 cases in Beijing hit a four-month high, raising fears of serious restrictions or lockdowns in the capital and elsewhere.
stock market rise
The stock market’s attempt to rally began strongly but fell from the highest levels almost immediately. A choppy session followed, although the major indices closed with solid to strong gains.
The Dow Jones Industrial Average rose 1.1% on Tuesday stock market trading. The S&P 500 rose 1.15%. The Nasdaq Composite advanced 0.9%. Small cap Russell 2000 rose 1.2%.
The 10-year Treasury yield fell one basis point to 4%, after falling to 3.97% shortly after the market opened, then climbing to 4.07%, just below its 14-year high.
US crude oil prices fell 3.1% to $82.82 a barrel amid reports that the Biden administration will release more crude oil from the Strategic Petroleum Reserve. Natural gas futures are down 4.2% after falling 7% on Monday.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) up 1.15%, while the Innovator IBD Breakout Opportunities ETF (fit) rose 1.3%. iShares Expanded Technology and Software Fund (ETF)IGV) made 1.7%. VanEck Vectors Semiconductor Corporation (SMH) closed just above the break-even point. ASML and LRCX stocks are important SMH holdings.
SPDR S&P Metals & Mining ETF (XME) rose 1.3% and the US Global X Fund for Infrastructure Development (cradle) added 2%. US Global Jets ETF (Planes) rose 2.5%, with the main components of United Airlines and DLL shares.
Apple iPhone concerns
Apple decided to cut production of the iPhone 14 Plus just two weeks after the big screen phone went on sale. This is according to the information, citing sources. It comes after earlier reports that tech giant Dow Jones was limiting iPhone 14 production in general. However, the 14 Plus wasn’t seen as a big seller, with investors focusing more on the more expensive iPhone 14 Pro versions.
The iPhone Plus report came as Apple unveils new iPads.
Apple earnings are due on October 27.
Apple shares rose 0.9 percent to 143.75 on Tuesday. However, shares are up 3.1% on the day, breaking the 21-day streak.
Netflix earnings beat estimates as subscribers increased by 2.41 million versus analyst views of nearly 1 million. The tech giant saw a 4.5 million subscriber increase in the fourth quarter. On November 3, the streaming giant will launch an ad-supported category for $6.99 per month. Netflix is also ramping up its efforts to crack down on password sharing in hopes of boosting subscribers.
But the days of easy subscriber growth are long gone. It’s a tough and expensive battle just to hold on to existing customers, with Disney+, Apple+, HBO Max, Paramount+ and many more fighting for viewers’ eyeballs and wallets.
NFLX stock rose 13% to about 272 early Wednesday. Shares fell 1.7 percent to 240.86 on Tuesday, after climbing 6.7 percent on Monday. Netflix stock contains 252.09 buy point From the bottom base, according to MarketSmith Analysis. It should cross that level easily, but could test the 200 day long slip line.
Disney stock jumped 2% in pre-market trading. DIS stock rose 1.2% on Tuesday, below the 50-day and 200-day lines.
Roku stock is up 2% in extended actions. Shares have collapsed since hitting a record high of 490.76 in July 2021, but jumped 1.3% on Tuesday.
Tesla earnings are due late Wednesday. Analysts expect Tesla’s profit to jump 76% from the previous year, with revenue rising strongly.
But demand concerns are growing amid rising production and declining backlogs. So investors will be excited to comment on Tesla’s deliveries in the fourth quarter and next year.
Tesla stock rose 0.4% to 200.19 Tuesday after rising to 229.75 in the morning. Tesla stock hit a 15-month low on Friday.
CEO Elon Musk may have more reason to be bullish on Wednesday night’s earnings call. Assuming the Twitter deal closes, possibly by October 28, Musk may need to sell additional Tesla shares in the coming days to help pay for the $44 billion acquisition. Some estimates suggest that Musk may need to sell another $8 billion of TSLA stock.
Bloomberg reported that Twitter closed employee stock accounts Tuesday “in anticipation” of a deal. Twitter stock rose just over 2% to 51.78.
Market Rise Analysis
At Tuesday’s open, the S&P 500 and Nasdaq Composite gapped above their 21-day moving averages, joining the Dow Jones and Russell 2000. All major indices also moved above Friday’s highs, after all on Mondays despite big gains .
Major indices pared or canceled gains as Treasury yields approached recent highs, rebounded somewhat, and then slipped back on Apple iPhone news. The Nasdaq is well below the 21-day line while the S&P 500 closed slightly above that level, but in the lower half of the range.
At one time, the leading indicators were pointing to the possibility of Follow-up day To confirm the new uptrend. The Dow and S&P 500 closed strong, with volume above Monday’s level. But the gains weren’t strong enough to qualify as a follow-up. A good close of the high session wasn’t exactly indicative of strength.
FTD can happen at any time. A sure market rally would be a positive sign, but not a guarantee. Even if it works, there could be another rally in the bear market hitting resistance at the 50-day or 200-day lines.
Aehr . Test Systems (AEHR) Opened an entry point at 17.80 with heavy trading volumes. The RS line of AEHR has reached its peak in 2022. But the stock is well above the 50-day line and subject to significant volatility.
double check (DV) hit a buying point and arguably crossed some lower entry points a bit before cutting gains.
What are you doing now
This is a fun time trying to rally the market has made some progress, but the move has been choppy, with both resistance and support at the 21-day line. Buying stocks is difficult, because if you buy aggressively, the gains can disappear quickly if the market reverses from its intraday highs.
So if you make any moves, get in slowly and be prepared to get out quickly.
There is nothing wrong with staying fully or almost completely cash, waiting for more clarity in the market.
But while you wait, stay in touch with the market. And work on those watchlists. Stocks can quickly move in or out of their location in the current climate, so be sure to keep your watchlists up to date. Focus on a selection of exercisable or semi-executable stocks, keeping an eye on a broader list of stocks that show strong relative strength.
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