Dow futures fell early Friday, along with S&P 500 and Nasdaq futures, with Treasury yields continuing to rise. Also in focus are another Snap crash and reports of a possible security review of Tesla CEO Elon Musk’s Twitter deal.
The stock market’s bullish attempt on Thursday started strong but gave up gains, hitting major resistance as Treasury yields continued to rise on the back of fresh economic data.
Twitter (TWTR) was not affected by the Snap sale due to a looming Musk acquisition. But early Friday, TWTR stock fell after a report that the Biden administration was considering security reviews of various Musk deals, including its $44 billion acquisition.
tech giants apple (AAPL), Microsoft (MSFT), a parent of Google the alphabet (The Google), identification platforms, Amazon.com (AMZN) And the nvidia (NVDA) all hit resistance at their 21-day moving averages, just like the S&P 500 and Nasdaq. All of them were badly damaged, most of them not far from the recent lows.
While the bullish attempt continues, this market is still bearish until proven otherwise. Investors should be wary of making any new purchases in the current environment.
Snap stock crash again
Despite announcing a $500 million buyback, SNAP stock is down 29% in pre-market trading. That’s after crashing 43% and 39%, respectively, after the previous two earnings reports.
Meta stock, to be announced next Wednesday, is down modestly in extended trading. PINS stock sold after reversing lower at the 50-day and 200-day lines on Thursday. Both report next week.
Early Friday, the oilfield services giant Schlumberger (SLB) mentioned Better-than-expected earnings for the third quarter. Schlumberger stock rose modestly before the opening. The SLB stock is moving fast up the right side of a 38% deep cup base, but it’s not actionable yet.
Dow Jones Component American Express (AXP) outperformed EPS views but missed some revenue forecasts. American Express confirmed revenue targets for the full year. AXP stock is down sharply before the opening, not far from bear market lows.
Fellow Dow Stock Verizon Communications (VZ) EPS offerings and sales sales topped the quarter, despite lower wireless subscriber gains. VZ stock fell modestly on Friday, not far from its lows.
Dow jones futures contracts today
Dow Jones futures are down 0.65% against fair value, with AXP and Verizon down the blues. S&P 500 futures were down 0.7%. Nasdaq 100 futures sank 1.1%, with META stock falling.
The 10-year Treasury yield rose 8 basis points to 4.31%. The dollar exceeded 150 yen, the highest level in 32 years for the dollar.
Crude oil futures rose while natural gas prices fell about 5%.
stock market rise
The stock market rallied in the first hour of trading, but melted as Treasury yields rose again.
The Dow Jones Industrial Average fell 0.3% on Thursday stock market trading. The S&P 500 fell 0.8%. The Nasdaq Composite Index fell 0.6%. Small cap Russell 2000 fell 1.3%.
The 10-year Treasury yield jumped 10 basis points to 4.23%, a new 14-year high after jumping 13 basis points on Wednesday. The benchmark Treasury yield is on track for its 12th consecutive weekly gain.
Ahead of the opening, the Labor Department reported that initial jobless claims fell last week, defying views for a third straight gain. The Philadelphia Fed Manufacturing Index remained negative in October, slightly worse than consensus, but the employment sub-index indicated strong labor demand. This is not what the Fed wants to see.
The two-year Treasury yield is around 4.6%, as the Fed recently indicated that the Fed funds rate could peak. With that said, markets are currently expecting 4.75%-5% after the February meeting.
Crude oil futures expiring in November rose 0.5% to $85.98 a barrel, but pulled back from morning highs. The price of December crude oil fell 1 cent to $84.51. Natural gas prices fell 1.9%, extending their steep losses to their worst close since late March.
SPDR S&P Metals & Mining ETFs (XME) was up 0.5%, with STLD stock holding significantly. US Global Gates Foundation (ETF)Planes) gave up 0.8%. SPDR S&P Homebuilders ETF (XHB) down 2.5%. SPDR Specific Energy Fund (SPDR ETF)XLE) up 0.1% and the Financial Select SPDR ETF (XLF) slipped 1.6%. SPDR Healthcare Sector Selection Fund (XLV) down 0.8%.
Musk-Twitter deal review?
US government officials are considering subjecting Musk’s Twitter and Starlink deal to national security reviews, Bloomberg reported late Thursday. This comes after Musk’s threats to cut off Starlink’s access to Ukraine and Russia-friendly peace proposals.
According to the report, Musk’s foreign investors are also under scrutiny. Bloomberg said officials are looking at ways to review the deals, including using the Committee on Foreign Investment in the United States (CIFUS).
However, the White House said it is not aware of any national security reviews of Musk’s deals.
Twitter stock fell more than 8% at one point, trimming losses to 5% after the White House statement.
If there is a security review, it may not come until after Musk’s acquisition of Twitter is closed. Even if the review delays or hinders the acquisition, Musk may have to pay hefty fines to walk out of the deal.
TWTR stock rose 1.2% to 52.44 Thursday, just below the buyout price of $54.20.
Musk had wanted to pull out of the deal, but last month he changed his mind as his prospects for winning in court looked bleak.
Musk and Twitter appear to be heading toward closing the deal by an October 28 court-set deadline. Musk is said to be looking for new equity partners to fund his Twitter acquisition to avoid sales of new TSLA shares.
Tesla stock sold 6.65% to 207.28 Thursday, crashing to a 16-month low. Stocks pulled back a bit early Friday.
Late Wednesday, Tesla’s earnings narrowly beat third-quarter views while revenue came in sluggish. While Elon Musk promised an “epic” fourth quarter and said demand remains strong, he admitted that China and Europe are showing some weakness.
Tesla plans to produce far more cars than it offers in the fourth quarter, after production exceeded sales by 22,000 in the third quarter. The electric car giant says it’s doing it to ease deliveries versus the usual quarter-end madness. But this move comes as production capacity increases and the backlog in China fades.
New EV credits should support Tesla sales in the US in 2023.
Market Rise Analysis
The stock market’s bull run got off to a strong start Thursday, with the Nasdaq up nearly 1.5% in the first hour. But the Nasdaq, S&P 500 and Russell 2000 hit the resistance at the 21-day moving average again. Dow Jones continues to hold above 21 days.
Technical resistance coincided with Treasury yields rising once again.
Major indices remain solidly higher this week, despite trading near weekly lows. If yields see a sustained decline or pause, a market rally may be triggered. But if yields continue to rise, it is easy to imagine indicators pulling back towards bear market bottoms.
Still trying to get the market up Follow-up day To confirm the uptrend.
Energy stocks remain the clear lead. But many 50-day streaks have been extended. Energy stocks are subject to significant fluctuations with core oil and natural gas prices.
Some steel stocks show their strength. Medical names such as humana (hmmm), Cardinal’s health (CAH) And the Vertex Pharmaceuticals (VRTX) were mixed. Despite the height Lines of relative forceMany drugs do not make much progress.
What are you doing now
Market volatility adds to investor risk. The stock could look promising, but it sees solid gains fading away within a few minutes or hours. This is with the indices rising strongly during the week. If it is flat or low, negative reversals can be more painful.
Put the volatility aside and there are still good reasons to invest heavily now. The market rally did not have a follow-up day. The S&P 500 and Nasdaq are struggling at the 21-day line.
Next week, Dow Jones shares in Apple, Microsoft, Google, Meta Platforms and Amazon, Boeing (BA), Intel Corporation (INTC) and hundreds of other companies will report. These profits may be a catalyst for big market gains, sharp losses, or more downside actions.
The market may take an upward turn at any moment. A number of stocks can be actionable quickly if a definite rally begins. So stay engaged and keep your watchlists updated.
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.
You may also like:
“Web maven. Infuriatingly humble beer geek. Bacon fanatic. Typical creator. Music expert.”