December 3, 2023

Brighton Journal

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Dow Jones futures: S&P 500 declines as yields rise; Tesla establishes a new purchase point

Dow Jones futures: S&P 500 declines as yields rise;  Tesla establishes a new purchase point

Dow Jones futures rose overnight, along with S&P 500 futures and Nasdaq futures.


A fresh stock market correction took its toll again on Thursday, as 10-year Treasury yields rose in a second-day reaction to the Fed meeting. The S&P 500 fell to its lowest levels in August, with the Nasdaq and Dow Jones close behind.

Blue chip stocks came under greater pressure. Nvidia (NVDA), which much like the Nasdaq, is approaching its August lows. Celsius Holding (CELH) sold off heavily for the second day, undermining the 50-day line. Adobe (ADBE), Uber technologies (Uber), Kings Project (DKNG), visa (Fifth) And (Amzn) fell below its 50-day averages after holding this level for a few days.

Tesla (TSLA) has pared recent gains, but holds key support while forming a new buy point. Meta platforms (dead) also has one less new entry. General Electric (General Electric), Lululemon Athletica (Lulu), Durian LPG (liquefied petroleum gas), Vertex Pharmaceuticals (Vertex), Ark Capital Group (ACGL) And Costco wholesale (it costs) And stocks are also holding up relatively well — for now.

Investors should have limited exposure and not look to make new purchases until the market shows real strength.

Nvidia, Meta, Tesla, Uber, and Celsius are all stocks IBD Leaderboard stocks, with DKNG stock on the leaderboard watchlist. Tesla, Celsius, Lululemon, and Meta stocks are in the market Bahraini dinar 50. Tesla stock exists IBD Big Cap 20. Dorian LPG was IBD’s stock of the day on Thursday.

Dow jones futures today

Dow Jones futures rose a fraction against fair value. S&P 500 futures rose and Nasdaq 100 futures rose 0.1%.

The 10-year bond yield rose slightly to 4.5%.

Overnight, the Bank of Japan meets, with much uncertainty over whether the new BOJ governor will further ease ultra-loose monetary policy.

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Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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Stock market correction

The stock market correction worsened, with rising Treasury yields weighing on major indexes.

The Dow Jones Industrial Average fell 1.1% in stock market trading Thursday. The S&P 500 fell 1.6% and the Nasdaq Composite fell 1.8%, a day after both undercut their follow-day lows on August 29, a very bearish signal.

The S&P 500 fell to its lowest levels in August, reaching its worst levels in nearly three months. The Nasdaq posted its worst close since early June. The Dow Jones index hit its lowest level in more than two months.

Market breadth, weak for so long, was very poor on Thursday, with losers and new lows dominating.

The small-cap Russell 2000 index fell 1.6% and the equal-weight Invesco S&P 500 ETF (RSP) and decreased by 1.7%. Both are at their worst levels since early June and just shy of their 200-day lines.

US crude oil prices fell three cents to $89.63 a barrel. Copper prices fell by 2.1%.

The 10-year Treasury yield rose 13 basis points to 4.48%, the highest since October 2007. The two-year Treasury yield, which is more in line with the Fed’s interest rate expectations, rose 3 basis points to 5.15%. This is a new level of 17%. High year.

As the soft landing hypothesis on Wall Street and the Fed took hold, the yield curve became less inflexible.


Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) and decreased by 2.6%. iShares Extended Technology Software Fund (ETF)IGV) slid 2.4%. VanEck Vectors Semiconductor ETF (Trait) Decrease 2%. Nvidia stock is the top weight in SMH.

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Reflecting more speculative stocks, the ARK Innovation ETF (Ark(Down 3% and ARK Genomics ETF)Arkj) 2.65%. Tesla stock is the #1 stock across Ark Invest. DKNG stock is among the top 10 stocks. Cathie Wood’s Ark recently trimmed its stakes in Tesla and DraftKings.

SPDR S&P Metals and Mining Fund (XME) Decrease 2%. US Global Jets ETF (Planes) fell 1%. SPDR S&P Homebuilders ETF (XHB) Step down by 2.5%. Energy Select SPDR ETF (XLE(Down by 1.4% and Healthcare Sector SPDR Fund)Forty-fifth) gave up 0.9%, with VRTX shares part of XLV.

Selected Industrial Sector SPDR Fund (forty-first) fell by 1.6%, with General Electric shares holding a large share. Financial Select SPDR ETF (XLFIt also lost 1.6%.

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Stocks to watch

Tesla stock fell 2.6% to 255.70, essentially eclipsing all of the previous week’s gains spurred by a bullish analyst call for the electric car maker’s supercomputer Dojo and its self-driving prospects. But stocks essentially held their 50-day line. TSLA stock now has a favorable handle, giving it a buy point of 278.98.

Meta stock fell 1.3% to 295.55, just below its 50-day line. But after riding low on trading volume for several weeks, the internet giant is facing some change. It now features a handle, giving it a lower buy point of 312.87.

Meanwhile, GE stock tested the 50-day line, closing just below it but within a narrow flat base. LULU and Vertex stock rebounded intraday from near their 50-day lines. Arch Capital and Costco have pulled out of nearby buy points, according to MarketSmith. LPG stock rose towards a cup-with-handle buy point.

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Remember, stocks can hold support until they don’t, as Adobe, DraftKings, Uber, Visa and Amazon showed on Thursday. The market is in a correction phase. If the major indices continue to decline, most of the remaining resilient stocks will collapse.

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What are you doing now

Investors must have largely or even all cash on hand, given the heavy selling in recent days and the past few weeks.

At some point, the stock market will have a bounce. But don’t get excited about a strong open or even a strong day or two. The best days in market history are in corrections or bear markets.

Instead, wait for evidence that the new market rally has real momentum, with a follow-up day to confirm the uptrend.

For now, work on your watch lists. A few stocks are holding up well, but many of the leaders have suffered significant damage and need time to repair. So focus on stocks that show relative strength.

Read The Big Picture every day to stay on top of the market trend and leading stocks and sectors.

Please follow Ed Carson on X/Twitter at @IBD_ECarson And on the topics in @edcarson1971 For stock market updates and more.

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