Dow futures were little changed early Thursday, along with S&P 500 futures and Nasdaq futures. The stock market rally boasted solid gains on Wednesday, closing at a session high amid big news from China, the Russia-Ukraine war and a hawkish Federal Reserve.
GB Hunt Transportation Services (JBHT), Costco Wholesale (cost) And the Harmony in the biological sciences (HRMY) erupted Wednesday, at least during the day, while Rambus (RMBS) flirt with a point of purchase.
Nvidia stock, despite its good gains, made a strong move towards a very strong entry.
Fed rate hike
The Federal Reserve raised interest rates by a quarter point on Wednesday as the central bank seeks to rein in high inflation while navigating a series of economic uncertainties. Policy makers have also indicated that they will do so Raise rates six more times in 2022while also planning to reduce the massive balance sheet of the Federal Reserve soon.
The Fed’s policy announcement noted that the Russian invasion of Ukraine “is likely to create additional upward pressure on inflation and affect economic activity.”
Federal Reserve Chairman Jerome Powell, in his post-meeting press conference, said the central bank plans to steadily raise interest rates through 2022. But he again stressed that policy makers would be “smart”, noting to take faster or slower action as required. Circumstances.
10-year Treasuries jumped to 2.24%, on the day, the highest since May 2019, but pared gains during Fed Chair Powell’s remarks. The 10-year yield settled on a gain of 3 basis points to 2.19%. The two-year yield jumped 7 basis points to 1.93%. Meanwhile, the 30-year Treasury yield fell 6 basis points to 2.45%.
A flat yield curve indicates concerns about continued economic growth. Fed Chairman Powell said the risks of a recession over the next year “are not particularly high”.
Russia’s invasion of Ukraine
President Volodymyr Zelensky addressed the US Congress on Wednesday, urging more support. President Joe Biden signed into law $13.6 billion in military and humanitarian aid to Ukraine, with the United States and its allies sending in more advanced anti-aircraft systems.
Earlier, Zelensky described the Russian-Ukrainian peace talks as “more realistic”. Russia indicated that Ukraine was neutral with an army that could be acceptable.
But Russian President Vladimir Putin gave a televised address on Wednesday in which he reiterated many of his truth-defying allegations about Russia’s “special operation” in Ukraine. He also called for “self-cleansing,” which can be a signal for disinfection in the home.
Speaking about Russia’s invasion of Ukraine, Biden said Putin was a “war criminal.”
Amid heavy losses in the Ukrainian invasion, Russia is withdrawing more troops and equipment from various places, including from the Far East and occupied parts of Georgia.
China stock prices rise after bullish comments
On March 16, Beijing signaled its support for Chinese companies listed in the United States, indicating that it was working with US regulators to address review concerns, and allay delisting concerns. It also announced that the crackdown on the internet giants would end “as soon as possible”. US-listed Chinese stocks rose on Wednesday, but only recovered part of the massive losses in the past two weeks, not to mention the long slides over the past year.
KraneShares CSI China Internet ETF (KWEB), which includes many large Internet networks such as Ali Baba (Baba), rose 39% to 30.92. But KWEB is still down 7.6% so far this month and well below its February 17, 2021 peak of 104.94.
Chinese lockdowns in Shenzhen and elsewhere remain a major concern.
Meanwhile, South Korea has reported 621,328 cases of the novel coronavirus, more than 1% of the total population in one day. Infections in Vietnam are also on the rise.
The video included in this article covered Wednesday’s bull market action and highlighted HRMY, Nvidia, and JB Hunt stocks.
Dow jones futures contracts today
Dow futures were down 0.1% against fair value. S&P 500 futures were down 0.15% and Nasdaq 100 futures were up a little.
The 10-year Treasury yield fell 5 basis points to 2.14%.
Crude oil prices rose more than 1% overnight.
stock market rise
Wednesday’s stock market rally kicked off strong gains that largely faded with the Fed’s rate hike and hawkish signals before rebounding again.
The Dow Jones Industrial Average rose 1.55% on Wednesday stock market trading. The S&P 500 jumped 2.2%. The Nasdaq Composite Index is up 3.8%, its best percentage gain since November 2020. Small cap Russell 2000 jumped 3.1%.
US crude oil futures fell 1.5 percent to $95.04 a barrel. Crude oil prices crossed $130 on March 5th.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) up 2.3%, while the Innovator IBD Breakout Opportunities ETF (fit) rose 0.4%. iShares Expanded Technology and Software Fund (ETF)IGV) jumped 4.2%. VanEck Vectors Semiconductor Corporation (SMH) rose 5.3%. The NVDA stock is a major component of SMH.
SPDR S&P Metals & Mining ETF (XME(Up 0.5%, Global X US Infrastructure Development ETF)cradle) advance 1.8%. US Global Gates Foundation (ETF)Planes) went up by 5%. SPDR S&P Homebuilders ETF (XHB) popped 2.1%. SPDR Specific Energy Fund (SPDR ETF)XLE) is down 0.5% and the Financial Select SPDR ETF (XLF) rose by 2.8%. SPDR Healthcare Sector Selection Fund (XLV) added 1.2%
JB Hunt Stock
JBHT stock rose 9.6% to 218.06, exploding from a flat base With 208.97 purchase points, according to MarketSmith Analysis. The size was well above average. The Relative force line JBHT stock had already hit new highs before Wednesday’s breakout.
JB Hunt cooperates with BNSF Railway, which is owned by Warren Buffett’s Berkshire Hathaway (BRKB), to enhance multimodal shipments.
Meanwhile, other shipping companies showed strong measures on Wednesday. Dominion old shipping line (ODFL) is up 4.7%, right on the early entry of the trendline. UBS (UBS) rose 3.5%, offering an early entry as it jumped above the 50-day line and the trendline. Union Pacific (UNP) rose inside the buy zone. And the Danaus (DAC) officially increased, up 7.6%, as ocean freight inventories continued to rise.
Costco stock rose 0.2% to 543.39. On the day, COST stock jumped to 551.62, briefly closing 545.39 buying points from a cup with handle stationed.
HRMY stock jumped 8.9% to 47.72, up above 45.99 cup base Buy a point and reach the 52-week high. Harmony stock has recently pulled back from its buying point after rallying. The knob-like pause makes HRMY stock feel less stretchy.
RMBS stock rose 4.9% to 29.01, returning above 28.32 cup with handle buy point This is no longer technically viable after stocks fell on Friday. The chip technology company’s shares were at a short-term high on March 3rd which marks the top of the new handle. Investors can use 29.11 as a buy now point.
Nvidia stock It rose 6.6% to 244.96, reclaiming the 21-day streak and closing below the 50-day streak. Crossing the 50-day line, which roughly corresponds to the trend line, could be a strong entry for the chipmaker.
Competitor Nvidia Advanced Micro Devices jumped 5.5%, just above the 200-day streak. But it’s still below the fast-declining 50-day streak.
Market Rise Analysis
The stock market’s bull run had another wild day, but it closed out with solid gains at session highs. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all rose above them 21 day exponential moving averagesclosed above that key level for the first time since Feb.
Small Russell 2000 also regained its 21-day streak.
Volume on both the Nasdaq and the New York Stock Exchange rose versus the previous session, which is another positive sign.
This is an important day to read The Big Picture.
But is this a short-term bounce or something more important?
The 21-day line is a key move, but the major indicators have risen above this level several times in 2022 only to immediately reverse lower. There are still plenty of hurdles ahead for the major indicators, including the early March highs as well as the 50-day and 200-day lines.
This market is still at the mercy of the latest news, lifting or sinking the major indexes.
Who will drive?
Assume for the time being that the market is about to have a continuous uptrend for several weeks or months. What sectors will you lead?
Commodities played a clear leadership role in the market during the correction period, but is this trend over?
Defense stocks continued to give up gains from the Russian invasion of Ukraine.
The health insurance companies tried to break out but then backed out. Will defensive growth stocks lead to a risky environment?
Shipping companies still look strong. Surrounding shippers have been pioneers for a long time, as the DAC stock has exploded after previous buy signals flashed. Meanwhile, “dry” shipping companies such as JB Hunt, Old Dominion, Union Pacific and UPS are ahead.
Hard-earned high-value growth stocks were the biggest gainers on Wednesday. But will strong growth really lead if interest rates continue to bullish?
What are you doing now
The market movement on Wednesday was positive. But don’t get too excited.
It remains unclear if the market is changing its character or if this is a bull trap. It is unclear which stocks and sectors will lead in any ongoing uptrend. For this reason, investors looking to increase exposure can do so by purchasing a market-wide ETF such as SPY or QQQ.
This is not the time to increase exposure quickly. If this market has a strong trajectory, you will have plenty of opportunities to make gains. If that last bounce reverses quickly, you’ll be happy with your exposure.
Definitely work on your watch lists. You want to be prepared to take advantage of buying opportunities.
Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.
You may also like:
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”