Dow futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market’s bullish attempt showed resilience on Wednesday. Major indices fell sharply on Wednesday morning with Treasury and dollar yields rebounding, but stock indices rebounded to close only slightly lower.
The market rally still hasn’t established itself, although that could happen soon. Patience – and money – are still key.
Medical names are well raised, including Vertex Pharmaceuticals (VRTX), Cigna (CI), Shock Wave Medical (SWAV), Sarepta treatments (SRPT), Cardinal’s health (CAH), Option care health (to open) And the Neurobiological Sciences (NBIX). while, on semiconductors (on me), Imping (PI) And the Arista Networks (Network) are resilient technical names.
Oil stocks were strong with OPEC + agrees to a significant production cut at a meeting on Wednesday. ExxonMobil (XOM) also pointed to strong results in the third quarter. XOM stock is flashing a buy signal on Wednesday.
VRTX and Neurobiological Sciences stock available at IBD Leaderboard, with stock PCTY and Shockwave in the watch list. SWAV, Vertex, Paylocity, Sarepta and Onsemi stocks are in the range defect 50. Arista Networks, Vertex, On Semiconductor and ENPH shares are located in IBD Big Cap 20. Halfway through was Wednesday IBD stock todaywith Paylocity, Enphase, and ANET stock picks as well.
Dow jones futures contracts today
Dow futures advanced 0.3% against fair value. S&P 500 futures rose 0.3% and Nasdaq 100 futures rose 0.4%.
The 10-year Treasury yield fell one basis point to 3.75%.
Stock market up on Wednesday
The stock market’s bullish bid fell Wednesday morning, but the major indexes came away from session lows, briefly turning positive before fading out with minimal losses.
The Dow Jones Industrial Average fell 0.1% on Wednesday stock market trading. The S&P 500 was down 0.2%. The Nasdaq Composite Index is down 0.25%. Small cap Russell 2000 loss 0.6%
US crude oil prices rose 1.4% to $87.76 a barrel, extending strong weekly gains. OPEC+ agreed to cut production quotas by two million barrels, at the end of expectations ahead of Wednesday’s meeting.
The 10-year Treasury yield jumped 14 basis points to 3.76%, erasing most of this week’s losses.
between the Best ETFsThe Innovator IBD 50 ETF (fifty(down 1%, while the Innovator IBD Breakout Opportunities ETF)fit) decreased 0.4%. iShares Expanded Technology and Software Fund (ETF)IGV) rose by 0.45%. VanEck Vectors Semiconductor Corporation (SMH) gained 1%.
XOM stock rose 4% to 99.12, extending the movement above the 50-day line, and is now up 14% over the week. Exxon stock broke a downward sloping trend line in a four-month consolidation process. Investors can use 101.66 as another early entry, with 105.67 as the official buy point. The line relative force XOM’s stock has already reached a new high.
Higher energy prices are fueling the recent recovery in Exxon shares. late on tuesday, Exxon reported strong results in the third quarter.
Stocks are solid
Stocks of VRTX, Neurocrine Bio, and Option Care Health are all close to buying points and arguably now doable. SWAV, Cigna and Sarepta stocks are all very close to being actionable from trendline entries. So are ANET and On Semiconductor stock, which were flashing early buy signals, despite light volume. PI stock is close.
Enphase stock fell 9.25% to 261.60, breaking through recent lows in the largest volume since the earnings gap hike on July 27. ENPH stock, which peeked above the 50-day line and flashed a buy signal on Tuesday, is now decisively below that key level, according to MarketSmith Analysis.
First Solar (FSLR), which surpassed the brief consolidation on Tuesday, fell 5.9% on Wednesday, with several other solar toys sold out.
Tesla stock fell 3.5% to 240.81, but eased back from an intraday low of 233.27. Over the course of the week, TSLA stock fell 9.2%, extending its significant losses since reversing lower on September 21. Stocks are still reeling from weak third-quarter deliveries on Sunday, reflecting weak Chinese demand.
Meanwhile, CEO Elon Musk’s stated intention to move forward with Twitter’s $44 billion deal is raising fears that he will sell more TSLA shares to help pay for it.
The saga of the Musk-Twitter acquisition isn’t quite over. While Musk says he’s willing to go ahead with the original $54.20-a-share deal, Twitter won’t just take his word for it and agree to stop trial proceedings. The two sides are holding talks with a view to agreeing on conditions that provide real guarantees.
Musk could have Twitter in a few days. But for now, the trial of the Musk-Twitter acquisition is still scheduled to begin on October 17.
Twitter’s stock fell 1.35% to 51.30 on Wednesday. That’s after a 22% rise to 52 on Tuesday, after Musk pulled back.
Market Rise Analysis
The stock market rally attempt has reached a major turning point. Is this the start of a meaningful uptrend or just a short-term bounce from oversold conditions?
Wednesday’s procedure didn’t answer those questions, but it was encouraging.
The market made significant gains on Monday and Tuesday. On Wednesday, the bulls showed that they would not give up at the first sign of trouble.
The Dow Jones, S&P 500 and Nasdaq indexes all pulled back near their 21-day moving averages at the open, and quickly gave up the bulk of Tuesday’s gains. But they steadily trimmed their losses and turned positive before returning at the last minute to the red.
The Dow Jones and S&P 500 indexes briefly appeared above their 21-day lines while the Nasdaq Composite approached.
Russell 2000 manages to hold it for 21 days, which is shaping up to be a key short-term level for all indicators.
The losers easily beat the winners on Wednesday, as the market breadth was weaker than closing indexes might suggest.
Meanwhile, a lower 10-year yield and a weaker dollar were the main catalysts for the market’s rally on Monday and Tuesday. So it’s no surprise that stocks sold off on Wednesday morning with Treasury yields and the dollar back.
Major indices pared losses although yields remained near session highs. It can happen on a specific day. But over time, stocks are unlikely to advance appreciably, or even hold up, if Treasury yields rise.
Oil, gas and coal stocks like Exxon are advancing, thanks to a rebound in energy prices.
Medical names like Vertex and Option Care Health have held up relatively well, even at intraday market lows. So did Arista, PCTY and ON stocks. A few agricultural and mineral plays are formed.
A number of blue-chip stocks fell sharply, at least for the day. Some still have good charts, while others like ENPH stock have suffered major damage.
Investors can now search for a file Follow-up day To confirm the new march. Friday’s jobs report could be the catalyst for a strong rally in the market or heavy selling.
A follow-up day will be a positive sign, but it is not a guarantee. At the moment, the stock market rally attempt is still inside a sharp bear market.
What are you doing now
Investors need to be patient. An attempt to rise in the market achieved some strong gains this week, as a number of the leading stocks performed or came close to buying points. But it did nothing to indicate that it remained in power.
It remains to be fully monetary, or with minimal exposure, a sound strategy. If this turns out to be a meaningful rally in the market, there will be plenty of chances after the follow-up day.
For investors who got in on some promising names this week, be prepared to exit if trades turn against them.
That being said, a sure upswing in the stock market could come at any time. A number of stocks are showing strength and are likely to be doable with more market strength. So investors need to stay connected and work on their watch lists.
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