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Dow Jones Futures: Testing Market Rally in Ugly Treasury Auction; JP Morgan, UnitedHealth Due

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Dow Jones futures rose overnight, along with S&P 500 futures and Nasdaq futures. C. B. Morgan Chase (JBM), Citigroup (C), Wells Fargo (WFC), PNC Financial Services (Palestinian National Council), Black stone (Black) And UnitedHealth (United nations) is scheduled to report Friday morning.




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The stock market rally eased after a rebound in Treasury yields. The blame can be blamed on a CPI inflation report that was hotter than expected in some areas, which was followed by a 30-year Treasury auction that was not well received. Major indices came off their afternoon lows, but overall breathing was largely bleak.

Investors should pay close attention to the Nasdaq and S&P 500 at key levels, ready to expand or reduce exposure.

Among the large stocks, apple (Camel) rose while Microsoft (MSFT), both about potential purchase points. Google Parents the alphabet (Google) Meta platforms (dead) is down, but from 52-week highs. Nvidia (NVDA) rose after paring gains. Amazon.com (Amzn) Hit the key resistance while Tesla (TSLA) declined modestly.

Profits

JPMorgan, Citigroup, Wells Fargo, Citigroup and PNC Financial report on Friday morning, with concerns about interest rates, investment banking and deposits. The yield curve has become less inflexible, which is positive, but the overall rise in market rates will limit lending. Bank deposits may continue to see outflows, although that could be a bigger problem for larger regional areas like PNC as well as smaller financial institutions.

BlackRock is under pressure at a difficult time for many asset managers.

UnitedHealth, which started the results for health insurers, should see steady growth.

UN stock is at a six-month high during an 11-month consolidation period, with strong gains over the past few weeks. Financial stocks look bad to terrible, although JPM stock could look interesting with a strong earnings reaction.

Nvidia, Tesla and Meta stocks are in play IBD Leaderboard. Meta inventory is on SwingTrader. UNH and Microsoft stocks are on IBD’s list of long-term leaders. Nvidia and Tesla shares are in right now Bahraini dinar 50.

Dow jones futures today

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

The yield on 10-year Treasury bonds fell to 4.69%.

Crude oil futures rose a fraction.

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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Join IBD experts as they analyze leading stocks and the market on IBD Live


Stock market pool

The stock market rally started slightly higher on the major indexes, then reversed sharply as Treasury yields continued to rise, but then pared losses. Trading volume rose, especially on the Nasdaq.

The Dow Jones Industrial Average fell 0.5% in stock market trading Thursday. The S&P 500 Nasdaq Composite Index fell 0.6%.

Thursday’s declines came after four consecutive gains. But the indicators are facing difficulties at key levels.

The Nasdaq fell back below its 50-day line. The Dow Jones Index has once again reached the resistance level at the 200-day level. The S&P 500 fell below the 21-day moving average during the day, but closed just above that level.

Meanwhile, the basic procedure was even worse. Losers outnumbered winners by 3 to 1 on the Nasdaq and by 5 to 1 on the New York Stock Exchange.

Small-cap Russell 2000 and Invesco S&P 500 Equal-Weight ETF (RSP, which was facing resistance at the fast-declining 21-day line, fell by 2.23% and 1.25%, respectively. Both are close to their recent lows and into 2023.

The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) fell 0.9%, retreating from its 50-day line. The Nasdaq 100 is only 0.35% below its 50-day level.

US crude oil prices fell by 0.7% to $82.91 per barrel. Gasoline futures fell 2% to the lowest closing level in 2023.

The 10-year Treasury yield rose more than 11 basis points to 4.7%, which also led to significant gains in the US dollar. The 10-year Treasury yield bounced on CPI inflation, then rose at the 30-year Treasury auction. The auction witnessed weak demand and high returns.

The stock market rally benefited greatly from the decline in Treasury yields and the dollar. So these sharp gains are worrying. If the 10-year Treasury yield rises to 16-year highs, the upside could face real challenges.

ETFs

Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) decreased by 1.7%. iShares Extended Technology Software Fund (ETF)IGV) fell 0.4%, with MSFT holding a large share. VanEck Vectors Semiconductor ETF (Trait) by 0.5%. NVDA stock is the #1 component of SMH.

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Reflecting more speculative stocks, the ARK Innovation ETF (Ark) fell by 3.6% and the ARK Genomics ETF stock (Arkj) sold at 5.7%. Tesla stock is the #1 stock in Ark Invest’s ETFs.

SPDR S&P Metals and Mining Fund (XME) slid 3.2%. US Global Jets ETF (Planes) decreased by 2.3%. SPDR S&P Homebuilders ETF (XHB) stepped down by 3.8%. Energy Select SPDR ETF (XLE) rose by 0.1%. Healthcare Select Sector SPDR Fund (Forty-fifth) gave up 0.9%, and UN stock was a major holding.

Selected Industrial Sector SPDR Fund (forty-first) decreased by 0.9%

Financial Select SPDR ETF (XLF) decreased by 0.6%. JPM, Citigroup, Wells Fargo, BlackRock, and PNC Financial are all members of XLF.


Time the market with IBD’s ETF market strategy


Mega Cap Stocks

Apple stock rose 0.5% to 180.71, moving slightly above its 50-day line. Shares have a double bottom buy point of 189.98, but are close to entering a downward sloping trend line.

Microsoft stock fell 0.4% to 331.16, but remains above the 50-day line and just above the sloping trend line. Investors can use 340.86 as another early entry, with 366.78 the official buy point. Microsoft’s first-quarter fiscal 2024 earnings are scheduled to be released on October 24.

Google stock reversed from its 52-week high to fall 1.1% to 138.97. GOOGL stock is arguably still in the range from its 50-day line. Google’s earnings are set for October 24th.

Meta stock fell 1.1% to 324.16, pulling back from a 52-week high after four days of a big rally. The origin of Facebook and Instagram remains in range from the 312.87 entry. Meta earnings on October 25.

Nvidia stock rose 0.3% to 469.45, after reaching 476.05 during the day. Shares remain in a range of the 50-day line. The official buy point for the cup base is 502.66.

Amazon stock rose for the fifth straight session, rising 0.4% to 132.33, but pared gains after hitting resistance at the 50-day line. A decisive move above the 50-day line could provide an early entry. The e-commerce and cloud computing giant reported earnings on October 26.

Tesla stock fell 1.6% to 258.87, finding support at the 21-day line. The EV giant has a buy point of 278.98 for a cup with handle. But a move above Tuesday’s high at 268.94 would break the trend line since the beginning of the consolidation. Tesla’s earnings are due on October 18th.

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What are you doing now

Thursday’s negative reversal is why it is a good idea to add exposure gradually against a big wave.

Aside from some major technology companies, the market appears to be facing resistance, at least in the short term. Investors, especially those who have been aggressive in recent days, should be prepared to trim or exit their positions if they falter. A decline in the S&P 500 and Nasdaq below the 21-day line would be a negative sign.

However, stocks could easily rebound. A Nasdaq index decisively crossing its 50-day line – and the S&P 500 following it – will likely provide a number of buying opportunities. So, get your watchlists ready.

Earnings season is about to start, which adds a significant amount of uncertainty. Find out the earnings histories of your properties and potential purchases, as well as of your main competitors, customers or suppliers.

Chip equipment makers Applied materials (deaden), Kosovo Liberation Army Company (KLAC) And L Research (LRCX) All of them made upward movements on Wednesday morning. But L Research and ASML (ASML) Reports next Wednesday, with a large number of clients Taiwan Semiconductor Co., Ltd (TSM) scheduled in one day. So, while AMAT stock has no dividends due next month, it still has plenty of near-term earnings risk.

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

Please follow Ed Carson on X/Twitter at @IBD_ECarsonTopics in @edcarson1971 And Bluesky V @edcarson.bsky.social For stock market updates and more.

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