Overnight Dow futures are down a bit, along with S&P 500 and Nasdaq futures, with Cisco earnings in focus and BBBY stock news.
Wednesday’s stock market rally eased amid major resistance. Major indices initially pared losses after the release of the Federal Reserve’s meeting minutes from the July 27-28 meeting, but they fizzled out again with the shutdown.
lithium giant Sociedad Quimica y Minera de Chile (Square meters), a chip design company Synopsys (SNPS) and the tech giant, the underdeveloped Dow Jones Cisco Systems (CSCO) reported late Wednesday. SNPS stock rose slightly and Cisco stock emerged in extended actions based on strong earnings and guidance. SQM earnings are still running.
BBBY stock collapses late
Meanwhile, the meme stock has been newly revived bed bath behind (BBBY) is down 19% in late trading. BBBY stock rose 12% to 23.08 in Wednesday’s session, but closed near session lows after hitting a five-month high of 30 on the day.
Shares jumped 29% in huge trading volumes on Tuesday GameStop (GME) Chairman Ryan Cohen revealed that he still owns BBBY stock along with significant out-of-the-money options.
But late on Wednesday, Cohen revealed his intention to completely exit BBBY shares.
GME’s stock, the original meme stock, fell overnight after dropping 4% on Wednesday. AMC Entertainment (AMC), another meme stock, is down 14% in the regular session.
Federal Reserve Minutes
Federal policy makers agreed at last July’s meeting that further rate hikes are necessary, according to the recently released Fed meeting minutes.
Lower commodity prices, including energy, are not enough, according to the minutes of the Federal Reserve’s meeting, as policymakers emphasized that inflation pressures are broad-based. But they were also concerned about the economy slowing down too much.
They did not seem concerned that financial conditions had calmed since the June meeting, including lower Treasury yields and a rally in the stock market.
all in all , The Fed minutes did not hold any hawkish surprisesslightly dampening expectations of a rate hike.
However, the markets now see a 64.5% chance of a 50bp rate hike on September 21st. Move base point.
Dow jones futures contracts today
Dow Jones futures lost about 0.1% against fair value. S&P 500 futures were down 0.15% and Nasdaq 100 futures were down 0.2%. CSCO stock is a member of the Dow Jones, S&P 500 and Nasdaq Composite.
Stock market up on Wednesday
The stock market rally saw losses across the major indices after a mixed outing on Tuesday.
The Fed minutes didn’t change the key indicators much in the end.
Retail sales for July were flat, the Commerce Department said before Wednesday’s opening. This was just below the opinions. But sales excluding cars and gasoline rose 0.7%, bolstering expectations that the US economy will return to growth in the third quarter.
The Dow Jones Industrial Average fell 0.5% on Wednesday stock market trading. The S&P 500 lost 0.7%. The Nasdaq Composite is down 1.25%. Small cap Russell 2000 fell 1.7%.
US crude oil prices rose 1.8% to $88.11 a barrel, ending a three-day losing streak. US crude oil and gasoline inventories fell sharply in the last week, much more than expected. Gasoline demand over the past four weeks has reached its highest level in 2022.
The 10-year Treasury yield jumped 10 basis points to 2.89%. This is a four-week high, but still below the 50-day line.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) down just over 1%, while the Innovator IBD Breakout Opportunities ETF (fit) drops 0.5%. iShares Expanded Technology and Software Fund (ETF)IGV) down 1.7%. VanEck Vectors Semiconductor Corporation (SMH) down by 2.15%. SNPS stock is in IGV and SMH ETFs.
SPDR S&P Metals & Mining ETF (XME) decreased by 2.7% and the US Global X Fund for Infrastructure Development (cradle) sank 1.1%. US Global Gates Foundation (ETF)Planes) down 2.5%. SPDR S&P Homebuilders ETF (XHB) is down 1.7%. SPDR Specific Energy Fund (SPDR ETF)XLE) gained 0.8% and the Financial Select SPDR ETF (XLF) down 0.5%. SPDR Healthcare Sector Selection Fund (XLV) decreased 0.6%.
Shares of Apple, a member of the Dow Jones, S&P 500 and Nasdaq Composite, rose 0.9% to 174.55 on Wednesday. AAPL stock moved above a downward sloping trend line dating back to early January. This provides a buying opportunity.
AAPL stock rose in volume that was slightly above normal. But most of its strong upside over the past two months has been in a below-average trade. The tech giant could use a break. The handle will create a lower buying point and allow the moving averages to catch up.
Apple stock outperforms other major companies and the broader market: it line relative forcethe blue line in the provided charts, has been hitting record highs for a few weeks.
SQM earnings weren’t out on Wednesday night. Shares fell 1.2% to 104.42 in the regular Wednesday session, after sliding 5.1% on Tuesday in a bearish reversal. SQM stock is running at 115.86 buying points to the base of the cup after the early entry crossed 99.84 last week from a very low handle. A proper grip would be ideal for the SQM stock.
Synopsys Earnings Topped Views While the guidance was also powerful. SNPS stock rose in late trading. Shares fell 1.2% to 381, and settled above 377.70 official buying points. Synopsys stock already liquidated some early entries in late July and is still well above the 50-day line. If the stock stops near the top of the base, this could create a buying opportunity.
Competition rhythm design systems (CDNS), also above an official buying point, and recently rose.
Cisco topped financial viewers for the fourth quarter I was guided in Q1. CSCO stock rose strongly in the extended trade. Shares were down 0.2% at 46.66 on Wednesday. Cisco stock is up modestly from its lows in early July, but is well below its 200-day falling streak.
Ahead of Thursday morning’s earnings, BJ stock was down 0.2% at 69.13 Wednesday, not far from 71.10 buying points. COST stock rose 0.6% to 556.32 Wednesday, settling above a 552.81-cup buy point with a handle.
Market Rise Analysis
A day after the S&P 500 stopped short of its 200-day moving average, the major indexes pulled back on Wednesday. The Fed minutes moved the stocks but they eventually closed in about where they were at 2 p.m. ET.
Small companies and high-value growth stocks were the biggest losers, but the declines were broad outside the energy sector.
Dow Jones maintains support at the 200-day line. Russell 2000 undermines this key level. The S&P 500 and Nasdaq did not reach it.
The market rally has come a long way from its June lows as the 200 day line is a clear resistance area. So this is the obvious time and place for major indicators to pause or pull back.
For now, the market rally appears to be reluctant to concede a lot of ground. It can be argued that further decline would be constructive. It will allow Apple and other stocks that have climbed to the right side of the bases to take a break and shape the handles.
But the market will do what it will. Indicators can quickly cross the 200-day line or regress sharply to the 50-day line, or worse.
What are you doing now
Stocks tend to follow market and industry trends. That’s why it’s so important to pay attention to the general market, add exposure to confirmed uptrends and go largely or entirely to cash in corrections.
With the market reaching resistance at the 200-day line, investors should wait before increasing net exposure. They could consider taking some partial profits.
But keep working on watch lists. A pause in the market being updated can create great opportunities.
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