Dow futures: stock market selling resumes as this bullish state turns bearish; FedEx Diving

Dow futures fell overnight, along with S&P 500 futures and Nasdaq futures FedEx (FDX) is falling overnight due to weak earnings and guidance. The stock market rally continued to weaken, as major indicators wiped out the small-to-modest bounce on Wednesday, while Treasury yields approached long-term highs.




X



The market is still dealing with Tuesday’s hot CPI inflation report, which changed the case for interest rate hikes from the Fed soon.

Adobe (ADBE) crashed on mixed results and a $20 billion acquisition. Oil and natural gas stocks have fallen along with energy prices, but solar and lithium stocks have also incurred huge losses.

Neurobiological Sciences (NBIX) And the Vertex Pharmaceuticals (VRTX) continued to behave well, even though it wasn’t easy to trade either.

Meanwhile, megacap technologies continue to weaken. apple (AAPL), which flashed on Monday with an early buy signal, undermined short-term lows on Thursday. Microsoft (MSFT) approaching June lows while a parent was at Google the alphabet (The Google) Determine the lowest closing level in 19 months.

NBIX stock is up IBD Leaderboard. Microsoft and Google shares work Long-term leaders of IBD. VRTX is located in IBD Big Cap 20.

FedEx earnings

After the close, FedEx reported that fiscal first-quarter earnings were down 21% year-over-year versus views that posted an 18% profit. Revenue increased modestly but slightly below expectations. The shipping giant also withdrew its fiscal year 2023 guidance and announced sweeping cost-cutting measures as it faces declining freight volumes. FedEx was due to announce first-quarter results on September 22.

FDX stock is down 17% in overnight trading. archival UBS (UBS6% sank. Amazon.com (AMZN) decreased by 2%. Amazon has downgraded its ties with FedEx, but the warning could be bad news for e-commerce in general.

separately , General Electric (GEHe said continued supply chain problems were putting pressure on cash flow. General Electric stock fell 4% overnight.

Dow jones futures contracts today

Dow futures are down 0.5% against fair value. S&P 500 futures were down 0.7%. Nasdaq 100 futures were down 0.8%.

The Chinese economy showed signs of recovery last month amid fresh stimulus measures. August industrial production grew by 4.2% over the previous year, outpacing the view count by 3.8%. Retail sales rose 5.4%, beating expectations of 3.5%.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.


Join IBD experts as they analyze actionable stock market actionable shares on IBD Live


stock market rise

The stock market opened higher on Thursday but that didn’t last, as the selling quickly took hold.

Jobless claims fell again to a three-month low, but other data, including retail sales in August, generally pointed to a weaker-than-expected economy, but with price pressures easing. The Atlanta Federal Reserve’s GDPNow tool estimates third-quarter GDP growth of just 0.5% versus its forecast of 2.5% in August.

The Dow Jones Industrial Average fell 0.6% on Thursday stock market trading. The S&P 500 lost 1.1%. The Nasdaq Composite lost 1.4%. Small cap Russell 2000 lost 0.7%.

Apple stock fell 1.9% to 152.37, paring its already huge handle drop. After rising above the 50-day and 200-day lines on Monday, stocks fell back below those key levels in the market crash on Tuesday.

Microsoft’s stock fell 2.7 percent to 245.38 Thursday, its lowest point since its mid-June low. Google’s stock fell 2% to 102.91, without paring from its intraday low on May 24, but its worst close since April 2022.

US crude oil prices fell 3.8 percent to $85.10 a barrel. Natural gas prices fell 8.7% as the averted rail strike will keep coal shipments going. Natgas rose on Wednesday.

The 10-year Treasury yield rose 5 basis points to 3.46%, despite the lackluster economic data. That’s just below the 11-year high of 3.48% set on June 14. One year return exceeded 4%.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) fell 2.1%, while the Innovator IBD Breakout Opportunities ETF (fit) lost 1%. iShares Expanded Technology and Software Fund (ETF)IGV) fell 3.2%, with major components of Adobe and MSFT shares. VanEck Vectors Semiconductor Corporation (SMH) down by 1.8%.

SPDR S&P Metals & Mining ETFs (XME) is down 2.75%. SPDR Specific Energy Fund (SPDR ETF)XLE) is down 2.6% and the Financial Select SPDR ETF)XLF) rose 0.3%. SPDR Healthcare Sector Selection Fund (XLV) rose 0.6%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) rose 2.2% and the ARK Genomics ETF (ARKG) 1.8%.


Top 5 Chinese stocks to watch right now


NBIX stock

NBIX stock rose 2.5% to 106.93 Thursday. Neurobiological Sciences now has a file flat base With 109.36 purchase points, according to MarketSmith Analysis. Stocks have flashed some early entries in the past two weeks, but they have fallen quickly. Shortly after Wednesday’s opening, NBIX stock slipped to 100.46, testing the 50-day line and the previous base top. In theory, a trader would have bought Neurocrine while bouncing off the 50 day line, but it takes a brave soul to place that bet in light of market conditions.

The line relative force reached a new high, reflecting the strong outperformance of NBIX stock in a weak market.

VRTX Stock

VRTX stock rose 1% to 287.67, just below the 50-day line. Vertex Pharmaceuticals flashed some early buying signals late last week, but was down 4.4% on Tuesday, down from the 50-day mark.

In a few days, Vertex stock may have its flat bottom.

Market Rise Analysis

The stock market rally shows no desire to recover. After Wednesday’s lackluster initial bounce from Tuesday’s heavy selling, these gains were easily wiped out by major indicators.

The Nasdaq 100, with the major weights of Apple, Microsoft and Google stocks, fell to its lowest level on Sept. 6 during the day. The Nasdaq and Standard & Poor’s 500 Index has yet to lower after its September 6 lows. But both put in their worst shutdowns since July.

A close of the Nasdaq below the September 6 low is likely to bring the market’s long-stalled rally to an end.

On a technical basis, the major indicators need to come back above the 50 day moving averages. 21-day streaks are now under 50-day streaks.

The looming Fed meeting adds to the risks over the next few days. More broadly, the market will likely struggle to make lasting progress until there is a strong feeling that the Fed will slow down and stop raising interest rates soon. That was the hope heading for Tuesday’s CPI inflation report. But no longer.

Meanwhile, not only is inflation higher than thought a few days ago, but economic activity is weaker. So the Fed will impose more “pain” amid the faltering economy.

A recession – or a zero-growing economy with tight labor markets – will be difficult for business.


Time to Market with IBD’s ETF Market Strategy


What are you doing now

Once again, the market rally was barely on hold. Several interesting stocks will flash a buy signal and then reverse lower the next day. It is a very challenging environment to invest in.

Until the major indices return above their 50-day moving averages, investors should have modest exposure, at most, and be extremely cautious about any new buying. Clarity on the Fed rate hike end game would be nice, but that may not come for several weeks or more.

Market conditions can improve or deteriorate rapidly. If it is the former, you will need to have an updated watchlist. If it’s the latter, you’ll be glad you worked on your watchlists versus buying new shares.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

You may also like:

Something extraordinary is happening with biotech stocks

Do you want to get quick profits and avoid big losses? Try SwingTrader

Best growth stocks to buy and watch

IBD Digital: Unlock IBD Premium Stock Listings, Tools & Analytics Today

Tesla vs. BYD: Which EV giant is the best one to buy?

Leave a Comment