The 10-year Treasury yield rose to a 14-year high during the week. But yields, especially the two-year rate, slipped on Friday in a Wall Street Journal report that raised hopes that Fed rate hikes would slow soon.
The major indicators moved above the major short-term resistance. Volatility remains high for indices, stocks and futures contracts overnight.
But with some positive market signals, investors should look for potential winners in the next bull market. snowflake (snow), Shift4Payments (four) And the double check (DV) are fast-growing technology companies that have been going public in the past two years. lithium giant Albemarle (ALB) And the Earthquake (SWAV) is also thriving, as their stock tries to return to a major level within the bases.
Meanwhile, Apple shares, Microsoft (MSFT), a parent of Google the alphabet (The Google), Amazon.com (AMZN), And the meta pads (dead) All reports next week, along with Boeing (BA), merck (Mrk), Vertex Pharmaceuticals (VRTX) and hundreds of other companies.
Apart from Vertex and MRK stock, they are both close buy pointsAll of the above names are good. Earnings reports can still be a catalyst for big market gains, sharp losses, or more pullback action.
Vertex stock and DV is on IBD Leaderboard as well as defect 50 existing. Albemarle and SWAV stocks are on the watch leaderboard. VRTX is located in IBD Big Cap 20. Microsoft and Google shares work Long-term leaders of IBD. Shift4Payments was on Friday IBD stock today.
Dow jones futures contracts today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
stock market rise
The stock market’s bullish attempt to start the week jumped, pared gains and then rebounded again on Friday.
The Dow Jones Industrial Average jumped 4.9% last week stock market trading. The S&P 500 rose 4.75%. The Nasdaq Composite Index is up 5.2%. Small cap Russell 2000 rose 3.6%.
Apple, Microsoft, Google and Amazon shares all recovered their 21-day moving averages on Friday.
Meta stock is nearing bear market lows, falling on Friday by Explode, Explode (Explode, Explode) in a disappointing third quarter report.
The market rebound came on Friday at the level of The Wall Street Journal The report said that Fed officials are considering a slowdown in rate hikes after the fourth consecutive move of 75 basis points at the November meeting. Markets are now slightly tilted towards a 50 basis point rate hike in December versus Thursday’s 75% odds of another three-quarter point increase.
There is clearly a slew of economic data between now and the Federal Reserve’s December 14th meeting.
The 10-year Treasury yield rose 20 basis points to 4.21%, the 12th consecutive weekly gain. But the benchmark Treasury yield has slipped back from Friday’s high of 4.31%, a 14-year high.
The two-year Treasury yield, which is closely tied to Fed policy, hit a 15-year high of 4.64% on Friday, but reversed sharply lower to end at 4.48%, down one basis point for the week.
With Treasury yields slipping from weekly highs and the Bank of Japan apparently stepping in to support the yen, the US dollar fell strongly during the week, mostly on Friday.
US crude oil futures rose 0.5% to $85.05 a barrel last week. But natural gas prices fell by 23%.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 5.6% last week, while the Innovator IBD Breakout Opportunities ETF (fit) rose by 4.2%. iShares Expanded Technology and Software Fund (ETF)IGV) is up about 7%, as MSFT stock was a huge component of the IGV. VanEck Vectors Semiconductor Corporation (SMH) rose 7.6%.
SPDR S&P Metals & Mining ETFs (XME) jumped 9% last week. Global Infrastructure Development Fund X US (cradle) gained 4.8%. US Global Gates Foundation (ETF)Planes) rose 5.35%. SPDR S&P Homebuilders ETF (XHB) gain 0.5%. SPDR Specific Energy Fund (SPDR ETF)XLE(Jumped 8.3% and the Financial Select SPDR ETF)XLF) rose by 3.8%. SPDR Healthcare Sector Selection Fund (XLV) rose 2.1%
stock to watch
Snowflake was announced in September 2020, rising to a record high of 429 in December 2020. But the stock fell all the way to 110.27 in June 2022. But SNOW stock has now established a bottom base around the 50-day line with a buy point of 205.76. Shares jumped 16% to 177.10 last week. A move above the 200 day line could provide an early entry. But snow stock can have a lot of general resistance.
Snowflake boasts strong revenue growth, but is now on the cusp of turning into a continuous profitable one, with significant gains expected in 2023.
Shares of DoubleVerify, an initial public offering in April 2021, have been consolidating for the past several weeks, finding support at the 50-day line. DV stock has 30.02 buy points. Stocks tried to breakout on Tuesday and pulled back, but there was still a solid week ahead. Strong earnings and strong revenue growth for playing digital advertising.
FOUR stock operates on its own base, with 51.52 buying points, according to MarketSmith Analysis. Shift4Payments stock could have an early entry above 48.66, which means liquidation of the 50 day and 200 day lines. The digital payments processor, an initial public offering in June 2020, is expanding from restaurants into a variety of other areas. Earnings growth is strong and is expected to remain so until 2023.
ALB stock rebounded nearly 14% last week to 270.01 after falling nearly 13% in the previous week as some analysts bet on a drop in lithium prices. Prices of the metal used in electric vehicles have soared to record levels as supply exceeds demand for years to come. Albemarle, which has not gone public recently, is reaping the benefits from higher-priced contracts as production increases over time.
ALB stock now has a new base with 308.34 buy points. A decisive move above the 50-day line could provide an early entry.
SWAV stock jumped 9% last week to 276.70. It’s still below the 50-day streak, which has been resistance lately. Shockwave stock has 315 buy points. But a strong move above 50 days may also break the trend line, providing an early entry. One caveat: The volume has been light in recent days and weeks.
But Shockwave’s earnings are rising amid triple-digit revenue growth.
The line relative force It holds near all-time highs, though SWAV stock has retreated from its late August highs.
Market Rise Analysis
The stock market rally is still choppy but it showed a positive move. Major indexes were above Monday’s open, and remained comfortably positive all week even as Treasury yields continued to rise.
Friday’s Wall Street Journal report suggests that Fed officials may finally be preparing to change aggressive tightening.
The Dow Jones closed the week comfortably above its 21-day moving average, with the S&P 500, Russell 2000 and even the Nasdaq Composite above that short-term level on Friday.
Options expiration helped increase trading volume on the New York Stock Exchange.
The market rally may have legs, but that doesn’t mean it’s far from racing. This could be another bear market rally. The Dow Jones is below its 50-day moving average – and above the 10-week line – with the other indicators not lagging too far. Above the 50-day line looms the 200-day average and mid-August highs.
Oil stocks are doing well, thanks to the recent uptrend in crude oil prices and expectations of further gains during the winter. Natural gas producers are struggling with lower natural gas futures prices.
A few growth stocks have been broken, but many are still under construction, such as ALB and Shockwave.
What are you doing now
Keeping your emotions in check while remaining flexible is an essential part of investing. The market rally is showing some strength, so you can’t stay locked in a bearish mindset. But you don’t want to get too excited and rush back with big bets.
Investors can take some small positions in stocks or ETFs in the broad markets. If that works, and the market rally continues to build momentum, you can slowly add more to your positions. But if the market falters again, quickly pull back.
So be sure to update your watch lists over the weekend. You have a selected list of stocks that are actionable or potentially actionable in the coming days. But also keep a broader list of stocks that show relative strength.
Remember, earnings season can upset the market and sectors as a whole, not just individual stocks. Apple’s earnings can swing across a wide range of iPhone chip makers and suppliers. Microsoft, Google, Meta Platforms, and Amazon can raise hopes or suspicions about cloud computing, IT spending, e-commerce, and online advertising.
Microsoft and Google stock report Tuesday night, Boeing and Meta are scheduled to release Wednesday. Merck, Vertex, Amazon and Apple shares on Thursday.
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