Dow Jones futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures after the Bank of Japan unexpectedly took a dovish stance. Shares of United Airlines and Moderna soared on the news. Massive Microsoft job cuts could take place on Wednesday.
Despite the strong decline in the Dow Jones, the stock market rally was a relatively quiet session.
Tesla (TSLA) continued its bear market rally, rising 7.4% to 131.49. The stock price has been slightly above the 21-day line, but remains well below the 50-day line, especially he’s the 200-day line. Tesla China’s EV registrations jumped last week after Tesla China’s recent big price cuts. But it may take some time for investors to get a clear picture of the impact of Tesla’s global price cuts and demand. Tesla’s earnings for the fourth quarter will be released on his January 25th.
A few days outage will set more inventory. This includes stocks that have risen from early entries and have available handles.
chevron (CVX), Vertex Pharmaceuticals (VRTX) and TJX Co., Ltd. (TJX) are currently three viable instruments.
But overall, investors should be patient.
Bank of Japan is strong
The Bank of Japan kept its monetary policy on hold. The Bank of Japan has maintained its policy of keeping interest rates and Japanese government bonds near his 0%. In December, the Bank of Japan effectively raised rates by raising his 10-year Japanese yield to his 0.5%. This has sparked speculation that the Bank of Japan will end its zero interest rate policy altogether.
The BOJ’s decision to stay on hold rocked Dow futures, Treasury yields and the dollar.
united airlines (UAL) and interactive broker (IBKR) reported Tuesday night.
United Airlines’ earnings comfortably exceeded its fourth-quarter guidance, but the airline also provided bullish guidance. UAL shares edged higher after hours. The stock fell 0.9% to 51.20 on Tuesday, but has surged eight times since.
Interactive Brokers’ revenue also exceeds views. IBKR shares rose slightly on last night’s move. The stock fell 2 cents to 77.19 on Tuesday, tackling his 80.95 buy point from a double bottom base. Friday’s move above the 50-day line provided early entry, but was just before the breakthrough.
Charles Schwab (SCHW) and shipping company JB Hunt Transport Service (JBHT) is scheduled for early Wednesday. SCHW shares rose 0.6% to 83.49 on Tuesday, entering the buy zone. JBHT’s stock fell 0.3% between the 50-day and 200-day lines to 176.29.
The UAL strain is at IBD 50. The VRTX stock is in the IBD Big Cap 20.
Latest RSV vaccine
Moderna reported strong results for its respiratory syncytial virus (RSV) vaccine late Tuesday. Biotech’s RSV vaccine uses its mRNA technology. Mrna stocks rose solidly in long-term trading, showing a strong rebound from around the 10-week line. The Moderna RSV vaccine is Pfizer (PFE) and GlaxoSmithKline (GSK).
Momentum for Microsoft’s job cuts
in the meantime, microsoft (MSFT) could announce new job cuts as early as Wednesday, Bloomberg reported, citing sources. The cut could be “significantly higher” than previous layoffs. Sky News reported that the Dow Jones Software giant may cut staff by up to 5%. Microsoft cut about 1,000 jobs he said in October.
MSFT’s share price rose 0.5% to 240.35 on Tuesday, its seventh consecutive gain and just below the 50-day line. Microsoft’s earnings release is his January 24th.
Videos embedded in articles reviewing CVX stocks Eli Lilly (LLY) and Free Market (meri).
dow jones futures today
Dow Jones futures were little changed to fair value. S&P 500 futures were up 0.1% and Nasdaq 100 futures were up 0.1%. Futures were slightly lower before the Bank of Japan’s announcement.
The 10-year government bond yield fell by 5 basis points to 3.48% on the Bank of Japan’s decision.
The dollar jumped against the Japanese yen.
Crude oil prices rose slightly.
Note that overnight trading on Dow futures or elsewhere does not necessarily lead to actual trading on the next regular stock market session.
Join IBD experts analyzing viable stocks on IBD Live stock market rally
stock market rally
The stock market rally on Tuesday was a mixed session, with generally moderate intraday swings.
The Dow Jones Industrial Average fell 1.1% in stock market trading on Tuesday, largely due to: goldman sachs (GS) and Traveler (TRV) Weight of good chips. The S&P 500 Index fell 0.2%, with Tesla shares Morgan Stanley (MS) Top Performer. The Nasdaq Composite was up 0.1%. Small-cap Russell 2000 fell 0.1%.
US oil prices rose 0.4% to $80.18 a barrel, closing above $80 for the first time in two weeks. Crude oil futures reached $81.23 during the day.
The 10-year Treasury yield rose two basis points to 3.53%.
Among the growth ETFs, the Innovator IBD 50 ETF (FFTY) is down 0.2%. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.3%, with Microsoft shares becoming the leading holding. The VanEck Vectores Semiconductor ETF (SMH) was up 0.6%.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) were up 2.9% and 1.8%, respectively, both rising from the 50-day line and approaching their 200-day averages. TSLA shares remain the top holdings across Ark Invest ETFs, with Kathy Wood adding more shares in recent weeks.
The SPDR S&P Metal Mining ETF (XME) fell 1%. The US Global Jets ETF (JETS) is up 0.4%, with UAL shares a big holding. The SPDR S&P Homebuilders ETF (XHB) is down 0.8%. The Energy Select SPDR ETF (XLE) gained 0.2%, with CVX stock as the leading holding. The Financial Select SPDR ETF (XLF) is down 0.7%. The Healthcare Select Sector SPDR Fund (XLV) was down 0.5%.
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stocks in buy zone
Chevron rose 1.65% to 180.49, above the 50-day line and the short-term high of 180.23. According to MarketSmith analysis, the flat-based buy point for CVX stock is 189.78.
VRTX shares rose 3.7% to 311.58, above the 50-day line in above-average trading. This provides early entry for Vertex with a buy point of 324.85 flat base. VRTX stock also regained his previous purchase point of 306.05. Biotech stocks hit 324.75 on Dec. 8, but by the end of the year he had fallen to the 200-day line. Vertex’s stock rebounded from there last week. Investors can wait and see if the stock pauses near his 50-day line.
TJX shares closed 2 cents higher at 81.55, rebounding during the day from the flat-based buy point test of 81.29 that cleared on 6th January. The 5% deep flat base is just above the long cup consolidation which is 31% deep.
Market rally analysis
The stock market rally was a relatively quiet session after last week’s big rally.
The S&P 500 briefly pulled back to the 4,000 level, but only held for over 200 days.
The Russell 2000 crossed the 50-day and 200-day lines last week but fell after being within 1% of its November high.
The Nasdaq Composite is above the 50-day line, with December highs and the 200-day line being a major resistance area on the horizon. Much of Tuesday’s strength came from the names Tesla, the chip, and the cloud software it beat.
The Dow Jones fell solidly, mainly in GS stocks and Travelers. The good index is comfortably above the moving averages, with only his December highs to watch.
The market rally still looks healthy. Many trends, including the Nasdaq rise and fall lines and new highs and lows, have improved over the past few sessions.
A pause or a modest pullback here is normal and even healthy.If the S&P 500 falls significantly below the 200-day line and possibly below the 50-day line, it would be even more concerning. In the uptrend, the late 2022 high is the next significant level.
Chevron, TJX, Vertex, and a few other names are definitely viable, but there aren’t many available for purchase right now. monster beverage (MNST), wilted by the end.
Many stocks have already risen in the last few sessions. medpace (MEDP) and Mercado Libre. When paused, many of these names form handles or shelves. Meanwhile, other stocks are also getting attention.
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what to do now
Patience is key. Resist the temptation to buy extended stocks as the market may pause and many stocks are not flashing buy signals. A safer opportunity awaits if this uptrend works. This includes stocks that are hot these days if the form handles or touches support levels.
Be sure to run a leading stock screen to find stocks that show promising action.
If the market offers more stocks and the buy signal is flashing, it can be gradually exposed over time. Yes, and the next two weeks could be the heaviest release.
Read The Big Picture daily to understand the market direction and key stocks and sectors.
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