Overnight Dow futures were little changed, along with S&P 500 futures and Nasdaq futures. The stock market’s bull run had a hard time determining direction on Wednesday as Federal Reserve Chairman Jerome Powell spoke. Major indices shrugged off strong early losses, but later gave up decent gains to close slightly lower.
Federal Reserve Chairman Powell, speaking before the Senate Banking Committee on Wednesday, emphasized that the central bank is “strongly committed” to fighting inflation aggressively. But it gave mixed signals about the risks of a recession.
Crude oil futures, copper prices and Treasury yields fell significantly on Wednesday, although they closed at their worst levels.
Healthcare names are among the most resilient sectors at the moment. Bristol-Myers Squibb (BMY), United Health (United nations), Eli Lilly (LLY), Vertex Pharmaceuticals (VRTX) And the Harmony in the biological sciences (HRMY) in or near areas of purchase. Everyone has Lines of relative force at altitudes.
Chinese electric car shares have risen strongly for several weeks. start Lee Otto (LI) rose modestly on Wednesday to only shy away from a record high. Giant EV and battery BYD (BYDDF) has created a handle on the daily chart.
The video included in this article discussed Wednesday’s market action and analyzed UN stock, Bristol-Myers Squibb and halozyme (Hello).
Dow jones futures contracts today
Dow Jones futures were flat against fair value, oscillating between negligible gains and modest losses. S&P 500 and Nasdaq 100 futures declined.
Crude oil prices fell 2%.
Fed Chair Powell talks about the risks of a recession
“At the Fed, we understand the difficulties that high inflation causes,” Fed Chair Powell said in his prepared remarks. “We are strongly committed to bringing inflation back down, and we are moving quickly to do so.”
Powell said the US is “in a good position” to deal with the more hawkish Fed policy. He later said the recession risks “are not particularly high at the moment”. But he also said the soft landing “presents a much bigger challenge” now.
In recent months, Powell cheered Wall Street on comments downplaying recession risks, only for stocks to sell off in the next session. Investors may feel that he is not telling the whole truth, or simply doubt his expectations.
stock market rise
The stock market rally opened with a strong fall, quickly rebounding higher as Fed Chairman Powell witnessed, but then closed with minor losses.
The Dow Jones Industrial Average fell 0.15% on Wednesday stock market trading. The S&P 500 was down 0.1%. The Nasdaq Composite lost 0.15%. Small cap Russell 2000 down 0.2%
US crude oil prices fell 3% to $106.19 a barrel, but after falling more than 6% at one point.
The 10-year Treasury yield fell 15 basis points to 3.16%, but bounced back from the 21-day moving average.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) fell just over 4%, reflecting losses in energy and commodity stocks. The Innovator IBD Breakout Opportunities ETF (fit) slipped 1.7%. iShares Expanded Technology and Software Fund (ETF)IGV) rose 0.2%. VanEck Vectors Semiconductor Corporation (SMH) slipped 1.2%.
SPDR S&P Metals & Mining ETF (XME) fell 3.8% and the US Global Infrastructure Development Fund (ETF) (cradle) decreased 0.6%. US Global Gates Foundation (ETF)Planes) rose 0.5%. SPDR S&P Homebuilders ETF (XHB) jumped 0.7%. SPDR Specific Energy Fund (SPDR ETF)XLE) lost 4% and the Financial Select SPDR ETF (XLF) decreased by 0.2%. SPDR Healthcare Sector Selection Fund (XLV), where the United Nations stock added the bulking component along with Eli Lilly, Bristol Myers and Vertex 1.4%.
stock to watch
VRTX stock advanced 0.8% to 272.31, breaking the trend line for early entry, with 279.23 as another strong buying area. the official buy point It is 292.85.
LLY stock rose 3.1% to 306.69, rebounding from the 50-day line in above-average volume while closing directly on a short trendline. Investors can buy shares here or use Wednesday’s high of 309.65 as a strong entry. Eli Lilly’s stock is working on a new consolidation.
UnitedHealth stock gained nearly 2% to 489.68 on Wednesday, after Tuesday’s 6.25% rise. UN stock remains within a downward sloping trendline. But investors can view consolidation as a file double bottom base With 507.35 buy points.
Bristol-Myers stock rose 0.1% to 76.55 after reclaiming its 50-day streak on Tuesday. It can be said that BMY stock is flashing an early entry. Drug tycoon on his way to owning a flat base After this week, you bought 78.71 pips. But investors can view BMY shares as on a chaotic flat base dating back to early April.
Reuters reported on Wednesday that Tesla’s Shanghai plant will suspend production for two weeks near the beginning of July. This will allow Tesla to modernize the equipment and eventually possibly boost the plant’s production capacity. In the short term, this will hinder Tesla’s efforts to bounce back to record production levels, although the Berlin and Austin plants will slowly gain momentum.
From March 28 to April 18, Tesla Shanghai is closed due to the strict lockdown of the city. From April 19 to early June, the plant was operating at partial capacity. This is likely to cut global production in the second quarter by more than 50,000. Tesla will release its production and delivery numbers for the second quarter in early July.
Meanwhile, Morgan Stanley lowered TSLA’s share price target to 1,200 from 1,300, citing weak deliveries and margins in the second quarter. She maintained an overweight rating.
Tesla stock fell 0.4% to 708.26, just below its 21-day moving average after a 9.35% rise on Tuesday. TSLA stock has some way to reach its 50-day and 200-day moving averages.
China EV . Stock
Li stock rose 2.9% to 36.80, just below a 52-week high in December of 37.45. Technically, the stock has 37.55 buy points, but it has been rising for weeks and could use an extended stop. Li Auto on Tuesday unveiled the L9, a new hybrid SUV that will begin deliveries in August. It’s more expensive than the current Li One hybrid.
BYD stock fell 0.9% to 38.30. On the daily chart, BYDDF now has a buy point for a cup with handle at 39.81. The handle entry was already present on the weekly chart. BYD will start selling in Australia in the third quarter and will begin shipping Seal, which has similar features to the Model 3 but for $10,000. BYD’s sales of electric vehicles and plug-in hybrids will easily lead Tesla all-EV sales in the second quarter. The Chinese giant may supply batteries to Tesla soon, although the US auto giant has not confirmed this.
Market Rise Analysis
After an encouraging morning recovery, it was a bit disappointing to see the major indicators close lower on Wednesday. But the pullback was no surprise after Tuesday’s big rebound in light trading volume. Encouraging to see major indicators rebound from early losses to achieve modest gains.
However, this was not a definite market rally. Wednesday marked the third day of a bullish market attempt for the S&P 500 and Nasdaq Composite, so investors can start looking for Follow-up day. There are only two days left for the Dow to try to rise.
Even if there is a confirmed spike soon, the suspicion will be in order. Several confirmed uptrends quickly faltered in the current bear market. And there is not much to buy.
Some other drug and medical stocks such as Bristol Myers and UnitedHealth work relatively well, but otherwise, they are slim choices.
Energy stocks fell again while metals and mining stocks took a hit.
Much of Wednesday’s gains came in the area of losing tech.
Markets oscillate from focus on hyperinflation to risk of recession and back again.
What are you doing now
Investors should wait for a follow-up day to get out of the sidelines. At this point, investors can return to the market, with a few stocks or extensive ETFs. But do not rush to enter the market.
For now, keep engaging in market activity and work on your watchlists. Focus on stocks with strong relative strength and trade above or near the major moving averages. Few stock charts would look nice in the current market environment.
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