Tag Archives: caution

Business

Stock Market Rally Hits Highs, But Note Caution Signs; Twitter, Lyft Lead Key Movers Late| Investor’s Business Daily

Leave a comment

Dow Jones futures edged higher late Tuesday, along with S&P 500 futures and Nasdaq futures. The stock market rally had a quiet Tuesday, though the major indexes nudged into record highs intraday. The Nasdaq still looks extended, among notable cautions. Lyft stock, Enphase Energy (ENPH), Match Group (MTCH) and Dow giant Cisco Systems (CSCO) were notable movers after hours.




X



On Tuesday, Tesla (TSLA) rival Nio stock and recent IPO C3.ai (AI) raced through buy zones. Bitcoin continued to rally on Tesla’s buy while GameStop (GME) broke below another notable level.

Twitter (TWTR), Enphase Energy, Rapid7 (RPD), Lyft (LYFT) and Cisco Systems reported earnings late Tuesday. General Motors (GM) is due early.

Twitter earnings beat views along with Enphase stock, Rapid7, Lyft and Cisco Systems. Twitter stock rose overnight and Lyft soared after both closed somewhat extended from buy points. Enphase stock popped, moving toward a buy point in a new base after a recent rebound from its 10-week line. RPD stock was little changed as it trades in a flat base. Cisco stock fell solidly on weak guidance after hitting a 52-week high on Monday.

Why This IBD Tool Simplifies The Search For Top Stocks

Meanwhile, online dating giant Match Group late Tuesday said it will pay $1.725 billion for Hyperconnect, a South Korean social media company that has video and audio chat apps. Match stock rose modestly overnight, signaling a move past a consolidation area starting on Dec. 17.

GM stock dipped Tuesday from Monday’s all-time highs.

Bitcoin Rises, Tesla Stock Fades

The Bitcoin price rose modestly on Tuesday to above $46,000 in late afternoon trade. Bitcoin spiked Monday on Tesla’s announcement that it bought $1.5 billion worth of the cryptocurrency. The Bitcoin price peaked at $48,200 early Tuesday.

Tesla stock dipped 1.6% on Tuesday, erasing Monday’s slim gain.

Nio, AI Stock Stand Out

Tesla’s China rival Nio jumped 6.4% to 62.84 a record close and decisively clearing a downward-sloping trend line in a new consolidation just above a prior base. By Tuesday’s close, Nio stock was slightly extended from that early entry but could have a new buy point at 67.09. On Monday, Nio stock reclaimed a prior buy point and peeked out past the trend line.

Recent IPO AI stock soared 12% to 168.92%, surging past a 160.53 buy point from an IPO base. AI is slightly beyond the 5% chase zone, which extends to 168.56.

GameStop Stock Keeps Falling

Finally, the GameStop (GME) saga set a grim new milestone. On Jan. 27, GameStop stock closed 1,054% above its 50-day line, according to MarketSmith analysis. GME stock is now below its 50-day line. Shares fell 16% on Tuesday to 50.31. That’s 90% below the GME stock peak of 483 on Jan. 28 peak.

Biden, Yellen Meet With CEOs

President Joe Biden, Vice President Kamala Harris and Treasury Secretary Janet Yellen met with major CEOs and business leaders. They included JPMorgan CEO Jamie Dimon and Walmart CEO Doug McMillon, who’s also chairman of the Business Roundtable. The business leaders expressed support for a sizable new stimulus package but signaled concerns about a minimum wage, especially at the current time. Biden is pushing for a $1.9 trillion stimulus plan, though he’s signaled he can accept tighter restrictions on direct checks of $1,400. The president also has hinted that a $15 minimum wage hike may not be part of a stimulus package if it comes via a budget reconciliation bill. Such legislation must be limited to tax-and-spend measures.

Tesla stock is on IBD Leaderboard. Nio stock is on SwingTrader.

Dow Jones Futures Today

Dow Jones futures rose 0.1% above fair value. S&P 500 futures were up 0.1%. Nasdaq 100 futures climbed 0.1%. Cisco stock is a Dow Jones, S&P 500 and Nasdaq 100 component

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 107.36 million. Covid-19 deaths topped 2.34 million.

Coronavirus cases in the U.S. have hit 27.78 million, with deaths above 479,000.

Stock Market Rally

The stock market rally didn’t see much movement on the major indexes, but they all hit new highs. The Nasdaq topped 14,000 for the first time. The tech-heavy index remains extended from the 50-day line.

The Dow Jones Industrial Average closed just below break-even in Tuesday’s stock market trading. The S&P 500 index dipped 0.1%. The Nasdaq composite edged up 0.1%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) and the Innovator IBD Breakout Opportunities ETF (BOUT) rose 0.9%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 0.85%. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.3%.

Market Rally Caution Flags

The stock market rally is at record highs while leading stocks are acting well. But there are a few caution flags.

Nasdaq Extended

The Nasdaq is now 7.9% above its 50-day moving average and 4% above its 21-day exponential moving average. When the Nasdaq is more than 6% above its 50-day line, the risks of a pullback increase. The more extended the index gets, the risks continue to rise, with greater odds of a significant pullback.

On Monday, the Nasdaq closed 8.1% above its 50-day line and 4.3% above its 21-day. On Jan. 25, just before a pullback, those figures were 8.2% and 4.1%, respectively. On Sept. 2, just before a correction, those figures were 11.6% and 6%. At the March 10, 2000 dot-com peak, the Nasdaq closed 17% above its 50-day and 7.8% above its 21-day.

So the Nasdaq could definitely keep running higher from here. What happens after that … ?

Ideally, the stock market rally could move sideways or pull back gradually for several weeks, letting the 50-day catch up without causing serious losses for investors.

Investor Leverage

Margin debt rose 34% in December vs. a year earlier. That’s a seven-year high, but below the 55% gain typically associated with tops before a bear market. However, call options exploded 437% in January vs. a year earlier. Along with the rise of leveraged ETFs, it’s clear that investor leverage is waving at least a yellow flag.

Market Froth

The huge gains in several hot stocks also raise some eyebrows about froth in the overall market.

Digital Turbine (APPS), EXP World (EXPI), Futu Holdings (FUTU) and Tilray (TLRY) are looking greatly extended and perhaps starting to show climax-type action. They could keep running or even go sideways, as Tesla stock has done after looking like a climax run in early January. But the risks of a sharp pullback are high. Investors should definitely have a game plan and exit strategy for these names.

There seems to be a strong desire for the next rocket, shrugging off the risks. GME stock and related Reddit plays are a clear example. Investors shouldn’t be jumping into an already-extended stock or asset with little care about what they are even buying. CAN SLIM investing is about buying the right stocks — with strong fundamentals and new products or services — at the right time, when the odds of success are highest.

The right time definitely includes the market, the M in CAN SLIM. It’s a confirmed stock market rally, so investors can still make new buys. But given the warning signs, they should be cautious about adding exposure and may want to consider taking some profits on extended stocks and cutting laggards loose.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

YOU MAY ALSO LIKE:

IBD Stock Of The Day Flashes Possible Climax Top

Catch The Next Big Winning Stock With MarketSmith

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today



Read original article here

Business

Asian markets retreat as caution sets in

Leave a comment

TOKYO — Asian shares mostly fell Thursday as caution set in over company earnings reports, recent choppy trading in technology stocks and prospects for more economic stimulus for a world battling a pandemic.

Japan’s Nikkei 225
NIK,
-1.03%
slipped 0.5% in early trading, while South Korea’s Kospi
180721,
-1.90%
dropped 1.6%. Australia’s S&P/ASX 200
XJO,
-0.87%
slipped 0.6%. Hong Kong’s Hang Seng
HSI,
-1.35%
lost 1.2%, while the Shanghai Composite
SHCOMP,
-1.38%
was down 1%. Stocks rose in Indonesia
JAKIDX,
+0.63%
and Malaysia
FBMKLCI,
-0.25%
but fell in Singapore
STI,
-1.29%
and Taiwan
Y9999,
-0.43%.

Also on market players’ minds is the global vaccine rollout, which is becoming more organized in the U.S., but yet to play out in much of Asia, except for China, where the pandemic started.

“As the rally waned for the U.S. market, Asia markets can be seen left to their own devices into the Thursday session, and it appears that investors may be locking in some of the recent gains,” said Jingyi Pan, a senior market strategist for IG in Singapore.

Wall Street ended with modest gains, with the S&P 500
SPX,
+0.10%
inched up 3.86 points, or 0.1%, to 3,830.17, after swinging between a gain of 0.6% and a loss of 0.3%. The tiny gain extended the benchmark index’s winning streak to a third day.

The Dow Jones Industrial Average
DJIA,
+0.12%
gained 36.12 points, or 0.1%, to 30,723.60. The tech-heavy Nasdaq
COMP,
-0.02%
slipped 2.23 points, or less than 0.1%, to 13,610.54. The index had briefly been above its all-time high set last week.

Energy, communications and financial stocks helped lift the market. Those gains were primarily kept in check by declines in companies that rely on consumer spending and technology stocks.

GameStop and other recently high-flying stocks notched modest gains Wednesday. GameStop
GME,
+2.68%
rose 2.7% and AMC
AMC,
+14.71%
climbed 14.7%. The stocks have been caught up in a speculative frenzy by traders in online forums who seek to inflict damage on Wall Street hedge funds that have bet the stocks would fall. GameStop plunged 60% on Tuesday, and AMC Entertainment lost 41.2%.

“There’s a tug of war that’s been brewing for a week or so now, that markets are ripe for a correction and whether the events of last week are a precipitating event,” said Jamie Cox, managing partner at Harris Financial Group.

Stocks have been mostly rallying this week, an encouraging start to February after a late fade in January as volatility spiked amid worries about the timing and scope of another round of stimulus spending by the Biden administration, unease over the effectiveness of the government’s coronavirus vaccine distribution and turbulent swings in GameStop and other stocks hyped on social media.

That volatility has subsided this week, with Wall Street focusing mainly on corporate earnings reports while it keeps an eye on Washington for signs of progress on a new aid package.

Democrats and Republicans remain far apart on support for President Joe Biden’s $1.9 trillion stimulus package, but investors are betting that the administration will opt for a reconciliation process to get the legislation through Congress.

In energy trading, benchmark U.S. crude
CLH21,
+0.63%
gained 15 cents to %55.84 a barrel. Brent crude
BRNJ21,
+0.51%,
the international standard, added 6 cents to $58.52 a barrel.

In currency trading, the U.S. dollar
USDJPY,
+0.13%
inched down to 105.02 Japanese yen from 105.06 yen.

Read original article here

Health

Male fertility: Covid-19 may impact sperm, a study finds, but experts urge caution about new evidence

Leave a comment

“This report provides the first direct evidence to date that COVID-19 infection impairs semen quality and male reproductive potential,” the study said.

However, experts not involved in the study were immediately skeptical about the report’s conclusion and urged caution in overgeneralizing the research findings.

“I need to raise a strong note of caution in their interpretation of this data. For example, the authors state that their data demonstrates that ‘COVID-19 infection causes significant impairments of male reproductive function’ yet it only actually shows an association,” said Allan Pacey, a professor of andrology at The University of Sheffield in South Yorkshire, United Kingdom, via email.

“Being ill from any virus such as flu can temporarily drop your sperm count (sometimes to zero) for a few weeks or months. This makes it difficult to work out how much of the reductions observed in this study were specific to COVID-19 rather than just from being ill,” said Dr. Channa Jayasena, a consultant in reproductive endocrinology and andrology at Imperial College London, in an email.

In addition, “it is important to note that there is no evidence of Covid-19 virus in the semen and that there is no evidence that virus can be transmitted via semen,” said Alison Murdoch, who heads Newcastle Fertility Centre at the International Centre for Life, Newcastle University in the UK, via email.

Small study of 84 men

The study age-matched 105 fertile men without Covid-19 to 84 fertile men diagnosed with the coronavirus and analyzed their semen at 10-day intervals for 60 days.

Compared to healthy men without Covid-19, the study found a significant increase in inflammation and oxidative stress in sperm cells belonging to men with Covid-19. Their sperm concentration, mobility and shape were also negatively impacted by the virus.

The differences grew with the severity of the sickness, the study found.

“These effects on sperm cells are associated with lower sperm quality and reduced fertility potential. Although these effects tended to improve over time, they remained significantly and abnormally higher in the COVID-19 patients, and the magnitude of these changes were also related to disease severity,” said lead researcher Behzad Hajizadeh Maleki, a doctoral student at Justus Liebig University Giessen, in Hesse, Germany, in a statement.

There were also much higher levels of ACE2 enzymatic activity in men with Covid, the study found. ACE2, or angiotensin-converting enzyme 2, is the protein that provides the entry point for the novel coronavirus to hook into and infect a wide range of human cells

However, it’s not surprising that Covid-19 might impact the male reproductive system because ACE2 receptors, or the “same receptors which the virus uses to gain access to the tissues of the lung, are also found in the testicles,” said Pacey, who is also editor in chief of the journal Human Fertility.

An ongoing concern

“Since the start of the Covid-19 pandemic, there has been an understandable (but theoretical) concern about whether this coronavirus might have a detrimental impact on the fertility of men who become infected,” Pacey said.

After reviewing some 14 studies published on the topic, Pacey said he concluded that “any measurable effect of coronavirus on male fertility was probably only slight and temporary.”

The findings of this study, he added, could be due to other factors, such as the use of medications to treat the virus, which the authors also acknowledged in the study.

“Therefore, all I see in this dataset are possible differences in the sperm quality between men who are sick with a febrile illness (fever) and those who were well. We already know that a febrile illness can impact on sperm production, regardless of what caused it,” Pacey said.

Sheena Lewis, a professor emeritus at Queen’s University Belfast in Ireland, shared similar thoughts via email: “My concerns are that the men with COVID had substantially higher body weight and were on a number of therapeutic treatments.

“We know that obesity alone reduces sperm quality. The COVID treatments may also have affected these men’s sperm quality, rather that COVID itself,” Lewis said.

“Thus, longer term studies are needed before the testes is considered to be a high-risk organ specific to Covid-19,” Newcastle’s Murdoch said.

Read original article here