- Las Vegas Strip faces potential shutdown as huge events loom TheStreet
- Las Vegas hotel workers arrested after disrupting traffic in labor dispute rally Fox News
- Dozens of Culinary Union members arrested in act of ‘civil disobedience’ on Las Vegas Strip FOX5 Las Vegas
- ‘What are they going to do without us?’ Vegas Culinary Union strike deadline could be set before major events KTNV 13 Action News Las Vegas
- Culinary Union’s “civil disobedience” on the Strip brings mixed reaction to the message, 58 arrests made News3LV
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Tag Archives: loom
Dow Jones Futures Loom: Market Correction Smashing Leaders; Is Tesla The Next To Crack? – Investor’s Business Daily
- Dow Jones Futures Loom: Market Correction Smashing Leaders; Is Tesla The Next To Crack? Investor’s Business Daily
- Stock Market: Last Week’s Alarm Bells Are Serious Forbes
- SPY Turns Bearish And VIX Turns Bullish (Technical Analysis Downgrade) (NYSEARCA:SPY) Seeking Alpha
- The Stock Market Decline May Not Be Over As Credit Spreads Begin To Widen – The Market Chronicles Monster Stock Market Commentary
- S&P 500 to Test Support, Russell 2000 to Break Below; Nasdaq Bottoms: What’s Next? | investing.com Investing.com
- View Full Coverage on Google News
‘Vanderpump Rules’ Stars & Other Reality TV Participants Can Break NDAs To Reveal “Unlawful Acts,” Bravo Says, As Potential Lawsuits Loom – Deadline
- ‘Vanderpump Rules’ Stars & Other Reality TV Participants Can Break NDAs To Reveal “Unlawful Acts,” Bravo Says, As Potential Lawsuits Loom Deadline
- Bethenny Frankel Might Be On to Something: Reality TV Lawyers Say NDAs Are the Problem Pajiba Entertainment News
- Amid Bethenny Frankel Fight, Bravo Clarifies Claim That Reality Stars Are Being ‘Silenced’ By NDAs (EXCLUSIVE) Variety
- Bravo Says Reality TV Stars Can Break NDAs to Disclose “Unlawful Acts in the Workplace” Hollywood Reporter
- Why it’s finally time to unionize all reality TV cast and crew, and what’s happening now reality blurred
- View Full Coverage on Google News
‘Vanderpump Rules’ Stars & Other Reality TV Participants Can Break NDAs To Reveal “Unlawful Acts,” Bravo Says, As Potential Lawsuits Loom – Deadline
- ‘Vanderpump Rules’ Stars & Other Reality TV Participants Can Break NDAs To Reveal “Unlawful Acts,” Bravo Says, As Potential Lawsuits Loom Deadline
- Amid Bethenny Frankel Fight, Bravo Clarifies Claim That Reality Stars Are Being ‘Silenced’ By NDAs (EXCLUSIVE) Variety
- Bravo refutes claim reality stars can’t break NDAs to report ‘unlawful acts’ amid Bethenny Frankel legal war Page Six
- Bravo Says NDAs Don’t Stop Reality TV Stars From Reporting ‘Unlawful Acts in the Workplace’ Rolling Stone
- Bravo releases statement about NDAs… after being accused of ‘silencing’ reality stars with contracts Daily Mail
- View Full Coverage on Google News
Paris Saint-Germain, Kylian Mbappé at odds and a transfer may loom – The Washington Post
- Paris Saint-Germain, Kylian Mbappé at odds and a transfer may loom The Washington Post
- Kylian Mbappé tells PSG he intends to leave, putting soccer’s most valuable star on the market Yahoo Sports
- Opinion: Kylian Mbappe should seal Arsenal transfer and make the Premier League the scene of the greatest-ever football rivalry CaughtOffside
- Alex Crook reveals SHOCKING updates on the futures of Kylian Mbappe & the Man United ownership! talkSPORT
- PSG willing to listen to Kylian Mbappe offers, sources say – ESPN ESPN
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‘I can’t afford to sell because I don’t want to lose that rate’: 3% mortgage rates will loom large over the U.S. housing market for years to come – Fortune
- ‘I can’t afford to sell because I don’t want to lose that rate’: 3% mortgage rates will loom large over the U.S. housing market for years to come Fortune
- US home prices could plunge 20% amid risk of ‘deep’ housing slide, Fed economist warns Fox Business
- Housing rebound: Home prices will enter growth cycle akin to 1980s-90s Markets Insider
- Decreased Competition from Home Ownership in Increasing Interest Rate Environment Novogradac
- America’s Hot Mess of a Housing Market Just Got a Little Bit Uglier—Here’s Why Realtor.com News
- View Full Coverage on Google News
Oil steadies as rate hikes loom, Russian flows stay strong By Reuters
© Reuters. FILE PHOTO: Pump jacks operate at sunset in an oil field in Midland, Texas U.S. August 22, 2018. REUTERS/Nick Oxford/File Photo
By Alex Lawler
LONDON (Reuters) -Oil steadied on Monday as looming interest rate hikes by major central banks and signs of strong Russian exports balanced rising Middle East tension over a drone attack in Iran and hopes of higher Chinese demand.
Investors expect the Federal Reserve to raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a shock.
“The risk-off cautious mood in the market ahead of the central bank meetings is hurting risk assets, including oil,” said Fiona Cincotta, analyst at City Index.
rose 20 cents, or 0.2%, to $86.86 a barrel by 1110 GMT while U.S. West Texas Intermediate crude added 8 cents, or 0.1%, to $79.76.
“The upcoming flurry of price catalysts sets the stage for significant swings in oil prices this week,” said Stephen Brennock of PVM. “That said, prices are unlikely to fall below $80 and will struggle to get close to $100.”
The market also came under pressure from indications of strong Russian supply, despite an EU ban and G7 price cap imposed over its invasion of Ukraine. Both oil benchmarks last week saw their first weekly loss in three.
Besides the central bank meetings, a gathering on Wednesday of key ministers from the Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, will also be in focus.
The OPEC+ panel meeting on Wednesday is unlikely to tweak oil output policy – although PVM said it could surprise with a small cut.
Oil rose earlier on Monday amid tensions in the Middle East following a drone attack in oil producer Iran.
While it is not clear yet what’s happening in Iran, any escalation there has the potential to disrupt crude flow, said Stefano Grasso, a senior portfolio manager at 8VantEdge in Singapore.
Hopes of a rise in Chinese demand have boosted oil in 2023. The world’s biggest crude importer pledged over the weekend to promote a consumption recovery which would support demand.
Dow Jones Futures Loom For Stock Market 2023; Tesla Deliveries Fall Short Again
Dow Jones futures will open on Monday evening, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) deliveries hit a record in Q4, but came in below estimates for a second straight quarter. That followed December deliveries from China EV rivals Li Auto, Nio, XPeng and giant BYD.
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Investors will be looking for a brighter stock market in 2023 after a “stay away” year, especially for growth. The Dow, S&P 500 and Nasdaq all had their biggest annual declines in 14 years. A stock market rally attempt is underway, but has a long way to go to prove itself.
The Dow Jones dipped below its 50-day moving average on Friday. The S&P 500 and especially the Nasdaq have some distance to go to their 50-day lines, with several other key resistance areas along the way.
Celsius Holdings (CELH), Deere (DE), BioMarin Pharmaceutical (BMRN), Exxon Mobil (XOM) and Medpace (MEDP) are five stocks near buy points. It’s a diverse list, reflecting possible areas of market leadership in the new year.
DE stock and Medpace are on IBD Leaderboard. Celsius stock, MEDP stock are on the IBD 50. Deere and BMRN stock are on the IBD Big Cap 20.
Deere was Friday’s IBD Stock Of The Day.
But whether these stocks work or not depends on the market trending higher. Right now it is not. Investors should remain very cautious.
The video embedded in the article discussed the recent market action in depth and discussed what investors should be doing as stock market 2023 gets going. The video also analyzed CELH stock, Deere and BioMarin.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Monday, along with S&P 500 futures and Nasdaq 100 futures.
U.S. stock and bond markets will be closed on Monday, Jan. 2, in observance of New Year’s.
On Friday, the December jobs report looms large as the Federal Reserve looks for signs of a weakening job market.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Tesla Vs. BYD: Which EV Giant Is The Better Buy?
Tesla EV Deliveries
Tesla deliveries rose to 405,278 in the fourth quarter, up 31% vs. a year earlier and 18% above Q3’s record 343,800. But that came in well below lowered estimates of 418,000-420,000. Tesla offered big year-end incentives, especially in China and the U.S., to boost sales.
Q4 deliveries included 388,131 Model 3 and Model Y vehicles, with 17,147 Model S and X luxury EVs.
The figures do not include any Tesla Semi deliveries. A small number was delivered to Pepsi in December.
Q4 production swelled to 439,701 in Q4, exceeding deliveries by more than 34,000. That’s even with Tesla curbing Shanghai output on Dec. 12 and suspending production on Dec. 24. In Q3, output topped sales by just over 22,000, with deliveries also falling short that quarter.
Once again, Tesla blamed an increase in vehicles “in transit at the end of the quarter.”
In 2023, Tesla will benefit from new U.S. tax credits of up to $7,500, though the year-end incentives of $7,500 for the Model 3 or Model Y — with Model S and X vehicles added Dec. 30 — may have tapped some of that demand. A $55,000 price cap on most Model Y vehicles could limit Tesla’s EV credit boost.
Meanwhile, China ended EV subsidies. Tesla may need significant new price cuts in China, where competition continues to heat up from BYD, Nio, Li Auto, Xpeng and others. Tesla has already renewed year-end incentives for Jan. 1-Feb. 28.
Over in Europe, several countries cut or ended EV subsidies, providing another headwind for Tesla as backlogs there fade.
Tesla stock plunged 65% in 2022, its worst annual decline by far. Shares crashed 37% in December to their lowest levels since September 2022. The EV giant did rebound from midweek bear market lows to end the week roughly flat. TSLA stock volume has been very high in the past several weeks.
China EV Deliveries: BYD
BYD reported on Jan. 2 that it sold 235,197 all-electric BEVs and plug-in hybrids in December, a fourth straight record, though up just 2.1% vs. November. Sales surged 150% vs. a year earlier.
Among its 234,598 passenger vehicles, BEV sales were 111,939, up 132% from a year earlier but down slightly from 113,915 in November. PHEV sales surged 176% to 122,659, topping November’s 116,027.
BYD sold 683,440 vehicles in Q4, up 157% vs. a year earlier and 27% from Q3. For 2022, sales spiked 209% to 1,863,494 BEV and PHEVs.
At one point, December sales above 250,000 or even 260,000 seemed likely for BYD. But on Dec. 22, a top exec stated that Covid infections among workers were reducing production by at least 2,000 vehicles per day. He said full-year deliveries would be around 1.88 million, implying December deliveries around 247,000-250,000.
The actual December and full-year sales suggest a greater Covid impact than BYD anticipated on Dec. 22.
China EV Startups
BYD’s sales follow Li Auto, XPeng and Nio on Jan. 1.
Li Auto (LI) reported that it delivered 21,233 vehicles in December, with both its L8 and L9 hybrid SUVs topping 10,000. That was up nearly 50% vs. a year earlier and soaring 41% vs. the previous record of 15,034 in November. Li Auto on Friday said December deliveries of its hybrid SUVs would top 20,000.
Li Auto delivered 46,319 vehicles in Q4, up 31.5% vs. a year earlier and nearly 75% vs. Q3, as a model changeover was underway. Li Auto delivered 133,246 vehicles in 2022, up 47% from 2021.
XPeng (XPEV) EV deliveries hit 11,292 in December, down 29% vs. a year earlier. But sales leapt 94% vs. November and topped 10,000 for the first time since July. That includes 4,020 G9 SUVs, up 160% vs. November for the relatively new crossover model. Q4 deliveries came in at 22,204, down from 29,570 in Q3 and weakest showing since Q2 2021. Full-year sales climbed 23% to 120,757.
Nio (NIO) delivered 15,815 vehicles in December, up 51% vs. a year earlier and nearly 12% vs. the prior record of 14,178 set in November. Nio recently lowered its Q4 delivery guidance, citing Covid-related issues. The guidance implied December deliveries of 14,263-15,263 EVs December sales included 7,594 ET5 sedans and 4,154 ES7 SUVs, Nio’s two newest models. The ET5 is a Tesla Model 3 competitor.
Q4 sales jumped 60% vs. a year earlier to 40,052. For 2022, deliveries climbed 34% to 122,486.
Nio stock, Li Auto, Xpeng and BYD all had a tough 2022, like other EV makers and growth stocks generally. They all bottomed in October or early November, but pulled back in recent weeks.
China’s Economy Struggling
China’s economic activity is tumbling as the abrupt end of strict Covid rules spur massive waves of infections. The official manufacturing index fell 1 point in December in 47, the government said Saturday. The nonmanufacturing PMI, which covers service-sector and construction activity, dived 6.1 points to 41.6. Both are the lowest since February 2020, when Covid-19 first hit the country. Readings below 50 signal contraction.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market 2022 Ends
The stock market fell into a correction on Wednesday, but a new rally attempt began Thursday. The major indexes slipped Friday, closing out a slightly negative week.
The Dow Jones Industrial Average dipped 0.2% in last week’s stock market trading. The S&P 500 index edged down 0.1%. The Nasdaq composite fell 0.3%. The small-cap Russell 2000 lost a fraction.
For the full year, the Dow Jones retreated 8.8%, the S&P 500 slumped 19.4% and the Nasdaq tumbled 33.1%. It was their worst annual performances since 2008.
The 10-year Treasury yield jumped 13 basis points last week to 3.88% after spiking 27 basis points in the prior week. The 10-year yield ended 2021 at 1.51%.
U.S. crude oil futures rose 0.9% to $80.26 a barrel last week, the third straight weekly gain. Crude oil prices climbed 6.7% for the year, but finished well off their peaks above $130 a barrel.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.3%. The VanEck Vectors Semiconductor ETF (SMH) climbed 1%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 0.9% last week, but after hitting a fresh five-year low on Wednesday. ARK Genomics ETF (ARKG) declined 0.7%. TSLA stock is a major holding across Ark Invest’s ETFs, with Cathie Wood ramping up holdings in recent weeks. Ark also owns a small position in BYD stock.
SPDR S&P Metals & Mining ETF (XME) fell 1.9%% last week. The Global X U.S. Infrastructure Development ETF (PAVE) lost 1.2%. U.S. Global Jets ETF (JETS) descended 0.9%. SPDR S&P Homebuilders ETF (XHB) slipped 0.8%. The Energy Select SPDR ETF (XLE) rose 0.5% and the Financial Select SPDR ETF (XLF) advanced 0.7%. The Health Care Select Sector SPDR Fund (XLV) dipped 0.2%.
Five Best Chinese Stocks To Watch Now
Stock Market 2023: 5 Stocks To Watch
BioMarin stock dipped 0.8% to 103.49 last week, pulling back in the second half of December but holding support around its 21-day line. A strong rise from current levels might offer an aggressive entry. But investors may want to wait for BMRN stock to forge a new base, or find support at the 10-week line. BioMarin earnings are expected to triple in 2023.
Deere stock fell 1.9% to 428.76 in the past week, pulling back to the 10-week moving average, with a flat base now on a weekly chart. The official buy point is 448.50. Investors might use a 10-week line bounce as an early entry for DE stock, perhaps after retaking the 21-day line.
CELH stock retreated from record highs in December, sliding for the past four weeks, but rebounded from its 50-day line on Friday, closing at 104.04. Celsius stock could offer an early entry if it clears the 21-day line decisively, with a move above the Dec. 27 high of 109.31 as a specific trigger.
XOM stock climbed 1.5% last week to 110.30, slightly above a rising 50-day moving average. A move above the Dec. 27 high of 110.47 would offer an early entry. Exxon stock has a flat base with a 114.76 buy point, according to MarketSmith analysis.
MEDP stock rose modestly Thursday from its 50-day moving average, breaking above a downtrend line in a recent consolidation. That offered an early entry within its consolidation. On Friday, with the major indexes retreating again, Medpace stock fell back to its 50-day, but did close well.
Medpace’s move could still work, but it just shows how difficult it has been for stocks to make headway.
Stock Market Analysis
The stock market edged lower last week, even with Thursday’s strong bounce, capping a tough year.
The major indexes are off their October bear market lows but well below their December short-term highs. A rally attempt technically is underway as the 2023 stock market kicks off, but it needs a follow-through day to confirm a new uptrend.
Even then, the market would face a number of technical hurdles, with the S&P 500, Nasdaq and Russell 2000 all some distance below their 50-day and 200-day lines. The Dow Jones, the relative leader in recent months, dipped below its 50-day line to end 2022 but is above its 200-day.
Until there’s clarity on the Fed rate endgame and the economy, the market could be rangebound in choppy, sideways action.
The December jobs report on Friday, Jan. 6, will be important. Significant slowing in hiring and wage gains would reinforce expectations for further slowing in Fed rate hikes, and raise hopes that peak rates are near. But robust or accelerating job and pay growth would likely trigger a big sell-off.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
On Friday’s year-end IBD Live, O’Neil Global Advisors portfolio manager Charles Harris said it was a “stay away” market in 2022. There will be great opportunities ahead, including in innovative companies and trends, but not yet.
A number of stocks are setting up nicely, including Deere, BioMarin and Medpace. The problem is that in the past few months, a lot of stocks have set up, but those setups generally haven’t worked out.
But investors should be stay engaged and be ready to act. If there’s a confirmed rally in early 2023, many stocks have the potential to quickly move solidly or sharply higher.
So work on your watchlists but enjoy the long weekend. Come back to the new year refreshed, waiting for the next bull market.
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.
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What’s In The Market Forecast For 2023?
S&P 500 Surges Above Key Level On Fed Chief Powell, But Inflation, Jobs Report Loom
Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. Salesforce.com headlined earnings overnight but investor focus will be on Thursday’s PCE inflation report after Fed chief Jerome Powell triggered a tech-led stock market rally on Wednesday.
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The pace of rate hikes could start to slow at the December meeting, Fed chief Powell said Wednesday, providing more-explicit support for a smaller increase at the upcoming meeting. But Powell stuck to his view that the fed funds rate will likely reach 5% or more. The current fed funds rate range is 3.75%-4%. Powell also noted that a lot of factors propping up inflation are easing. The Fed chief, who has suggested that a recession may be necessary, said a “soft landing” is still possible.
The Nasdaq led the way, with Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Tesla (TSLA) and Google parent Alphabet (GOOGL) all outpacing the composite. Notably, the S&P 500 index shot up to clear the 200-day moving average, a key resistance area.
On Thursday, investors will get the October PCE price index, with the November jobs report due Friday morning.
So while Wednesday’s action was encouraging, investors should await the market reaction to the Fed-critical data.
Key Earnings
Salesforce.com (CRM), Snowflake (SNOW) and Box (BOX) led a number of software earnings reports. Pure Storage (PSTG) and Victoria’s Secret (VSCO) also reported.
CRM stock fell solidly in overnight trade as Salesforce earnings topped but guidance was light. Co-CEO Bret Taylor will step down, leaving Marc Benioff as sole CEO. SNOW stock initially plunged in extended action on weak Snowflake revenue guidance, but pared losses considerably. Box stock was little changed as EPS just topped and sales slightly missed.
PSTG stock rose modestly overnight after Pure Storage topped Q3 views and raised guidance. Shares had closed down about 1% after plunging intraday on weak results and guidance from NetApp (NTAP). VSCO stock fell slightly as Victoria’s Secret earnings topped but sales fell just short.
Early Thursday, Dollar General (DG) and Kroger (KR) are on tap. Chinese EV makers Nio (NIO), Li Auto (LI) and Xpeng (XPEV) report November sales, with those stocks and other Chinese names surging Wednesday on Covid reopening hopes.
Inflation Report
The Commerce Department will release the PCE price index, the Fed’s favorite inflation gauge, at 8:30 a.m. ET as part of the income and spending report.
The October PCE price index should show a 0.4% increase vs. September. Year over year, PCE inflation should cool to 6% from September’s 6.2%. Core PCE, which excludes food and energy, is expected to be up 0.3%. The core PCE inflation rate is seen dipping to 5% from September’s 5.1%.
The PCE inflation report, along with the November jobs report Friday, will help shape Fed rate hike expectations. The November consumer price index will be released on Dec. 13, one day before the Fed’s December meeting announcement.
Earlier Wednesday, ADP reported a sharp slowdown in private-sector hiring in November. Also, the JOLTs survey showed job openings fell more than expected in October. Q3 GDP growth was revised up more than expected, along with the report’s inflation gauge.
Dow Jones Futures Today
Dow Jones futures were flat vs. fair value, with CRM stock a drag on blue chips. S&P 500 futures climbed 0.1% and Nasdaq 100 futures rose 0.1%.
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
Stock Market Rally
The stock market rally was mixed for much of Wednesday’s session, then took off on Fed chief Powell’s comments, closing at session highs.
The Dow Jones Industrial Average popped 2.2% in Wednesday’s stock market trading. The S&P 500 index leapt 3.1%. The Nasdaq composite jumped 4.4%. The small-cap Russell 2000 rose 2.7%.
Apple stock climbed 4.9% and Google stock gained 6.1%, both back above their 50-day. Microsoft stock and Nvidia, already above their 50-day lines, leapt 6.2% and 8.2%, respectively. Tesla stock raced 7.7% higher, retaking its 21-day line.
U.S. crude oil prices popped 3% to $80.55 a barrel, but fell 6.9% for the month. China Covid reopening hopes also lifted copper futures.
Treasury Yields And Fed Rate Hike Odds
The 10-year Treasury yield reversed lower, falling 5 basis points to 3.7%. The two-year Treasury yield, more closely tied to Fed policy, sank to 4.33%, despite Powell expecting a peak fed funds rate of at least 5%.
The odds of a 50-basis-point Fed rate hike are now around 79% vs. 66% after Tuesday. Markets still see another half-point move as a slight favorite in February, but the odds of a quarter-point move have topped 45%.
Tesla Vs. BYD: Which EV Giant Is The Better Buy?
ETFs
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.8%, while the Innovator IBD Breakout Opportunities ETF (BOUT) climbed 2%. The iShares Expanded Tech-Software Sector ETF (IGV) popped 4.4%, with Microsoft and CRM stock both major components. The VanEck Vectors Semiconductor ETF (SMH) leapt 5.7%, with Nvidia stock a top holding.
SPDR S&P Metals & Mining ETF (XME) advanced 3.75% and the Global X U.S. Infrastructure Development ETF (PAVE) rose 2.4%. The Energy Select SPDR ETF (XLE) edged up 0.5% and the Financial Select SPDR ETF (XLF) rose 1.7%. The Health Care Select Sector SPDR Fund (XLV) added 2.4%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) soared 7.7% and ARK Genomics ETF (ARKG) 6.5%. Tesla stock remains a major holding across Ark Invest’s ETFs.
Five Best Chinese Stocks To Watch Now
Market Rally Analysis
The stock market rally made a big, bullish move in heavy volume Wednesday on Fed chief Powell’s comments.
The S&P 500 index rebounded from near its 21-day line to top the 4,000 level and move above its 200-day line for the first time in seven months.
The Nasdaq composite, the laggard in the market rally, led the upside Wednesday. It reclaimed its 21-day line and the 11,000 level to settle at a two-month closing high. Apple stock, Microsoft, Google, Nvidia and Tesla had strong gains Wednesday, but it’s not clear that any of them will be leaders in the current uptrend.
The Russell 2000, which had undercut its 21-day line intraday, rebounded to retake its 200-day. The Dow Jones, which has led the current market rally, is back to a fresh seven-month high.
Advancers trounced losers with broad-based gains. Many leading stocks that had come under pressure shored up on Wednesday.
While there was a lot of positive action Wednesday, the S&P 500 remains below its 200-day moving average. The October PCE inflation report on Thursday and the November jobs report on Friday could reinforce Wednesday’s bullish bounce or trigger a bearish retreat.
Keep in mind that the current market rally has had numerous big one-day gains, but then has struggled to make headway over the next few days or weeks.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
The stock market rally had a strong session, with the major indexes and leading stocks making encouraging moves.
Investors likely were tempted to increase exposure on Wednesday, and doing so may work out.
But good reasons remain not to increase exposure quite yet. The S&P 500 is above its 200-day line, but not decisively so. Doing so would likely mean topping a long, declining-tops trendline on a weekly chart. Getting decisively above this area could be a strong signal the current uptrend is more than a bear market rally.
But that will require a positive reaction to the upcoming PCE inflation data and jobs report.
Investors should be working furiously on their watchlists, looking at promising stocks from a variety of sectors. But definitely stay engaged. The market rally could be at a turning point, but which way will it turn.
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.
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Biden ‘confident’ rail strike will be avoided though congressional hurdles loom
CNN
—
President Joe Biden said Tuesday he is “confident” a rail strike will be avoided while meeting with the top four congressional leaders, though any one senator could slow down the process of approving legislation that would avert such a strike – and at least one said he was planning to do so.
“I asked the four top leaders in Congress to ask whether they’d be willing to come in and talk about what we’re gonna do between now and Christmas in terms of legislation and there’s a lot to do, including resolving the train strike,” Biden said while meeting with House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, House Minority Leader Kevin McCarthy and Senate Minority Leader Mitch McConnell.
“It’s not an easy call but I think we have to do it,” Biden said. “The economy is at risk.”
On Monday, Biden called on Congress to “immediately” pass legislation to avert a railroad shutdown by officially adopting a September tentative agreement approved by labor and management leaders. Rank-and-file members of four unions have rejected the agreement and are prepared to go on a railroad strike on December 9 without either a new labor agreement or congressional action.
Biden, a longtime labor ally, along with Labor Secretary Marty Walsh and other administration officials helped unions and management reach a tentative deal averting a freight railroad strike in September.
A railroad strike could clog supply chains and lead to a spike in prices on necessities such as gasoline and food – dampening an economy that many fear is heading toward a recession. It could also cost could cost the US economy $1 billion in its first week alone, according to an analysis from the Anderson Economic Group.
Michael Baldwin, president of the Brotherhood of Railroad Signalmen, one of the four unions whose members voted no on the deal, said Tuesday that Biden has let the union and its members down.
“We’re trying to address an issue here of sick time. It’s very important,” Michael Baldwin, the president of the Brotherhood of Railroad Signalmen, told CNN’s Jim Sciutto on “Newsroom.” “This action prevents us from reaching the end of our process. It takes away the strength and the abilities that we have to force bargaining or force the railroads into a situation to actually do the right thing.”
Pelosi said Tuesday the chamber could vote as soon as Wednesday on legislation to adopt the September tentative agreement and avert a possible rail strike. Once passed, Senate action could occur later this week or next, several Senate sources have told CNN. The Senate is expected to have the votes to break a filibuster on the bill to avert a potential railway strike, the Senate sources also said. There are likely to be at least 10 Republicans who will vote with most Senate Democrats to overcome a 60-vote threshold.
After the meeting, McConnell expressed openness to backing the legislation, and told reporters “We’re gonna need to pass a bill.”
But any one senator can slow the process down as timing agreements to move along legislation typically require unanimous consent from all 100 members of the chamber. Vermont Sen. Bernie Sanders, an independent who caucuses with Democrats, criticized the proposed deal to avert a rail strike on Tuesday. Sanders reiterated his threat to slow down rail measure unless he gets sick-leave amendment vote in a tweet Tuesday afternoon.
“At a time of record profits in the rail industry, it’s unacceptable that rail workers have ZERO guaranteed paid sick days. It’s my intention to block consideration of the rail legislation until a roll call vote occurs on guaranteeing 7 paid sick days to rail workers in America,” he wrote.
Any one member can delay a quick vote and potentially put off final action until after the December 9 deadline to avert a strike.
Some Republicans are still skeptical of congressional intervention, arguing they would rather the issue be dealt with administratively.
Maine Sen. Susan Collins, a frequent swing vote, told CNN that the measure “deserves careful consideration.”
“I’m going to wait and listen to the debate at lunch today before reaching any kind of conclusion,” she said.
Iowa Sen. Joni Ernst, a member of GOP leadership, also told CNN she was still evaluating the plan.