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Business

Dow Jones Futures Fall: Market Rally Wipes Out Powell Gains As Apple, Exxon, Tesla Skid

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Dow Jones futures fell early Wednesday, along with S&P 500 futures and Nasdaq futures. Tesla stock retreated as the EV giant offered another price incentive in China.




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The stock market rally had another weak session, with Apple (AAPL) and Exxon Mobil (XOM) breaking below key levels Tuesday while Amazon.com (AMZN) and Tesla (TSLA) are starting to move toward bear market lows.

The S&P 500 and other key indexes were testing or undercutting key levels, round-tripping last Wednesday’s big gain following Fed chief Jerome Powell’s speech.

This stock market rally has had several big one-day gains followed by pullbacks. That’s made it difficult for stocks flashing buy signals to make headway. It’s not a good time to be adding exposure, but investors should be looking for stocks setting up.

United Rentals (URI), UnitedHealth Group (UNH) and United Airlines (UAL) are all trading near buy points.

UAL stock is on IBD Leaderboard, while URI stock is on the Leaderboard watchlist. United Airlines, Charles Schwab and UNH stock are on the IBD 50. United Rentals was Tuesday’s IBD Stock Of The Day.

Earnings News

Database software maker MongoDB (MDB) surged early Wednesday on a surprise profit. MDB stock has plunged over the past year.

Driver-assistance systems maker Mobileye (MBLY) beat views in its first report since coming public in late October. MBLY stock was up and down.

Ollie’s Bargain Outlet (OLLI) tumbled after the close-out retailer missed on earnings and sales.

Dow Jones Futures Today

Dow Jones futures retreated 0.3% vs. fair value. S&P 500 futures sank 0.6% and Nasdaq 100 futures fell 1%.

The 10-year Treasury yield advanced 4 basis points to 3.55%.

Crude oil futures edged higher. Natural gas prices climbed 3%. The U.S. agreed to send more LNG to the U.K.

China scrapped some more Covid rules, as expected, but trade data came in weaker than expected. Hong Kong’s Hang Seng, which had been running higher, fell 3.2%.

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 quickly retreated after Tuesday’s open and continued to trend lower during the day before slightly paring losses near the close.

The Dow Jones Industrial Average fell 1% in Tuesday’s stock market trading. The S&P 500 index gave up 1.4%. The Nasdaq composite tumbled 2%. The small-cap Russell 2000 retreated 1.5%

U.S. crude oil prices slumped 3.5% to $74.25 a barrel.

The 10-year Treasury yield fell 9 basis points to 3.51%, back near the lowest levels since Sept. 20.

The stock market’s inverse relationship with Treasury yields may be breaking down. A lower 10-year Treasury yield increasingly may reflect rising recession risks vs. declining inflation pressures. The yield curve, which keeps inverting further, also indicates recession concerns.

Megacap Losers

Apple stock, a member of the Dow Jones, S&P 500 and Nasdaq composite, slid 2.5% to 142.91, back below its 50-day line. XOM stock sank 2.8%, also below its 50-day line as well as under a buy point. Exxon stock is struggling as oil, gasoline and natural gas prices all slump.

Amazon stock slumped 3% to 88.25, closing in on its Nov. 9 bear low of 85.87.

Tesla stock fell 1.4% to 179.82, off intraday lows, but after tumbling 6.4% on Monday. TSLA is moving toward 52-week lows but still has some distance to go before it drops to that 166.19 mark.

Tesla is now offering a 6,000 yuan ($860) discount on inventory cars in China, on top of an existing 4,000 yuan insurance subsidy. Along with other incentives, Tesla China is offering over 20,000 yuan in incentives, and that’s before government subsidies of 11,088 yuan.

Meanwhile, there are more signs that Tesla will reintroduce radar into its vehicles. Elon Musk removed radar from new Tesla EVs in 2021, during the chip crisis, saying vision-only would be better for self-driving. Nearly all other autonomous driving players use a variety of sensors.

TSLA stock fell 3% early Wednesday.

ETFs

Among key tech ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) gave up 1.7%. The VanEck Vectors Semiconductor ETF (SMH) slumped 2.2%.

SPDR S&P Metals & Mining ETF (XME) edged up 0.25% and the Global X U.S. Infrastructure Development ETF (PAVE) edged down 0.3%. U.S. Global Jets ETF (JETS) held altitude. SPDR S&P Homebuilders ETF (XHB) fell 1.4%. The Energy Select SPDR ETF (XLE) slumped 2.6% and the Financial Select SPDR ETF (XLF) 0.9%. The Health Care Select Sector SPDR Fund (XLV) declined 0.8%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) fell 4% and ARK Genomics ETF (ARKG) 3%. Tesla stock is a major holding across Ark Invest’s ETFs.

Five Best Chinese Stocks To Watch Now

Stocks Near Buy Points

United Rentals stock rose 0.5% to 347.29, just above the 21-day line. URI stock has a 368.04 handle buy point from a consolidation going back to November 2021. Breaking the downtrend of the handle could offer an early entry. Several heavy-equipment plays, including Deere (DE), Caterpillar (CAT) and Titan Machinery (TITN), also are looking strong.

UNH stock edged up 0.8% to 539.32. The Dow Jones giant has a 558.20 buy point from a flat base next to a cup-with-handle consolidation.

UAL stock climbed 2% to 45.92, just above the 45.67 cup-with-handle buy point, according to MarketSmith analysis. Some other airline and travel stocks are looking strong.

Why This IBD Tool Simplifies The Search For Top Stocks

Market Rally Analysis

The stock market rally continues a frustrating trend of jumping ahead four steps, then giving that back over the next few days.

The major indexes have fallen solidly for two straight sessions, wiping out or undercutting the big gains on Fed chief Jerome Powell’s speech last Wednesday.

The S&P 500 index, which fell back below the 200-day line Monday, extended losses Tuesday to undercut the 21-day line. The Russell 2000, which dropped below the 200-day and 21-day lines, slid to the lowest close since Nov. 9, with the 50-day line coming back in play.

The S&P MidCap 400 closed below its 21-day line for the first time since Oct. 20 and retreated to test its 200-day.

The Dow Jones, which has led the market rally, fell below its 21-day line for the first time since Oct. 14, but is well above its 200-day.

The laggard Nasdaq undercut its 21-day line and is once again approaching its 50-day line, just above the 11,000 level.

All of these indexes closed at their worst levels since Oct. 9, just before the Oct. 10 gap-up on the October CPI inflation report.

Last Wednesday’s big market gains were puzzling at the time, because Fed chief Powell didn’t say anything especially different or dovish. The major indexes holding up Friday, with Treasury yields ultimately closing lower, despite the hot jobs report was even more puzzling.

But the technical picture is familiar.

Since the stock market rally began on Oct. 13, The major indexes have had several big one-day gains — such as Oct. 28 and Nov. 30. But then they’ve soon fallen back, wiping out most, all or more than all of that big gain.

So right as the major indexes hit higher highs and leading stocks flash buy signals, the market rally starts to fade again.

Time The Market With IBD’s ETF Market Strategy

What To Do Now

So far, the market rally has eventually rebounded each time, setting higher highs along the way. But that doesn’t mean it will happen this time. More importantly, it doesn’t mean that your stocks will rebound.

Until the S&P 500 moves decisively above the 200-day line, investors should be wary of adding exposure. The Nasdaq and Russell 2000 falling below their 50-day lines, and the S&P 500 testing its October highs, would be signs to reduce exposure further.

Also note that the November CPI inflation report comes out Dec. 13, with the year-end Fed rate hike and Powell news conference the following day. Those big events could provide the catalyst for a market rally break higher or lower.

So investors should be ready to act. That means having watchlists ready, but it also means staying engaged and flexible.

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:

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Tesla Vs. BYD: Which EV Giant Is The Better Buy?



Read original article here

Business

Market Rally Wipes Out Powell Gains As Apple, Exxon Skid; What To Do Now

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Dow Jones futures tilted higher overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally had another weak session, with Apple (AAPL) and Exxon Mobil (XOM) breaking below key levels while Amazon.com (AMZN) and Tesla (TSLA) are starting to move toward bear market lows.




X



The S&P 500 and other key indexes were testing or undercutting key levels, round-tripping last Wednesday’s big gain following Fed chief Jerome Powell’s speech.

This stock market rally has had several big one-day gains followed by pullbacks. That’s made it difficult for stocks flashing buy signals to make headway. It’s not a good time to be adding exposure, but investors should be looking for stocks setting up.

United Rentals (URI), UnitedHealth Group (UNH) and United Airlines (UAL) are all trading near buy points.

UAL stock is on IBD Leaderboard, while URI stock is on the Leaderboard watchlist. United Airlines, Charles Schwab and UNH stock are on the IBD 50. United Rentals was Tuesday’s IBD Stock Of The Day.

Dow Jones Futures Today

Dow Jones futures were just above fair value. S&P 500 futures climbed 0.1% and Nasdaq 100 futures rose 0.15%.

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 quickly retreated after Tuesday’s open and continued to trend lower during the day before slightly paring losses near the close.

The Dow Jones Industrial Average fell 1% in Tuesday’s stock market trading. The S&P 500 index gave up 1.4%. The Nasdaq composite tumbled 2%. The small-cap Russell 2000 retreated 1.5%

Apple stock, a member of the Dow Jones, S&P 500 and Nasdaq composite, slid 2.5% to 142.91, back below its 50-day line. XOM stock sank 2.8%, also below its 50-day line as well as under a buy point. Exxon stock is struggling as oil, gasoline and natural gas prices all slump.

Amazon stock slumped 3% to 88.25, closing in on its Nov. 9 bear low of 85.87. Tesla stock fell 1.4% to 179.82, off intraday lows, but after tumbling 6.4% on Monday. TSLA is moving toward 52-week lows but still has some distance to go before it drops to that 166.19 mark.

U.S. crude oil prices slumped 3.5% to $74.25 a barrel.

The 10-year Treasury yield fell 9 basis points to 3.51%, back near the lowest levels since Sept. 20.

The stock market’s inverse relationship with Treasury yields may be breaking down. A lower 10-year Treasury yield increasingly may reflect rising recession risks vs. declining inflation pressures. The yield curve, which keeps inverting further, also indicates recession concerns.

ETFs

Among key tech ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) gave up 1.7%. The VanEck Vectors Semiconductor ETF (SMH) slumped 2.2%.

SPDR S&P Metals & Mining ETF (XME) edged up 0.25% and the Global X U.S. Infrastructure Development ETF (PAVE) edged down 0.3%. U.S. Global Jets ETF (JETS) held altitude. SPDR S&P Homebuilders ETF (XHB) fell 1.4%. The Energy Select SPDR ETF (XLE) slumped 2.6% and the Financial Select SPDR ETF (XLF) 0.9%. The Health Care Select Sector SPDR Fund (XLV) declined 0.8%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) fell 4% and ARK Genomics ETF (ARKG) 3%. Tesla stock is a major holding across Ark Invest’s ETFs.

Five Best Chinese Stocks To Watch Now

Stocks Near Buy Points

United Rentals stock rose 0.5% to 347.29, just above the 21-day line. URI stock has a 368.04 handle buy point from a consolidation going back to November 2021. Breaking the downtrend of the handle could offer an early entry. Several heavy-equipment plays, including Deere (DE), Caterpillar (CAT) and Titan Machinery (TITN), also are looking strong.

UNH stock edged up 0.8% to 539.32. The Dow Jones giant has a 558.20 buy point from a flat base next to a cup-with-handle consolidation.

UAL stock climbed 2% to 45.92, just above the 45.67 cup-with-handle buy point, according to MarketSmith analysis. Some other airline and travel stocks are looking strong.

Why This IBD Tool Simplifies The Search For Top Stocks

Market Rally Analysis

The stock market rally continues a frustrating trend of jumping ahead four steps, then giving that back over the next few days.

The major indexes have fallen solidly for two straight sessions, wiping out or undercutting the big gains on Fed chief Jerome Powell’s speech last Wednesday.

The S&P 500 index, which fell back below the 200-day line Monday, extended losses Tuesday to undercut the 21-day line. The Russell 2000, which dropped below the 200-day and 21-day lines, slid to the lowest close since Nov. 9, with the 50-day line coming back in play.

The S&P MidCap 400 closed below its 21-day line for the first time since Oct. 20 and retreated to test its 200-day.

The Dow Jones, which has led the market rally, fell below its 21-day line for the first time since Oct. 14, but is well above its 200-day.

The laggard Nasdaq undercut its 21-day line and is once again approaching its 50-day line, just above the 11,000 level.

All of these indexes closed at their worst levels since Oct. 9, just before the Oct. 10 gap-up on the October CPI inflation report.

Last Wednesday’s big market gains were puzzling at the time, because Fed chief Powell didn’t say anything especially different or dovish. The major indexes holding up Friday, with Treasury yields ultimately closing lower, despite the hot jobs report was even more puzzling.

But the technical picture is familiar.

Since the stock market rally began on Oct. 13, The major indexes have had several big one-day gains — such as Oct. 28 and Nov. 30. But then they’ve soon fallen back, wiping out most, all or more than all of that big gain.

So right as the major indexes hit higher highs and leading stocks flash buy signals, the market rally starts to fade again.

Time The Market With IBD’s ETF Market Strategy

What To Do Now

So far, the market rally has eventually rebounded each time, setting higher highs along the way. But that doesn’t mean it will happen this time. More importantly, it doesn’t mean that your stocks will rebound.

Until the S&P 500 moves decisively above the 200-day line, investors should be wary of adding exposure. The Nasdaq and Russell 2000 falling below their 50-day lines, and the S&P 500 testing its October highs, would be signs to reduce exposure further.

Also note that the November CPI inflation report comes out Dec. 13, with the year-end Fed rate hike and Powell news conference the following day. Those big events could provide the catalyst for a market rally break higher or lower.

So investors should be ready to act. That means having watchlists ready, but it also means staying engaged and flexible.

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:

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

Best Growth Stocks To Buy And Watch

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

Tesla Vs. BYD: Which EV Giant Is The Better Buy?



Read original article here

Health

Avian flu outbreak wipes out 50M US birds, a record

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Cage-free chickens are shown inside a facility at Hilliker’s Ranch Fresh Eggs in Lakeside, California, April 19. Avian flu has wiped out 50.54 million birds in the United States this year, making it the country’s deadliest outbreak in history. (Mike Blake, Reuters)

Estimated read time: 2-3 minutes

CHICAGO — Avian flu has wiped out 50.54 million birds in the United States this year, making it the country’s deadliest outbreak in history, U.S. Department of Agriculture data showed on Thursday.

The deaths of chickens, turkeys and other birds represent the worst U.S. animal-health disaster to date, topping the previous record of 50.5 million birds that died in an avian-flu outbreak in 2015.

Birds often die after becoming infected. Entire flocks, which can top a million birds at egg-laying chicken farms, are also culled to control the spread of the disease after a bird tests positive.

Losses of poultry flocks sent prices for eggs and turkey meat to record highs, worsening economic pain for consumers facing red-hot inflation and making Thursday’s Thanksgiving celebrations more expensive in the United States. Europe and Britain are also suffering their worst avian-flu crises, and some British supermarkets rationed customers’ egg purchases after the outbreak disrupted supplies.

The U.S. outbreak, which began in February, infected flocks of poultry and non-poultry birds across 46 states, USDA data show. Wild birds like ducks transmit the virus, known as highly pathogenic avian influenza (HPAI), through their feces, feathers or direct contact with poultry.

“Wild birds continue to spread HPAI throughout the country as they migrate, so preventing contact between domestic flocks and wild birds is critical to protecting U.S. poultry,” said Rosemary Sifford, the USDA’s chief veterinary officer.

Farmers struggled to keep the disease and wild birds out of their barns after increasing security and cleaning measures following the 2015 outbreak. In 2015, about 30% of the cases were traced directly to wild bird origins, compared to 85% this year, the USDA told Reuters.

Government officials are studying infections at turkey farms, in particular, in hopes of developing new recommendations for preventing infections. Turkey farms account for more than 70% of the commercial poultry farms infected in the outbreak, the USDA said.

People should avoid unprotected contact birds that look sick or have died, though the outbreak poses a low risk to the general public, the U.S. Centers for Disease Control and Prevention said.

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Business

Parents are desperate after baby formula recall wipes out supply

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Elizabeth Coco’s son Thomas is dependent on Elecare for his nutritional needs. Families all over the country are in a race against the clock to find a critical source of food they desperately need to keep their children fed — baby formula.
(Elizabeth Coco via CNN)

Estimated read time: 6-7 minutes

ATLANTA — It’s a nightmare no parent ever wants to endure.

Families all over the country are in a race against the clock to find a critical source of food they desperately need to keep their children fed — baby formula.

For months, stores nationwide have struggled to stock enough baby formula. Manufacturers say they’re producing at full capacity and are making more formula than ever before, but it’s still not enough to meet current demand.

Then came last week’s gut punch that made matters worse and left parents like Sarah Ellis reeling.

The U.S. Food and Drug Administration last Thursday recalled three brands of powdered baby formulas due to potential bacterial infections, including salmonella. The agency advised parents not to buy or use certain batches of Similac, Alimentum and EleCare powdered infant formulas. All three brands are made by Abbott Nutrition.

Both Alimentum and EleCare are specialized formulas. Alimentum is hypoallergenic and easier to digest for infants with a lactose sensitivity or an allergy to cow’s milk protein. EleCare, also a hypoallergenic formula without milk or lactose-based ingredients, is given to infants and older children with severe food allergies, gastrointestinal disorders and other conditions that may require oral or tube feeding.

Before the recall, Ellis was already struggling to find enough supply of EleCare for her almost 4-year-old daughter, Maisie. Now, the situation is “literally a life-or-death thing,” she said.

Maisie has a condition called short bowel syndrome, which prevents her from absorbing enough nutrients from food. Ellis said Maisie gets half of her nutrients through intravenous treatment and half through EleCare.

The day of the recall, Ellis had four or five cases of Elecare formula at home. She checked the cans and saw they were affected by the recall. Suddenly the entire stock of her daughter’s vital food source was wiped out.

On Saturday, Ellis tried to give her daughter a different formula, with devastating results. “Maisie threw up all day long,” she said.

Ellis, who lives in Alexandria, Virginia, drove to multiple stores before finding a single case of the EleCare formula. One case lasts Maisie about two weeks.

Even finding regular formula has become difficult for parents, many of whom described the extraordinary lengths they’ve gone to for weeks and months to score even a single can or bottle.

But specialized formula is even harder to locate amid the widespread shortage. Parents are driving to neighboring states to try their luck, and many are pleading for help on social media, imploring strangers to share or even barter any extra supply they may have.

Ellis was fortunate to find that help just a few steps away. Her next-door neighbor, Elizabeth Coco, is able to share some of her EleCare supply — for now.

A shared struggle

The two moms are bonded by their love and nurturing of their medically fragile children. In many ways, Coco’s son Thomas, who goes by T, is a typical soon-to-be 5-year-old.

“He has long blond curly hair and he’s always smiling and laughing,” said Coco. Like Maisie, T also desperately needs Elecare Jr., a version of the formula for older children. It’s his primary source of nutrition and he is fed overnight through a G-tube, a surgically implanted device that provides nutrition directly into the stomach for supplemental feeding.

Coco explained that her son suffers with four rare diseases, 23 known food allergies and a long list of unknown triggers that can cause a deadly reaction. “He has gone into shock three times in my arms,” she said, making him extremely fearful of food.

The list of safe foods T can eat is very limited, and Elecare is the only formula he can consume safely.

“He has failed every other amino acid and hypoallergenic formula they can swap him to,” Coco wrote in a desperate Facebook post on Feb. 19, two days after the FDA recall.

All 54 cans of the formula she had for T were recalled, leaving her with no food for her son and no choice but to put him to bed without the nutrition he needed. “I was asking help from anybody,” Coco said.

Grocery stores nearby were out of stock. Medical supply shops had no inventory and she couldn’t get any more emergency supply from her doctor’s office.

“I shared that post and one mom told another, who told a friend who told another mom,” she said. She has since received some supply from parents in Canada, Ohio and other places around the country. “I have enough to feed him for two months as long as he stays healthy,” Coco said. And she’s sharing some of it with Ellis for Maisie.

The emotional toll of the last few days has been extreme. “This is a bad situation. But when you have kids like T, you never panic. You learn to move forward in a logical way,” she said.

Dr. Steve Abrams, a neonatologist and former chair of the American Academy of Pediatrics committee on nutrition, said the ongoing shortage of all kinds of formula, coupled with the recent recall of Abbott’s specialized brands, has created a very difficult situation for parents whose children require it as essential food.

“Pediatricians are getting calls nonstop,” Abrams said. “We don’t know how long the shortage will last, but I don’t anticipate that it will be resolved quickly.”

A spokesperson for Abbott said in an email to CNN Business that the company is leveraging its global manufacturing and supply network to meet demand and “increasing production at an FDA-approved facility in Europe and air freighting product in.”

The spokesperson noted that the recall only impacts batches of formulas produced and distributed in its Sturgis, Michigan, facility, and said that no other products that Abbot distributes had so far tested positive for salmonella or other pathogens.

“Our other U.S. plants are running at maximum capacity and we’re converting some production of other liquid products to Similac,” she said, adding that the company “values the trust parents place in us for high quality and safe infant nutrition and will do whatever it takes to resolve this situation. We regret this situation and the impact it will have on parents, caregivers, patients and health care professionals.”

Learning to cope

First-time mom Tran Trivedi was relieved when she finally found a formula, Alimentum, that suited her 4-month-old son, Armin.

“He could drink it without the gassiness and pain he would get from other formulas,” she said.

Like plenty of other parents, she’s spent hours every day trying to track down more supply. “I placed an order at one store on Feb. 1 and it’s still on backorder with no time frame on when it will ship,” she said.

The recall also wiped out her stock, and Trivedi currently has six bottles of formula she was able to find in a store and from friends. It’s enough for about two weeks of feeding.

“It’s so stressful. I shouldn’t be struggling so much to find formula for my baby. Not everyone can breastfeed their baby. I pump and I’m not making enough for him,” said Trivedi, breaking down in tears.

“It’s not easy at all driving around everywhere with your newborn who has to eat and sleep and grow,” she said. “It shouldn’t be this way.”

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Business

Dow Jones Futures: Hawkish Fed Chief Powell Wipes Out Market Rally; Tesla Leads Earnings Movers

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Dow Jones futures rose overnight, along with S&P 500 futures and Nasdaq futures, as Tesla (TSLA) headlined key earnings after the close. The stock market erased sharp intraday gains Wednesday while Treasury yields jumped after the Federal Reserve said it “expects” to raise interest rates soon with Fed chief Jerome Powell signaling that aggressive rate hikes and balance sheet cuts are coming.




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The major indexes closed off the very worst levels and didn’t undercut Monday’s lows, but it was another disappointing session for the unproven stock market rally attempt.

Microsoft (MSFT) had fueled market gains and optimism before the Fed decision. MSFT stock rebounded back above its 200-day moving average, even though it closed near session lows.

Tesla earnings comfortably beat views late Wednesday. Tesla stock was little changed in volatile overnight trade.

Meanwhile, Seagate Technology (STX), Lam Research (LRCX), Teradyne (TER), Intel (INTC), Silicon Motion Technology (SIMO), United Rentals (URI), Ameriprise Financial (AMP), Vertex Pharmaceuticals (VRTX), Edwards Lifesciences (EW) and ServiceNow (NOW) also reported earnings late Wednesday.

STX stock and ServiceNow were notable winners overnight, while Edwards, LRCX stock, Silicon Motion and especially Teradyne were losers.

Tesla stock and Microsoft are on IBD Leaderboard. Microsoft and NOW stock are on IBD Long-Term Leaders.

Fed Meeting

The Fed meeting ended Wednesday afternoon with policymakers signaling a March rate hike, saying “it will be soon be appropriate.” Asset purchases will wind down in early March, as planned, despite some speculation that bond buys could end in February.

Fed chief Jerome Powell followed up in his press conference, saying there’s “quite a bit of room” to raise rates without hurting the job market. He wouldn’t rule out raising rates at every meeting in 2022, starting in March.

Powell once again said the Fed could move soon and faster to cut its huge balance sheet than during the last cycle, saying the economy is stronger now. He stressed that the Fed has not made any decision about speed or timing of any balance sheet cuts, but said they will come after the first rate hike.

Powell didn’t say anything surprising, but he sounded like a Fed chief focused on fighting high inflation, not bending over backward to soothe jittery markets.

The 10-year Treasury yield rose 7 basis points to 1.85, mostly as Powell spoke. That’s slightly below the two-year high of 1.87% set on Jan. 19. The 2-year Treasury yield jumped 13 basis points to 1.15%, as the yield spread continues to narrow.

Time The Market With IBD’s ETF Market Strategy

Dow Jones Futures Today

Dow Jones futures climbed 0.2% vs. fair value. S&P 500 futures advanced 0.3%. Nasdaq 100 futures rose 0.6%.

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

That’s especially true during market corrections and new rally attempts. Dow Jones futures have been more volatile, with regular-session action showing wild intraday swings.

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

Stock Market Rally

The stock market rally rose solidly for much of the session, as Microsoft led the way. The major indexes hit session highs shortly after the Fed meeting announcement at 2 p.m. ET, but then soon pulled back, erasing gains and turning negative on Fed chief Powell’s hawkish comments.

The Dow Jones Industrial Average fell 0.5% in Wednesday’s stock market trading. The S&P 500 index retreated 0.15%. The Nasdaq composite closed just above break-even. The small-cap Russell 2000 tumbled 1.5%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) dipped 0.1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) also edged down 0.1%. The iShares Expanded Tech-Software Sector ETF (IGV) fell just over 1%, even with Microsoft stock a major component. NOW stock also is a key holding. The VanEck Vectors Semiconductor ETF (SMH) rose 1.4%. Intel and LRCX stock are notable SMH components.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) retreated 2.5% and ARK Genomics ETF (ARKG) 2.25%. Tesla stock remains the No. 1 holding across ARK Invest’s ETFs.

SPDR S&P Metals & Mining ETF (XME) slumped 2.6% and Global X U.S. Infrastructure Development ETF (PAVE) fell 0.9%. U.S. Global Jets ETF (JETS) descended 0.7%. SPDR S&P Homebuilders ETF (XHB) gave up 2.4%. The Energy Select SPDR ETF (XLE) dipped 0.2% and the Financial Select SPDR ETF (XLF) edged up 0.3%. The Health Care Select Sector SPDR Fund (XLV) declined 0.5%.

Five Best Chinese Stocks To Watch Now

Tesla Earnings

Tesla earnings and revenue comfortably beat Wall Street views. CEO Elon Musk said supply chain issues were the “main limiting factor” for growth in 2021. Tesla navigated supply chain woes in 2021 better than most automakers, many of which saw noticeable production declines due to chip shortages and more.

Tesla continues to expect 50% deliveries growth annually over the next several years, easily beating that mark in 2021 with an 87% jump.

Musk on the earnings call the Austin and Berlin plants are nearly ready to begin customer deliveries. He said Tesla will pick locations for additional production facilities by year-end.

He also expects Tesla to achieve full self-driving robotaxis this year, a claim he’s made for several years.

Musk said there will be no Cybertruck or any other new models in 2022, confirming widespread reports. He said the Cybertruck “hopefully” will be out in 2023. That means it’ll be roughly three years between new Tesla vehicles, following the Model Y in early 2020.

Musk also said Tesla is not currently working on a $25,000 fully autonomous vehicle.

Musk said Tesla will deliver some vehicles, presumably Model Y crossovers, with 4680 battery packs. But it’s unclear if that means Tesla has solved technical hurdles with mass producing 4680 battery cells, or if it’s just installing a couple of 4680 packs as a quasi-demonstration.

Tesla stock was essentially flat overnight, but after falling and rising solidly at various points. Shares rose 2.1% to 937.41 on Wednesday, after hitting 987.69 intraday. TSLA stock is in a consolidation with a 1,243.49 buy point, but it could offer various earlier entries.

Other Earnings

Lam Research earnings narrowly beat, but the chip-gear giant missed on sales and gave weak guidance. LRCX stock fell solidly.

Teradyne earnings beat views, but the chip-equipment maker guided well below consensus for Q1, citing a “slower technology transition in one of our major end markets.” TER stock crashed.

Intel earnings topped views, but INTC stock fell modestly overnight on weak profit guidance.

Seagate earnings slightly topped views, with the memory play raising 2022 sales guidance. STX stock jumped in extended trade.

ServiceNow earnings exceeded forecasts. NOW stock leapt in late action.

Edwards Lifesciences earnings and revenue missed views, while guidance also was light. EW stock sank.

Ameriprise earnings topped views and the financial firm announced a $3 billion stock buyback. AMP stock was not active.

Vertex earnings easily beat with the biotech guiding higher. VRTX stock climbed slightly overnight.

United Rentals earnings topped consensus. URI stock rose modestly in extended action.

Silicon Motion earnings exceeded estimates, but SIMO stock fell solidly overnight.

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Market Rally Analysis

The stock market fell into a correction in 2022 in no small part due to Fed tightening fears. So it’s not a shock to see the nascent rally attempt erase hefty gains following hawkish Fed comments, but it is disappointing.

The Nasdaq, up more than 3% intraday to just above the 14,000 level, retreated but did eke out a gain thanks to Microsoft and Tesla. The S&P 500 index hit resistance around the 200-day line, moving from a 2.2% intraday gain to a slim loss.

Even at session highs, none of the major indexes has even approached the 10-day moving average.

Investors can still look for a follow-through day to confirm the new stock market rally attempt. A follow-through day, which involves strong price gains on one or more of the major indexes in higher volume than in the prior session, signals big institutions are willing to support the new uptrend.

But while off their Monday lows, the major indexes are all down for the week, hardly the sign of a powerful new rally.

The 200-Day Average: The Last Line Of Support?

What To Do Now

The whipsaw action of the past few days has offered powerful bounces in short periods, but also big sell-offs. Without a crystal ball, it’s hard to pick safe entries for stocks or ETFs.

Microsoft stock arguably offered an entry as a Long-Term Leader from the 200-day line, though the close wasn’t inspiring. Most tech stocks look heavily damaged after near-vertical dives. Highly valued growth stocks are especially weak, though Tesla stock has avoided breaking down.

Energy stocks are clear leaders, despite pullbacks Wednesday. Many are already extended with crude oil prices surging to multiyear highs.

Among shipping stocks, Matson (MATX) broke out of a base while Zim Integrated Shipping (ZIM) reclaimed a prior buy point after triggering the 7%-8% sell rule on Monday. More broadly, a number of shipping stocks on land also look interesting.

Financials have struggled in recent weeks, but haven’t broken down. Still, a flattening yield curve isn’t good for banks’ lending margins.

Definitely work on your watchlists, trying to find stocks that are setting up potential entries. Keep in mind that earnings season remains in full force, with a little fruit peddler by the name of Apple reporting Thursday night.

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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Entertainment

Jennifer Lopez wipes all traces of Alex Rodriguez from her Instagram, unfollows him

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Jennifer Lopez has further cemented her rekindled relationship with Ben Affleck by deleting every trace of most recent ex, Alex Rodriguez, from her Instagram.

Followers took note Saturday that the Bronx-born entertainer’s social media feed had been slightly revamped, with photos of ex-fiancé A-Rod all having been removed from her account.

This includes shots of the exes together during President Joe Biden’s inauguration, where J. Lo performed “This Land Is Your Land” and “America the Beautiful.” Photos and clips of the star alone during the event, however, remain.

The “Hustlers” star, 52, also unfollowed the former Yankee, 46, on Instagram.

ALEX RODRIGUEZ SLIDES INTO SINGLE LIFE WITH BIKINI-CLAD WOMEN AS JENNIFER LOPEZ IS COUPLED UP WITH BEN AFFLECK

Alex Rodriguez and Jennifer Lopez officially ended their engagement in April. The pop star has since moved on with ex Ben Affleck.

One month after Page Six broke the news, the pair of exes announced their split April 2021.

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Lopez has since circled back to Affleck, 48, whom she dated for 18 months before their 2004 split. Almost 20 years later, the couple is hotter than ever, going public during the “Let’s Get Loud” singer’s 52nd birthday weekend.

Meanwhile, A-Rod is living the single life and doing it big, cruising around St. Tropez, Monaco, Spain and Italy with sports reporter Melanie Collins and their mutual friends Jessie James Decker and Eric Decker, all in celebration of his 46th birthday.

Upon his return to the states, the baseball pro declared he was “Stepping out with the big D energy. Determined, darling & dapper AF.”

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A source told us that Rodriguez is “single and having fun” — and just “friends” with Collins, despite romance whispers.



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