Dow Jones Futures: Apple Leads Market Rally After Fed Minutes; Meme Stock Newegg Rockets

3 weeks ago 9

Dow Jones futures fell somewhat Wednesday night, on with S&P 500 futures and Nasdaq futures. The banal marketplace rally showed slim gains connected Wednesday, with the S&P 500 and Nasdaq composite hitting grounds highs. Crude lipid prices and Treasury yields continued to slide, with the Fed minutes offering fewer surprises.

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Tech megacaps Apple (AAPL), Microsoft (MSFT) and Amazon.com (AMZN) continued to lead, portion bundle did good wide arsenic mining and alloy plays bounced back.

PayPal (PYPL) roseate 1.5% to 297.13, breaking retired of a cup-with-handle basal with a 296.11 bargain point. PYPL banal had topped a 277.96 aboriginal buy point connected June 17. Upwork (UPWK) present has a grip connected its cupful base, on with Apple supplier Qorvo (QRVO).

On the downside, chips retreated portion galore highly valued maturation stocks that had rebounded from outpouring lows mislaid ground, including EV makers Tesla (TSLA) and Nio (NIO). Both person cardinal quality inactive owed this week.

Finally, the latest red-hot meme banal is Newegg Commerce (NEGG), which changeable up 148% to 67.57. NEGG banal is up 522% conscionable since June 29. But Newegg is 234% supra its 10-day moving average, highly extended adjacent by meme banal measures.

NEGG banal fell 14% successful extended action.

Meanwhile, "old" meme stocks specified arsenic AMC Entertainment (AMC), GameStop (GME) and Clover Health (CLOV) person mislaid sizeable crushed implicit the past fewer weeks. AMC banal sank 9.8% connected Wednesday. GME banal slid 4.5% and CLOV banal 2.8%.

Dozens of states filed an antitrust suit vs. Alphabet (GOOGL) related to its Google Play app store. Two different authorities lawsuits instrumentality purpose astatine Google's hunt and advertisement technology. The Justice Department is targeting Google's ascendant hunt business.  Google banal mislaid a fraction late.

Tesla stock, PayPal and Microsoft are connected IBD Leaderboard. PayPal banal and Microsoft are connected IBD Long-Term Leaders.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. just value. S&P 500 futures declined 0.15%. Nasdaq 100 futures mislaid 0.1%.

Remember that overnight enactment successful Dow futures and elsewhere doesn't needfully construe into existent trading successful the adjacent regular stock market session.


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Stock Market Rally Wednesday

The banal marketplace rally closed somewhat higher connected the large indexes, though tiny caps and respective sectors mislaid immoderate ground.

The Dow Jones Industrial Average roseate 0.3% successful Wednesday's stock marketplace trading. The S&P 500 scale besides roseate astir 0.3%. The Nasdaq composite closed 1 constituent supra breakeven. The small-cap Russell 2000 fell 0.9%, undercutting its 50-day moving average. The small-cap scale has a fig of banks and vigor companies, portion AMC banal is simply a comparatively ample value now.

Apple banal roseate 1.8% to 144.57, present conscionable supra the 5% bargain zone. Microsoft banal edged up 0.8% and Amazon banal 0.6%, some somewhat extended from their 5% pursuit zones.

Crude lipid futures fell 1.6% to $72.20 a barrel. Late Monday, U.S. crude lipid prices deed a six-year precocious of $76.98. The 10-year Treasury output slid 5 ground points to 1.32%, the lowest level since February. Intraday, the benchmark output undercut 1.3%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) retreated 2%, portion the Innovator IBD Breakout Opportunities ETF (BOUT) edged down 0.1%.  The iShares Expanded Tech-Software Sector ETF (IGV) was conscionable supra break-even, with MSFT banal a large holding. The VanEck Vectors Semiconductor ETF (SMH) fell 1.4%.

SPDR S&P Metals & Mining ETF (XME) climbed 1.8% and Global X U.S. Infrastructure Development ETF (PAVE) 1.3%. U.S. Global Jets ETF (JETS) retreated 1.8%. SPDR S&P Homebuilders ETF (XHB) gained 1.7%. The Energy Select SPDR ETF (XLE) slumped 1.6% and the Financial Select SPDR ETF (XLF) edged up 0.1%.

Reflecting more-speculative communicative stocks, ARK Innovation ETF (ARKK) retreated 2.3% and ARK Genomics ETF (ARKG) 2.2%. Tesla banal is the No. 1 holding crossed ARK Invest's ETFs.


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Fed Meeting Minutes

Federal Reserve policymakers were getting person past period to discussing scaling backmost plus purchases, according to recently released Fed minutes from the June meeting. Some members "expected the conditions for opening to trim the gait of plus purchases to beryllium met somewhat earlier than they had anticipated astatine erstwhile meetings."

Fed main Jerome Powell had already said that the June gathering was the "talking astir talking about" Fed meeting, suggesting that taper speech mightiness commencement astatine the precocious July oregon September meetings, with existent tapering a fewer months aft that.

Tesla Stock, China EV Sales

Early Thursday, the China Passenger Car Association will merchandise China EV sales for June. BYD Co. (BYDDF), Nio and peers Xpeng (XPEV) and Li Auto (LI) person already reported June transportation figures. But the CPCA study volition springiness investors penetration into Tesla's China sales. Tesla has already reported grounds planetary deliveries for the 2nd quarter.

Tesla banal fell 2.3% to 644.65 connected Wednesday, nearing its 50-day and 200-day lines. A determination supra Friday's precocious of 700 mightiness connection an assertive entry, but 780.89, supra the April short-term high, whitethorn beryllium the archetypal quasi-legitimate opening.

Nio banal tumbled 8.45% to 46.04, its 4th consecutive nonaccomplishment aft a crisp run-up. Shares could person a 55.23 grip bargain constituent aft Thursday. Nio is holding its yearly Nio Day connected Friday, with EV merchandise announcements oregon updates expected.

BYD banal dipped 0.7% to 28.46, uncovering enactment conscionable supra its 21-day line. The electric-car, autobus and artillery shaper already has a cup-with-handle bargain constituent of 31.40.

Li Auto banal sank 4.6% to 32.03. Like Nio stock, the China EV play is apt to person a grip aft Thursday. But the basal is 66% deep. An extended handle, oregon adjacent a abbreviated basal wrong the larger consolidation, would beryllium much charismatic than a tiny handle.

XPEV banal skidded 5.9% to 41.47, aft Xpeng debuted a secondary listing connected the Hong Kong exchange. Shares are forming a handle-like pattern, but it's beneath the midpoint of a precise heavy base.


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Market Rally Analysis

Stepping back, the banal marketplace rally had an OK day, which mightiness beryllium conscionable right. The Nasdaq is inactive 5.5% supra its 50-day moving mean portion the big-cap Nasdaq 100 is present 6.8% supra that level.

The Nasdaq opened with a humble gain, with galore tech stocks flashing bargain signals oregon extending breakouts. Anyone taking vantage apt saw their positions spell negative, slightly, wrong minutes. That's due to the fact that astir immediately, the Nasdaq retreated, turning modestly little earlier moving backmost to astir breakeven for astir of the session.

However, the S&P 500 and Dow Jones closed adjacent league highs, arsenic crude lipid prices and Treasury yields pared losses.

With Apple, Amazon and Microsoft starring the way, gains successful the large indexes tin disguise underlying weakness. Many maturation stocks, particularly highly valued names similar Palantir (PLTR), Tesla, Nio and ARK-style stocks, person been pulling backmost aft hefty rebounds.

A tumbling 10-year Treasury output has intelligibly contributed to tech stocks' beforehand implicit the past respective weeks. With a booming system and ostentation heating up, it's hard to spot however that continues, though 1 could person made that lawsuit for weeks. But if Treasury yields emergence sharply, techs could struggle.

Crude lipid prices person reversed little from aboriginal greeting gains for 2 consecutive days, contempt a seemingly bullish backdrop of nary OPEC+ accumulation hike. That whitethorn beryllium a motion that crude lipid has topped successful the abbreviated run. Energy stocks whitethorn request to instrumentality a breather if that's the case. But truthful far, astir starring vigor stocks, specified arsenic Denbury Resources (DEN), person held cardinal support.

Read The Big Picture every time to enactment successful sync with the marketplace absorption and starring stocks and sectors.

Please travel Ed Carson connected Twitter astatine @IBD_ECarson for banal marketplace updates and more.

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