Dow Jones futures were little changed early on Wednesday, along with S&P 500 futures and Nasdaq futures, following mixed Chinese economic data.
X
lenar ,lane) After closing headline-grabbing earnings, LEN stock has been showing buy signs of late.
The stock market boomed on Tuesday morning with banks like First Republic Bank ,FRC, Western Alliance Bancorp ,wall, PacWest Bancorp ,pacw, charles schwab ,schw) Even more keycorp ,key) boomed. But the banks started on a high.
Major indices ended with strong gains despite being weak for most of the afternoon.
The CPI inflation rate was in line with expectations, but the report gave second billing to banks.
Rally efforts are underway in the market. But amid such a volatile, news-driven environment, investors should remain cautious.
Many stocks showed a bullish trend on Tuesday. meta platform ,meta) showed a buying signal as the parent of Facebook and Instagram announced another wave of layoffs. Tesla ,TSLA) overturned from key support.
boeing ,B. A, lantheus ,lnth, Applied Materials ,amat, MSCI ,MSCI, fortinet ,ftnt) And MercadoLibre ,Melee) All are trading near buy points after holding well in recent market action.
Meta Stock is on SwingTrader. FTNT stock and MSCI IBD are on long-term leaders. MELI Stock, Monolithic Power, Fortinet and Lantheus are on IBD 50, Fortinet and AMAT shares are on the rise IBD Big Cap 20,
The video embedded in the article discusses Tuesday’s market action and analyzes Meta Platforms, Fortinet and BA Stock.
dow jones futures today
Dow Jones futures fell 0.1% versus fair value. S&P 500 futures were lower and Nasdaq 100 futures were flat.
The 10-year Treasury yield climbed 4 basis points to 3.67%. The 2-year yield rose 9 basis points to 4.31%.
Crude oil futures rose 1%.
China’s industrial production for January-February rose 2.4% from a year earlier, down from a view of 2.6%. Retail sales climbed 3.5%, matching forecasts. Fixed-asset investment rose 5.5%, topping consensus, but real estate investment sank 5.7%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Lenor’s Earnings
Lennar’s earnings easily beat first-quarter fiscal estimates, while the homebuilder raised guidance on second-quarter orders.
LEN stock climbed 3.6% in extended trading. Shares jumped from the 50-day line on Tuesday, rising 1.8% to 100.77. Lennar stock is trading at flat basis buy point of 109.38. Investors can use the move above Tuesday’s intraday high of 101.78 as an opening entry.
stock market rally attempt
The stock market opened strongly on Tuesday, but with some big swings.
The Dow Jones Industrial Average rose 1.1% in Tuesday’s stock market trading. The S&P 500 index jumped 1.65%, with FRC stock, Schwab and Meta Platforms among the top performers. The Nasdaq Composite jumped 2.1%. The small-cap Russell 2000 claimed 1.9%.
US crude oil prices fell 4.6% to $71.33 per barrel. Copper futures lost 1.45%.
The 10-year Treasury yield rose 12 basis points to 3.63%. The 2-year Treasury yield rose 19 basis points to 4.22%. Markets once again expect the Fed to hike rates by a quarter point in March and May, but cut rates in the summer.
ETF
Among growth ETFs, the Innovator IBD 50 ETF (ffty) climbed 2.5%. iShares Extended Tech-Software Sector ETF (IGV) advanced 2.3%. VanEck Vectors Semiconductor ETF (SMH) jumped 3%.
Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) 2.1% and the ARK Genomics ETF (arkg) 1.5%. Tesla stock is a major holding in Arc Invest’s ETF.
SPDR S&P Metals & Mining ETF (XME) 0.8% and the Global X US Infrastructure Development ETF (pave) 1.7%. US Global Jets ETF (jet) dropped 0.6%. SPDR S&P Homebuilders ETF (xhb) LEN stock rose 1.4% with XHB Holding. Energy Select SPDR ETF (XLE) climbed 1%. Health Care Select Sector SPDR Fund (xlv) was up 0.9%
Five Best Chinese Stocks to Watch Now
Bank Stocks Rebound in Wild Day
First Republic stock jumped 27% to 39.63 on Tuesday, but was back to an intraday high of 50.97 shortly after the open. FRC stock fell 62% on Monday. Tuesday afternoon, S&P Global Ratings placed First Republic on watch for a possible credit downgrade. S&P Global said the bank may increase wholesale lending to boost liquidity, which will impact profit margins.
S&P Global also put Western Alliance and four other regional banks on downgrade watch. Wall stock rose 53% right after the opening. But shares plummeted, briefly posting double-digit losses before closing up 14%. Western Alliance stock fell 47% on Monday, but recovered well short. But while the WAL stock closed with modest gains, it has been trading at a low of 7.46 and a high of 39.96 in the past two sessions.
Shares of PacVest Bancorp jumped nearly 34% despite narrowing intraday gains. PACW dropped 21% on Monday, also down well.
SCHW stock rose 9.2%. Shares recovered from early highs but settled below intraday lows as Charles Schwab CEO Walt Bettinger said the brokerage is seeing “significant” inflows. He said he bought Schwab stock on Tuesday.
KeyCorp stock climbed 2.3% near session lows. Major shares fell 27% on Monday.
JPMorgan Chase ,jpm) rose 2.6% in relatively steady Tuesday trading after Monday’s 1.8% decline. Wells Fargo ,WFC) jumped 4.6%. Late Tuesday, Wells ran for a mixed shelf offering of up to $9.5 billion, but that doesn’t mean it will proceed with the sale.
Financial Select SPDR ETF (xlf) Advanced 2%. SPDR S&P Regional Banking ETF (kre) climbed a little over 2%, but well below morning’s highs. JPM Stock, Wells Fargo and Charles Schwab are large XLF constituents. First Republic Bank, Wall Stock, KeyCorp and Fifth Third are all KRE holdings.
Moody’s Investors Service on Tuesday morning downgraded the outlook for the banking sector, but it did not have a major impact on the rebound in bank stocks and the overall market.
Banks, especially regional banks, face a shortfall in profits as they raise deposit rates or borrow for funding needs. Even when the risk of contagion subsides, this could be a long-term concern for the bank’s valuation.
Earlier last week, before the SVB Financial collapse, KeyCorp warned on net interest margin.
Tesla stock
TSLA stock jumped 5% on Tuesday to 183.26 after finding support at its 50-day line on Monday, though shares are still below the 21-day line. Tesla’s strong China EV registrations fueled Tuesday’s gains. The EV giant is working on a possible lower base with a 217.75 buy point. It is forming below the 200-day line, but a breakout would certainly involve a clearing of the 200-day.
meta stock
Meta Platforms announced on Tuesday that it will cut another 10,000 jobs in the coming months. It confirmed another major wave of layoffs after 11,000 cuts in November.
Meta stock jumped 7.25% to 194.02. As per MarketSmith analysis, the shares are trading at a buy point of 197.26 on a forged basis after Q4 earnings gap. , But investors could use a downward sloping trendline or a move above the March 7 high of 190.36 as an opening entry.
The Relative Strength Line is at its highest level since May, reflecting Meta Stock’s outperformance in recent months versus the S&P 500 Index.
Stocks near Buy Points
BA stock moved above its 50-day line on Tuesday morning, flirting with a trendline entry after rebounding on Monday from a two-month low intraday. But the Dow Jones aerospace giant closed down just 1.9% to 207.28 from its 50-day low. Boeing stock is on track to hold a new flat base after Friday with a 221.43 buy point.
On Tuesday, Boeing received 78 confirmed orders for 787 Dreamliner jets from two Saudi Arabian airlines, with options for 43 more.
LNTH stock rose 3.2% to 73.02 on Tuesday, although shares closed lower. On Monday, Lantheus stock made a comeback from the 21-day line. Investors can still use 75.20 as a cup-with-handle buy point, but 77.04 may soon be a better handle entry.
AMAT stock rose 3.9% to 120.34 on Tuesday after bouncing off its 50-day line on Monday. The stock is trading at 125.02 flat, which is part of a base-on-base formation. Applied Materials stock can use Tuesday’s high above 121.24 as an initial entry. The RS line for AMAT stock is at a 52-week high.
The MSCI stock rose 3.8% to 548.25, extending Monday’s jump from the 50-day line. The MSCI stock has a 572.60 buy point from a long, deep cup-with-handle base. But it showed an early entry from a down-sloping trendline or move above the March 7 intraday high of 547.92.
FTNT stock climbed 2.7% to 60.89 after Monday’s reversal. Fortinet is working on a consolidation last July or April at 63.12 handle buy point.
MELI stock jumped 4.5% above its 21-day line to 1,214.96 on Monday after finding support at the 10-week line. Investors can still use 1,250.58 as a valid buy point from the recent flat base.
stock market analysis
The major indexes advanced strongly until about midday, weakening in the afternoon before edging again in the final 40 minutes.
The Nasdaq Composite bounced back above its 50-day and 200-day moving averages and closed not far from intraday highs.
The S&P 500 and Dow Jones climbed but touched resistance near the 200-day lines. The Russell 2000, with a heavy bank concentration, initially rose but closed well above early highs.
Winners outnumber losers 3-to-1 on the NYSE and nearly 2-to-1 on the Nasdaq.
Bank stocks started strongly but began to fall back almost immediately. But they went ahead, often with huge gains.
Tuesday marked day two of market rally attempts on the Nasdaq. There could be a follow up day later this week or next week to confirm the rally attempt.
A rally attempt could show further progress if FRC stock, Western Alliance, PacWest and the broader banking sector continue to rally. But any sense that the bank contagion would spread would almost certainly result in a rapid decline in financials and overall markets.
Several stocks have shown resilience in the past week. Chips continue to do well, including AMAT stock. Megacaps are looking better, including Meta stock, while Tesla stock is rebounding from key support.
Homebuilders are including LEN stock with support closures within the base or handle.
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What do we do now
Stock market is trying to go up, but don’t get excited by strong open or strong close. Even bad markets can have a good day or two. Let the rally effort prove itself.
Bank stocks and the overall market are likely to remain volatile in the short term.
But there is strength in many stocks. If there is a follow-through day of market rally, many names will buy flashing signals.
So make your watchlist. Look for stocks that are holding near buy points. However, don’t ignore stocks that are showing relative strength but are now overbought.
Read The Big Picture every day to keep up with market direction and the leading stocks and sectors.
Please follow Ed Carson on Twitter @IBD_ECarson For stock market updates and much more.
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