Dow Jones futures rose slightly last night, along with S&P 500 futures and Nasdaq futures. costco wholesale (Fee) in the earnings heading. meta platform (Meta) plans to unveil virtual reality hardware and artificial intelligence tools.
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Tuesday’s stock market correction saw major indexes hit new lows, more than canceling Monday’s modest gains. The 10-year US Treasury yield continued to hit new long-term highs.
The Federal Trade Commission and 17 states filed a wide-ranging antitrust lawsuit against the United States on Tuesday. Amazon.com (AMZN), a long-anticipated move. FTC Chair Lina Khan has made several controversial antitrust moves during her tenure and rose to fame with her Amazon analysis.
Amazon shares fell on Tuesday, extending a steep downward trend. Google’s parent company alphabet (Google), microsoft (MSFT) and apple (AAPL) Other megacaps have lost notable status.
neurosecretory biological science (NBIX), petroleum machine play November (November), Aflac (commonwealth of australia), Regeneron Pharmaceuticals (Regnu), modine manufacturing (mod) and fedex (FDX) is close to the purchase point.
Another stock that has been doing relatively well is COST stock.
Costco’s earnings and sales exceeded its views on Tuesday night. Stock prices fell slightly in overnight trading. Costco stock fell 1% in regular trading Tuesday to 552.96, below its 50-day line. The discount giant has a buy point of 571.16 from a flat base, right next to a long-term consolidation. Investors may use the September 20 high of 569.22 as an early entry.
Metastock is on IBD Leaderboard, the leaderboard has NOV stock in its watchlist. Microsoft stock is on his IBD long-term leaders list.Meta, NVO, MOD stocks are IBD50.
Neurocrine Biosciences was the IBD Stock Of The Day on Tuesday. Monday’s pick was FedEx stock.
The video embedded in the article analyzes Tuesday’s market trends and reviews NBIX stock, Metaplatform, and November market trends.
Dow Jones futures today
Dow Jones futures rose 0.2% to fair value. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.25%.
The yield on the 10-year Treasury note fell several basis points to 4.51%.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
meta connect
Meta Platforms, the parent company of Facebook and Instagram, will host the Meta Connect conference on Wednesday and Thursday. It is expected to show off the Quest 3 virtual reality headset and new generative AI tools.
Meta stock fell 0.6% on Tuesday to 298.96, just below its 50-day moving average. The social media giant has a buy point of 312.87 for this cup with handle.
IBD experts analyze leading stocks and markets on IBD Live.
stock market correction
The stock market correction intensified on Tuesday, with all major indexes easily erasing Monday’s gains and hitting new lows.
The Dow Jones Industrial Average fell 1.1% in stock market trading on Tuesday, falling below the 200-day line after finding support there on Monday. The S&P 500 index fell 1.5%, approaching its 200th day. The Nasdaq Composite fell 1.6%, just above the 13,000 level.
Amazon shares fell 4% to 125.98, a three-month low.
GOOGL stock fell 1.9% to 128.56 and is now clearly below its 50-day line. Antitrust lawsuits against the Department of Justice and Google continue in federal court. MSFT stock fell 1.7% to 312.14, its lowest level in four months. AAPL stock fell 2.3% to 171.96, also its lowest closing price in four months.
The major metrics look bad, but all the details seem to be getting worse.
The small-cap Russell 2000 fell 1.3%, while the Invesco S&P 500 Equal Weight ETF (RSP) decreased by 1.4%. Both are well below the 200-day line.
Although major stocks continue to decline, the energy sector remains the strongest.
US crude oil prices rose 0.8% to $90.39 per barrel.
The 10-year Treasury yield rose 2 basis points to 4.56%, its highest level since October 2007. This was after it had initially fallen to 4.51%. This is not about the Fed. Short-term yields have remained flat in recent days, while the likelihood of further Fed rate hikes has diminished.
The short-term rebound is not surprising as the stock market is oversold by a variety of measures. But unless U.S. Treasury yields fall or at least remain flat for an extended period of time, it will be difficult for stocks to recover in earnest.
Meanwhile, a federal government shutdown on October 1 is becoming more likely, but a stopgap funding package is still possible.
For now, it’s a stock market correction.
ETF
Among growth ETFs, Innovator IBD 50 ETF (FFTY) gave up 1.3%. iShares Enhanced Technology Software Sector ETF (IGV) fell 1.6%. Microsoft stock is IGV’s main holding. VanEck Vectors Semiconductor ETF (SMH) also fell by 1.6%.
ARK Innovation ETF (Arkku) fell nearly 1%, while the ARK Genomics ETF (arcg) rose 0.1%.
SPDR S&P Metals & Mining ETF (XME) gave up 1.9%. US Global Jets ETF (jets) and SPDR S&P Home Builders ETF (XHB) both fell 1.5%. Energy Select SPDR ETF (XLE) fell 0.6%, while the Healthcare Select Sector SPDR Fund (XLV) decreased by 0.85%.
Industrial Select Sector SPDR Fund (XLI) fell 1.5%, and FDX stock became an XLI constituent.
Financial Select SPDR ETF (XLF) fell 1.3%. SPDR S&P Regional Banking ETF (KRE) fell 1.6%.
Top 5 Chinese stocks to watch right now
Up-and-coming stock
NBIX stock rose 0.9% to 114.66 on Tuesday. The stock goes back about 10 months and is working toward a buy point of 119.29 on a cup-with-handle basis. A break above Tuesday’s high of 115.35 could allow for early entry. The line of relative strength, the blue line on the chart provided, is at an 8-month high. The RS line tracks stock price performance relative to the S&P 500.
November stocks fell 1.2% after breaking out of the 50-day/10-week line on Monday. November (formerly National Oilwell Barco) won’t be long before regaining the still valid 20.98 cup with handle buy point.
AFL stock fell 0.5% to 76.44, trading flat at 78.43 and in the midst of an extended consolidation, hitting an early entry of 78. Investors can view this as a shallow cup base with a handle, with an official buy point of 78. AFL stock’s RS line has soared to an eight-month high.
REGN stock fell 0.3% to 832.41. The stock price has consolidated near the top of the buy zone and is on a double-dip base. Regeneron stock has a buy point of 847.50 from a five-week tight pattern and is set for a sideways benchmark in just a few days.
MOD stock fell 3.2% to 44.14 on Tuesday, but is attempting to bounce back from its 10-week line. Manufacturers of thermal management systems for automakers and buildings could see an entry above Monday’s high of 46.18. Modine Stock is forging a new flat base.
FDX stock fell 1.9% to 261.39, barely holding its 50-day line. According to MarketSmith analysis, the stock’s flat-base buy point is 270.95 points. Monday’s high of 268.43 is a slightly lower level for an early entry.
Timing the Market with IBD’s ETF Market Strategy
what to do now
Investors need patience. Monday’s slight rally was not a green light for investors to start making new purchases, and heavy selling resumed on Tuesday. Wait for clear signs of market strength over the next few days.
Don’t get too excited about the stock’s relatively strong performance. You should keep an eye on those stocks. While they may end up leading the next market rally, many resilient stocks have cracked in the past few sessions.
Once the market starts rising, you need to keep your watchlist updated. Keep in mind that attempting to move higher can also create short opportunities.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
X/ Follow Ed Carson on Twitter. @IBD_ECarson and thread @edcarson1971 The latest information on the stock market, etc.
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