Dow Jones futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures.dow ingredients Johnson & Johnson (JNJ) made a delayed rise as it offered to pay $8.9 billion to settle claims that talc products caused cancer.
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The stock market rally on Tuesday lost momentum amid growing fears of a recession. Job openings were well below expectations and fell to their lowest level in 21 months. While the data further reduces the chances of a Fed rate hike, it also raises concerns that the US economy is headed for recession.
Major exponent losses were small and no major damage was seen. Many of them reflect mega caps. apple (AAPL), microsoft (MSFTMore) barely shaken meta platform (meta) became higher.So did Google’s parents alphabet (Google), moving towards a buy point. Tesla (TSLA) fell slightly, extending Monday’s fall after Q1 shipments. But TSLA retained its primary support.
overall growth is Service Now (now) Make a strong movement. On the downside, AI stocks plummeted against the latest move in shortsellers. C3.ai (AI). C3 continued to slide late.
Overall market width was weak. Many groups suffered heavy losses, including steel manufacturers, base metal mining companies, building materials companies, and heavy construction companies. About economic concerns.
Banks fell as well, especially regional names as well as JP Morgan Chase (JPM). At the very least, the recent bank woes are likely to weigh on the economy, especially as lending to commercial real estate declines.
JP Morgan Chief Executive Jamie Dimon warned in Tuesday’s annual shareholder letter that the banking crisis is “not over yet” and will have “impacts” for years to come.
Gold and gold stocks had a good day as recession fears and a weaker dollar rushed investors into safe haven.
ServiceNow and META stocks are on SwingTrader. Stocks in Microsoft and Google are long-term leaders in IBD.
The video embedded in this article discusses Tuesday’s market movements and analyzes NOW shares, Atkore, and C3.ai.
J&J Talc Settlement
After the deal closes, Johnson & Johnson offered to pay $8.9 billion to settle long-standing claims that Baby Power and other talc products caused cancer. filed for bankruptcy again.
JNJ shares rose 3% in late trading. Stocks on Tuesday rallied back to the 50-day line, rising just over 1% for the third consecutive time. But JNJ’s stock is still not far from its two-year low.
dow jones futures today
Dow Jones futures were little changed to fair value, even as JNJ shares rose slightly. S&P 500 futures and Nasdaq 100 futures were flat.
The 10-year Treasury yield edged up to 3.35%.
Note that overnight trading on Dow futures or elsewhere does not necessarily lead to actual trading on the next regular stock market session.
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stock market rally
The stock market’s rally began Tuesday with little change but then retreated, with key indicators falling slightly but masking deeper weakness.
At 10 a.m., a JOLTS survey showed February job vacancies fell to 9.9 million from January’s downwardly revised 10.6 million. This is his lowest in 21 months and well below his views. That’s what the markets, and Federal Reserve Chairman Jerome Powell, have wanted for months. But the index fell sharply as the focus shifted to fears of a recession.
The Dow Jones Industrial Average fell 0.6% along with the S&P 500 Index in stock market trading on Tuesday. The Nasdaq Composite fell 0.5. Small-cap Russell 2000 for local banks he rose 1.8%.
US oil prices climbed 0.4% to $80.71 a barrel, missing from the morning high but up nearly 11% over the last four sessions.
Yields on 10-year government bonds fell more than 9 basis points to 3.335%, the lowest level in almost seven months. The 2-year yield fell 15 basis points to 3.83%.
The likelihood of a rate hike in May fell from 57% on Monday to 40% on Tuesday. His March jobs report, which comes out on Friday when US markets are closed, is likely to shake expectations of rate hikes again.
The US dollar fell to its lowest level since February 2nd.
ETFs
Innovator IBD50ETF (FFTY) fell 1.5%. iShares Expanded Tech Software Sector ETF (IGV) rose slightly as MSFT and NOW stocked large components. VanEck Vectors Semiconductor ETF (SMH) fell 1.5%.
Reflecting more speculative story stocks, the ARK Innovation ETF (arc) fell 0.5% while the ARK Genomics ETF (ARKG) fell 0.4%. TSLA shares are ArcInvest’s largest holding among his ETFs.
SPDR S&P Metals & Mining ETF (XME) fell 2.5%%, while the Global X US Infrastructure Development ETF (pave) fell 3.75%. US Global Jets ETF (jet) fell 0.7%. SPDR S&P Homebuilders ETF (XHB) gave up 2.7%. Energy Select SPDR ETF (XLE) retreated 1.8% and the Health Care Select Sector SPDR Fund (XLV) has become higher.
Financial Select SPDR ETF (XLF) decreased by 0.9%. Its main holding, JPM shares, fell 1.3%. SPDR S&P Regional Banking ETF (Kure) fell 2.2%, not far from its low in recent years.
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AI stocks
AI stock plunged 26% to 24.95, erasing much of the recent big gains for a highly volatile name.
Kerrisdale Capital Management, which previously said it was shorting AI shares, wrote to C3.ai’s auditor, Deloitte, alleging that the artificial intelligence firm was “using accounting techniques that inflate the income statement.” I do,” he denounced.
“The Kerrisdale Letter appears to be a very creative and transparent attempt by a self-proclaimed short-seller to short stocks,” C3.ai said in response.
AI shares fell 6% in overnight trading.
megacap strains
Apple stock fell 0.3% and Microsoft fell just below breakeven. META shares were up 0.8%. All are extensions.
According to MarketSmith analysis, Google’s stock rose 0.3% to 104.72, approaching the handle cup buy point of 106.69.
Tesla shares fell 1.1% to 192.58, but beat the 21-day and 50-day lines. Shares fell 6.1% on Monday, below the 200.76 buy point.On Tuesday, Tesla cut prices in Australia.
Market rally analysis
Stock market gains retreated on Tuesday, but it’s not clear if it was the beginning of something serious or a minor one
After months of waiting for weaker economic data to lead the Federal Reserve to halt rate hikes, investors on Tuesday feared a recession more than the Fed.
The major indexes overall looked normal or even healthy, with modest declines.
The Nasdaq traded inside Friday’s trading range for the second time in a row. The S&P 500 and Dow Jones have bounced back after a four-day winning streak.
Apple stock and megacaps were unmoved. The chip was refused, but it doesn’t appear to be damaged.
Software stocks were the leaders on Tuesday, with ServiceNow gaining 2.5% to 476.05, moving towards the consolidation buy point at 494.72 following analyst upgrades. NOW’s stock broke the downtrend with a strong move above the 50-day line on Friday, allowing immediate action.
On Tuesday, however, the losers beat the winners by more than 2-1 on the Nasdaq and New York Stock Exchange. And many of the losers were hit especially hard in the mining, construction and manufacturing sectors. Nukor (Nue), Rio Tinto (Rio), Ah this (Offensive power) and caterpillar (Cat) fell, and so did the group’s stocks.
Bank stocks, especially regional stocks, continue to struggle.
Market breadth has improved over the past week after several weeks of narrow leadership. Tuesday’s action is therefore noteworthy. But it was only one day.
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what to do now
The market rally was expected to pullback, but it did. Most of the big losers weren’t leaders, but growth names were generally fine.
Therefore, investors should not overreact. However, the behavior of many groups and individual strains demonstrates the importance of agility and control.
This is not a crazy bull market, so investors should enter a gradual uptrend and avoid buying stocks for a long period of time. You should also consider continuing to take partial gains quickly, especially in highly volatile stocks like AI stocks. Don’t let the winner become the loser.
This is definitely the time to pay close attention and get involved with major indices, major stocks and proprietary portfolios. Continue working on your watchlist.
Read The Big Picture daily to understand the market direction and key stocks and sectors.
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200-day average: the last line of support?
