Dow Jones futures were little changed on Sunday night, along with S&P 500 futures and Nasdaq futures.Investors react to March jobs report, fresh Tesla (TSLA) such as price cuts after the US market closed on Friday.
X
The major indices held up well in the holiday-shortened trading week, with a mid-week pullback looking healthy and normal. But many sectors and major stocks, including Tesla stock, sold hard.
Parent of Google alphabet (Google) occurred on Thursday.Chinese e-commerce giant Alibaba (baba) flushed the aggressive entries.
A video embedded in this article discusses weekly market movements, including Google, BABA stock, intuitive surgery (ISRG).
dow jones futures today
Dow futures rose 0.1% to fair value. S&P 500 futures were little changed. Nasdaq futures fell 0.2%.
The 10-year Treasury yield plunged to 3.37% after surging on Friday following the March jobs report. On Thursday, the 10-year yield hit a seven-month low.
Hong Kong and European markets are closed for Easter Monday.
Note that overnight trading on Dow futures or elsewhere does not necessarily lead to actual trading on the next regular stock market session.
job report
The Labor Department on Friday reported that nonfarm payrolls increased by 236,000, just below an estimate of 240,000. This is down from his 326,000 after the February correction.
Private employment increased by just 189,000, well below the 223,000 view. Manufacturing employment unexpectedly fell by 1,000 he said.
The unemployment rate was also a surprise, dropping to 3.5%, returning to its long-term lows. However, the labor force participation rate rose to a post-corona high of 62.6%.
Hourly earnings were up 0.3% over February. Year-on-year gains he fell to 4.2%, below his forecast of 4.3% and the lowest in years. Three-month annual wage growth slowed to his 3.2%.
The average work week has unexpectedly decreased to 34.4 hours.
The chances of the Fed raising rates in May jumped from 49% on Wednesday to 67% on Thursday, despite slowing wage growth and private employment.
Other news
exxon mobil (XOM) held early acquisition talks with shale play pioneer natural resources (PXDMore), wall street journal It reported Friday, citing sources. PXD stock has a market capitalization of $49 billion.
McDonald’s (MCD) is cutting hundreds of jobs in a massive restructuring and slashing its salary package. wall street journal reported on Friday. The fast-food giant temporarily closed its headquarters on Monday and began informing affected employees of layoffs.
Samsung Electronics plans to cut memory chips to “meaningful” levels after its first-quarter operating profit plummeted by more than 95%, far exceeding expectations.it may be good news micron technology (Mu).
taiwan semiconductor (TSM) reports sales for March and the first quarter early on Monday.
Join IBD experts analyzing viable stocks on IBD Live stock market rally
stock market rally
The stock market rally had a mixed week. The Dow Jones Industrial Average rose 0.6% in the weekly stock market trading. The S&P 500 Index fell 0.1% for him. The Nasdaq was down 1.1% and the Russell 2000 was down 2.5%.
US oil prices soared 6.65% to $80.92 a barrel. This was mostly done on Monday after OPEC+’s unexpected production cut. Crude oil futures he surged 20.9% in three weeks.
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Growth ETF
Innovator IBD50ETF (FFTY) fell 3.5% in a week. iShares Expanded Tech Software Sector ETF (IGV) fell 1.6%. Microsoft stock is his primary IGV holding. VanEck Vectors Semiconductor ETF (SMH) gave up 4.1%.
Reflecting more speculative story stocks, the ARK Innovation ETF (arc) fell 4.4% while the ARK Genomics ETF (ARKG) fell 1.2%, but both rose on Thursday. Tesla stock is Ark Invest’s largest holding in his ETF.
tesla price cut
Tesla slashed U.S. prices for all EVs overnight. This is the third price reduction for the Model S and Model X this year, both at $5,000 in this example. The Model S he starts at $84,990 and the Model X currently starts at $94,990.
Meanwhile, Tesla has slashed the price of the Model 3 in the US by $1,000 to its entry price of $41,990. The Model Y he dropped $2,000 to $49,990.
Earlier this week, Tesla cut prices for the Model 3 and Model Y again in Australia.
Tesla cut global prices in January, followed by further price cuts on its S and X cars in the US, and further cuts in Europe in March. That, along with new US EV credits, pushed Tesla’s first-quarter deliveries to a record high. But it fell short of FactSet’s opinion. Production once again outpaced shipments, with Model S and X production nearly doubling sales.
Many analysts predicted that further Tesla price cuts would go in the direction of supporting demand, further slashing that precious margin.
Tesla will build a new facility in Shanghai to manufacture Megapack batteries, state media reported on Sunday. Tesla’s energy storage business uses batteries from China’s CATL.
Tesla cuts prices again after TSLA triggers sell rule
tesla stock
Investors won’t get a chance to react to Tesla’s latest price cut until Monday. However, Tesla’s share price fell 10.8% to 185.06 this week following its first-quarter shipments report. The stock fell below the 200.76 handle cup buy point and he 50-day moving average.
The base has fallen below the 200-day line, which isn’t great. While the buy point at 200.76 is no longer valid, TSLA stock is tackling a new handle already present on the weekly chart at 207.89 entry. Of course, the 200-day line is still looming just above it.
Tesla’s first-quarter earnings are due on April 19, allowing investors to see how the price cuts have affected profit margins so far.
google stocks
Google jumped 3.8% on Thursday to a higher-than-normal 108.42. MarketSmith’s analysis shows the stock has risen above his handle cup buy point of 106.69.
Google’s CEO says the company will soon add chat AI to its search engine. microsoft (MSFTMore) has added ChatGPT to its Bing search engine and other products.
alibaba stock
Alibaba’s shares rose 4.25% to 102.74 on Thursday, breaking the handle-based cup-based downtrend and offering early entry. The official handle purchase point is 105.15.
BABA’s stock surged last week after Alibaba announced it would split into six different units with their own CEOs and the option to file for an IPO.
stock market rally analysis
Investors should judge the health of a market rally by major indices and leading stocks. But they are giving some mixed signals. The main index seems fine. The Dow rose, the S&P 500 barely fell, and the Nasdaq showed its usual constructive rally on Thursday as he recovered above the 12,000 level.
Google’s stock had a strong week. meta platform (meta) continued to rise. apple (AAPL) and Microsoft stocks were little changed, on the edge of the buy zone. in the meantime, exxon mobil (XOM), Merck (MRK) and united health (UNH) made big profits every week.
But there were many big losers. Construction and industry-related groups fell Tuesday, while growth stocks sold off Wednesday. . For many, Thursday’s rebound from critical levels was definitely encouraging.
Defensive growth and defensive names had a strong week, including health care, consumer staples and utilities.
Will the defensive-to-defensive rotation continue, or was Thursday the start of a recovery in growth?
A lot of that could depend on how markets react to slowing economic data. Investors welcome the bearish economic report, which could lead to an early end to the Fed’s rate hikes. But at least last week, markets were more concerned about recession risks.
Dow futures and Treasury yields reacted positively to March’s jobs report on Friday, which showed weaker employment and slower wage growth. But let’s see how Monday’s stock market rally really reacts.
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what to do now
Investors may have wanted to reduce their exposure last week. How much chance you have depends on the stock you own.
Investors can make some new purchases if major stocks show strength over the next few days. Don’t focus too much on one or the other sector.
This is a good time to create a watchlist. If the rotation is underway, cast a wide net to find medical stocks and other bullish stocks.
Read The Big Picture daily to understand the market direction and key stocks and sectors.
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