Stock Jumps Fades as Nasdaq Drops To Session Lows

The stock market’s mid-day bounce waned in afternoon trading, although indices remained above daily lows.




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The tech-heavy Nasdaq fell 1.6% after nearly erasing its 2% opening loss. The S&P 500 rallied but fell 0.5% again around 1:30 pm ET. The index climbed above the 50-day moving average, but fell slightly below it.

Small caps, Russell 2000 continued to outperform, up 1.3%. It had climbed more than 2% before. Volume rose on the Nasdaq and NYSE compared to the same time on Tuesday.

The Dow Jones Industrial Average rose 0.3%. at Dow, Visa (V) provided some comfort with a gain of about 4% after its quarterly report. The stock made a move above its 50-day moving average.

boeing (BA) earnings rose more than 1%, although they did not meet expectations. The stock is on the rise general electricityA bullish outlook for the (GE) aerospace industry.

The 10-year Treasury yield fell 9 basis points to 4.2% and could help the stock market. The Bank of Canada raised interest rates by 50 basis points today, instead of the 75 basis points market expected.

New home sales fell to 603,000 in September, better than economists expected.

Stock Market Uptrend Strengthens

The stock market had every reason to drop after disappointing third-quarter results. Alphabet (GOOGL) cent shares fell 6%. a weak appearance Microsoft (MSFT) dropped the software and cloud giant by 5.2%, triggering a major slippage. Still the indices are back

The pair was also responsible for much of the broad market’s early decline. Microsoft and Alphabet combine the latter’s Class A and C shares, representing about 20% of the Nasdaq’s total weight and more than 9% of the S&P 500 index.

But as a sign of their enormous impact on the stock market, the breadth was actually positive. The highers moderated the declines roughly 2 to 1 on the NYSE and Nasdaq in afternoon trading.

After a day following Friday, IBD’s The Big Picture column said that at least a short-term market bottom exists, but warned investors to limit risk to 20% given the multiple risks facing the stock market. The way the indices recover from their initial declines today can be seen as a bullish sign.

Thus, investors can increase exposure to 40% of their portfolio, or even 60% for aggressive investors. Applying restraint is still a good strategy: The Fed will hold a meeting on interest rates next week and the next employment report will be prepared. More earnings reports will also be announced.

Wing Interceptor, Escape from ADM Bases

Some consumer stocks rose on the gains. wing stop (WING). The restaurant chain has passed the 148.94 purchase point of consolidation in heavy trade and has already been extended. The pattern can also be interpreted as a shorter-than-normal double bottom with 142.03 pickup points.

Archer-Daniels-Midland (ADM) broke above the 92.36 buy point with strong gains. ADM is in reception range up to 96.98.

In solar stocks, Enphase Energy (ENPH) broke above its 50-day moving average while continuing to form a cup base. The company’s third-quarter sales and earnings beat expectations late Tuesday.

IBD 50 Passes Stock Market

The Innovator IBD 50 ETF (FFTY) challenged the stock market indices and rose 1.9% in the middle of the day. Energy and packaging stocks gave the IBD 50 a boost in early trading.

Silgan Holding The company, which makes containers for health, beverage, personal care and other uses (SLGN), left more than 3% gap following its earnings report.

New Castle Energy (NFE) climbed more than 4% and added some gap above its 50-day moving average. The stock is forming a cup bottom with 63.16 buy points. Devon Energy (DVN) is up 3.2% and stays in the buy zone from 75.37 buy points.

But Owens Corning A relatively new face in the IBD 50 (OC), it cut its loss to 3% after third-quarter sales came in slightly below expectations.

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