Dow Jones futures contracts extend the selling range in the stock market; This should worry investors

Dow futures fell Thursday morning, along with S&P 500 and Nasdaq futures. The stock market was sold off on Wednesday on higher-than-expected CPI inflation data, with the S&P 500 and Nasdaq breaking recent lows.




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The market correction and the Nasdaq bear market are showing no signs of slowing down. Recoil attempts tepid and quickly crushed. And despite the measures of fear of a market crash, which is a conflicting indicator, it still isn’t rising.

Meanwhile, the collapse of the so-called stablecoins, digital currencies that are supposed to be pegged to the dollar, continues to decline, adding to the pressure on Bitcoin and other cryptocurrencies.

after closing, Walt Disney (dis) And Tesla (TSLA) competition Rivian (countryside) reported weaker-than-expected quarterly results. But investors focused on Disney Disney + subscription numbers after amazing Netflix (NFLX) is decreasing. Rivian shareholders have entered into an EV startup statement that it further accelerates delivery truck shipments to key customers Amazon.com (AMZN).

Tesla stock is approaching recent lows in its broad and loose consolidation. Tesla faces a number of challenges in the short and medium term.

while, merck (Mrk) broke out briefly, while Eli Lilly (LLY), National anthem (ANTME), chevron (CVX) And dollar tree (DLTRThey trade around their 50 day lines. They all show relative strength.

Tesla, Anthem and LLY stocks are in the running IBD Leaderboard, while DLTR stock joined Leaderboard’s watchlist. MRK Stock and Dollar Tree SwingTrader. Merck and CVX stocks are on file IBD Big Cap 20. It was Eli Lilly on Wednesday IBD stock today.

Dow jones futures contracts today

Dow Jones futures are down 0.45% against fair value, pulling back from modest gains Wednesday night. S&P 500 futures fell 0.6% and Nasdaq 100 futures fell 1%. The DIS stock is a component of the Dow Jones and Standard & Poor’s 500.

The 10-year Treasury yield fell 8 basis points to 2.84%.

US crude oil prices fell more than 1%. Copper futures slipped 3%. There are growing concerns that the Fed’s hike in interest rates to fight inflation will lead to a recession amid a number of economic growth challenges.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.


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stock market Wednesday

The stock market was volatile at the open on Wednesday following the April CPI. Inflation eased to 8.3% from a 40-year high in March of 8.5%, but that was higher than expected. Core consumer prices rose 0.6% compared to March.

Trading up and down has become decisively negative, especially in the Nasdaq. Major indexes fell to 52-week lows, closing near their worst lows today.

The Dow Jones Industrial Average is down 1% on Wednesday stock market trading. The S&P 500 lost 1.6%. The Nasdaq Composite tumbled 3.2%. Small-scale Russell 2000 slipped 2.5%.

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The 10-year Treasury yield fell 7 basis points to 2.92%, the third consecutive decline. That’s after it initially jumped to 3.04% – and even higher before the opening on CPI data. Meanwhile, the two-year yield rose 1 basis point to 2.63%. The two-year yield is closely related to the Fed’s price movements, while the 10-year Treasury is feeling the effects of slower growth expectations.

US crude oil prices jumped 6% to 105.71 barrels. With coronavirus cases in Shanghai and China dropping sharply over the past few weeks, expectations are growing that the Chinese government will ease the economy-crunching lockdown, boosting demand for crude oil and other commodities. But this has not happened yet.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) is down 1.4%, while the Innovator IBD Breakout Opportunities ETF is downfit) rose 0.15%. iShares Expanded Technology and Software Fund (ETF)IGV) fell 3.3%. VanEck Vectors Semiconductor Corporation (SMH) declined by 3.1%.

SPDR S&P Metals & Mining ETF (XME) decreased by 0.7% and the Global Infrastructure Development Fund (ETF) in the USA (cradle) gave up 1.4%. US Global Gates Foundation (ETF)Planes) down 2.4%. SPDR S&P Homebuilders ETF (XHB) down 3.6%. SPDR Specific Energy Fund (SPDR ETF)XLE) up 1.3%, with CVX stock a key component. SPDR Financial Choice Fund (SPDR)XLF) down 0.9%. SPDR Healthcare Sector Selection Fund (XLV) down slightly 0.7%, with Merck, Eli Lilly and ANTM shares all standing out in the crowd.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) 10.1% decline with key holdings unit programs (WL) And Queen Piece (Currency) Stumble upon poor results and direction. ARK Genomics ETF (ARKG) slipped 7.8%. Both ETFs are at two-year lows. TSLA stock remains the #1 holding across Ark Invest’s ETF.


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stock to watch

Merck stock rose 1.6% to 89.20 to close below 89.58 cup with handle Buy a point after checking out earlier. The shares have traded tightly over the previous several sessions. The Relative force line As for MRK stock, it hit new highs long before Wednesday’s move.

LLY stock rose 0.35% to 286.69, paring gains after trying to move away from the 50-day moving average. Technically, Eli Lilly stock is still in a buy range of 284 cup base The point of purchase was initially cleared about two months ago. But investors may want to wait for LLY stock to break a short downtrend, possibly using the May 6 high of 298.25 as a trigger. After this week, Eli Lilly should have a flat base – part of a base on base Formation – with 314.10 buy point. The RS line of LLY stock has already reached a new high.

ANTM stock fell 0.4% to 487.36, reversing modest gains near the 50-day line, previously technically back. Purchase area. Shares of the health insurance giant have fallen sharply over the past few weeks. Anthem stock can be actionable from the 50 day line, especially if it breaks above a short trend line. ANTM stock’s RS line reached a new high.

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DLTR stock is down 1.15% to 156.07, just below the 50-day line, inside former buy territory like Anthem. A 50 day line rebound above the 21 day line would also break a short, downward sloping trendline, providing a solid entry. Dollar Tree’s RS line has reached new heights.

CVX stock advanced 1.5% to 163.16, just below the 50-day line after moving above that level intraday. Chevron stock is on a flat base at 174.96 buying points, according to MarketSmith Analysis. Investors can buy CVX stock if it bounces back from 50 days and breaks above the May 6 high of 170.97. Chevron’s stock RS line hit a new high.

Disney earnings

Disney’s earnings and revenue did not exceed estimates for the second quarter of the fiscal year. Disney + subscribers increased It increased by 8 million during the quarter to 137.7 million, surpassing views of 134.4 million.

But ESPN+ and Hulu’s subscriber levels are a bit missed, while Disney is seeing more content spending for its own streaming services.

Last month, Netflix reported its first-ever drop in live subscribers in the first quarter. It expects a bigger loss in the second quarter

DIS stock fell 5% overnight after initially rising strongly on Wednesday night. Shares sank 2.3% on Wednesday to 105.21, their lowest in two years.

Netflix stock is down 1% in pre-market trading, after closing down 6.35%.


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Rivian Profits

Rivian reported a larger-than-expected loss While first-quarter revenue was well below consensus. However, the EV startup said it is ramping up production and delivery of the EDV 700 delivery truck to Amazon, the lead customer and investor.

Rivian previously announced that it produced 2,553 vehicles in the first quarter. This was mostly a Rivian R1T pickup truck but also some R1S SUVs and commercial trucks for its main customer, Amazon.com (AMZN). Rivian delivered 1,227 vehicles in the quarter.

Rivian said Tuesday it is on track to meet its 2022 production target of 25,000 EV, but that’s half of its initial target of 50,000.

RIVN stock is up 3% overnight in active trading. Shares fell 9.6 percent to 20.45 on Wednesday after that stronghold (F) confirmed that it had sold 8 million shares of Rivian stock. Early reports of a Ford sale sent RIVN stock crashing 21% on Monday. Shares are hitting record lows, well below their $78 initial public offering price last November.

Tesla Stock

Tesla stock fell 8.25% to 734 on Wednesday. That’s still above the February 24th low of 700, but the lowest close since last September. The increasingly ugly handle is now too deep to be valid. TSLA stock’s RS line, at or near the consolidation tops in early April, is now approaching recent lows. Tesla’s stock chart, like many other growth names, will need a lot of repair work.

TSLA stock is down 2% early Thursday

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Obviously, the stock market correction including the Nasdaq bear market is the biggest negative correction for TSLA stock. But Tesla’s business faces a number of challenges.

The Tesla Shanghai plant is making barely any vehicles at the moment after a major supplier suspended production earlier this week. The Shanghai plant was closed from March 28 to April 19, and its production has been limited since then.

Meanwhile, competition is heating up in China, with BYD (BYDDF) and several Chinese automakers to launch a competing Tesla Model 3 in the coming months. The chip shortage is expected to recede later this year. While that would allow Tesla to make more of the same electric vehicles, competitors would be able to significantly boost EVs and overall vehicle production, ultimately reducing Tesla’s pricing power and the industry.


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market analysis

After some choppy action Tuesday and Wednesday morning, the major indicators turned decisively lower after the hotter-than-expected CPI inflation report. The S&P 500 and Nasdaq cut their recent lows in 2022, killing their one-day “rallies”. The Dow, which fell on Tuesday, also hit a 52-week low on Wednesday.

The market correction continues to head lower, with the Nasdaq bear market now deepening by 30%. The S&P 500 is down 18.3% from its January high, close to the 20% bear market threshold.

Losers crush winners, with new lows obliterating new highs.

So far, there are no real indications that the market is approaching the bottom. While indicators of market fears circulate on recent gains, the CBOE Volatility Index, or VIX, fell 1.3% to 32.60 on Wednesday even as the S&P 500 hit new lows.

But another pointer conflicting, well, conflicting with The latest reading of Bulls Bears of investment newsletter writers are increasingly trending downward.


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What are you doing now

Staying abroad is still the best move. Yes, there are pockets of market power. But the leading sectors are not immune to selling pressure either. It is better to wait for a follow-up day to confirm a new rally in the market. Even so, investors should be careful.

At the moment, there is not even an attempt to go up in the market.

Stay engaged with the market, but don’t obsess over every minute of movement during the day. Keep working on your watchlists.

Read The Big Picture Every day to stay in sync with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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