Stock market indices added to early gains at midday Thursday, off deep lows. Oversold technical readings and the end of tax selling sessions could continue to drive buying interest into Friday’s year-end end.
This year’s tax-loss selling season is coming to an end, before next week’s clean slate. Hope it is January effect Then he got down to business, lifting this year’s biggest losers from 52-week and multi-year lows.
The Dow Jones Industrial Average rose 1.2% in the lunch hour while the S&P 500 added nearly 2%. Small caps attracted strong interest as positive seasonality approached, lifting the Russell 2000 Index by nearly 2.8%. The Nasdaq Composite Index matches small capital gains.
Volume on the Nasdaq and the New York Stock Exchange was nearly identical to the first half of the Wednesday session, as we head into the long weekend. US stock markets will be closed on New Year’s Day Monday.
The 10-year Treasury yield fell about 0.7%, or 5 basis points, to 3.84%. Crude Oil fell about 1% to $78.10 a barrel. Asian and European markets were mixed in quiet trade during the holiday.
In the crypto world, Bitcoin has retreated near its November lows, trading around $16,600, while Coinbase (Currency) rebounded from Wednesday’s low of 31.83.
S&P 500 and Nasdaq are trading below 50-day moving averages. The Dow is holding just above the 50-day and 200-day moving averages, unlike other benchmarks, but trading too close for comfort’s sake.
Stock market: Apple is raising the level of a bear market
daw component an Apple (AAPL) cut through Double top support Around 130 on Wednesday, down to an 18-month low of 125.87. It recalculated that broken level on Thursday morning, generating small scale buy signals. it’s a Rating of relative strength It had dropped to a miserable 25, instead line of relative strength At the lowest level since November 2021.
However, the long-term support at and below 120 could limit the downside pressure in the coming weeks. AAPL shares are trading up 3.4% on Thursday.
The tech icon is expected to close out the fiscal year ending September 2023 with a meager 1% earnings growth. However, growth is expected to pick up to 10% in fiscal 2024. Mutual funds are still investing heavily, with ownership increasing in each of the past three quarters.
Also in Dow Jones, Walt Disney (dis) rose by 4.5%, leading all other leading indices of the Dow Jones index.
The second Avatar movie has surpassed $1 billion in worldwide box office revenue. The movie only needs $120 million to pass Doctor Strange in the Multiverse of Madness and Black Panther: Wakanda Forever for the best Disney movie of 2022.
Tesla short pressure excite shareholders beating
The EV automaker jumped above 122 in stock market action Thursday, continuing an oversold bounce. The pressure of losing tax sales came to an end as short sellers became more aggressive. This could set the stage for a short hot squeeze in January that lifts Tesla back above 160 or 170.
The best Tesla news so far this week? Elon Musk is keeping his mouth shut and deflecting more brand-killer tweets about his Twitter adventures.
Stock market movers and shakers
The Innovator IBD 50 ETF (fiftyHe sold 1.3%, ignoring the broad-based rally. Growth stocks are often overlooked when investors chase down opportunities.
The egg producer reported earnings of $4.07 per share, beating estimates by 17 cents. Investors sold shares aggressively, despite revenue rising 110% year-over-year to $801.7 million, outstripping consensus by nearly $3 million.
The company benefits from record average selling prices for eggs amid an outbreak of highly pathogenic avian influenza.
defect 50 an item Dr. Horton (DHI) is forming a 262-day old handle Cup base with handle And only 5% are trading below 92.55 buying points. DHI shares rose 1.8% in the first half of Thursday’s session.
Surprise – the homebuilders are back
Homebuilders have been surprisingly high on the IBD 50 in recent weeks, suggesting many investors expect the group to be at rock bottom. It might be wishful thinking because monthly home sales data continues to disappoint, with 10 consecutive months of negative numbers.
However, lower supply should keep homebuilders a floor under the coming months while positive demographics kick in. Specifically, millions of millennials have entered their nesting stages, as spouses and children demand larger homes. And in the end, many of these people will have no problem paying 6% or 7% on 30-year mortgages.
Also at IBD 50And the can (can) continue to build bull flag Which slipped back into the overbought zone. For IBD readers, the pattern is also shaping up to be a Tight formation for three weeks. This follows the December 12 break above 29.55 long points for a cup with handle. The pullback is about to test the support at the 21-day exponential moving average. BOX shares were up 2.7% at midday.
Follow Alan Farley on Twitter at @tweet.
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