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Dow Jones Futures Rise: Will the Market Rebound to the Rise? Nine stocks with flash buy signals


Dow Jones futures were up slightly Sunday night, along with S&P 500 futures and Nasdaq futures.




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The stock market recovery effort ended strong on Friday, with the major indexes surging thanks to the December jobs report and the ISM services index.

ELF beauty (ELF), SLB (SLB), caterpillars (CAT), Rio Tinto (RIO), Atkore (ATKR), KLA (KLAC), Therapeutic flowers (UTH), gateway (PODD), and TJX (TJX) has broken out, flashing buy signals or is said to be actionable.

commercial metal (CMC) report before opening. CMC stock spiked last week, recovering from the moving averages and breaking through a tight zone. But CMC’s upcoming earnings add a lot of risk.

After the market closes on Friday, Macy’s (m) has warned that sales in the fourth quarter of the holiday season will be low. It shows consumers are still under pressure in 2023. Macy’s stock fell more than 4% late Friday, with several other retailers dropping prices.

ELF Beauty and CAT shares participate IBD Rankings on Friday, with UTHR stock on the Leaderboard watchlist. ATKR Stocks and Trading Metals are on 50 . IBD list. KLAC stock is on the floor IBD Large Hat 20.

ELF Beauty is Friday IBD shares of the day. United Therapeutics and RIO stocks were the picks to start the week.

While, Tesla (TSLA) rocked the Chinese electric vehicle market with steep price cuts on Friday after sales there were weaker than expected. Tesla shares fell for the week but reversed higher on Friday. Tesla’s move may hurt margins, but it will help the EV giant boom BYD (BYDDF), increasingly profitable. BYD stock fell on Friday but still had a strong week of growth. Chinese EV startups like Nio (NIO), Automobiles (LIFE) and XPeng (XPEV), which is already losing money, faces a bigger challenge. Shares of Nio, Li Auto and Xpeng plunged on Friday but posted weekly gains.

Dow Jones Futures Today

Dow Jones futures are up 0.1% from fair value. S&P 500 futures were up 0.2 percent and Nasdaq 100 futures were up 0.2 percent.

Remember that action overnight in future index and other places that don’t necessarily translate into actual transactions the next time stock market meeting.


Join IBD experts as they analyze stocks that could act in the stock market rally on IBD Live


Stock market recovers

The new stock market rally looked shaky for most of the week, but then bounced back strongly on Friday.

Some strong labor market data weighed on key indexes, but Friday’s jobs report had some weak elements, particularly lower wage growth. In addition, the ISM services index showed a large decline, signaling a significant slowdown in the economy.

The Dow Jones Industrial Average rose 1.5% last week stock market trading, along with the S&P 500. The Nasdaq composite was up 1%. The Russell 2000 small-cap index rose 1.8 percent. All the index gains and then some come on Friday.

The yield on the 10-year Treasury note fell 26 basis points to 3.57%. The probability of the Fed raising interest rates by a quarter point on February 1 is now up to 74%. Markets are also betting on a quarter point rise in March, to 4.75%-5%. Markets are not pricing in any further bull run, despite the Fed’s forecast above 5%.

U.S. crude oil futures fell 8.1 percent to $73.77 a barrel last week. Natural gas fell 17%.

ETFs

Between Growth ETFsIBD 50 Innovator ETF (FFTY) gained 0.55% last week, while Innovator’s IBD Breakthrough Opportunity ETF (HOUR) increased by 1.2%. iShares Expanded Tech-Soft Sector Sector ETF (IGV) decreased by 0.9%. VanEck Vectors Semiconductor ETF (SMH) rose 4.3%, recapturing the 50-day moving average.

Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) rose 0.4% last week and the ARK Genomics ETF (ARKG) 0.2%. Tesla stock remains a large holding on Ark Invest ETFs. Cathie Wood continues to increase her TSLA holdings to start 2023.

SPDR S&P Metals & Mining ETF (XME) gained 6.1% last week, with bullish momentum from all of its major moving indicators. US X Global Infrastructure Development ETF (PAY THE ROAD RED) increased by 3.1%. US Global Jets ETF (jet plane) increased by 7.9%. SPDR S&P Homebuilders ETF (XHB) bounced 5.5%. Energy Select SPDR ETF (XLE) rose 0.1%, with SLB stock being a notable component. Financial Options SPDR ETF (XLF) increased by 3.45%. SPDR Foundation for healthcare sector (XLV) fell 0.1%, but regained the 50-day line on Friday.


The five best Chinese stocks to watch right now


stocks to watch

ELF stock has been slashed quite clearly. Shares rose 4.4% to 58.05 on Friday, breaking out of a flat base on more than double normal volume, according to MarketSmith Analysis. The relative strength line has been hitting a new high.

SLB stock rose 3.5% to 54.50 on Friday, extending its rally from the 50-day line and completing an early entry in the consolidation. SLB was formerly known as Schlumberger.

CAT stock rose 3.6% to 248.86, definitively entering buy zone from 6% deep flat sole alongside a deep and lasting consolidation.

RIO stock rose nearly 3% to 74.07, creating a cup with a handle buy points.

KLAC and ATKR stock bounced off the 10-week moving average and crossed the 21-day moving average, offering early entries.

UTHR stock is up slightly from the 10-week line on extremely tight trading. United Thera could perhaps use a little more strength to clear a short-term downtrend.

PODD stock regained its 50-day line, but pulled back and closed just below the 21-day line. A move above the 300 level will provide an early entry in a flat background.

TJX stock has broken out of a flat flat base next to a long and deep base cup model.

Tesla Roils China Electric Vehicle Market

Tesla on Friday slashed prices in China and the key Asian markets of Japan, Australia and South Korea. That comes after record deliveries in the fourth quarter missed views for the second straight quarter. With backlogs dropping rapidly — essentially zero in China — Tesla needs to act boldly just to try to maintain its current deliveries.

With some big deals coming later in the year, some of which have been carried over to 2023, the price drop in China may not be as big as it seems. However, the Tesla Model 3, which faces stiff competition in China, is now about $600 more than a similar BYD Seal, essentially wiping the gap of nearly $10,000 in just a few days. month.

The price cuts will affect Tesla’s well-regarded gross margins, the question being how much and for how long they will boost demand for the Model 3 and Y.

Tesla’s price war in China is largely aimed at BYD, the world’s largest maker of electric vehicles, or the fast-growing company in No. 2. But BYD is profitable with an umbrella gross margin. bowl firmly. In addition, boosting its exports, including to Australia and on January 31, Japan, could also help protect it.

The electric car price war in China could be a bigger concern for electric vehicle startups. Nio and XPeng are still losing money. Li Auto has had inconsistent returns.

Keep in mind that Tesla’s second China sale in 10 weeks could be just the beginning of a devastating price drop. Tesla has a lot of spare capacity while its competitors are all growing strongly, especially BYD. And they are all moving strongly into the $30,000-50,000 range where Tesla resides.

Tesla shares fell 8.2% to 113.06 for the week, continuing a massive sell-off. However, the stock bounced off Friday’s new bear market low of 101.81 to end the session up 2.5%. BYD stock fell 1.55% on Friday, but is still up 7% for the week, above its 50-day moving average.

Shares of Nio, Li Auto and XPEV fell 4.5%, 9.2% and 15%, respectively, on Friday. But they were up 2%-6% for the week.

Tesla stock is clearly looking bad right now, but none of these EV stocks look good.


Tesla vs. BYD: Electric car giants vying for the crown, but which is better to buy?


Analysis of market recovery

The stock market took a positive step on Friday.

The Dow Jones Industrial Average moved above the 50- and 21-day moving averages after hitting resistance in recent days. The Dow is more relevant in the current market, with industries, healthcare and many Dow-style companies leading the way, such as Caterpillar.

The S&P 500 crossed the 21-day line, all the way to the 50-day line. The Russell 2000 has regained the 21-day mark but there is still some work to do to reach the 50-day mark.

The S&P MidCap 400 has moved above the 21-day, 50-day, and 200-day moving averages. So does the Invesco S&P 500 Equal Weight ETF (RSP).

Nasdaq is approaching the 21-day line for the first time in weeks, but is clearly lagging.

Even the Dow is still facing December highs, while other indexes face many challenges. A move above the 50-day moving average by the S&P 500 would be another big step.

This could signal the start of a more meaningful bull run, even if it’s just a short-term, tradable bull run, but it’s still unclear.

Top stocks, which have generally outperformed the S&P 500 in recent months, showed strong action on Friday, with several breakouts and buy signals. But that was after some nasty reversals earlier in the week and more broadly over the past few months.

Let’s see if the market rally can give momentum to the major indexes and leading stocks. On Thursday, the consumer price index is being updated.


Market Timing with IBD’s ETF Market Strategy


What to do now

Currently, the stock market’s rally is looking more positive. Investors may want to add some risk, whether in individual stocks or through industry-wide market ETFs. But don’t get too excited.

This could be a bullish turn, or just another false head.

The market can quickly reverse lower. Or, the S&P 500 could rally to a 200-day or December top — and fall back down.

Getting small positions can be the best course of action initially. Let the recovery market draw you in. Be ready to cut your losses quickly and still consider taking partial profits quickly.

But this is definitely the time to build your watch list. Make sure you have a diverse list. While growth and the tech sectors are still slowing with a few exceptions like KLAC stock, a large number of stocks from a variety of sectors are being watched.

Read Big picture every day to stay in sync with market trends and top stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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