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Dow Jones futures: continued downturn in market movement; What to do As an inflation, Tesla data looms large

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Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally had a bearish week after significant gains over the previous five weeks. But the decline has been normal so far.




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Is the uptrend picking up, continuing to stall, or selling more seriously? Three important factors to watch next week: CPI inflation report, earnings and Tesla (TSLA).

The Consumer Price Index inflation report will be released on Tuesday morning, which helps set expectations for a Fed rate hike.

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Key earnings include this week Arista Networks (Anita), Cadence Design Systems (CDNS) And Airbnb (ABNB), all points of purchase are close.

Tesla stock has doubled in just over a month, as TSLA investors are betting on a rosy scenario without much information to confirm or deny it. We’ll start to see the number of thorns in this scenario next week, with China EV registration data for Tesla (TSLA) and the main competitors.

while, apple (AAPL) has created a new handle buy point during Exxon Mobil (xom) in the purchase area.

The video embedded in this article reviewed the market rally rally in depth, while also analyzing XOM stock, dexcom (DXCM) And Aehr Test Systems (ahr).

Dow jones futures today

Dow futures open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.

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Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.


Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live


Stock market rise

The stock market bull run has been off the ground last week, especially small-cap stocks and growth games.

The Dow Jones Industrial Average fell 0.2% in trading last week. The S&P 500 fell 1.1%. The Nasdaq Composite lost 2.4%. Small cap Russell 2000 fell 3.4%.

The 10-year Treasury yield rose 21 basis points, to 3.74%.

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US crude oil futures jumped 8.6% to $79.72 a barrel last week, rebounding from last week’s sharp losses. Gasoline futures jumped 7.9 percent. Even natural gas prices rebounded 4.3%.

Exchange Traded Funds

Among the ETFs, the Innovator IBD 50 ETF (fifty(sank 1.7% last week, while the Innovator IBD Breakout Opportunities ETF)fit) decreased by 2.15%. iShares Expanded Technology and Software ETF (IGV) fell 1.5%. VanEck Vectors Semiconductor Corporation (SMH) lost 2%.

SPDR S&P Metals & Mining ETFs (XME) fell 4.6% last week. Global Infrastructure Development Fund X US (cradle) sank 2.3%. US Global Gates Foundation ETF (Planes) slipped 5.3%. SPDR S&P Homebuilders ETF (XHB) decreased by 3.5%. Energy Defined Fund SPDR ETF (xle) jumped 5%, and XOM stock was a major component. SPDR Financial Selection Fund (45) decreased by 0.3%. SPDR Health Care Sector Selection Fund (XLV) fell by 0.15%, although it was the seventh consecutive weekly decline.

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(down 8.6% last week and the ARK Genomics ETF)ARKG) by 8.65%, after major gains in recent weeks. TSLA stock is a major holding via Ark Invest’s ETF.


Top five Chinese stocks to watch now

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CPI inflation report

The CPI inflation report for January is due on Tuesday morning. Economists expect to see inflation continue on a downward trend, but it is still too high for the Fed’s liking.

On Friday, the Labor Department revised CPI data for November and December slightly. The Consumer Price Index for December increased by 0.1% from the previous month versus the preliminary reading of -0.1%. Core CPI, which excludes food and energy, rose 0.4%, revised from 0.3%. The November CPI and core CPI were revised down by 0.1 percentage point.

The CPI inflation report tops a busy week of economic data, including retail sales for January, the Philadelphia Fed manufacturing index for February, weekly jobless claims and more. The data will either reinforce or undermine the “soft landing” hypothesis for the market rally.

Currently, markets are overwhelmingly expecting a quarter-point hike in interest rates in March and May. Meanwhile, the odds of another move in June have risen to 43%.


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earnings

Arista Networks, newspaper budget (car), midpiece (MEDP), SolarEdge Technologies (SEDG), Blantyre (PLTR) and Cadence Design Systems are all on tap Monday night. CDNS competitor Synopsys (SNPS) on Tuesday, along with Airbnb (ABNB), Marriott International (March) And global foundries (GFS). Most of these names, with the exception of PLTR stock, are close to potential buying points.

Shopify (Shop), Applied materials (huge), Crocs (CROX) And viston (VC) later in the week.

Earnings season is over, but hundreds of companies will be reporting this next week. Huge companies have been reported, but earnings are still key to many sectors and of course individual stocks. Expedia (EXPEThursday night earnings hit travel sector stocks broadly on Friday, including ABNB and Marriott.

Tesla asked

Tesla stock fell 5% to 196.89 on Friday, ending an eight-session winning streak. Stocks are still up 3.6% for the week, approaching the 200-day line. TSLA stock is up 93% from the bear market low of Jan. 6 at 101.81. January 6th was the follow-up day for the current market rally.

January 6th was also the day Tesla announced significant price cuts in China and key Asian markets, following massive price cuts in China in late October. Tesla followed with deep cuts in Europe and the US, where the latter also made more Model 3 and Model Y cars eligible for major tax credits of up to $7,500.

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The price cuts are affecting Tesla’s gross margins, which are already past their peak. But they also provided a huge boost to Tesla’s demand. Tesla stock rose in part on hopes – raised by CEO Elon Musk – that Tesla’s price cuts will boost demand throughout the year.

The risk is that demand wanes after the initial rush, especially in China. Unlike the United States, China has a highly competitive electric vehicle market. Several other electric car makers have slashed prices or offered deep discounts in the wake of Tesla’s January 6 move. More moves are sure to come. Meanwhile, competitors continue to launch new or revamped electric vehicles.

On Tuesday, investors will get China’s electric vehicle registration data for the week ending Feb. 12. It is the first real data without the effects of the Lunar New Year holiday on production and sales. Most electric vehicle makers should see a significant increase in registrations.

Unfortunately, explaining Tesla’s sales can be tricky. Strong registrations will indicate strong continued demand, but may represent order fulfillment from previous weeks, with few new sales. The weak recordings may reflect Tesla Shanghai exporting much of its latest production.

So while Tuesday’s data will be important, it may take a few weeks before investors get a clear picture of Tesla’s continued demand.

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Tesla vs. BYD: EV Giants Vy for the Crown, But Which One is a Better Buy?


Apple Stock

Apple stock fell 2.3% to 151.01 in the latest week, after four straight weekly gains from bear market lows. This now gives AAPL stock a handle on a base dating back to August, with 157.48 buy points. The tech giant isn’t a market leader, with its relative strength streak still far from its peak in September. However, as the world’s only $2 trillion stock and a member of the Dow Jones, S&P 500, and Nasdaq composite, Apple’s stock performance is significant.

Exxon stock

Bolstered by higher crude prices, XOM stock jumped 6.5% to 119.20 last week, moving back above the 114.76 flat-base buy, according to MarketSmith analysis. Several energy stocks sold off hard the previous week as oil prices fell, but XOM stock reluctantly fell. Stocks found support at the 10-week line on Monday and then rebounded.

Market rally analysis

The stock market is surging in the midst of its first real decline since the follow-up day on January 6th. So far the decline has been modest and healthy.

The Nasdaq, S&P 500 and Russell 2000 all lost ground but found support around the 21-day moving averages on Friday. The S&P and Russell are also trading to maintain highs in late 2022. The Dow, which has tested the 50-day line repeatedly in the past two weeks, bounced off that key level on Friday.

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While Friday was mixed for the major indices, it wasn’t for the growth names.

However, the pullback allows the market to digest the strong gains, while catching up to the moving averages to some extent. Blue-chip stocks are forging handles or finding support on the upside, although few are rising or moving into a position.

Of course, constructive action by major indices and blue-chip stocks can turn into a quick cannibalism. If they fell significantly from here, it would start to worry.

Treasury yields and the dollar have rebounded strongly in the past two weeks, adding to the pressure on stocks. It is no coincidence that the market rally peaked on February 2, when the 10-year Treasury yield hit a five-month low of 3.33%. The dollar reached a recent low on February 1.

So the CPI inflation report and other economic data will be important. So does the massive flood of revenue from ANET, Shopify, Airbnb, Cadence Design, and more. Electric car stocks and speculative growth may follow suit from Tesla.

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It’s time to market with IBD’s ETF Market Strategy


What are you doing now

Until a market rally shows real strength, investors should be careful about adding exposure. The recent pullback highlights the importance of adding exposure gradually, not buying extended.

However, investors should be prepared if the market rally regains real momentum. Enjoy the Super Bowl on Sunday, but turn on your screens this weekend and prepare your game plan for the week ahead.

This game plan isn’t all about offense. Be prepared to take defensive action if conditions deteriorate for the broader market or specific holdings.

Read the big picture every day to stay in sync with the market trend, leading stocks and sectors.

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Please follow Ed Carson on Twitter at @tweet For stock market updates and more.

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Rast’s accusations against Alec Baldwin were formally dismissed by Reuters

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© Reuters. FILE PHOTO: A view of the movie “Rust” playing at Bonanza Creek Ranch near Santa Fe, New Mexico, US January 20, 2023. REUTERS/Drone Base/File Photo

Written by Andrew Hay

TAOOS, New Mexico (Reuters) – Special prosecutors in New Mexico on Friday dropped charges against actor Alec Baldwin in the 2021 shooting of “Rust” cinematographer Halina Hutchins, referring to what many legal analysts described as a rationale for a prosecution. flawed jurisprudence.

A person close to prosecutors said the move followed new evidence of the gun Baldwin was carrying when he fired the shot that killed Hutchins while shooting the movie in Santa Fe, New Mexico.

This information undermined the prosecution’s case after a series of legal flops, leading them to dismiss the charges before a May hearing when a judge was to decide whether there was enough evidence to prosecute Baldwin and gunsmith “Rust” Hannah Gutierrez Reid.

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“The case was dismissed without bias and the investigation is active and ongoing,” prosecutors Carey Morrissey and Jason Lewis said in a memo.

Prosecutors went on to charge Gutierrez Reed, 25, with manslaughter. She has said she held the live round in the gun thinking it was a dummy round. The preliminary hearing in her case has been postponed to August 9.

The dismissal of the same charge against Baldwin came after his attorney presented evidence last week that the copy of the .45 Colt Baldwin has used has been modified with new parts since being manufactured by Italian gunsmith FLL Pietta.

The information compromised the prosecution’s argument that the gun was in fully working condition and could only fire if Baldwin recklessly pulled the trigger, according to the person familiar with the case.

Special prosecutors have said they may re-file charges against Baldwin once new evidence is examined, though legal experts are skeptical.

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“This very weak case against Baldwin should never have been brought in the first place,” said Ambrosio Rodriguez, a former district attorney with the District Attorney’s Office in Riverside County, California.

Filming for “Rust” resumed in Montana this week with many of the same lead actors, including Baldwin, and was expected to wrap up in May.

Rust Movie Productions (RMP) said in February that it would not resume filming in New Mexico, without giving a reason. A Santa Fe prosecutor charged Baldwin and others in January.

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Leading news reporter Jill Christian dies at 83

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Gail Christian, who broke barriers as a black on-air reporter and came to national prominence at NBC News and PBS, died April 12 in Los Angeles. She was 83 years old.

Her wife, Lucy Debardelapine, said it was a complication from a recent bowel surgery.

Christian overcame a troubled youth—including a prison term for armed robbery—to end a career as a prominent television journalist and news executive in the 1970s and 1980s, an era when the industry was dominated by white men.

It became a visible presence in American living rooms with it coverage to NBC News on the trial of Patricia Hearst, the newspaper heiress who was kidnapped in 1974 by a gang of left-wing revolutionaries called the Symbionese Liberation Army, and who was convicted two years later for participating in a bank robbery with the group.

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But for Ms. Christian, it wasn’t enough just to appear as a rare black face on the evening news.

She said in Interview with the Chicago Tribune In 1986. I felt that was the reason I was there. I didn’t resent it in the least. I felt then, as I feel now, that it is very dangerous for a group of people to live in a society in which they are not allowed to explain themselves.”

It has succeeded in this task with features like “A Country Called Watts”, An hour-long 1977 NBC News special that explored the efforts of residents of this Los Angeles neighborhood to come together and re-evaluate the bloody civil unrest that occurred in response to police brutality in 1965, rebuilding burned-out blocks in the face of perceived government indifference and continued police harassment.

Gary Gilson, former faculty director of a summer program for minority students at Columbia University’s Graduate School of Journalism, in a phone interview. “And her pioneering role as a black news reporter allowed black kids to see, many for the first time, an impressive person on television who looked like them. It gave them recognition and hope.”

After two years at NBC News, Ms. Christian became news director for public station KCET in her hometown of Los Angeles, where she created a “60 Minutes”-style investigative series called “28 Tonight” (the station was on channel 28).

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The program featured several award-winning segments, including a segment on a banking scandal that harmed low-income communities and another on a chemical spill in Orange County that caused illnesses in the area, each of which won a Peabody Award.

In 1981 she moved to Washington, where she began nearly a decade as the news director for the Public Broadcasting Service.

“Since I’ve been in the business, I’ve always wanted to be one of the officers who goes out in that little room and decides what’s going to be covered and who’s going to cover it,” she said in a 1976 interview with the Los Angeles Times. “But at NBC, I never saw any women walk into that little room. Nor any minorities. I thought this was my chance.”

She added, “As Bobby Seale said,” referring to one of the founders of the Black Panther Party, “take the time.”

Jill Christian Jill Patricia Wells was born on February 20, 1940, in Los Angeles, one of four children of Edwin Wells, who worked on an assembly line for the Hughes Aircraft Company, and Lucille (Scruggs) Wells, who owned a cosmetology college. In the Leimert Park neighborhood of South Central Los Angeles. (She later adopted Christian, a name from her mother’s family, as her professional surname.)

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Ms. Christian grew up in Venice, California, and spent three years studying world history at California State University, Los Angeles, before dropping out to join the Air Force in 1962. She was caught in a raging crowd after being discharged, and in 1965, was found guilty of Armed robbery after eroticism in a hotel.

The theft, which resulted in less than $100, led to her admission to the California Institute for Women in Chino for 18 months. Christian said in a 1976 interview with TV Guide. “I really didn’t need to do that. I had a loving family, unlike a lot of the others in prison. I was just kind of pushed out at the time.”

After she had served her time, a paroled colleague who was working as a switchboard operator at The San Francisco Examiner gave her a tip that the paper was planning to hire two black reporters to diversify its staff. Without any experience, Ms. Christian considered the opportunity far-reaching, but talked her way into the role of an apprentice by stretching the truth.

“I gave them this song and they danced around working on this little black paper that the Klan burned,” she told the Tribune.

In 1970, she participated in an 11-week summer program for minority students in broadcast journalism at Columbia. (Geraldo Rivera was a classmate.) Two years later, she was hired by local NBC affiliate KNBC. She worked there for six years before NBC News hired her.

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Her tenure at PBS ended in 1989, shortly after the network found itself embroiled in controversy over the airing of a pro-Palestinian documentary, Days of Rage, which Ms. Christian had acquired and was responsible for vetting. A news report confirmed that the film was partially supported by undisclosed Arab funding, which was denied by the film’s producer.

In an interview with The New York Times, Ms. Christian said she quit PBS for other reasons. She said, “You’re burning because this is a no-win situation.” “You are silent when things are going well and angry when there are questions.”

She eventually settled in Palm Springs, California, with Mrs. DeBardelaben, whom she married in 2016. In 2003, the couple started the Palm Springs Women’s Jazz Festival.

In addition to Mrs. DeBardelaben, Mrs. Christian is survived by her grandson. Her daughter, Sunday Barrett, died in 2019.

While Ms. Christian kept quiet about her prison term early in her career, she finally decided to divulge it to a sympathetic NBC executive. “The guy just looked at me,” she recalls. He says: I don’t have enough problems. Do I have to listen to you? Get outta here.’ I didn’t hear another word.”

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Economic mood and other investment stories you may have missed this week

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This week has been a tough bullish one. Here’s what investors saw:

  • Oil prices have given up most of the gains from the OPEC+ production cut.

  • The Philadelphia Fed Manufacturing Index hit a new low for this economic cycle and missed expectations. Other indicators from the Conference Board The leading economic indicator I also fell.

  • Initial jobless claims were a surprise to the upside for the fourth consecutive week.

  • Weak earnings and more caution emerged from freight operators JB Hunt and Union Pacific as well as auto retailer AutoNation. Netflix and Taiwan Semiconductor, a major supplier to Apple, also issued guidance warnings.

  • There have been more layoffs in Meta’s Cloroxwith reports of planned job cuts at Disney.

  • Tesla reported a quarterly gross margin loss recently price cuts.

The bottom line is that there is an ongoing negative shift in economic data, most likely as interest rates continue to rise in the economy. This is a red flag.

Oddly enough, however, investors can’t seem to jump into it judging by the resilience of the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average.

“The latest data is further evidence that there will be a recession in the US soon, which fits with our own view at DB Research that it is expected to happen later in the year,” Jim Reed, Deutsche Bank strategist wrote in the client note.

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Good words of wisdom now.

Tesla CEO Elon Musk speaks to a visitor as he arrives to look at the Tesla Gigafactory construction on September 3, 2020, near Gruenheide, Germany. (Photo by Maja Hitij/Getty Images)

3 things you might have missed

1. The mood among AmEx cardholders: I met with American Express CEO Stephen Squarey, and he struck an optimistic tone about order trends.

“The economy is definitely divided, and I think at the lower end of the economy, we’re seeing some pressure, but we don’t have that,” Squirey said, adding that he sees strong demand for travel in the spring and summer. The call to travel lines up with what we’ve heard about this earnings season from Delta and United Airlines.

2. Elon Musk is following the storm. An interesting highlight from Tesla’s earnings call was when Elon Musk said he didn’t see the economy improving until 2024. The CEO predicted another year of “stormy economic weather” before “things start to get sunny in the spring of next year.”

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Musk joins the likes of JPMorgan CEO Jamie Dimon in using weather to describe the economic outlook.

3. About this credit cost: In an exclusive on Yahoo Finance Live, Loretta Mester, President of the Federal Reserve Bank of Cleveland, tells Jane Schoneberger that there is only one direction for interest rates in the near term: higher.

“I think that, given the complexity of inflation, and given the still-strong job market, I think rates should go above the 5% level,” Mester said.

Loretta J.  Jim Urquhart

Loretta J. Jim Urquhart

C-Suite, quote of the week

“We are not seeing a significant drop in trade [among consumers]John Mueller, CEO of Procter & Gamble (PG) told Yahoo Finance Live. We are witnessing, if anything, more careful use of the product they purchased. So they might use half a sheet of a Bounty paper towel instead of a full sheet. But overall, again, just looking at the numbers, the consumer holds up very well.”

planner of the week

For those investors who are ignoring the dangers of the impending debt ceiling, here’s a helpful reminder from the macroeconomics team at Goldman Sachs on how markets will price in the 2011 debt ceiling debate:

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Remember the debt ceiling debacle of 2011?

Remember the debt ceiling debacle of 2011?

Brian Suzy He is the Executive Editor of Yahoo Finance. Follow Suzy on Twitter @tweet and on linkedin. Deal tips, mergers, activist positions, or anything else? Email brian.sozzi@yahoofinance.com

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