Dow Jones futures rose moderately overnight with S&P 500 futures and Nasdaq futures. The stock market revision had a mixed session on Tuesday as treasury yields continued to rise sharply. Investors are focusing on Wednesday’s announcement of the Federal Reserve meeting that policymakers are likely to approve a large or very large Fed rate hike.
Quanta Services (PWR), Health Equity (Headquarters), Senior Energy (LNG), Dollar tree (DLTR) And Li Auto (LI) Stocks to watch. Everyone shows strength Relative strength linesDespite struggling to maintain stock prices.
The video embedded in the article discusses market activity and analyzes shares of Cheniere Energy, Li Auto and DLTR.
In the meantime, Tesla (DSLA) Faced a moderate rise after moving towards a low of 620.54 on May 24. Tesla shares rose 2.4% to 662.67, but its November high was 1,243.49. The National Highway Traffic Safety Administration is expected to release a large number of Tesla autopilot incidents in the next few days, including collision data involving driver-assist systems. NHTSA is expanding Tesla autopilot research.
The two-day Fed meeting ends with the announcement at 2pm ET on Wednesday, followed by a press conference by Central Bank Chairman Jerome Powell. Following Friday’s hot CPI report, which showed inflation hit a 40 – year high of 8.6%, speculation increased that central bank policymakers would raise rates by 75 basis points, not just 50 basis points, on Wednesday.
The central bank did not want to be surprised, Powell said, adding that 75 basis points were not on the table after the May Fed meeting. It is still possible for the central bank to raise rates by 50 basis points, and then Powell signaled that 75 basis points would be in the July and September schedules.
Dow Jones Futures Today
Dow Jones Futures rose 0.4% against its value. The S&P 500 futures are up 0.55%. The Nasdaq 100 futures rose 0.7%.
10-year Treasury revenue fell 3 basis points to 3.45%.
Bitcoin traded close to $ 22,000, slightly higher than the 18-month low of $ 21,000 on Monday night.
Stock Market Tuesday
Stock market trading was mixed during Tuesday’s session, with quantitative light ahead of the central bank meeting announcement on Wednesday.
The Dow Jones Industrial Average fell 0.5% on Tuesday Stock market trading. The S&P 500 index was down 0.4%. The Nasdaq compound rose 0.2%. Small-cap Russell 2000 fell 0.4%.
Following the big moves in recent days, the 10-year treasury dividend rose 12 basis points to 3.48%. The two-year yield rose 15 basis points to 3.43%, while the 30-year treasury dividend rose 6 basis points to 3.43%, but now the 10-year yield and the 2-year yield are lower. If the two-year yield goes above the 10-year yield, the curve will be reversed from the two-year to 30-year yield. Rising, flat-yield curves, inflation and central bank rate hikes take their toll, along with recessionary anomalies, reflecting stagnation risks.
US crude was down 1.7% at $ 118.93.
Natural gas prices fell 16%. The Freeport LNG terminal, which was closed due to a June 8 fire, will not reopen for 90 days and will not be fully operational until the end of the year. I.e. lower natural gas exports.
In the middle The best ETFsInnovator IBD 50 ETF (FFTY) 0.8%, while Innovator IBD Breakout Opportunities ETF (Boat) Fell 0.6%. iShares Extended Technology-Software Industry ETF (VAT0.6% higher. WANEX Vectors Semiconductor EDF (SMH) 0.7% improved.
SPDR S&P Metals & Mining ETF (XME) Fell 1.3% and the Global X US Infrastructure Development ETF (PavementDecreased by 0.7%. US Global Jets ETF (JETSGave 1%. SPDR S&P Homebuilders ETF (XHBFell 0.8%. Energy Selection SPDR ETF (XLE0.2% higher and financial choice SPDR ETF (XLF0.9% retreated. Health Care Selected Sector SPDR Funding (XLV) Gave almost 1%.
Stocks to watch
Shares of Quanta Services fell 1.8% to 123.55 on Tuesday, just above its 50-day tax. PWR Stock A Cup-with-handle base With a buying point of 138.56.
Health equity stock rose 5.9% to 68.42 on Tuesday, recovering from its 50-day high, breaking some short-term levels and breaking a trendline. In a better market, Tuesday’s action would have provided early entry. At this point, the HQY stake is now extended from that entry. It ends at an official 72.80 buying point File Basic. Health equity has almost doubled since the beginning of December after a long decline, while earnings are down for several quarters.
LNG stock was up 2.2% at 130.40, still below the 50-day moving average. Cheniere stock will lower its consolidation level on Monday, setting a double-down foundation with a buying point of 146.45. Senior Energy, with its LNG export terminal, is expected to benefit from the Freeport LNG terminal woes, which will reduce domestic Natcos prices and raise global LNG prices.
DLTR shares rose 0.65% to 156.02, hitting resistance in its 50-day close. The Dollar Tree stock has a buying point with a 166.45 cup handle MarketSmith analysis. Shares fell and rebounded in early May The goal (Digit) Earnings failed and alert, followed by strong dollar tree earnings and guidance.
Li Auto shares rose nearly 11% to 32.22, reaching its highest level since January 3rd. The stock rose from 18.82 on May 9 and rose above the 200-day mark on June 6. LI shares are rising to the right. Deep integration, potential 37.55 buying point. But stocks can use a longer handle or use a separate platform within a deeper consolidation that will allow them to capture key averages, especially the 50-day line. Li Auto is rising along with other Chinese EV stocks Neo (NIO), Xpeng (XPEV) And BYD (I will do), Local governments are expanding EV subsidies as the Govt wind is declining. Automakers are all set to launch new models in the coming weeks, with Li Auto releasing a new SUV hybrid later this month. In more detail, Chinese stocks listed in the United States, including the Internet, have been accumulating in recent weeks.
The Dow Jones, S&P 500 and Nasdaq all-time lows were lower on Monday, but closed lower. Russell 2000 eased its May slump and hit its worst levels since November 2020. The small-cap index is below its pre-coveted high.
According to the largest central bank meeting on Wednesday afternoon, Tuesday’s low level market activity does not make sense.
Although the Federal Reserve raised rates by 50 basis points or 75 basis points on Wednesday, the macroeconomic climate is not favorable for the market and will not be favorable for some time. The risks of a recession are high, while inflation will be elevated for the foreseeable future.
However, the reaction to the news is really important. The stock market is likely to recover on Wednesday from Fed rate hikes and Powell views, but that does not mean a change of character. Investors should take a look The following day To ensure any rally effort. Still, the confirmed boom could be another short-term bear market rally.
Currently, the Nasdaq Composite and the S&P 500 are in bear markets, while the Dow Jones is undergoing a sharp revision.
What to do now
The bear market does not have time to be brave. Investors need to be sidelined. The only exception may be long-term winners or some positions in the energy sector, but even here investors should consider making at least some profit.
Right now, investors need to work on their watch lists and review past trades and historic bear markets.
According to The big picture Every day the direction of the market and the leading stocks and sectors must be consistent.
Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.
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