en en it en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en fr en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en zh en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en pl en en en en en sv fr de de fr fr fr sv en fr en ja fr de fr es nb fr de en en sv de de fr en fr it fr en fr en ar en en en en en en
Dow Jones futures rose Monday night, along with S&P 500 futures and Nasdaq futures. Crude oil prices rebounded as OPEC+ unexpectedly agreed on a small production cut. Meanwhile, Russia said natural gas flows to Europe will remain shut until Western sanctions are lifted.
The stock market rally fell sharply again last week, breaking through key levels.
Futures Rise: Seven Stocks To Watch
Market Finally Gets Bounce, Now What?
Market Rallies To Big Trouble Area; Jobs Report Looms
With the major indexes heading south and few stocks looking healthy, investors should have a large cash position and wait for better conditions.
Apple (AAPL) will be in focus this week, with the Dow Jones tech giant set to unveil the iPhone 14 on Sept. 7. Apple stock had been setting up until plunging over the last several sessions along with the broader market.
Arista Networks (ANET) has a similar chart pattern to Apple’s, but ANET stock has some differences that may make it more attractive. ANET stock certainly isn’t actionable, however.
Meanwhile, Enphase Energy (ENPH), Lantheus (LNTH) and Neurocrine Biosciences (NBIX) are drifting lower in consolidations following strong breakouts. Are they setting up or ready to crack?
Lantheus stock is on IBD Leaderboard. ENPH stock and Arista Networks are on the IBD Big Cap 20.
The video embedded in the article reviewed the market action in depth, while also analyzing Apple stock, Arista Networks and Enphase Energy.
Crude oil futures rose 2%. OPEC and key allies such as Russia agreed to cut production quotas by 100,000 barrels per day in October. A production cut had been on the table but wasn’t expected. It’s unclear if actual output will fall much at all, because many cartel members weren’t meeting existing quotas. Still, it sends a signal about OPEC+ concerns about prices and current crude supply and demand amid a weakening global economy.
Meanwhile, U.S. natural gas prices fell more than 1% after rising more 3% Monday morning. European natural gas prices spiked after plunging last week from stratospheric record highs. Russia’s state-owned Gazprom last week shut down the Nord Stream 1 pipeline to Europe, allegedly for just three days of maintenance. But the pipeline didn’t restore flows on Saturday. Dropping the pretense of maintenance issues, the Kremlin said Monday that natgas flows won’t return to normal until the West lifts sanctions over its Ukraine invasion. Europe has been building up supplies for the winter.
In other news, CVS Health (CVS) will buy in-home health care firm Signify Health for about $8 billion, or $30.50 a share, beating out Amazon.com (AMZN) and UnitedHealth (UNH). SGFY stock had soared over the past month on buyout buzz, as corporate giants look offer an ever-wider array of medical services.
Dow Jones futures rose 0.45% vs. fair value. S&P 500 futures climbed 0.5% and Nasdaq 100 futures advanced 0.65%.
U.S. stock markets were closed Monday for the Labor Day holiday, but other exchanges around the world were open.
The 10-year Treasury yield rose 3 basis points to 3.22%.
China has extended a Covid lockdown in Chengdu, the capital of the industrial Sichuan province and home to 21 million people. Coastal tech hub Shenzhen, which underwent mass testing this weekend, now faces tiered restrictions.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
The stock market rally is a rally in name only. It extended recent losses, though finishing slightly above Thursday’s intraday lows.
The Dow Jones Industrial Average gave up 3% in last week’s stock market trading. The S&P 500 index shed 3.3%. The Nasdaq composite retreated 4.2%. The small-cap Russell 2000 tumbled 4.7%
The 10-year Treasury yield soared 16 basis points to 3.19%, a fifth straight weekly gain despite dipping Friday from two-month highs.
U.S. crude oil futures fell 4.9% to $86.87 a barrel last week.
Natural gas futures tumbled 5.2%, almost all of that on Friday.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) tumbled 6.4% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 3.5%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 4.4%, with many highly valued software names not in IGV crashing last week. The VanEck Vectors Semiconductor ETF (SMH) plunged 6.7%.
SPDR S&P Metals & Mining ETF (XME) dived 8.4% last week, with steel stocks melting down after some flashed buy signals last week. The Global X U.S. Infrastructure Development ETF (PAVE) fell back 4.6%. U.S. Global Jets ETF (JETS) lost nearly 4%. SPDR S&P Homebuilders ETF (XHB) shed 3.3%. The Energy Select SPDR ETF (XLE) and the Financial Select SPDR ETF (XLF) retreated 3.4%, though after three weekly gains. The Health Care Select Sector SPDR Fund (XLV) fell 1.8%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) slumped 5.25% last week and ARK Genomics ETF (ARKG) 5.1%.
Five Best Chinese Stocks To Watch Now
Apple Stock Vs. ANET Stock
Apple stock fell 4.8% to 155.81 last week, tumbling below the 200-day line and finally the 50-day line. AAPL stock still has a 176.25 handle buy point, but the handle is looking less and less appealing.
The relative strength line remains close to highs. That shows that Apple stock is largely falling in line with the S&P 500.
Apple earnings fell in the latest quarter with analysts seeing single-digit EPS growth in fiscal 2022 and 2023.
ANET stock sank 4.7% to 117.30, also undercutting its 200-day line, with a Friday bounce fizzling. Shares didn’t quite fall to their 50-day line during the week, though they did test their 10-week line. Arista stock has a 132.97 handle buy point in a double-bottom base.
Meanwhile, Arista earnings and sales growth have accelerated for the past three quarters, with EPS up 59% and revenue 49% in Q2. Analysts see 40% EPS growth in 2022 and 13% in 2023.
Arista’s earnings might be seen as more vulnerable than Apple’s. A big cut in corporate IT spending could hit networking stocks while Apple iPhone and services demand seems steadier.
Other Stocks To Watch
ENPH stock fell 3.3% last week to 279.07, but has been trading relatively tight and is holding support around the 21-day moving average. The solar power leader is trading relatively tightly, and could have a flat base on a weekly chart after another week. Enphase stock also could keep sliding — or move sideways — to test the fast-rising 50-day and 10-week lines. That could offer a buying opportunity, assuming ENPH stock bounces from there.
NBIX stock slid 1.8% last week to 103.01, closing around its 21-day line. On Friday morning, Neurocrine bounced off that level and was near a short trendline entry, but reversed lower as the market reversed. NBIX stock is not far from its 50-day line, which currently roughly coincides with the prior 100.10 buy point. The biotech needs another couple of weeks to form a proper base.
LNTH stock sank 3.7% last week to 78.48, closing slightly below the 21-day line, according to MarketSmith analysis. The 21-day or fast-rising 50-day could offer a new entry in Lantheus, which cleared a prior base in August, but in some wild action.
Fed Plans Emergency Landing For U.S. Economy
The stock market rally is a rally in name only. Ever since the S&P 500 stopped just short of its 200-day moving average on Aug. 16, the major indexes have been in retreat. Fed chief Jerome Powell’s Aug. 26 Jackson Hole speech, signaling a more-aggressive, gloomier Fed, triggered a sharper sell-off.
This past week, all the key indexes tumbled below their 50-day moving averages. They did bounce off Thursday’s intraday lows, with the Nasdaq composite just avoiding an undercut of its late July lows.
On Friday morning, the indexes rebounded on the August jobs report, which showed robust hiring but also a long-hoped-for jump in the labor force. But after the S&P 500 and Russell 2000 came up to their 50-day lines, the indexes staged an ugly reversal.
The 50-day moving average is now acting as a ceiling vs. support. Getting above that level is key, but just a first test. The 21-day line is another key level, roughly coinciding with steep downtrends in the Nasdaq and S&P 500. But the real key would be getting above the 200-day moving average.
On the flip side, the Nasdaq undercutting Thursday’s lows would likely mean the official end of the much-ailing market rally.
Many leading stocks have suffered a lot of damage in the past week. While some stocks such as ENPH and NBIX are holding up relatively well, they aren’t making headway.
Would-be leaders Apple and ANET stock aren’t falling much more than the broader market. It’s an example of why investors want to be buying stocks amid a market uptrend.
Energy stocks are in their own world of oil and gas prices, but are subject to big swings in prices, sometimes on the whims of autocratic leaders. The OPEC+ production cut and Russia’s decision to explicit suspend natural gas shipments until sanctions are lifted may provide a tailwind to energy stocks on Tuesday.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
Investors should have minimal exposure and patiently prepare for a better market environment. Until the major indexes regain their 50-day or 21-day moving averages, investors probably shouldn’t consider new buys. The one exception might be oil and gas names, but investors should tread warily even there.
The quick rise and reversal from the 50-day line may have offered some shorting opportunities. Another attempt at the 50-day could do so again in the coming days.
So build up your long and short watchlists, which likely will need a lot of changes from a week ago. On the upside, focus on stocks with strong relative strength, even if they don’t have ideal patterns.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
YOU MIGHT ALSO LIKE:
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
Best Growth Stocks To Buy And Watch
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Tesla Vs. BYD: Which EV Giant Is The Better Buy?
5 Stocks Finding Support In Sickly Market
Quoted from Various Sources
You may also like
Japan’s Shionogi says COVID pill reaches Phase III milestone By Reuters
Wall Street banks to pay $1.8bn over messaging violations
Hockey players’ scoring after learning their teammates’ pay could show the pitfalls of knowing what your coworkers make
Cathie Wood’s new fund gives small investors access to the VC market for just $500
Farmers threaten to quit NFU as leader backs scrapping of “Brexit bonus” nature subsidies
Gold Rises From Two-Year Low as Dollar’s Steep Increase Stalls
Japan’s Shionogi says COVID pill reaches Phase III milestone By Reuters
Wall Street banks to pay $1.8bn over messaging violations
Hockey players’ scoring after learning their teammates’ pay could show the pitfalls of knowing what your coworkers make
Cathie Wood’s new fund gives small investors access to the VC market for just $500
Farmers threaten to quit NFU as leader backs scrapping of “Brexit bonus” nature subsidies
Categories Select Category @Nordstrom #EQUALITY • 7 of 8 People Are Clueless About This Trillion-Dollar Market • Motley Fool Issues Rare Triple-Buy Alert • This Stock Could Be Like Buying Amazon in 1997 $230 billion in cash 000 medical trainees from foreign countries 2017 6 AAN AAPL according according to Ariely AMZN annual sales anti-Trump protest in Mexico City bailout agreed in 2015 behavioral economist Dan Ariely BIG biometric payments brought back unlimited plans earlier last year Business Administration Business Analyst Business Center Business Class Business Consultant Business Development Business Digital Business Economics Business Environment Business Executive Business Global Business Goals Business Growth Business Idea Business Inquiries Business Intelligence Business Journal Business Kit Business Knowledge Business Logic Business News Business Plan Business Risk BuzzFeed noted last December. CHTR clashing with Apple CNNMoney’s own Fear & Greed Index COKE compliance cut its CEO’s pay deal immediately boosted prices described eliminated its version of an unlimited usage plan in 2011 EQIX February 12 February 8 finally disappear in 2017 General Article GOOG Health hinted that Tesla may soon come to India. INFY intraday trading high is scheduled for a final vote before the full Senate IWM JJSF jumped 7{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9} in the first two days JWN KAMN knocked the department store on Twitter in retaliation LeBron James M made their own bids to attract customers MAS MSFT NAFTA Nearly all NYC subways get cell service one of the top buyers pic.twitter.com/ki5NaJN12d Qapital Visa Debit Related: ‘Without NAFTA’ we’d be out of business Related: A startup that makes pencils that grow into vegetables Related: Apple stock nears a record high Related: Charter shares popped on report of possible Verizon takeover Related: Elon Musk’s surprising secret weapon: Trump? Related: Here’s why the world’s largest money manager is worried Related: How Europe’s elections could be hacked Related: India freaks out over U.S. plans to change high-skilled visas Related: Is Ivanka Trump’s brand losing its bling? Related: Kellyanne Conway unrepentant for Ivanka Trump plug Related: Mexican farmer’s daughter: NAFTA destroyed us Related: Mexico doubles down on Trump ‘contingency plan’ Related: Obamacare’s impact on this Alaska town with only one doctor’s office Related: OPEC has pulled off one of its ‘deepest’ production cuts Related: Oreo make is worried about rise of populism Related: Possible pick for Treasury secretary makes his film debut Related: Pro-Trump boycott calls follow Super Bowl ads Related: Rare streak for U.S. stocks: Long stretch without a 1{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9} dive Related: Remember Smoot-Hawley: America’s last major trade war Related: Stocks have avoided a 1{3b930a6ca12a59604e1bbadfc55b7d1b7a0aa8613f1ab9377cace0d5afcb5fb9} dive for an unusually long period of time Related: T-Mobile and Sprint offer new ‘unlimited’ data plans — sort of Related: Tech industry braces for Trump’s visa reform Related: Tesla reveals what it will charge for a charge Related: The company turning 4 billion plastic bottles into clothes Related: Those Reagan tariffs Trump loves to talk about Related: Tim Cook: ‘Apple would not exist without immigration’ Related: Trump furious after court upholds block on travel ban Related: Trump isn’t killing the bull market Related: Trump travel ban and what you need to know Related: Uber CEO drops out of Trump’s business advisory council Related: Uber suspends its service in Taiwan as fines mount Related: Uber’s rivals are teaming up in Asia Related: Verizon brings back unlimited data plans Related: Visa ban could make doctor shortage in rural America even worse Related: Wall Street has powerful seat at Trump’s table renegotiate NAFTA research S said Jan. 13 sales Saudi oil minister: I don’t lose sleep over shale Sears spokesman Brian Hanover told Reuters Serena Williams similarly eliminated overage fees for customers in September smartphone recall woes Smoot-Hawley Act. Speaking with The Daily Telegraph newspaper T teased plans temporarily halted temporary immigration ban tenth anniversary TIF TJX TMUS to go green Trump has often slammed TSLA TWX VG VIX VZ why it decided to stop carrying Ivanka Trump’s clothing and accessories label YHOO
Archives Select Month September 2022 August 2022 July 2022 June 2022 May 2022 April 2022 March 2022 February 2022 January 2022 December 2021 November 2021 October 2021 August 2021 July 2021 May 2021 March 2021 January 2021 December 2020 November 2020 October 2020 September 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 September 2018 February 2017 January 1970