Dow Jones futures rose slightly on Sunday night, along with S&P 500 futures and Nasdaq futures.
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The effort to manage the retail market ended strongly on Friday, with key data moving higher on the December jobs report and the ISM services index.
Beautiful ELF (ELF), SLB (SLB), Worms (CAT), Rio Tinto (RIO), Atkore (ATKR), KLA (KLAC), United Therapeutics (UTHR), Insects (PODD), and TJX (TJX) broke, flashed a sell signal or so it was able to execute.
Industrial Metals (CMC) report before release. CMC stock jumped last week, recovering from moving averages and clearing a difficult area. But CMC’s future earnings added a lot of risk.
When the market closed on Friday, Macy’s (M) warned that holiday fourth-quarter sales will be below expectations. It predicts that consumers will remain the same through 2023. Macy’s sales fell more than 4% at the end of Friday, along with many other discounted merchandise.
ELF Beauty and CAT shares joined the IBD Leaderboard on Friday, with UTHR shares on the Leaderboard’s Watch List. ATKR stock and Industrial Metals are on the IBD 50 list. KLAC stock is on the IBD Big Cap 20.
ELF Beauty is Friday’s IBD Stock Of The Day. United Therapeutics and RIO shares were picked earlier in the week.
Currently, Tesla ( TSLA ) rocked the Chinese EV market with price cuts on Friday due to weaker-than-expected sales there. Tesla’s stock fell for the week but rebounded to higher levels on Friday. Tesla’s move may hurt its profits, but it will help the mass market of EV BYD (BYDDF), which increases revenue. BYD’s sales fell on Friday but the week was still strong. Chinese EV startups like Nio (NIO), Li Auto (Five XPeng (XPEV), which has been losing money, faces an even bigger challenge. Nio stock, Li Auto and Xpeng fell on Friday but posted weekly gains.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. reasonable price. S&P 500 futures advanced 0.25% and Nasdaq 100 futures climbed 0.3%.
Oil futures rose 1%. Natural gas futures were up more than 3%.
Hong Kong’s Hang Seng continued to advance, amid China’s re-opening and hopes that the Covid wave is finally over. China’s yuan has risen sharply, reaching its best level against the dollar since last August.
Note that overnight movements in the Dow futures and elsewhere do not translate into actual trades in the next regular market session.
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Stock Market Share
The new stock market trend looked subdued for most of the week, but rebounded on Friday.
Some strong labor market data weighed on big data, but Friday’s jobs report had some weak elements, especially wage growth. In addition, the ISM services index showed a significant drop, indicating that the economy is set to slow down significantly.
The Dow Jones Industrial Average rose 1.5% in last week’s market trading, along with the S&P 500 index. The Nasdaq composite rose 1%. The smaller Russell 2000 index climbed 1.8%. All the benefits of indexing and then some on Friday.
The 10-year Treasury yield fell 26 basis points to 3.57%. The odds of a Fed rate hike on February 1st are now 74%. Markets are also buying on a quarter-point hike in March, between 4.75%-5%. Markets are no longer buying hikes, despite Fed data for above 5%.
U.S. crude futures fell 8.1% to $73.77 a barrel last week. Natural gas fell 17%.
ETFs
Among the growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.55% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 1.2%. The iShares Expanded Tech-Software Sector ETF (IGV) fell 0.9%. The VanEck Vectors Semiconductor ETF (SMH) jumped 4.3%, retrieving the 50-day line.
Reflecting technical data, ARK Innovation ETF (ARKK) increased 0.4% last week and ARK Genomics ETF (ARKG) 0.2%. Tesla stock remains a top buy in Ark Invest’s ETF. Cathie Wood continued to increase TSLA holdings to begin 2023.
The SPDR S&P Metals & Mining ETF (XME) rose 6.1% last week, with strength building from all of its major indexes. The Global X US Infrastructure Development ETF (PAVE) fell 3.1%. US Global Jets ETF (JETS) rose 7.9%. The SPDR S&P Homebuilders ETF (XHB) rose 5.5%. The Energy Select SPDR ETF (XLE) was up 0.1%, with SLB shares as a standout. The Financial Select SPDR ETF (XLF) rose 3.45%. The Health Care Select Sector SPDR Fund ( XLV ) fell 0.1%, but regained its 50-day range on Friday.
China’s Top Five Markets to Watch Now
Share to Watch
ELF shares were clearly cut. Shares jumped 4.4% to 58.05 on Friday, breaking from a flat base to more than double the normal range, according to MarketSmith analysis. The relative strength line has hit new highs.
SLB stock rose 3.5% to 54.50 Friday, extending a break from the 50-day line and clearing a trade price of 53.97.
. SLB was formerly known as Schlumberger.
CAT stock fell 3.6% to 248.86, with bias moving into a buy zone from the 6%-deep flat base. next to the long, deep joint.
RIO shares rose nearly 3% to 74.07, clearing the plate-and-holds market.
KLAC and ATKR stocks bounced off their 10-week lines and above their 21-day moving averages, offering early bookings.
Shares of UTHR moved up slightly from its 10-week range as the market traded lower. United Thera may be able to use some momentum to clear a short-term deficit.
PODD stock regained its 50-day line, but retreated to close below the 21-day line. A rise above the 300 level will offer a quick entry into a flat area.
TJX stock broke from a shallow base near a long and deep chart.
Tesla Roils China EV Market
Tesla on Friday reduced prices in China and the main Asian markets of Japan, Australia and South Korea. It came after fourth-quarter sales data missed forecasts for the second quarter. With backlogs falling fast – which is almost non-existent in China – Tesla needed to act boldly just to try to maintain current deliveries.
Due to some major incentives at the end of the year, some continued in 2023, the price reduction in China may not be as big as it appears above. However, the Tesla Model 3, facing heavy competition in China, is now about $ 600 more than the same BYD Seal, eliminating the $ 10,000 gap in a few months.
Falling prices will lower Tesla prices, the question is how much they will boost Model 3 and Y demand, and for how long.
Tesla’s China prices are attributed in large part to BYD, which is the world’s largest EV manufacturer or a fast No. 2. But BYD makes profits with the car’s expenses. In addition, many of its exports, including Australia and, on January 31, Japan, can also help protect.
China’s EV pricing may be a major concern for EV startups. Nio and XPeng are still losing money. Li Auto has not had the same revenue.
Keep in mind that Tesla’s second drop in China in 10 weeks could be just the beginning of a downward spiral. Tesla has a lot of room to spare while all its rivals, especially BYD, are growing. And they’re all going strong in the $30,000-$50,000 segment where Tesla sits.
Tesla stock fell 8.2% to 113.06 for the week, continuing the heavy selloff. But shares rebounded from Friday’s fresh bear market at 101.81 to end the session up 2.5%. BYD’s stock fell 1.55% on Friday, but is still up 7% for the week, above its 50-day line.
Nio, Li Auto and XPEV sales fell 4.5%, 9.2% and 15%, respectively, on Friday. But they increased by 2%-6% for the week.
Tesla’s sales are looking terrible right now, but none of these EV sales are looking good.
Tesla Vs. BYD: EV Giants Vie Mo Paris, But which is the best seller?
Marketing Integration Research
The stock market took a positive step on Friday.
The Dow Jones rose above its 50-day and 21-day moving averages after hitting resistance in recent days. The Dow is more appropriate in the current market, with manufacturing, health care and many Dow-style companies leading the way, such as Caterpillar.
The S&P 500 broke its 21-day range, even the 50-day range. The Russell 2000 made a 21-day retracement but still has some work to do up to the 50-day.
The S&P MidCap 400 rose above its 21-day, 50-day and 200-day moving averages. So is the Invesco S&P 500 Equal Weight ETF (RSP).
The Nasdaq is nearing its 21-day range for the first time in weeks, but is clearly lagging.
Even the Dow is still facing its December peak, with other indexes facing many challenges. The S&P 500 is above its 50-day line which is another big step.
It may indicate the beginning of a more meaningful association, even if it’s just a short, commercial campaign, but it’s still unclear.
The leading stock, which has often outperformed the S&P 500 in recent months, showed strong activity on Friday, with a number of breakouts and sell-off signals. But that’s after some disappointing changes earlier in the week, and more broadly in the past few months.
Watch to see if the marketing mix can generate momentum in big data and lead sales. On Thursday, the consumer price index is up.
Time the Market with IBD’s ETF Market Strategy
What To Do Now
The stock market is looking good, for now. Investors may want to add more exposure, either within individual stocks or through the broader ETF market. But don’t get too excited.
It could be a drastic change, or just another fake head.
The market can quickly turn down. Or, the S&P 500 could rise to a 200-day or December high — and fall back.
Taking small steps may be the best way to start. Allow the marketing mix to draw you in. Be prepared to cut losses quickly and always consider taking profits quickly.
But it’s definitely a time to build your watch lists. Make sure you have a separate menu. Although growth and technology are still in progress with a few exceptions such as KLAC stock, many stocks from different sectors are looking interesting.
Read the Big Picture every day to stay in tune with the direction of marketing and sales products and categories.
Please follow Ed Carson on Twitter at @IBD_ECarson for sales updates and more.
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