Dow Jones futures rise on Nike as market rally breaks losing streak; Tesla’s meltdown continues

Dow Jones futures were up modestly after hours, along with S&P 500 futures and Nasdaq futures, with fedex (FDX) Y Nike (FROM) earnings leading the charge.


The stock market rally rebounded modestly on Tuesday, snapping a four-day losing streak.

In the meantime, Apple (AAPL) flirted with lowering its bear market low, a day later (AMZN) did.

tesla (TSLA) continued to fall. TSLA shares have now rounded up their gains since the August 2020 stock split.

On the plus side, oil field services play Schlumberger (VMS), halliburton (hal) Y ProFrac (AC DC) are showing strength, with Schlumberger shares and ACDC shares blinking early buy points Tuesday.

The video embedded in the article discussed Tuesday’s market action and analyzed shares of SLB, Halliburton and ProFrac.

Nike and FedEx earnings

Dow Jones giant Nike and FedEx reported earnings on Tuesday night, which also offers insight into the holiday shopping season.

Nike earnings and sales were higher than seen, but inventories were up 43% compared to the prior year. Margins fell due to markdowns. NKE shares shot up more than 10% after hours, signaling a move back above the 200-day line. The shares rose 0.2% to 103.21 on Tuesday.

fedex earnings it topped the views, but the revenue fell short. FDX shares rose solidly in extended trading. The shares closed down 2.6% at 164.35, below the 50-day line.

Dow Jones Futures Today

Dow Jones futures rose 0.4% against fair value, with NKE shares offering a lift. S&P 500 futures rose 0.3%. Nasdaq 100 futures rose 0.5%.

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

Join IBD experts as they discuss actionable actions in the stock market rally on IBD Live

stock rally

The stock market rally erased initial losses and closed slightly higher.

The Dow Jones Industrial Average rose 0.3% on Tuesday stock trading. The S&P 500 Index rose 0.1%, with Tesla shares the worst performer of the index. The Nasdaq Composite rose 1 point. The small-cap Russell 2000 advanced 0.5%.

Apple shares fell as low as 129.89, within 1% of their June bear market low of 129.04. Shares rebounded to close 7 cents at 132.30. Amazon shares rose 0.3% after briefly undermining Monday’s fresh bearish low.

US crude prices rose 1.2% to $76.09 a barrel. Natural gas prices sank 9% after falling more than 11% on Monday.

The 10-year Treasury yield rose 10 basis points to 3.68%, after rising 10 basis points on Monday. The Bank of Japan turned slightly aggressive on Tuesday, allowing Japan’s 10-year bond yield to rise as much as 0.5%.

The 2-year yield, more closely tied to Fed policy, was essentially flat at 4.27%.

Investors will receive the November PCE inflation report on Friday, with economists expecting another notable drop in headline and core inflation.


Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rose 0.5%. The VanEck Vector Semiconductor ETF (HMS) fell 0.6%.

Mirroring more speculative historical stocks, the ARK Innovation ETF (ARKK) fell 0.2%, hitting a new five-year low. ARK Genomics ETF (ARKG) rose 0.8%. Tesla is a major holding in Ark Invest ETFs.

SPDR S&P Metals and Mining ETF (XME) rose 2.6% and the Global X US Infrastructure Development ETF (TO PAVE) rose 0.4%. US Global Jets ETF (JETS) advanced 0.4%. SPDR S&P Home Builders ETF (XHB) yielded 0.55%. The Energy Select SPDR ETF (XLE) rebounded 1.5% and the SPDR Financial Select ETF (Four. Five) rose 0.4%. The SPDR Select Healthcare Sector Fund (XLV) closed fractionally lower.

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Actions near points of purchase

Oilfield service companies are recovering, even with crude prices near one-year lows, perhaps in anticipation of stronger prices in 2023. exxonmobil (XOM) Y Chevron (CLC) recently released their capex plans for the coming year, suggesting strong demand from service companies like Halliburton, Schlumberger, ProFrac and more.

Shares of SLB rose 3.9% to 51.76, retracing above the 50-day and 21-day moving averages and possibly breaking a narrow down-sloping trend line, warranting an early entry. Schlumberger shares are back in a still valid buy zone from a deep cup base. SLB shares will have a new buy point basis of 56.14 after this week.

Oil services giant Halliburton rebounded above its 21-day line, up 3.8% to 37.42, still close to its 50-day line. HAL shares have a buy point of 40.09 from 47% depth mug with handle basic, according to MarketSmith Analysis. It doesn’t have an obvious early entry. The handle will be long enough to be its own base after this week.

ProFrac shares rose 6.9% to 23.23, back above their 50-day and 21-day lines and breaking a recent downtrend, as were shares of SLB. That could serve as an early entry. ACDC shares should see a new consolidation with a buy point of 27.10 after this week. ProFrac shares went public at 18 per share. He’s had three bases since then, and the leaks didn’t work for long.

Tesla Stock

Tesla shares fell 8.1% to 137.80, hitting another two-year low. Shares of the electric vehicle giant have plunged 67% from the November 2021 peak and 29% in December alone.

Tesla shares have now traveled their advance back and forth since their 5-for-1 stock split in August 2020. (TSLA shares also split 3-for-1 in August 2022.)

Tesla China’s sales slowed for the second week in a row, according to weekly record data. That’s despite ever-increasing year-end incentives, which will end on January 1 along with subsidies for China’s electric vehicles.

The Elon Musk Twitter saga is raising concerns about significant damage to the Tesla brand. Many notable long-term TSLA bulls are becoming increasingly critical of Musk.

Evercore and Daiwa Capital Markets cut price targets for TSLA shares on Tuesday, both citing Twitter. Oppenheimer downgraded Tesla’s rating on Monday.

Tesla shares did not recover on Monday despite Elon Musk saying he would step down as CEO of Twitter after polling Twitter users on that topic.

Stocks continued to fall on Tuesday even as major indices and many leading stocks tried to resist. The large volume of sales in recent weeks suggests that large institutions are unloading or reducing holdings of TSLA shares.

Tesla has the worst possible accumulation/distribution rate of E.

At some point, Tesla’s stock may recover and run again, but that could take months or even years.

Tesla vs. BYD: Which EV giant is the best buy?

Market recovery analysis

After a sharp sell-off from the December 13 highs, the stock market rally barely ended its losing streak.

The major indices looked oversold and possibly “due” for a bounce. They got one, though it wasn’t much.

The Dow found support at the 50-day line, but the other key indices didn’t make any notable technical moves.

The stock market rally remains under pressure.

AAPL shares bounced off bear market lows, but that doesn’t mean it will continue to do so.

Many leading stocks found support at key levels. But whether they will hold up and recover strongly depends largely on the broader market.

Energy names could be a partial exception, given how they trade in underlying crude oil or natural gas prices. Oilfield service companies like SLB stocks and coal producers like Consolidated Energy are doing better right now.

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What to do now

It’s not a good time to buy stocks. While the major indices held firm and some major stocks didn’t fall apart, the market’s rally remains weak.

The S&P 500 retrieving the 50-day line would look like a minimal sign of strength, with the 200-day highs and December much bigger tests.

Even if the market recovers, Tesla’s continued collapse on Tuesday shows that not all stocks will follow.

If you feel compelled to play this market, take pilot positions and prepare for quick profits and cut losses.

Keep looking for stocks that resist and find support at key levels. Stocks with strong relative strength during weak markets may lead the next move.

Read The panorama daily to stay in sync with market direction and major stocks and sectors.

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


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