By Peter Bergman (MoneyAmped.com)
The Dow Jones futures experienced a slight decline during the morning hours of Thursday, while a subsequent upward shift was observed in the S&P 500 and Nasdaq futures.
On Tuesday, the stock market experienced a notable recovery, with the Nasdaq leading the way. This resurgence was primarily driven by the decrease in the 10-year Treasury yield, which had reached its highest point in 16 years. On Wednesday, Tesla (TSLA) exhibited a positive market performance, demonstrating resilience in unfavorable developments.
However, it is worth noting that the market rally attempt has thus far yet to materialize a follow-through day. In addition to the Nasdaq, it is noteworthy that Wednesday marked the initial phase of a rally endeavor for the S&P 500 and Dow Jones indices. Fluctuations undeniably influence the performance of stocks in Treasury yields.
In addition to Tesla, the esteemed equities Meta Platforms (META) and Google parent Alphabet (GOOGL) persist in demonstrating favorable performance, trading near their respective purchase thresholds. The ANET stock and Synopsys (SNPS) experienced an upward movement, nearing significant levels that may be considered potential buy points.
Arista Networks (ANET) and Meta Platforms have been included in the IBD Leaderboard, while Tesla has been placed on the Leaderboard watchlist. On Wednesday, the TSLA stock was incorporated into the SwingTrader platform. The stock of SNPS has been included in the IBD Long-Term Leaders list. The IBD 50 comprises notable companies such as META stock, Arista Networks, Tesla, and Synopsys. Arista Networks was designated as the IBD Stock Of The Day on Wednesday.
Today’s Dow Jones Futures Quotes
Dow Jones futures experienced a slight decrease compared to their fair value. Futures on the S&P 500 and Nasdaq 100 increased, and the rise on the latter was 0.3%.
The yield on the 10-year Treasury note has dropped to 4.71 percent.
The price of crude oil futures dropped by 1%.
Remember that the actions that occur overnight in Dow futures and elsewhere may not necessarily convert into actual trading during the following ordinary stock market session.
Gains on the Stock Market
The ongoing stock market rally exhibited resilience on Wednesday, as the Nasdaq demonstrated a robust performance throughout the session.
The Dow Jones Industrial Average experienced a 0.4% increase during Wednesday’s stock market trading session. The S&P 500 index experienced a 0.8% increase, with Tesla stock leading. The Nasdaq composite experienced a notable increase of 1.35%.
The market breadth exhibited a modestly positive performance after the abysmal readings observed on Wednesday.
The Russell 2000, a small-cap index, concluded the trading session with marginal movement, effectively neutralizing substantial intraday declines.
The Invesco S&P 500 Equal Weight ETF (RSP) experienced a modest increase of 0.6% after reaching a new intraday low, which marked six months.
The 10-year Treasury yield experienced an increase of approximately seven basis points, reaching a level of 4.735%. This rise follows a significant surge of 23 basis points observed during the preceding two days. The decline in Treasury bond yield was observed in response to the underwhelming ADP employment data. The forthcoming release of the August jobs report by the Labor Department is scheduled for Friday morning.
The crude oil prices in the United States experienced a significant decline of 5.6%, reaching $84.22 per barrel. This downward movement can be attributed to the latest data provided by the Energy Information Administration, which revealed a decrease in U.S. crude stockpiles. However, it is worth noting that there was an unexpected increase in gasoline supplies, which further contributed to the decline in crude oil prices. The gasoline futures market experienced a significant decrease of 6.9%, further extending a notable downward trend that began in early August. This decline has led to the futures reaching their lowest level since December 2022.
The Nasdaq and S&P 500 experienced marginal gains, albeit remaining confined within a narrow trading range after the sell-off witnessed on Tuesday.
The Nasdaq, currently amid its stock market rally endeavor for six days, has the potential to initiate a follow-through day shortly. The price gain observed on Wednesday exhibited a significant strength, meeting the criteria to be classified as a Failed to Deliver (FTD). However, it is noteworthy that the volume on the Nasdaq exchange experienced a decline compared to the preceding Tuesday.
The S&P 500 and Dow Jones indices, having experienced a decline below recent lows earlier this week, are initiating fresh endeavors toward a rally.
Several technology stocks are demonstrating resilience alongside a select few discount retailers. However, the current performance of prominent stocks and sectors is encountering significant challenges. The decline in energy stocks is correlated with the downward trajectory of oil and gasoline prices.
The Stock of Tesla
The Tesla stock exhibited a pronounced buy signal on Wednesday. The shares experienced a notable increase of 5.9%, reaching a value of 261.16. This upward movement resulted in the claims surpassing the 50-day line with conviction and a noteworthy increase in trading volume. An upward trend surpassing the high of Wednesday would present an additional opportunity for an early entry point, thereby indicating a potential breakthrough of the prevailing downtrend within the handle formation. The TSLA stock currently exhibits a designated buy point of 278.98, as per the formation of a cup-with-handle base.
The bullish sentiment remains steadfast despite unfavorable developments, such as a significant decline in Q3 deliveries and introducing a lower-priced base Model Y. Investors remain confident in an enhanced Model 3, the forthcoming Cybertruck, and speculative investments in autonomous driving technology, robotics, and other areas.
Google Stock
The stock of Google experienced a 2.1% increase, reaching a value of 135.24. This rise allowed the stock to recover from its 50-day line and regain a shelf entry at 133.74. According to MarketSmith analysis, the relative strength (RS) line for GOOGL stock has reached its highest level since early 2022.
