Dow Jones futures were little changed Wednesday morning, as were S&P 500 and Nasdaq futures. A slew of economic data is expected in a half-day session.
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Nasdaq leads the market; Weatherford, Goldman Sachs and Novo Nordisk in the spotlight
The stock market session was positive on Tuesday, with the S&P 500 and the Nasdaq posting record closing highs. You’re here (TSLA) jumped on Wednesday on Deliveries higher than expectedcontinuing a powerful race.
Banking stocks were also key contributors. Goldman Sachs (GS), JPMorgan Chase (JPM), Wells Fargo (WFC), Bank of America (BAC), Citigroup (VS) And Morgan Stanley (MS) are trading around buy points or early entries. The Treasury yield curve has become less inverted as long-term yields price in a growing likelihood of Donald Trump returning to the White House.
Meanwhile, shale energy plays a major role Diamondback Energy (CROC) and oil machinery stocks Weatherford International (WFRD) And TechnipFMC (FTI) are making bullish moves in the bases.
The video embedded in this article analyzes Tuesday’s market action and looks at Weatherford. Goldman Sachs’ actions and Novo Nordisk (NGO).
Dow Jones Futures Today
Dow Jones futures rose a fraction from fair value. S&P 500 and Nasdaq 100 futures edged lower, though Tesla continues to provide a boost.
The ADP employment report is due at 8:15 a.m. ET, followed by weekly jobless claims at 8:30 a.m. ET. The ISM services index is due at 10 a.m. ET. The June employment report is due Friday morning.
U.S. stock markets close at 1 p.m. ET on July 3, ahead of the July 4 holiday.
Remember that the night action in Dow Futures and elsewhere does not necessarily translate into actual trading in the next regular quarter stock market session.
Biden’s chances plummet
Texas Rep. Lloyd Doggett became the first Democratic member of Congress to call for President Joe Biden to step down on Tuesday. Rep. Jim Clyburn, D-S.C., said he might support Vice President Kamala Harris as the nominee if Biden were to leave the party. Biden’s odds of being the Democratic nominee fell to about even while Harris’s rose to about even on PredictIt Wednesday morning. Trump’s odds of retaking the White House haven’t improved much, but have been rising since Thursday night’s debate.
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Stock markets rebound
The stock market rally had a solid session, led by Tesla but with decent gains elsewhere.
The Dow Jones Industrial Average rose 0.4% on Tuesday. stock market tradingThe S&P 500 index rose 0.6%, breaking the 5,500 mark for the first time. The Nasdaq Composite gained 0.8%, closing above 18,000.
The small-cap Russell 2000 index rose 0.2%, just below its 50-day line.
The Invesco S&P 500 Equal Weight ETF (RSP) climbed 0.45%, also below its 50-day rate.
The first Nasdaq 100 equal-weight ETF (QQEW) jumped 0.85%, just below record highs.
Besides banks and energy, many sectors in software, discount retail, shipping and healthcare are doing well. Industrial stocks, on the other hand, are struggling, while many sectors in housing and construction are reeling.
The Nasdaq Composite Index is 7% above its 50-day line, slightly extended.
U.S. crude oil prices fell 0.7% to $82.81 a barrel, after hitting above $84 on Tuesday morning.
The yield on the 10-year Treasury note fell four basis points to 4.43%, after jumping 19 basis points in the previous two sessions. The yield on the two-year Treasury note slipped three basis points to 4.74%, after climbing less than six basis points in the previous two sessions.
The yield curve is becoming less inverted as bond traders bet on higher budget deficits, and perhaps stronger economic growth, if Trump returns to the White House.
AND F
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (VAT) gained 0.5%. The VanEck Vectors Semiconductor ETF (SMH) increased by 1%.
Reflecting more speculative stocks, ARK Innovation ETF (LEAF) climbed 0.8% and ARK Genomics ETF (ARKG) fell 1.5% to its worst close since late October. Tesla stock is the top holding in Ark Invest ETFs.
SPDR S&P Metals and Mining ETF (XME) rose 0.7% and the Global X US Infrastructure Development ETF (PAVE) rose 0.6%. The SPDR S&P Homebuilders ETF (XHB) increased slightly by 0.1%.
The SPDR Energy Select ETF (XLE) fell 0.1%, with Diamondback Energy as a member. The Health Care Select Sector SPDR Fund (XLV) fell 0.4%. The Industrial Select Sector SPDR fund (XLI) gained 0.55%.
The SPDR Financial Select ETF (45) jumped 1.2%, with JPMorgan, Goldman Sachs, Bank of America, Morgan Stanley, Citigroup and Wells Fargo as notable holdings.
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Tesla Stocks
Tesla shares jumped 10.2% to 231.26 on Tuesday. Second-quarter deliveries came in at 443,956, above lowered forecasts but still down from a year earlier. Deployed energy storage hit a new high. TSLA shares, which broke above their 200-day line on Monday, are now well extended from a low of 191.08 buy points authorized on June 26.
Tesla rose 2% Wednesday morning.
Energy stocks close to buying points
Diamondback Energy rose 0.6% Tuesday to 204.90, off session highs but continuing to advance above the 50-day moving average. FANG stock is headed toward 211.96 cup base buy point. Shares posted an early entry late last week as they pulled away from the 50-day line.
Weatherford shares rose 2.3% Tuesday to 124.53, forming the right side of a cup base with a buy point at 129.70. Shares may be working out a handle, though it will take more time. The June 28 intraday high of 124.93 coincides with a declining trendline for WFRD stock.
TechnipFMC shares fell 0.3% to 26.19 but remain higher. FTI shares have a buy point of 27.30 from a flat base, according to Booming marketLast week’s move above the 50-day line offered an early entry, with stocks still range-bound for it.
Tesla extends its run while retaining its battery-electric vehicle crown; BYD sales near 1 million
Bank stocks strong as Trump odds boost yields
Goldman shares rose 0.4% Tuesday to 465.61, on their way to 471.48. flat base Buy Point. Shares found support at their 50-day line last Thursday. Investors could use Monday’s high at 464.02 as an early entry.
JPMorgan shares rose 1.65% to 208.83, above a flat-base buy point of 205.88. JPM shares made an early entry Friday by decisively breaking above the 50-day line and a trendline.
Bank of America shares rose 2.3% to 40.93, ending several weeks of tight action as part of a four-session rally from the 50-day line.
Wells Fargo shares rose 0.6% Tuesday to 60.97 after reclaiming the 50-day line on Monday, providing an early entry. WFC shares have a 62.55 buy point from a shallow cup base.
Citigroup rose 2% to 64.68. Shares are advancing toward a buy point at 64.98 from a flat base next to a previous base. Citi stock flashed a buy signal Friday as it broke above the 50-day line.
Morgan Stanley rose 0.5% to 99.65 on Tuesday after breaking above near-term levels above the 50-day line. MS stock has a buy point of 103.25 from a stable base.
Keep in mind that JPMorgan, Citigroup and Wells Fargo will report results on July 12, followed by Goldman, BofA and Morgan Stanley a few days later.
What to do now
The stock market remains somewhat split, with the Nasdaq off the 50-day line and the Russell 2000 below that key level. Some stocks have flashed buy signals, though many have pulled back or worse.
Investors may want to stick largely to their current exposure, perhaps seizing new opportunities while acting as other positions struggle.
Remember, the price of financial independence is constant vigilance, so stay alert to the market and your wallet.
Weatherford shares are on the IBD Rankings watch list. Citigroup stock is on the MII 50. Diamondback Energy was the IBD Stock of the Day on Tuesday. JPMorgan stock was the pick on Monday.
Read The big picture every day to stay in tune with market direction and major stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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