Dow futures tilted lower overnight, along with S&P 500 futures and Nasdaq futures, as Federal Reserve Chairman Jerome Powell prepares to deliver his much-anticipated Jackson Hole policy speech on Friday morning.
The stock market rally saw a strong trading session on Thursday, with major indexes once again rising above a key short-term level, despite concerns that Fed Chair Powell will signal the need for tight monetary policy in the longer term.
Ulta Beauty (ULTA) was executable on Thursday, but had earnings after close. ULTA stock rose modestly thanks to strong results and guidance. Shares closed 1.75% higher Thursday at 419.25, offsetting buying points at 417.08 and 418.89.
a work day (day) And the Confirmed collectibles (AFRM) also mentioned. WDAY’s stock jumped 10% overnight, but remained below the 200-day streak. AFRM stock fell more than 10% Big losses and poor guidance.
The video included in the article discussed the market rally on Thursday and what to expect from Fed Chair Powell. It has also analyzed Axcelis, Steel Dynamics and PODD stocks.
Fed Chairman Powell’s speech saw hawks
Fed Chairman Powell is scheduled to speak at 10AM ET Friday at the Jackson Hole symposium, likely not to provide much insight into the scale of the Fed’s September rate hike. Instead, it is expected to put pressure on longer-term inflationary pressures. This could include chronic labor shortages, but perhaps also, persistently high energy and commodity prices, rising trade barriers, and tight housing supply.
All of this suggests that the Fed will need to raise interest rates significantly – and keep them there for the foreseeable future. Fed Chairman Powell may indicate that a recession or a prolonged stretch of sub-par growth will be necessary to raise unemployment to curb wage inflation pressures.
That could mean slowing demand, a strong dollar, and higher bond yields sustaining. This can affect the profitability and valuations of companies, especially high-value growth.
Just a few weeks ago, markets saw a rapid slowdown in rate hikes after September and may reverse downward sometime next year.
Dow jones futures contracts today
Dow futures were 0.1% lower than fair value. S&P 500 and Nasdaq 100 futures were down 0.1%.
The 10-year Treasury yield rose 3 basis points to 3.06%.
Crude oil futures are up 1% while natural gas prices are up 2%.
Before Powell’s speech and opening bell, the Commerce Department will release its income and spending report for July. That report includes the Personal Consumption Expenditure Index, the Fed’s preferred inflation measure.
stock market rise
The stock market rally had a strong session, especially in tech and small businesses, as it bounced back above some key levels despite earnings and mixed guidance from some notable companies.
The Dow Jones Industrial Average rose 1% on Thursday stock market tradingeven with Salesforce.com (CRM) is pulling back hard on earnings. The S&P 500 jumped 1.4%. The Nasdaq Composite Index jumped 1.7%. Small cap Russell 2000 rose 1.55%.
US crude oil prices fell 2.5 percent to $92.52 a barrel.
The 10-year Treasury yield fell 8 basis points to 3.03% after rising 23 basis points in the previous four sessions.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 1.7%, while the Innovator IBD Breakout Opportunities ETF (fit) by 1.1%. iShares Expanded Technology and Software Fund (ETF)IGV) by 0.8%, despite CRM inventory being a large component. VanEck Vectors Semiconductor Corporation (SMH) rose 3.4%.
SPDR S&P Metals & Mining ETF (XME) rose 2.6%, with possession of a major STLD stock. SPDR S&P Homebuilders ETF (XHB) rose by 1.8%. SPDR Specific Energy Fund (SPDR ETF)XLE) by 0.8%. SPDR Healthcare Sector Selection Fund (XLV) advance 1.1%.
Stocks in buying areas
ACLS stock surged by massive volumes, up 13% to 81.73. Axcelis stock first broke above the handle’s downtrend, then crossed the official handle cup buy point at 79.93, according to MarketSmith Analysis. The line relative force Reached a new high, bullish signal on the breakout as ACLS stock outperformed the S&P 500.
GFS stock jumped 6.8% to 64.50 in heavy trading, breaking through the downtrend in the handle. official handle buy point It is 66.06 as part of a deep consolidation resembling a double bottom. GlobalFoundries shares went public in October 2021.
Steel Dynamics stock rose 6.6% to 86.76, breaking the downtrend of the handle and charge 86.04. cup with handle point purchase. The size was much higher than usual. Nokor (NEW) And the commercial metal (CMC) also broke the bearish indicators, but with a lighter volume.
Wednesday, Cleveland Cliffs (CLF) for a price increase of at least $75 per ton for carbon steel products.
PODD stock rose 3.35% to 282.86, eliminating 276.48 buying handle points. Volume was a little lower than usual, but Insulet stock rebounded from its 21-day streak on Wednesday in above-average trading.
RPM stock rose 5.6% to 97.83, making a 95.80 entry from a “handle” that needed an extra day to be right. The RS line of RPM stock has reached a new high.
Market Rise Analysis
Fed Chairman Who? The stock market rally came in strong on Thursday, despite the big news that came out on Friday.
The Dow, S&P 500 and Nasdaq Composite are back above their 21-day moving averages, after hitting resistance there in the previous two sessions. The Russell 2000 and S&P Midcap 400, which regained their 21-day streak on Wednesday, are pointing toward the 200-day streak.
Even better, an increasing number of stocks are flashing buy signals, and from a variety of sectors. Moves by ACLS stock, Steel Dynamics, and more reflect the handles that have either evolved or expanded during the market rally slump.
Previous breakouts continue to work.
So there’s a lot of positive action out there. But it’s coming right before Powell’s speech.
Powell may or may not be particularly hawkish, but in the end it’s the market reaction that counts. The good news is that the markets were preparing for a tough rhetoric.
Fed Chairman Powell could push the major indices higher, giving a boost to blue-chip stocks and potential leaders that are establishing. But the negative reaction to Powell’s speech could push the market rally significantly lower, erasing strong gains in the gainers.
What are you doing now
Well, now we wait. Thursday’s breakout and buy signals certainly gave investors reasons to take some fresh positions. If you decide that appreciation is the best part of courage in Powell’s speech, that’s fine. If the market continues to advance in the coming days, a number of settings will soon turn into buy signals.
Build your own watch lists. Be sure to build a wide network to find leading stocks from a range of industries. Pay close attention to a specific group in or near areas of purchase.
Be prepared to work on Friday. A market rally may affect Powell’s speech, but at some point you may want to add or reduce exposure.
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