Dow Jones Futures: Nasdaq Breaks Lower As Bond Yields Soar; Apple, Qualcomm, J.B. Hunt Hold Key Levels

Dow Jones futures tilted decrease in a single day, together with S&P 500 futures and Nasdaq futures. The inventory market suffered sharp losses as soon as once more on Tuesday, because the 10-year Treasury yield jumped to a contemporary two-year excessive.


The Nasdaq, Russell 2000 and Dow Jones broke under latest lows, whereas the S&P 500 suffered sharp losses in a broad market sell-off.

Apple inventory, Qualcomm (QCOM), CF Industries (CF), Builders FirstSource (BLDR) and Advance Auto Components (AAP) are 5 shares looking for assist at their 50-day or 10-week line. Apple (AAPL) retreated again to its 10-week line, whereas QCOM inventory and Builders FirstSource discovered assist at their 50-day traces. CF Industries and, to a lesser extent, AAP inventory bounced off these key ranges.

None of those shares is actionable, given the present market atmosphere, although CF inventory is flashing some constructive alerts. However all are price watching carefully. The relative power traces are robust for all 5 names.

J.B. Hunt Transportation Companies (JBHT) reported earnings after the shut. The trucking agency comfortably beat views, with EPS up 58% and income up 28%. JBHT inventory was little modified in a single day. Shares dipped Tuesday however have discovered assist at their 50-day line in latest periods, not like many different trucking shares. The RS line for J.B. Hunt is at new highs.

JBHT inventory and BLDR inventory are on the IBD 50.

The video embedded on this article analyzes the market motion in addition to Apple inventory, Builders FirstSource and CF Industries.

Dow Jones Futures Right this moment

Dow Jones futures slid 0.1% vs. honest worth. S&P 500 futures retreated 0.15% and Nasdaq 100 futures sank 0.2%.

In in a single day buying and selling, the 10-year Treasury yield rose to 1.88%. U.S. crude oil costs to just about $87 a barrel as an explosion took an Iraq-Turkey pipeline offline.

Keep in mind that in a single day motion in Dow futures and elsewhere does not essentially translate into precise buying and selling within the subsequent common inventory market session.

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Inventory Market Tuesday

The inventory market began off weak and stayed that means. The Dow Jones Industrial Common fell 1.5% in Tuesday’s inventory market buying and selling. The S&P 500 index sank 1.8%. The Nasdaq composite dived 2.6%. The small-cap Russell 2000 plunged 3.1%.

The ten-year Treasury yield soared greater than 9 foundation factors to 1.865%, hitting a two-year excessive. U.S. crude oil costs climbed 1.9% to $85.43 a barrel, the very best shut since 2014.


Among the many greatest ETFs, the Innovator IBD 50 ETF (FFTY) tumbled 4%, whereas the Innovator IBD Breakout Alternatives ETF (BOUT) skidded 2.5%. The iShares Expanded Tech-Software program Sector ETF (IGV) fell 1.8%. The VanEck Vectors Semiconductor ETF (SMH) gave up 4.5%, with QCOM inventory a notable holding.

SPDR S&P Metals & Mining ETF (XME) misplaced 1.6%, and World X U.S. Infrastructure Growth ETF (PAVE) shed 2.1%. The U.S. World Jets ETF (JETS) descended 1.8%. SPDR S&P Homebuilders (XHB) retreated 2.85%. The Vitality Choose SPDR ETF (XLE) eked out a 0.4% acquire, and the Monetary Choose SPDR ETF (XLF) fell 2.2%. The Well being Care Choose Sector SPDR Fund (XLV) declined 1.4%

Reflecting shares with extra speculative tales, the ARK Innovation ETF (ARKK) retreated 4.15% and ARK Genomics (ARKG) misplaced 5.6%. Each are buying and selling at 18-month lows.

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Market Evaluation

The inventory market suffered one other punishing loss Tuesday, simply wiping out Friday’s rebound from lows, as hovering Treasury yields rocked Wall Road once more.

The Nasdaq composite closed under its 200-day transferring common for the primary time since April 2020, and undercut the Jan. 10 intraday lows. The following apparent assist space can be the early-October low.

The S&P 500, already under its 50-day line, additionally undercut final week’s lows. The Dow Jones gapped under its 50-day line and up to date lows. The Russell 2000 slumped to its lowest ranges since March, near undercutting a yearlong consolidation.

Losses had been broad and deep. Losers crushed winners, with progress shares pummeled as soon as once more.

Many power shares reversed decrease Tuesday at the same time as crude oil and pure fuel costs rose but once more.

Financials slumped, regardless of hovering Treasury yields. Quite a lot of that needed to do with Goldman Sachs (GS) promoting off on its earnings miss. However rising Treasury yields are a blended blessing for financials. For one, the unfold between short-term and long-term yields is not widening. That is not nice for banks’ internet curiosity margins and will point out issues for financial progress, which can be not nice for banks.

All in all, Friday’s rebound from intraday lows now looks like a blip. The key indexes have offered off exhausting from the Jan. 12 intraday highs, and extra broadly since Jan. 3. The Nasdaq has been trending decrease in unstable style since earlier than Thanksgiving.

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What To Do Now

The inventory market continues to deteriorate. Tech and small-cap shares led the declines, as regular. However there have been few protected havens in Tuesday’s sell-off — besides money.

May the market bounce on Wednesday? Positive, the market has had loads of bounces, some lasting a number of days, over the previous few weeks. However they have not lasted.

Traders ought to look ahead to clear-cut proof of a sustained uptrend. It is advisable to protect your capital — and your psychological capital.

Relative power stays paramount, in addition to shares discovering key assist, corresponding to Apple inventory and Builders FirstSource. Take into account that many shares that had held up properly have began to interrupt down. So maintain your lists updated.

Persistence is vital. Do not bounce the gun, however do not stroll away. Keep engaged so that you’re able to benefit from the subsequent bullish market transfer. That would are available in a number of days or a number of weeks or months.

Learn The Massive Image day by day to remain in sync with the market course and main shares and sectors.

Please observe Ed Carson on Twitter at @IBD_ECarson for inventory market updates and extra.


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