Dow Jones futures edged higher Wednesday morning, along with S&P 500 futures and Nasdaq futures, after tumbling more than 1% overnight. The Dow Jones is on the verge of a bear market. The Nasdaq composite, Russell 2000 and the S&P 500 index already have crossed into a bear market territory. McDonald's stock, Verizon stock, Microsoft stock and Intel stock all boast relative strength lines that are rising or hitting all-time highs. But they really show how weak the S&P 500 index is. XMcDonald's (MCD), Verizon Communications (VZ), Microsoft (MSFT) and Intel (INTC) are all Dow Jones stocks and S&P 500 index members. Dow Jones Futures TodayDow Jones futures advanced 0.1% vs. fair value following sharp overnight losses. S&P 500 futures were about 0.1% higher. Nasdaq 100 futures rose a fraction vs. fair value. Crude oil prices rose more than 1% after hitting fresh 52-week lows Monday. Dow futures and other overnight action often don't carry over to actual trading in the next regular session. That's been true during the stock market correction, especially in the dive toward bear market country. Dow Jones futures will show gains for much of the overnight session, perhaps signaling modest losses before the open, but nothing to indicate the vicious stock market sell-offs. European markets, which were closed for Christmas as well, are closed Wednesday in observance of Boxing Day. Holiday Sales StrongU.S. retail sales excluding automobiles, rose 5.1% from Nov. 1 to Dec. 24 vs. a year earlier, according to Mastercard SpendingPulse, which tracks online and in-store spending. That's the best gain in six years. Online sales surged 19.1% over that time period. Online sales with in-store pick-up shot up 47%. That comes after many retailers had given cautious holiday guidance, including Amazon (AMZN), Target (TGT), TJX (TJX), Ross Stores (ROST), Ulta Beauty (ULTA), as well as Apple (AAPL). Trump Expresses Confidence In Fed, And More CriticismPresident Donald Trump expressed confidence Tuesday in the Federal Reserve following a recent report that he'd discussed firing Fed Chairman Jerome Powell. But he was still critical of Fed rate hikes. "They're raising interest rates too fast," Trump said. "That's my opinion. I certainly have confidence. I think it will straighten. They're raising interest rates too fast because they think the economy is so good. But I think that they will get it pretty soon." Trump also expressed confidence in Treasury Secretary Steven Mnuchin. Dow Jones Stock Market Correction Almost A Bear MarketThe Dow Jones is 19.1% off its peak, on the verge of the 20% bear market threshold. The S&P 500 index plunged Friday to close just in bear market territory, after the Nasdaq composite tumbled into a bear market last week. The S&P 500 index has fallen at least 1.5% in the last four sessions and five of the last six stock market days. Is the S&P 500 index and other major indexes due for a bounce? Sure, but it doesn't have to happen today, and it wouldn't necessarily mean much. Most of the greatest one-day percentage gains for the market have come in the midst of bear markets or other sharp downturns. Japan's Nikkei crashed 5% on Tuesday, entering its own bear market. The Nikkei rallied 0.9% Wednesday. Relative Strength Reflects S&P 500 Bear MarketThe relative strength line, the blue line in the charts below, tracks a stock's performance vs. the S&P 500 index. It's a great way to determine which stocks are leaders or laggards. But when stock market correction is so intense, with the Nasdaq and S&P 500 index in bear markets, even stocks breaking long-term support may show rising RS lines or even hitting new highs. McDonald's StockMcDonald's stock fell 2.2% to 170.38 in Monday's stock market trading, roundtripping an 11% gain from a 172.10 saucer-with-handle buy point. Shares have been pulling back all month, tumbling through its 50-day line Thursday. But McDonald's RS line hit a new high on Christmas Eve because the S&P 500 fell even harder. Verizon StockVerizon stock tumbled 3.8%, now 14% off its Nov. 20 peak and closing in on its 200-day line. But its RS line barely edged lower from Friday's record high. Verizon stock now boasts a 4.4% dividend yield. Microsoft StockMicrosoft stock plunged 4.4% on Monday to a 7-month low. That followed a 3.2% loss on Friday and a 2.1% retreat last Thursday. Those three losses have pushed Microsoft stock well below its 200-day line and 19% off its Oct. 3 peak. But its RS line has barely dipped, and was at record highs on Thursday. Despite its sell-off, Microsoft stock has became the world's most valuable company as Apple stock plunges more. Intel StockIntel stock fell 3% on Monday. The chipmaker's shares have fallen 8.9% over the past four sessions, beginning with last Wednesday's plunge through its 50-day line. And yet, Intel stock is still above its stock market correction low on Oct. 24, so its RS line has trended higher. Intel's RS line is just below a recent five-month high. These four Dow Jones stocks could bounce back into promising positions in a few days or weeks if and when the stock market revives. Their relative strength is apparent vs. the wrecked Apple stock. But Microsoft stock, McDonald's stock, Verizon and Intel are damaged. There's no guarantee that Intel stock & company will hold up even relatively well in the current bear market, let alone be leaders in the next market uptrend. Keep in mind that Apple stock looked great on Nov. 1, with its RS line just below record highs, before crashing. It's a bear market right now. It's a time for building watch lists, following the stock market and staying in cash. Right now cash has a superior relative line to almost any stock. YOU ALSO MIGHT LIKE: Trump Will Shake Up Fed In 2019, But Will Fed Rescue Shaky Dow Jones? Dow Jones Futures: This Often Happens After A Sharp Stock Market Correction Not Every Stock Market Follow-Through Works: 2 Red Flags To Watch For Read More Dow Jones Futures: Dow Stocks Microsoft, McDonald's, Verizon, Intel Teach Bear Market Lesson - Investor's Business Daily : http://bit.ly/2Q1Qqul
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