Dow Jones futures were slightly changed on Thursday morning, along with the S&P 500 and Nasdaq futures, erasing overnight losses. The stock market rally is shaking, with the Nasdaq and rising stocks under strong pressure in recent weeks amid rising bond yields. Federal Reserve Chairman Jerome Powell will speak today, with investors looking for any possible comments on the treasury’s profitability.
Dow component Boeing (BA) is close to a buying point after a flirtation with a breakout on Wednesday. Brazilian miner Well (VALE), a world steel giant Arcelor Mittal (MT), manufacturer of specialty chemicals Elementary solutions (ESI) and Lithium Motors (LAD) are also close to records.
Shares of Boeing rose 2% in early Thursday, again above the buyout point. But this is a difficult market for all kinds of purchases.
Britain launches antitrust probe against. Apple (AAPL) for alleged anti-competitive practices in its App Store. Apple is already facing investigations on the App Store by antitrust officials in the United States and the European Union.
Apple shares have not changed much in market trading. Shares lost 2.45% on Wednesday. AAPL shares are below their 50-day line after the end of the January break.
Walt Disney (DIS) will close at least 20% of its Disney stores by the end of the year, including at least 60 in the United States. It will focus more on e-commerce. This is just the latest example of a business transfer from Disney Online. Shares of Disney fell slightly in the preliminary market, near the top of the range of purchases from a flat base.
DraftKings (DKNG) have teamed up with the UFC to become exclusive sports books and daily fantasy partners in the United States and Canada.
Square (SQ) bought a majority on Jay-Z Tidal’s music platform for $ 297 million. Jay-Z will join the board of Square. Square stocks fell moderately.
Shops in Burlington (BURL), jumps and can be detached from a flat base. The off-price retailer reported a 3% profit after three consecutive quarters of declining sales.
Manufacturer of chips and software Broadcom (AVGO) reported late tonight. Shares of AVGO fell to their 10-week line on Wednesday, but did not lose many positions in the recent sale of technology. Broadcom is a supplier of the Apple iPhone, but that’s only part of the business.
Disney shares are on SwingTrader.
Dow Jones Futures Today
Dow Jones futures rose 0.1% to fair value, with Disney slightly resisting and Boeing shares offering a moderate boost. S&P 500 and Nasdaq 100 futures were slightly changed.
The yield of the 10-year-old treasure was stable at 1.47% after rising on Wednesday, ending a three-day slide. The yield on the 10-year-old treasure briefly reached 1.6% last week.
Initial unemployment claims rose to 745,000 last week from 730,000. Economists expected to see new documents rise to 760,000.
Join IBD experts as they analyze active stocks in the IBD Live stock rally.
Powell’s Fed boss “Spin”?
Federal Reserve Chief Jerome Powell will speak at a conference shortly after noon Eastern Time. These will be his last public comments before the Fed’s March 16-17 meeting. The Treasury’s ten-year profitability has risen in recent weeks due to expectations that the massive Biden stimulus bill, along with the disappearance of the coronavirus pandemic in the coming months, will stimulate a huge economic recovery that could lead to inflation. Crude oil, copper and many commodity prices have recently jumped. While this was good news for mining, finance and many other so-called “real economy” companies and stocks, it was a catalyst for the sale of growing stocks.
Powell and other politicians have signaled that they want faster inflation and are probably not too worried about the treasury’s 10-year yield below 2%. But the rate of increase in yields has caught the attention of Fed Governor Lael Brainard, she admitted on Tuesday.
Powell stressed that he focuses on full employment, not worried about the financial markets, although this was in the context of the stock market rally, which reached fresh heights. But investors may want to hear him say that he pays attention at least to the profitability of the treasury.
Can Powell hint at a change in policy? There is speculation that the Federal Reserve may try to reduce long-term yields by buying long-term government securities and buying short-term government securities. The Fed used this “Operation Twist” before, in 1961 and again in 2011.
But even if Powell is ready for such a move, he may not want to lend a hand before the Fed’s meeting in mid-March.
Stock market rally on the edge
The stock market rally may be on its hind legs. The confirmed uptrend is an “uptrend under pressure” of several days.
The Dow Jones industrial average fell 0.4% on Wednesday. The S&P 500 index fell 1.3%, closing just over its 50-day line. The Nasdaq composite fell 2.7%, collapsing below its 50-day line and closing below its February 23 level. All major indexes closed close to the session low.
If the S&P 500 falls over its 50-day line and the Nasdaq loses further ground, the post-election stock market rally may end.
Investors need to focus on operating sectors and reduce exposure to speculative growth names.
Read the Big Picture tonight to stay in line with market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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