Dow Jones Futures: Apple iPhone 14 Pro Production Hit; Big Meta Job Cuts Seen

Along with S&P 500 futures and Nasdaq futures, Dow Jones futures showed little change early Monday. Berkshire Hathaway (BRKB) earnings, Apple iPhone 14 Pro production crisis and report meta platform (Meta) Layoffs are in the news headlines over the weekend.




x



Even with a solid finish in Friday’s whipsaw session, the stock market’s rally suffered significant losses last week, with major indices cracking down on snarky comments from Fed chief Jerome Powell.

The Nasdaq had its worst week since January as megacaps collapsed and cloud software crashed.

Apple (AAPL), Amazon.Com (AMZN) and Google Parent Alphabet (GOOGL) With Facebook Guardian, everyone lost more than 10% during the week meta platform (Meta), Tesla stock and Microsoft stock are also not far behind. google stock, meta, Amazon.Com (AMZN) and Microsoft (MSFT) all hit the bottom of the bear market. apple stock and Tesla (TSLA) didn’t, but they are close.

During this, twilio (TWLO) and atlassian The (team) crashed on Friday on disappointing results and guidance, losing more than 40% for the week. Several other software names fell in with or without earnings.

A market rally trying to fight the Fed with key tech sector declines? This is a tall order. So, while some stocks and sectors are showing strength, investors should be extremely cautious in the current environment.

dow jones futures today

Dow Jones futures were flat versus fair. S&P 500 futures changed little and Nasdaq 100 futures retreated 0.1%. Futures were well closed from Sunday evening’s low.

China’s exports fell unexpectedly in October, while the country’s Covid cases hit a six-month high. Hong Kong’s Hang Seng Index climbed strongly overnight, extending the recent gains. Investors are still hoping that China’s government will ease its zero-Covid policy, as speculated by social media chatter.

Crude oil fell more than 1%, while natural gas futures rose 9%.

The dollar, which broke on Friday, rose slightly.

Remember that overnight action in Dow futures and elsewhere does not necessarily entail actual trading in the next regular stock market session.

news

The Wall Street Journal reported on Sunday that the meta platform will cut thousands of jobs. The WSJ said an announcement could be made on Wednesday. Meta had over 87,000 employees as of the end of September. 26, Meta reported a 49% EPS decline in Q3 and guidance amid a Metaverse expense decline. Meta stock fell 25% the next day, with shares continuing to decline.

Late last week, new Twitter boss Elon Musk cut half of that social media workforce of 7,500.

Apple said on Sunday that “we now expect shipments of the iPhone 14 Pro and iPhone 14 Pro Max to be lower than previously expected.” This is due to the COVID restrictions at the Foxconn plant in Zhengzhou, China. Apple’s disclosure is no shock given Foxconn’s publicized crisis. Foxconn warned on Monday that the Covid disruption would impact Q4 earnings.

Also Read :  The Dart: Man reinvents himself with cookie business - Daily Leader

Apple said the 14 Pro and Pro Max remain strong, but shipments will take longer.

Warren Buffett’s Berkshire Hathaway reported a 20% jump in operating profit on Saturday. The group suffered a net loss as the ongoing bear market impacted investments.

Goldman Sachs now expects S&P 500 earnings to be flat in 2023, down from its earlier target of 3%.


Join IBD experts as they analyze stock market rally actionable stocks on IBD Live


stock market rally

The stock market’s rally started the week well, but then sold out on scathing comments from Fed chief Jerome Powell on Wednesday afternoon. Major indices strengthened further on Thursday. The stock rose on Friday after a mixed jobs report, but ultimately closed the day firmly.

The Dow Jones Industrial Average still fell 1.4% in last week’s stock market trading. The S&P 500 index fell 3.3%. The Nasdaq Composite fell 5.7%, its worst loss since the week ended Jan. 21. The small-cap Russell 2000 fell 2.4%.

The 10-year Treasury yield jumped 15 basis points to 4.16%. The 10-year yield resumed its progress after breaking the 12-week winning streak and trading briefly around 4%.

The dollar rose 0.2% for the week, but fell 1.9% on Friday, its biggest one-day drop in years. Due to this, the stock market is likely to rise on Friday.

Markets now see a 61.5% chance of a 50-basis-point increase at the December Fed meeting. October Consumer Price Index is on Thursday. November’s jobs and CPI reports will be out before the December 14 Fed rate hike decision.

US crude oil futures jumped 5.4% last week to $92.61 a barrel. Natural gas rose nearly 13 per cent.

tech wreck

Apple stock, which had rallied to its 200-day line, was last down 11.15% to 138.38. AAPL stock came within a penny of its October low, though it’s still a short distance from its bear market low in June. Microsoft 6.1%, Google 10.1%, Amazon 12% and META stock 8.5%, all slipped to multi-year lows. Tesla stock fell 9.2%, hitting its October 24 low on Friday. After this TSLA started the week strongly, which was 237.40 intraday on Tuesday.

Meanwhile, it’s a dark day for cloud software. Atlassian stock fell 29% on Friday and 38% for the week. Twilio stock crashed nearly 35% on Friday and 43.5% for the week. snowflake (SNOW), which won’t report for a few weeks, took a 17% dive for the week.

During this, fortinet (FTNT) crashed 17.5% for the week as weak billing guidance offset stronger earnings and a bullish revenue outlook. paycom (PAYC) fell 10.3% despite strong results and guidance.

Also Read :  Reduced DFA consular budget could see jobs lost, offsite passport services closed

Cost-cutting businesses can curb spending on software as they budget for 2023.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.2% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) fell 2%. The iShares Extended Tech-Software Sector ETF (IGV) declined 10.2%, with MSFT stock being a major holding. The VanEck Vector Semiconductor ETF (SMH) fell just 0.7% after closing higher in the weekly range, after jumping 4.65% on Friday.

The SPDR S&P Metals & Mining ETF (XME) climbed 2%. The Global X US Infrastructure Development ETF (PAVE) is down 0.1%. The US Global Jets ETF (JETS) rose 0.3%. The SPDR S&P Homebuilders ETF (XHB) fell 5%. The Energy Select SPDR ETF (XLE) climbed 2.4%, just below an eight-year high. The Financial Select SPDR ETF (XLF) fell 0.9%. Health Care Select Sector SPDR Fund (XLV) gave a discount of 1.5%.

Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) rallied 9.4% last week and the ARK Genomics ETF (ARKG) 4.65%. Tesla stock is a major holding in Arch Invest’s ETF.


The five best Chinese stocks to watch right now


market rally analysis

The stock market rally had a bad week, with Fed and often-weak earnings weighing on major indices. The Dow Jones, which has led the market bullish, declined the lightest, but moved below the 200-day moving average. The Russell 2000 hit resistance near the 200-day line, but returned to close above the 50-day line on Friday. The S&P 500 took the knife over the course of 50 days.

The Nasdaq, which never quite reached the 50-day moving average, fell the most, closing below its follow-through day’s low on Wednesday, signaling a bearish trend.

Major indices extended losses on Thursday, then rose higher on Friday on reports of mixed jobs.

Negative market action and major reversals in many stocks triggered a “market under pressure” turnaround.

The big driver was Fed chief Powell, who pulled the rug from the market rally by indicating a turnaround in smaller but a higher peak fed funds rate.

Meanwhile, megacap techs including Apple, Tesla, Amazon and Meta stocks took heavy losses. Cloud software names like Atlassian and Twilio melted away, with recent earnings and guidance being key factors.

Chips hasn’t had a terrible week, relatively, but only a few names are trading near highs.


Tesla Vs. BYD: Which booming EV giant is the better buy?


There are many flexible market segments. The health care sector overall looks strong. Energy names including a wide range of oil stocks, LNG plays and coal miners, as well as some solar stocks, are performing well.

Lithium and some steel play are doing well. Infrastructure firms are a bright area for the energy, utilities and telecommunications industries. Networking firms in general are a rare tech sector leading the way. Some restaurants and discount retailers are showing strength. Various financials, especially brokers and brokerages, have made strong profits.

Also Read :  Small business group files suit over Biden student loan plan

Still, it is difficult to see a strong market rally with such large technical areas. With Apple, Google, Tesla and cloud software names lagging behind, the major indexes will find it tough to move up. But to try to move forward with those areas sinking or crashing?

If inflation reports show a clear and meaningful decline, leading to a decline in Fed rate hikes, perhaps MegaCap and Cloud Software could be down. However, a return to technical leadership may be some way off. On the other hand, if the October CPI report of November 10 shows that inflation is still trending hot, tech stocks could pull down key sectors to end the market’s rally.

Tuesday is election day. The stock market does better with a divided government, and Republicans are poised to reclaim control of the House and perhaps the Senate. But political forecasters have been predicting at least a House GOP win all year, so it’s unclear whether Tuesday’s actual results will be a big catalyst.


Time Markets with IBD’s ETF Market Strategy


What should we do now

The stock market is under pressure. The Fed is switching from fast and furious to slow and long, but it is still hawkish. The tech sector is a train wreck. Major indices have broken some key levels. Indices and major stocks are subject to large intraday and daily volatility.

This is not a good environment to buy shares. Investors should consider deducting exposure, either explicitly or by deducting losses on various positions.

If the market rally shows renewed strength, with the S&P 500 and possibly the Nasdaq moving above their 50-day moving averages, investors can begin to add exposure. But that will probably require inflation data to stabilize the technology and show some coolness.

If the situation improves, you’ll want to be prepared. Many stocks are setting up, many of which are not too far away. So make your watchlist, be patient and persevere.

Read The Big Picture every day to keep up with the market direction and key stocks and sectors.

Please follow Ed Carson on Twitter @ibd_ecarson For stock market updates and much more.

You might also like:

Why This IBD Tool Makes Finding Top Stocks Easier

Get the Next Big Winning Stock with MarketSmith

Want to make quick profits and avoid big losses? Try Swing Trader

Best growth stocks to buy and see

5 Stocks Near Buying Points Without This Risk



Source

Leave a Reply

Your email address will not be published.