Futures Fall Ahead of Year-End Trading Day

Dow Jones futures fell on Friday morning, along with S&P 500 futures and Nasdaq futures, heading into the last trading day of 2022. The major indexes rose strongly on Thursday on employment records, Apple (AAPL) iPhone news and Tesla (TSLA) continues to bounce.




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But the market is in a correction after breaking the key levels on Wednesday. Thursday marked just day one of a new sales expansion effort. Investors should be very careful about acquiring new opportunities.

Medpace (MEDP) flashes a Thursday shopping alert, while KLA Corp. (LITTLE), Starbucks (SYSTEM), United Rentals (URI), Mobileye (MBLY), Super Micro computer (SMCI) and Feather (FLR) is scheduled. But these stocks may rise or fall with the market.

There are stocks of MEDP, Fluor and United Rentals IBD Leaderboard. KLAC stock is available IBD Permanent Leader. MBLY stock is on the IBD 50. KLA Corp. and shared URIs are on the IBD Size 20.

Meanwhile, the Treasury Department’s new guidelines state that most Model Y vehicles will not be eligible for U.S. tax credits starting January 1 without reducing prices. But there’s a chance that all Tesla cars — and any EVs — could be allowed to qualify for the big tax at any rate.

Dow Jones Futures Today

Dow Jones futures fell 0.4% vs. reasonable price. S&P 500 futures fell 0.6%. Nasdaq 100 futures fell 1%. The future is weakening in the open market.

The 10-year Treasury yield rose 3 basis points to 3.86%.

Remember that nighttime activity inside Dow futures and other sites that don’t translate to real traffic in another normal stock market ceremony.


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Marketing Integration Efforts

The stock market made a strong recovery, moving up in the morning and then halting those gains in the afternoon.

The Dow Jones Industrial Average rose more than 1% on Thursday market trading. The S&P 500 index jumped 1.75%. The Nasdaq composite and small-cap Russell 2000 jumped 2.6%.

Initial jobless claims rose slightly more than expected in the week ended December 24, but remained low at 225,000. Continued claims climbed 41,000 to 1.71 million last week, the highest since early February.

AAPL stock jumped 2.8% to 129.61 after down 3.1% Wednesday in the market low. The production of the Apple iPhone is being restored, according to the Wall Street Journal, after another report of the problems of the production of the iPhone recently.

US crude oil prices were down 0.7% at $78.40 a barrel.

The 10-year Treasury yield fell 5 basis points to 3.83%.

ETFs

In the Best ETFsInnovator IBD 50 ETF (FFTY) rose 1.1%, while the Innovator IBD Breakout Opportunities ETF (FAMILY) climbed 0.9%. iShares Expanded Tech-Software Sector ETF (IGV) rebound 3%. VanEck Vectors Semiconductor ETF (SMH) fell 3.3%. Taking stock of the stock market, ARK Innovation ETF (ARKK) jumped up 5.2% and ARK Genomics ETF (ARKG) 4.1%. Tesla stock is a major holding on Ark Invest’s ETF.

SPDR S&P Metals & Mining ETF (XME) rose 1.9%. US Global Jets ETF (JETS) was up 2.65%. SPDR S&P Homebuilders ETF (XHB) increased by 2.4%. The Energy Select SPDR ETF (XLE) was up more than 1% with the Financial Select SPDR ETF (45) increased by 1.4%. The SPDR Sector Select Health Care Fund (XLV) rose 1.1%.


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Tesla Stock

Tesla stock jumped 8.1% to 121.82 after a 3.3% drop on Wednesday. TSLA stock is still down for the week and 37% in December. After a big sell-off, Tesla’s stock was supposed to rise, but it still remains below critical levels.

Tesla’s stock is on track for its worst annual loss yet.

Tesla Model Y Tax Credits

The Tesla bull case for 2023 relies heavily on new US taxes of up to $7,500 under the Inflation Reduction Act to boost domestic sales, reduce weak demand and costs in China and maybe Europe.

On Thursday, the Treasury Department listed the vehicles eligible for US EV credits. Most models of the Model Y will cost $55,000 to get EV specs, compared to $80,000 each for the SUV, pickup and vans.

But the seven-seat Model Y sedan, which didn’t sell much, went up to $80,000.

The base Model Y in the US starts at $65,990, Tesla needs to reduce the price, perhaps by reintroducing a smaller model of the Model Y SR+, which gets tax credits – unless it’s a seven-seat variant.

But, there is another problem! The EV Finance Office also noted that buyers may qualify for commercial EV loans. That qualifies EVs assembled outside of North America, including the Hyundai Ioniq 5 and Kia EV6. Foreign automakers, and America’s allies in Europe and Asia, strongly opposed the North American demand. But the lease rules seem to allow any EV to be eligible at any price, without any income restrictions.

It will be interesting to see what Tesla and other automakers do with regard to exchange and pricing to maximize the benefits from the new tax.

Guggenheim lowered Tesla’s estimates for 2023, in part on debt guidance.

“In short, the presentation is not good for TSLA and the size of the Model Y is estimated at $ 55K price. As a result, only the 7-seat version of the Model Y will be eligible for the $ 80K price tag, and while this. will be more attractive that car, we believe it represents a low percentage of total US sales,” the company’s analysts said. “We previously estimated that 60-70% of TSLA US units would be eligible for EV sales based on current prices, but with revised guidelines the number could be closer. to a 10-20% limited cost reduction in the Model 3 LR.”

TSLA stock was down slightly on Friday morning.


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Stocks Close to Buy Points

Medpace stock rose 3.4% to 215.62, breaking a bearish line while retracing its 21-day and 50-day lines. MEDP distributes well together, forcing a 16%-deep joint near the top of a long, deep base. The office buy points 235, but on Thursday early entry was offered.

KLAC shares rose 3.3% to 379.86, breaking from its 10-week range. A move above the 21-day line could provide an opportunity to buy KLAC shares as a Long Leader.

SBUX stock rose 1.2% to 99.77, rebounding from its 10-week high and crossing above its 21-day high. That can be an early entry into a short, immature area. On the other hand, it can be seen as a team in the 17-month deep strengthening for Starbucks shares.

URI’s stock increased 1.2% to 356.21, recovering from the 21-day line. United Rentals is near 368.04 sales over the 13-month period, shorted up earlier this month. URI’s stock is heavily traded in its core. Of the relative power lines is at a new high, reflecting the highs of United Rentals stock and the S&P 500 index.

MBLY stock rose 2.8% to 34.51, recovering from the intraday decline of its 21-day moving average. The Mobileye IPO was publicly announced at the end of October with 21 shares. MBLY stock has shown strength in a weak market, but like many new IPOs there have been big moves. Shares are starting to calm down. An unsuspecting marketer may look for an entry point, but the good thing about Mobileye’s sales is that it will build a new platform.

FLR shares are up 0.8% at 34.95, continuing to trade solidly, working on a potential. flat basewill be a base-to-base design. Revenues are seen rising 80% by 2023, as major stocks show strength in public and private sector projects.

Shares of SMCI climbed 1.6% to 81.91, recovering from the 50-day line but finding resistance at the 21-day. A strong move above the 21-day, clearing Wednesday’s high of 84.35, could offer an early entry. One of the strongest growth stocks of 2022, the Super Micro Computer stock has strengthened for several weeks after the split earnings on November 2, with a continuation of 95.22 in the nov. 25. SMCI stock may find a new base at the end of next week.

Market Research

The stock market recovered after Wednesday’s sell-off. After falling since the December 13 high, the major indexes were definitely “due” for a bounce.

The question is whether they will follow up in the coming days and weeks.

The market went into correction on Wednesday as the Dow Jones dropped its 50-day moving average and the Nasdaq set a two-year closing low.

Thursday is just day one of the new marketing effort. It will be more than that to feel more confident.

The Dow Jones is back above its 50-day line, but is below its 21-day line.

The S&P 500 is below its 50-day, with further resistance at its 200-day line and December top.

While Tesla, Apple and other chip and software names led the way on Thursday, some of the most popular stocks announced stock symbol or has moved to the level, such as MEDP stock.


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What To Do Now

It’s tempting to get back into the market when brands are holding up and there’s a sea of ​​green in popular stocks.

But since the bottom of the bear market on October 13, brands and brands have been largely disrupted.

Some sectors, including industrials, metals and medical, have performed better in recent weeks, so it is easy to justify exposure to these sectors, either with specific stocks or ETF sectors. But minimize any exposure and be quick to take profits and cut losses.

Bottom line: This is a market correction. Don’t operate under bull market rules, especially 2020-esque mad bull rules.

Fund like you’re driving on an icy, windy road, not an open highway. Proceed with caution, or wait outside on the side of the road.

More time to plan your trip vs. Work on watch lists. It shows the strength of many stocks from different sectors.

Read The Big Picture every day to stay in line with the direction of the market and sales of products and groups.

Please follow Ed Carson on Twitter at @IBD_ECarson for sales updates and more.

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