S&P 500 Key Stage in Market Rally; A riot broke out at Apple’s iPhone factory in China

Dow Jones futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures. Stock market gains rebounded on Tuesday, with the S&P 500 retaking the 4,000 level. A major Apple iPhone factory in China faced riots overnight amid Covid restrictions.




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Deer (OF) reported better-than-expected earnings early on Wednesday. DE shares were still trading in a buy zone after Tuesday’s close.

Deer revenue and guidance may be important to various agricultural stocks CF Industries (CF) and Archer-Daniels-Midland (A.D.M.K), as well as machinery manufacturers etc caterpillar (CAT)

Energy stocks continue to perform well. Sun is the leader Enphase energy (ENPH), coal producer Peabody Energy (BTU), purifier CVR Energy (CVI), natural gas producer EQT Corporation (EQT) and the LNG share Increase energy (EE) are all close Buy points.

EE stock bounced back on Wednesday as Enphase moved back into buy zone. BTU Stock, CVR Energy and EQT are operational.

ENPH stock is active IBD Leaderboard. EQT stock is in motion Swing Trader. There is deer stock IBD 50. Peabody Energy Tuesday IBD stock of the day.

Apple iPhone factory riots

Riots reportedly broke out at Apple’s biggest iPhone factory in China overnight, as hundreds of workers clashed with security. More than 100,000 workers have been forced to live at a Foxconn complex in Zhengzhou for weeks due to Covid concerns, with many reportedly not being paid during that time.

It comes amid renewed lockdowns and stricter restrictions across much of China as Covid cases continue to rise.

Apple recently warned that Apple iPhone 14 Pro models will be in short supply due to the Foxconn factory in Zhengzhou.

Apple stock fell a fraction early Wednesday. AAPL rose 1.5% to 150.18 on Tuesday, finding support near its 50-day line but below its 200-day moving average.

Dow Jones Futures Today

Dow Jones futures flat vs. fair value. S&P 500 futures rose a fraction. Nasdaq 100 futures edged lower.

Crude oil futures fell 2%. US natural gas prices rose 7%. On Tuesday, Europe unveiled details of a natural price cap, starting January 1 for a year, more than double the current level.

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New Zealand’s central bank raised rates by 75 basis points as expected.

Feed reports from the November meeting will be released on Wednesday.

Remember that it is an overnight operation Dow futures The next routine elsewhere doesn’t necessarily translate into actual trading stock market session.


Join IBD experts as they analyze the stocks that could act on the stock market rally on IBD Live


Stock market rally

The stock market’s rally got off to a mixed start on Tuesday, but a stream of broad-based gains ended near session highs.

The Dow Jones industrial average rose 1.2% on Tuesday Stock market trading. Both the S&P 500 index and the Nasdaq composite rose nearly 1.4%. The small-cap Russell 2000 rose 1.1%.

The 10-year Treasury yield fell 7 basis points to 3.76%. But the two-year Treasury yield, which is more closely tied to central bank policy, was around 4.53%.

The dollar, after the previous three sessions, fell again on Wednesday. The greenback has fallen significantly since late September, especially early November.

U.S. crude oil prices rose 1.1% to $80.95 a barrel, continuing a recovery from Monday’s short-term dive. Gasoline futures rose 4.3%, good news for refiners. Natural gas futures rose after falling more than 2%.

ETFs

in the middle Best ETFsInnovator IBD 50 ETF (FFTY) rose 3.4%, helped by several energy and metals stocks. iShares Expanded Technology-Software Sector ETF (IGV1.8% up. VanEck Vectors Semiconductor ETF (SMH2.9% up.

SPDR S&P Metals & Mining ETF (XME) gained 3.2%, and the Global X US Infrastructure Development ETF (sidewalk) was 1.3%. SPDR S&P Homebuilders ETF (XHB) rose again by 1.9%. Energy Select SPDR ETF (XLE) rose 3.1%. Health Care Select Sector SPDR Fund (XLV) rose 0.9% to a seven-month high.

Reflecting stocks with more speculative stories, ARK Innovation (ARKK) gained 0.3% and ARK Genomics (ARKGdecreased by 0.4%.


Five Best Chinese Stocks to Watch Now


Power stocks near buy points

Enphase shares rose 4% to 320.44, having closed above 316.97. Handle with cup First time buy point. However, the last three times ENPH stock rose to these areas, it remained low. Enphase stock has large daily swings. Investors should therefore watch for ENPH stock to retrace its rapidly rising 21-day moving average.

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Some other LNG stocks are showing strength Flex LNG (FLNG) breaking and Senior Energy (LNG) retraces its 50-day line.

BTU shares rose 6.7% to 29.62, below a 30.15 handle buy point at a seven-month consolidation. Tuesday’s move broke the handle’s trendline, providing an early entry. However, BTU stock is 9.3% above its 21-day line and 17% above its 50-day line. Created after strong Peabody Energy earnings.

CVR Energy shares rose 4.85% to 40.85, seen as still valid above the old 39.81 buy point. Also, CVI stock is a Three weeks—tight Model with input 42.31. A move above 41.31 would give an early entry into that tight formation.

EQT stock rose nearly 6% to 43.79, breaking back above the 50-day line after rallying from the 200-day on Monday. Stocks break downtrends. The official buy point is 52.07.

EE stock rose 9.6% to 30, hitting a 28.49 cup-with-handle buy point according to above-average volume. MarketSmith analysis. That move to a record close eliminated much of the trade leading up to Accelerate Energy’s April IPO. EE stock lit up in early entries on Friday and Monday, although trading was lower than normal on those days. Excelerate is now slightly extended from the buy zone and well extended from the 21-day line.

Market rally analysis

The stock market’s rally is showing constructive action, trading in a narrow range after a modest pullback and support last week. On Tuesday, major indices recovered from Monday’s losses.

The S&P 500 rebounded from its 10-day line at the 4,000 level as it moved toward its 200-day line. While not above the intraday high of November 15, it was the index’s best finish in more than two months.

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50 day sequence Just The S&P 500 is starting to turn higher.

The Russell 2000 is approaching its 200-day mark. The S&P MidCap 400 held its 200-day line last week, and gained.

The leading Dow Jones hit the 34,000 level for the first time in three months, just below the August 16 peak. The trailing Nasdaq found support at its 21-day line, just above its 50-day, but did not recoup all of Monday’s losses.

All these codes work on handles, sneaking up on the dove. Most stocks follow the action of major indices, so lots of handles form in stocks near buy points. A slightly longer pause, perhaps until next week’s key economic reports, will see the moving averages begin to catch up.


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What to do now

Unless the S&P 500 moves decisively above its 200-day line, investors may not want to add more exposure now. With next week’s Thanksgiving holiday shutdown trading and key economic data from the Fed, the market rally will be limited in the short term.

It helps to set stock handles from different sectors and land on moving averages. Investors should create their watch lists. Now is the time to look beyond traditional technology growth stocks, which are currently largely lagging behind.

Because many leaders are extended from moving averages like Excelerate Energy or BTU Stock, it’s important to look for early entries and act quickly.

According to Big picture Each day should be in sync with the direction of the market and the leading stocks and sectors.

Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.

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