Stock Market Weak At Midnight Awaiting Powell Speech; This IBD index works well

The stock market weakened by midday on Tuesday, sending major indexes near the day’s lows. China’s easing of Covid restrictions failed to offset stock market fears over upcoming data and Jerome Powell’s speech.




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The Nasdaq composite fell 0.6% and the S&P 500 fell 0.4%. The Dow Jones industrial average fell 0.3%. Apple (AAPL) continued to weaken, falling deeply below its 50-day moving average.

Small caps outperformed major indexes as the Russell 2000 rose 0.3%. Volume on the NYSE and Nasdaq rose compared to the same time on Monday.

Today’s declines will add to Monday’s roughly 1.5% losses in the major indices. The The S&P 500 fell back below 4,000 Monday’s sales were below that level.

Hibbett (error) fell more than 11% in heavy volume, though pared losses after crossing its 50-day line. The sporting goods retailer missed October quarter sales and profit expectations, according to FactSet.

China stock markets rally

Beijing has signaled it is easing some of the Covid lockdowns that have sparked protests in several Chinese cities.

National Health Regulator of China Covid underestimated the risks of omicron variation It also announced plans to increase vaccinations for the elderly. Additionally, Chinese regulators have eased restrictions on property firms seeking to raise equity funds domestically.

The Shanghai composite rose 2.3%, its highest close since Sept. 15, according to Dow Jones market data. The Hang Seng index rose 5.2%, its best day since Nov. 11. Hong Kong’s benchmark index is up 24% in the month so far.

iShares Hong Kong ETF (EWH) gap of almost 3%. ETF has received support 50 day moving average From the interval over November 11.

A handful of Chinese stocks rallied after the earnings reports. Streaming video service Bilibili (were) rose more than 22%, rising again above the 50-day moving average. Social media platform Place (YY) rose almost 8% and Kannun (BZ) received 13.5%. Software company Baozun (BZUN) missed the rally, down 2.2% in the afternoon.

All those stocks are in deep correction.

E-commerce portal chase after (PDD) broke off a cap base on Monday after a strong earnings report and added 6% in midday trade. It now extends beyond that 5% procurement zone.

Innovator IBD 50 ETF (FFTY) was equal, although it outperformed the major stock indices. The same energy stocks that weighed down the index on Monday are driving up the IBD 50 today.

Crude oil prices rose 0.2% to $77.33 a barrel. Earlier, oil rose about 2% on hopes of an easing of Chinese lockdowns.

The housing market extended a weak peak.

The S&P CoreLogic Case-Shiller home price index rose 10.9%, down from 13.1% in September. Economists had forecast a 10.9% increase, according to Econode. The index fell 1.5% in September from the previous month – its third straight monthly decline.

SPDR S&P Homebuilders ETF (XHB) rises 0.2% and meets resistance 200 day moving average.

Investors await Powell’s comments

On the economic front, Federal Reserve Chairman Jerome Powell will deliver a speech at the Brookings Institution on Wednesday that will have the full attention of stock market investors. Powell will also take some questions from attendees.

In other economic events, the November jobs report comes out on Friday. On Thursday, the latest jobless claims report and manufacturing sector data are due out.

The Conference Board’s consumer confidence survey for November fell to 100.2 from 102.2 in the previous month. The survey marked a four-month absence and was the second straight monthly decline.

In an analysis of the survey, BMO Capital Markets economist Priscilla Thiagamurthy said consumers have scaled back plans to make large purchases in the next six months.

“This is good news for the central bank, which is trying to reduce demand and restore price stability,” he noted. “While households have so far proven more resilient than expected amid a strong job market and excess savings, inflationary pressures will continue to weigh heavily on consumer sentiment and spending plans.”

Also in the survey, 45.8% of respondents said jobs are plentiful, up from 44.8% in October. Those who believe that jobs are difficult to be stable at 13%.

The yield on the 10-year Treasury note rose 2 basis points to 3.72%.

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