The Dow Jones Industrial Average charges higher as the stock market ends a 3-week losing streak. Tesla (TSLA) jumps as Elon Musk eyes a new facility. Warren Buffett’s stock of company RH (RH) surges on results and reaches an all time high during trading. Apple (AAPL) closes in on a key benchmark after plummeting most yesterday on the heels.
A few stocks reached buy points. Palo Alto Networks (PANW) got an early one, while Archer-Daniels-Midland (ADM) & Burger King’s parent company Restaurant Brands (QSR) attempted breakouts.
Volume was mixed, higher on the Nasdaq but lower on the New York Stock Exchange according to early data.
The yield on the benchmark 10-year Treasury note increased by three basis points and is now at 3.32%. West Texas Intermediate crude oil went up with it, increasing by nearly 3% and touching more than $86 per barrel.
The positive signs for the economy and the Fed’s lack of hawkish noises helped the market to shake off a bit of its volatility.
Economists are now predicting a slightly lower inflation rate, which could mean the Fed will not have to raise interest rates above 4%. Despite some hawkish comments from both the Fed’s Bullard and Waller, their words did not completely alter traders’ view on US monetary policy.
Nasdaq is the leader when it comes to small cap stocks, with the chance that they may even be outperforming the Dow Jones Industrial Average.
The Nasdaq fared best out of the major indexes, rising 2.1%. The top performer here was Zscaler (ZS) which rocketed up 22% on earnings.
The S&P 500 also jumped 1.5% and pushed above its 50-day line. Dish Network (DISH) showed strength as it rose 8.6%.
The S&P 500 market sectors were all mostly positive with the communication services, technology and energy sectors returning the best gains. The defensive utilities area lagged behind.
Small caps shinned today with the Russell 2000 up two percent at the end of the day. The Innovator IBD 50 ETF (FFTY) also impressed, rising one and a half percent.
On the latest Dow Jones news, Apple stocks rose as Salesforce led.
The Dow Jones industrials lagged the other major indexes but still rose almost 400 points, or 1.2%. Key component Apple stock is closing in on the key 50-day moving average after gaining 1.9%. It remains well shy of a handle entry of 176.25
Earlier this week, Apple announced their new line of iPhone 14 smartphones at a media event titled “Far Out.” Caterpillar also impressed, rising 3.5%, while Salesforce (CRM) was the star of the Dow Jones with a 3.6% rise.
Tesla stock has risen in value recently and it doesn’t look like stopping anytime soon. Elon Musk is eyeing a change to Tesla’s board of directors as well as the possibility of taking the electric car maker private.
Tesla stock got a boost on the news it is considering building a lithium processing facility in Texas. The electric-vehicle giant, led by Elon Musk, plans to construct some sort of factory that would process the lithium they get from here and elsewhere.
Tesla thinks they could start construction by the 4th quarter of 20XX, with commercial production beginning by the end of 2024.
Tesla stock has formed a consolidation at 402.73, according to Market Smith. It is still a distance away from its opening but did bump 3.6% for the day
Adventurous investors may see the retaking of the 200-day line Friday as an entry point, but this would be a very aggressive move if done at this time.
Elon Musk has revealed in a tweet that he’s had some “promising conversations” with Apple about using SpaceX’s Starlink system for connectivity.
Warren Buffett’s stocks have seen a sudden jump with his earnings for the quarter.
RH (Restoration Hardware) jumped following its earnings report. It ended the day up 4.4%.
The company’s earnings report has caused investor Warren Buffett to smile. EPS was $8.08, well above analysts’ expectations while revenue was $992 million which exceeded expectations as well.
While this may sound like good news, the firm said that it expects a 15%-18% decrease in net revenue for Q3. More interestingly, this is also a reflection of what’s happening in the economy. “Anybody who thinks we’re not in a recession is crazy,” Gary Friedman, the company’s CEO said during his conference call and went on to say “
WALL STREET, OUTSIDE DOW JONES – A New Leader Passes Entry
Now is the time to start looking for actionable stocks, with the market rally gaining steam once more. For example, Palo Alto Networks has just popped above a trendline entry near 560 and is also eyeing a higher buy point of 578.89.
The stock was recognized for its bullish performance with a listing on the IBD Leaderboard. It had a similar return to Zscaler (ZS)
Food company Archer-Daniels-Midland broke past a cup with handle entry of 91.54 today, although it closed just below the entry. This is a third stage base which means gains from the next breakout could be limited.
The relative strength line has been moving higher and this could be signifying that there are bullish sentiments. Thus far, the stock has performed fairly well with a growth of 24% in the last 12 months. Revenue estimation project that earnings will grow by 31% in 2022.
Burger King’s parent company Restaurant Brands has come within touching distance of the important 61.19 level. I would be keeping an eye on it.
The restaurant chain has been performing very well in the market in the past year. The company also has a high Composite Rating of 95.