Dow futures fell slightly on Monday morning, along with S&P 500 futures and Nasdaq futures, as the China COVID-19 and lockdowns took their toll. But Disney (dis) rose with the return of Bob Iger as CEO.
Apple stock held key levels and rose slightly even as the overall market fell. Like the S&P 500, the iPhone tech giant is returning toward its 200-day streak. A decisive move above this level could provide a buying opportunity. But another rejection could provide another opportunity to sell AAPL shares.
Meanwhile, fellow Dow Jones components Boeing (BA), c. B. Morgan Chase (JPM) And GS stock has been quietly on significant gains in the past several weeks, contributing to the Dow’s outperformance in the current market rally. BA stock is technically close to a traditional buy point. Goldman Sachs (p) is forming a deep base while JPM stock still has to do.
Disney reinstates Bob Iger as CEO
In other Dow stock news, Bob Iger is back as CEO Walt Disney (dis), effective immediately. Iger stepped down after a long reign in February 2020 in favor of Bob Chapek, just on the cusp of the Covid crisis. Chapek has been criticized for a number of decisions. Disney’s earnings fell short of viewership last quarter, as Chapek is set to announce layoffs and other cost cuts soon.
Disney said Sunday that Iger has agreed to return for two years to “determine the strategic direction for renewed growth” and to work with the board of directors to find a new successor.
Disney stock jumped 10% in pre-market trade. Which indicates a move to the 50-day line. But DIS stock is nearing bear market lows.
Dow jones futures today
Dow Jones futures fell about 0.1% against fair value, as DIS stock helped limit losses. S&P 500 futures fell 0.3%. Nasdaq 100 futures lost 0.5%.
The 10-year Treasury yield fell 1 basis point, to 3.81%.
Crude oil futures fell. Copper fell 1%.
Hong Kong’s Hang Seng fell 1.9% as Beijing effectively went into lockdown as the city reported Covid deaths for the first time in months. China’s coronavirus cases have soared, nearing an all-time official high. Conflicting signals from Chinese officials added to the confusion regarding its strict “zero Covid” policy.
Stock market rally analysis
Last week, the Dow Jones Industrial Average rose less than 0.1% in the past week Stock market trading. The S&P 500 fell 0.7% and the Nasdaq Composite fell 1.5%. Small-cap Russell 2000 shed 1.75%.
On Tuesday, November 15, the S&P 500 briefly crossed 4,000, approaching the 200-day moving average. This level is especially important because the benchmark index only once returned from the 200-day line on August 16, triggering another bear market move.
A decisive move above the 200-day line, which would also roughly coincide with the Retreating Peaks trendline from the all-time high on Jan. 4, would be a strong indication that the uptrend is more of a bear market rally.
The S&P 500 crossing the 200-day line would also be a positive backdrop for the blue-chip stocks, which are struggling near buy points amid a volatile market.
Meanwhile, the Russell 2000 fell back below the 200-day line last week, but will likely regain that level ahead of the S&P 500. The Dow Jones, backed by Boeing, Goldman, and JPM, is comfortably above 200-days. . But surpassing last week’s high would take the Dow back to 34,000 and just below its peak in August.
The Nasdaq, affected by the strong growth, is 8.3% below the 200-day line. A move above last week’s highs would be a good first step. Also positive: the 21-day moving average rose above the 50-day line on Friday.
Thanksgiving week is not necessarily a great time for a big market move. Markets will be closed on Thanksgiving with a half-day session on Friday. Volume is likely to be light throughout the week. The next week ends with a bang. On December 1, investors will get personal consumption expenditures inflation data for October, along with the manufacturing index for November from ISM. The November jobs report is due on December 2. This news could have a significant impact on expectations of a Fed rate hike, bond yields and stock prices.
So it wouldn’t be surprising to see the major indices range trading over the next week or so. There’s nothing wrong with a little consolidation of the major indices and blue-chip stocks.
Apple stock rose 1.1% last week to 151.29, after last week’s 8.2% rise. Stocks held their 50-day moving average, with the 21-day line above the 50-day mark. AAPL stock is modestly below the 200-day line. Oil giant Dow Jones traded for 200 days on Oct. 28 after earnings. But that turned out to be a great selling opportunity, as within a few days shares fell to their worst close since mid-June.
A decisive move above the 200-day line, perhaps beyond the October 28 high of 157.50, would provide an early entry into a bottom base starting on August 17. But if Apple stock reverses lower from that area, it could provide a shorting opportunity.
Apple’s success or failure at the 200-day streak could be key to the S&P 500’s own bid, and vice versa.
BA shares fell 2% to 173.89, after gaining 47% over five weeks. And while aerospace giant Dow Jones slumped on Oct. 26 on earnings, shares rebounded again, especially on the back of bullish cash flow a few days later.
Technically, Boeing’s stock is just under 173.95 cups of the norm Point purchase. But shares are 9.5% higher on the 200-day line and 19.5% on the 50-day line. Pausing around current levels could create a safer buying opportunity.
Boeing is expected to report a profit in 2023, ending four years of losses.
GS stock fell 1.55% to 379.20 last week. On the daily chart, the shares extend from 358.72 cup base Buy a point within a much larger consolidation. On the weekly chart, Goldman stock has 389.68 buy points over the course of a year mug with handle base, according to MarketSmith Analysis. But after posting a 28% gain over four consecutive weeks of gains, this is a pretty small handle. A longer, deeper handle would be useful, and let the 50-day line close the gap.
The line of relative strength its highest in four years, reflecting the outperformance of Goldman stock against the S&P 500. The RS line is the blue line in available charts.
JPMorgan stock fell 1.1% to 133.84 last week. This is after an advance of 29.5% over six weeks. The stock has crossed its 50-day and 200-day lines, but it still has work to do. JPM stock could build a long and deep consolidation on the right side, or it could form a bottoming base.
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