Dow Jones Futures: Stock Market Rallies On China Trade News — That's A Problem
ED CARSON
8:19 PM ET
Dow Jones futures rose slightly late Tuesday, along with S&P 500 futures and Nasdaq futures. The current stock market rally attempt got a boost Tuesday as the U.S. gave a partial reprieve on the Huawei ban. Growth stocks fared well, such as ServiceNow (NOW) and HubSpot (HUBS), while Apple (AAPL), Alibaba (BABA), Qualcomm (QCOM) and other stocks exposed to the China trade war got a bounce.
But Apple stock, Alibaba stock and Qualcomm stock just regained a portion of their recent losses due to the escalating China trade war. So has the broader stock market. More generally, Tuesday's stock market rebound stemmed from positive China trade news. It's hard to get bullish on a stock market rally attempt if the indexes are just a negative headline or tweet away from a big reversal.
Meanwhile, Nordstrom (JWN) plunged in late trading after the upscale retailer missed on earnings and revenue. That caps a miserable day for department store earnings, with Kohl's(KSS) and J.C. Penney (JCP) diving during Tuesday's session after their results. Department stores and many apparel chains face the prospect of big tariffs on imported Chinese goods if the China trade war continues to escalate.
Dow Jones Futures Today
Dow Jones futures and S&P 500 futures rose less than 0.1% vs. fair value. Nasdaq 100 futures climbed 0.1%. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market trading session.
Current Stock Market Rally
The current stock market rally attempt ended two days of heavy tech losses, with the Nasdaq composite rising 1.1% and the S&P 500 index lifting 0.85%. The Dow Jones climbed 0.8%. But they are all still below their 50-day moving averages, though the S&P 500 index is getting close.
While the stock market rally attempt is now six days old, there has been no follow-through day to confirm a new uptrend. Until then, it's a stock market correction, the result of the escalating China trade war. Investors should remain cautious about making any purchases.
Growth stocks fared well. ServiceNow stock climbed 2.3%. HubSpot stock rallied 2.6%, just within its buy zone. Both are on IBD Leaderboard.
Huawei Reprieve Gives Tech Boost
Late Monday, the Trump administration provided a 90-day extension for U.S. companies providing tech or services for existing Huawei networks and smartphones. The partial reprieve came after the U.S. government strictly limited U.S. tech for Huawei, triggering big losses in chip stocks as well as Chinese or China-exposed stocks.
Qualcomm stock rose 1.5%. Alibaba climbed 1.7%. Apple stock rebounded 1.9%. But that's after much bigger losses in the past few days and weeks. Qualcomm tumbled 6% on Monday, fully round-tripping an 18% advance from a buy point, a big sell signal. Apple stock and Alibaba stock have fared worse, plunging more than 8% from recent breakouts and still stuck below their 200-day moving average.
Investors largely ignored China President Xi Jinping, who said Tuesday that the country is embarking on a "new Long March." While Xi didn't name President Donald Trump or the escalating China trade war, the comments indicated that he is gearing up for a long fight, perhaps even a split of global supply chains.
Among the best ETFs, Innovator IBD 50 (FFTY) rose 1.4% after sliding 1.7% Monday. The iShares Expanded Tech-Software Sector ETF (IGV) popped 1.15%, reclaiming its 50-day line after skidding 1.8% Monday. The VanEck Vectors Semiconductor ETF (SMH) bounced 2.3% after a 4% tumble Monday and a 1.9% loss on Friday.
Source: CNBC
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
ED CARSON
8:19 PM ET
Dow Jones futures rose slightly late Tuesday, along with S&P 500 futures and Nasdaq futures. The current stock market rally attempt got a boost Tuesday as the U.S. gave a partial reprieve on the Huawei ban. Growth stocks fared well, such as ServiceNow (NOW) and HubSpot (HUBS), while Apple (AAPL), Alibaba (BABA), Qualcomm (QCOM) and other stocks exposed to the China trade war got a bounce.
But Apple stock, Alibaba stock and Qualcomm stock just regained a portion of their recent losses due to the escalating China trade war. So has the broader stock market. More generally, Tuesday's stock market rebound stemmed from positive China trade news. It's hard to get bullish on a stock market rally attempt if the indexes are just a negative headline or tweet away from a big reversal.
Meanwhile, Nordstrom (JWN) plunged in late trading after the upscale retailer missed on earnings and revenue. That caps a miserable day for department store earnings, with Kohl's(KSS) and J.C. Penney (JCP) diving during Tuesday's session after their results. Department stores and many apparel chains face the prospect of big tariffs on imported Chinese goods if the China trade war continues to escalate.
Dow Jones Futures Today
Dow Jones futures and S&P 500 futures rose less than 0.1% vs. fair value. Nasdaq 100 futures climbed 0.1%. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market trading session.
Current Stock Market Rally
The current stock market rally attempt ended two days of heavy tech losses, with the Nasdaq composite rising 1.1% and the S&P 500 index lifting 0.85%. The Dow Jones climbed 0.8%. But they are all still below their 50-day moving averages, though the S&P 500 index is getting close.
While the stock market rally attempt is now six days old, there has been no follow-through day to confirm a new uptrend. Until then, it's a stock market correction, the result of the escalating China trade war. Investors should remain cautious about making any purchases.
Growth stocks fared well. ServiceNow stock climbed 2.3%. HubSpot stock rallied 2.6%, just within its buy zone. Both are on IBD Leaderboard.
Huawei Reprieve Gives Tech Boost
Late Monday, the Trump administration provided a 90-day extension for U.S. companies providing tech or services for existing Huawei networks and smartphones. The partial reprieve came after the U.S. government strictly limited U.S. tech for Huawei, triggering big losses in chip stocks as well as Chinese or China-exposed stocks.
Qualcomm stock rose 1.5%. Alibaba climbed 1.7%. Apple stock rebounded 1.9%. But that's after much bigger losses in the past few days and weeks. Qualcomm tumbled 6% on Monday, fully round-tripping an 18% advance from a buy point, a big sell signal. Apple stock and Alibaba stock have fared worse, plunging more than 8% from recent breakouts and still stuck below their 200-day moving average.
Investors largely ignored China President Xi Jinping, who said Tuesday that the country is embarking on a "new Long March." While Xi didn't name President Donald Trump or the escalating China trade war, the comments indicated that he is gearing up for a long fight, perhaps even a split of global supply chains.
Among the best ETFs, Innovator IBD 50 (FFTY) rose 1.4% after sliding 1.7% Monday. The iShares Expanded Tech-Software Sector ETF (IGV) popped 1.15%, reclaiming its 50-day line after skidding 1.8% Monday. The VanEck Vectors Semiconductor ETF (SMH) bounced 2.3% after a 4% tumble Monday and a 1.9% loss on Friday.
Source: CNBC
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
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