Dow futures: market rally sells off with ‘the worst yet to come’ in Ukraine; Jobs report on click

Dow futures turned slightly lower overnight, along with S&P 500 and Nasdaq futures, on reports of a fire at a nuclear power plant in Ukraine. The stock market rally hit resistance at a key level on Thursday, dragging down with the Nasdaq, small companies and particularly strong growth driving the slide.

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Meanwhile, investors will turn their attention to Friday’s jobs report, due before the stock market opens.

Russia’s invasion of Ukraine

The Zaporizhzhya nuclear power plant in southern Ukraine has caught fire, according to the mayor of the local town. Russian forces were moving to seize the nuclear plant, the largest in Europe and one of the ten largest in the world,

Earlier, Ukraine said an “understanding” had been reached with Russia on humanitarian corridors, allowing Ukrainian civilians to evacuate from besieged cities and allowing in humanitarian aid. This will include a local ceasefire around those corridors.

But Russian President Vladimir Putin said on television that his invasion of Ukraine was “going according to plan”. The Russian army is gaining territory, especially in the south on the Black Sea. But it incurred significant losses in troops and equipment. The economic pain continues to grow, with calls to penalize Russian energy growing.

French President Emmanuel Macron said he feared “the worst is yet to come” after a lengthy phone call with Russian President Putin. He said Putin appears intent on continuing his invasion of Ukraine until he controls the entire country. Russia uses artillery and bombs to hit major cities and hit many residential areas.

broken stock

Union Pacific (UNP) from a flat base during the day, although it trimmed gains on the close. fellow railway operator CSX (CSX) aggressive entry blinks.

Warren Buffett Berkshire Hathaway (BRKB) erupted as well. Berkshire, known as the insurance giant, another pocket of market power, also owns the BNSF railway. Having a huge investment in an Apple (AAPL) It doesn’t hurt Berkshire either.

Kroger (K) a gap of base on gains, while Farmer’s Market Sprouts (SFM) also triggered buy signals. Play fertilizer and lithium Square meters (Square meters) exited the base of explosion profits and bullish comments about prices.

But growth stocks have lagged, especially high-value names. The snowflake (snowThe massive selling of profits and directives led to massive selling of many names.

It includes datadog (DDOG) And the Tesla (TSLA), two of the relative distinguishing traits among the three-digit PE stocks.

Main earnings

Costco Wholesale (cost) And the from Broadcom (AVGOThursday night earnings headlines.

Costco’s earnings and revenue topped the views. But same-store sales growth, while outpacing official financial views for the second quarter, was slightly slower versus the first quarter. COST stock fell a bit overnight. Shares rose 1% to 533.05 Thursday. Costco stock contains 571.59 cup base Point purchase. Investors can use 534.34, above the short-term resistance at the 50-day line, as a strong entry.

Broadcom earnings and guidance were better than expected. AVGO stock came back 4%. Shares fell 1.2 percent to 578.60 on Thursday. Broadcom stock was consolidating, but needs to break the 50-day line and short-term high for a strong entry at 614.74. The official point of purchase is 677.86.

Tesla and Union Pacific shares are working IBD Leaderboard, while CSX stock has been added to the leaderboard watchlist. Union Pacific was also on Thursday IBD stock today.

The video included in this article discusses the market movement on Thursday and analyzes the UNP stock, National anthem (ANTME) and stock DDOG.

Jobs Report

At 8:30 AM ET, the Labor Department will release its jobs report for February. Economists expect non-farm payrolls to rise by 390,000 with the unemployment rate falling to 3.9%. The workforce participation rate will be key, as the Federal Reserve looks for signs of a workforce increase to ease supply chain bottlenecks and wage pressure.

The Federal Reserve is expected to raise interest rates by a quarter point at its March 15-16 meeting. But the February jobs report, the CPI and the Russian invasion of Ukraine can still change that decision.

Dow jones futures contracts today

Dow Jones futures are down 0.2% against fair value, pulling back from modest gains reported in a report on a nuclear power plant fire. S&P 500 futures were down 0.25%. Nasdaq 100 futures were down 0.2%.

The Dow Jones futures will surely move is the February jobs report before the market opens.

Crude oil prices rebounded more than 1%.

The 10-year Treasury yield fell 4 basis points to 1.8%.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.

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stock market rise

The stock market opened a strong recovery but fell almost immediately, growth and small cap stocks hardest hit.

The Dow Jones Industrial Average fell 0.35% on Thursday stock market trading. The S&P 500 was down 0.6%. The Nasdaq Composite was down 1.6%. Small cap Russell 2000 fell 1.2%.

Crude oil prices fell 2.6% to $107.67 a barrel after topping $114 in pre-market trading. House Speaker Nancy Pelosi has called for a halt to US imports of Russian crude, which would have a relatively limited impact. However, the majority of Russian crude exports fail to attract buyers. In addition to the Russian-Ukrainian headlines, Western countries and Russia are making progress toward concluding a new Iran nuclear deal. This will free up Iran’s large crude oil exports.

The 10-year Treasury yield also reversed lower, falling nearly 2 basis points to 1.84%.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) down 0.1%, while the innovative IBD Breakthrough Opportunity Fund (fit) lost 0.7%. iShares Expanded Technology and Software Fund (ETF)IGV) down 2.5%. VanEck Vectors Semiconductor Corporation (SMH) sank 2.2%.

SPDR S&P Metals & Mining ETF (XME) rose 3.2% while the US Global X Infrastructure Development Fund (ETF)cradle) rose 0.5%. US Global Gates Foundation (ETF)Planes) down 3.4%. SPDR S&P Homebuilders ETF (XHB) decreased by 1.1%. SPDR Specific Energy Fund (SPDR ETF)XLE) up 0.3% and the Financial Select SPDR ETF (XLF) decreased 0.3%. SPDR Healthcare Sector Selection Fund (XLV) offer 0.5%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) is down 6.4% and the ARK Genomics ETF (ARKG) 4.6%. Ark Invest has only minimal exposure to SNOW’s stock, but several of its high-value holdings slipped Thursday in the Snowflake crash. Tesla stock continues to rank number one among ARK Invest’s ETFs.

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railway operators

Union Pacific stock rose 1.15% to 256.21 to close near session lows. This is after hitting 263.59 during the day, above 256.21 buy point Most of the day, according to MarketSmith. The depth of the flat base is only 8%. The Relative force line UNP stock is at a record high. The RS line, the blue line in the provided charts, tracks the stock’s performance against the S&P 500 Index.

CSX stock jumped 2% to 35.29, to close at the 50-day line. During the day, stocks bounced off their February highs, delivering a solid entry. The flat base The point of purchase is 38.11.

Berkshire Hathaway is best known for its insurance operations and Warren Buffett investments. But BNSF rail operations are an essential part of the business. BRKB stock rose 1.2% to 327.63. This is a survey Tight four weeks With an official buy point of 325.73. Investors can view the consolidation since mid-January as a flat, untidy base.

Railroad progress comes because freight companies are generally doing well. ocean vector like Star Bulk Carriers (SBLK) And the ZIM Integrated Shipping (ZIM) led the way for a long time. at the same time, GB Hunt Transport (JBHT) doable with other carriers that are starting to look interesting.

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Market Rise Analysis

The stock market’s bullish bid opened on Thursday with the S&P 500 and Nasdaq Composite moving above their 21-day moving average, while the Dow Jones reached that level. But within a minute, the major indices pulled back and reversed lower,

21 days acted as resistance to the major indices for most of 2022. Above that, the Dow, the S&P 500 and the Nasdaq still face many other potential hurdles.

Thursday was an outside day for the Nasdaq, which means that its intraday range exceeded Wednesday’s highs and lows. The outside days are more meaningful. So the negative reversal was even more frustrating.

Strong growth slowed on Thursday. Snowflake beat opinions late Wednesday, doubling revenue and heading slightly higher for the current fiscal year. But that wasn’t enough, as SNOW’s stock plunged 15% to a nine-month low. A large number of other high-value stocks were also sold, especially software.

DDOG stock is down 9.7%, back below the 50-day line.

Although Tesla stock fared much better than most EV players, it slipped 4.6%, back off the 21-day streak, but just managed to hold above the 21-day mark.

However, the market’s attempt to rise still remains. a Follow-up day It could happen at any time to confirm a new uptrend.

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What are you doing now

Just because a high school student walks a “college path” doesn’t mean she’ll graduate from MIT with honors, or even graduate from high school.

Wednesday’s strong gains, which came in lighter trading volumes than in the previous session, were encouraging. But with no follow-up day and the major indicators still anchored below the 21-day streak, there was no reason to add exposure significantly.

An attempt to rally the market may become a definite uptrend in the near future, and this bullish trend may have legs. But a news-driven market could go south quickly. Also, some of the sectors that have done well, particularly in energy and commodities, may decline if the broader indicators advance steadily.

So, if the market rally shows strength, build up your exposure gradually. At the moment, investors may want to take at least partial profits from the winners when they reach 10%.

There’s still nothing wrong with being all or nearly all cash.

Keep working on watch lists. Stay connected so you are ready when the market turns.

Read The Big Picture Every day to stay in sync with the trend of the market, stocks and leading sectors.

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