Dow Jones futures rise after extending adjustment losses; Four stocks in the beat-up sector are worth watching

The Dow Jones futures market rose on Thursday morning with the S&P 500 futures and especially Nasdaq futures. The stock market extended losses on Wednesday despite a 10-year treasury yield slump.

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Alcoa (AA) And United Airlines (UAL) Revenue statement after the end of Wednesday. American Airlines (AAL), Passengers (D.R.V.), Union Pacific (UNP) And Baker Hughes (P.K.R.) Is in the pipeline at the start of Thursday.

The software industry has been hit hard over the past few weeks. Microsoft stock and Palo Alto Networks (PANW) Received land on Wednesday, at the same time Fortinet (FTNT) And New monument (New) The bottom turned upside down, but performed better than the general market. All are below their 50-day line, in particular Microsoft (MSFT) But these are just a few software stocks that should keep your eyes on the next stock market rally.

Meanwhile, the tech titan Apple (APL) Is consistently better than any major technology stock. But Apple shares fell 2.1% to 166.23 on Wednesday, finally closing below its 50-day tax.

Microsoft stock is in motion IBD Leaderboard. FTNT Stock and Microsoft IBD long-term leaders.

Key revenue

Alcoa revenue tops the list easily while sales top the list by a narrow margin. AA’s share in extended trading rose moderately. The stock fell 0.7% on Wednesday, but still holds its 21-day high.

United Airlines reported Smaller Q4 loss than expected topped the list, but cost and efficiency guidance disappointed investors. UAL stock fell slightly in pre-market activity after falling 2.65% below its 50-day tax.

American Airlines’ loss and revenue were slightly better than expected. AAL shares rose slightly before opening. Shares fell 3% on Wednesday after falling below the 50-day tax on Tuesday.

Passengers easily won the Q4 EPS show for Dow Jones Insurance. TRV shares jumped before the opening, signaling a return above the 163.39 buying point. Shares fell 2.1% on Wednesday.

Shares of Union Pacific rose a fraction on Wednesday, but remained below its 50-day mark after falling 3.3% on Tuesday.

Baker Hughes shares were down 1.9% at 26.29, 27.76 below the buying point.

Meanwhile, the maritime transport company Matson (MATX) The forecast Q4 EPS is higher than views late on Tuesday. MATX shares are up 7%, near the buy point on an official 93.27 cup-with-hands but signaling an aggressive entry.

Dow Jones Futures Today

Dow Jones Futures rose a reasonable value against 0.45%, which was boosted by TRV shares. The S&P 500 futures are up 0.5% and the Nasdaq 100 futures are up 0.9%.

10-year treasury revenue remained unchanged at 1.83%. Crude oil prices have fallen.

China’s central bank has cut some key lending rates in a bid to boost its flagship economy.

Remember that action is overnight Dove futures Elsewhere there is no need to translate it into the next regular real trade stock market Session.

Join IBD Experts when researching stocks that may operate on the stock market rally at IBD Live

Stock market correction Wednesday

The stock market opened higher on Wednesday, but traded lower and closed near the session low.

The Dow Jones Industrial Average lost nearly 1% on Wednesday Stock market trading. The S&P 500 index was down 1%. The Nasdaq Composite fell more than 1% to 1.15% upon opening. Small-cap Russell 2000 fell 1.6%.

The 10-year Treasury dividend fell about 4 basis points to 1.83%, a two-year high. US crude rose 1.8% to $ 86.96 a barrel, setting a multi-year high. Rising energy prices will cause inflation to rise or at least remain high.

In the middle The best ETFs, Innovator IBD 50 ETF (FFTY) Fell 3.2%, while Innovator IBD Breakout Opportunities ETF (Boat1.8% retreated. iShares Extended Technology-Software Industry ETF (IGV) Gained 0.1% after solid morning advance. MSFT shares are a major IGV holding, while Fortinet, Palo Alto and New Relic are also in the ETF. WANEX Vectors Semiconductor EDF (SMHSlipped 2.8%.

SPDR S&P Metals & Mining ETF (XME) Fell 0.1%, with AA stock significant. Global X US Infrastructure Development ETF (Pavement) Without 1.2%. US Global Jets ETF (JETS) Decreased by 1.6%. SPDR S&P Homebuilders ETF (XHBGave up to 1.85%. Energy Selection SPDR ETF (XLE0.7% withdrawal and financial choice SPDR ETF (XLFFell 1.7%. Health Care Selected Sector SPDR Funding (XLVDecreased by 0.4%.

Represents more speculative story stocks, ARK Innovation ETF (ARKK) Fell 1.5% and ARK Genomics ETF (ARKG) 1.8%, reaching 18-month and 19-month lows, respectively.

Five best Chinese stocks to watch now

Microsoft Stock

Microsoft shares rose 0.2% to 303.33, then up 313.90 intraday. Market sales and Microsoft’s $ 69 billion acquisition deal fell 2.4% on Tuesday, the lowest in three months. Activision Blizzard (ATV) MSFT role a Flat foundation 349.77 with a buying point, step MarketSmith analysis, But the shares are now 8% below the declining 50-day tax. There are definitely repair jobs for this stock.

The Relative strength line Microsoft stock has fallen back to its November high, but after a steady improvement over most of last year.

Microsoft revenue is due next Tuesday. Revenue growth has accelerated over the past four quarters. Revenue growth continued to rise to three-quarters before cooling to 25% for the quarter ended September.

Fordnet stock

In late 2021, the Fordnet stock was one of the last software owners to reach new heights in late 2021. But the head of cyber security is selling hard to start the new year. FTNT stock has risen slightly since its January 6, but is still below its 50-day limit. Shares were down 0.4% at 307.16 on Wednesday.

Fordnet shares fell from an intraday high of 323.16 and hit resistance near its 21-day high.

The RS line for FTNT stock is not far from the maximum.

Fordnet revenue is due on February 3rd.

Palo Alto stock

Shares of Palo Alto rose 3.4% to 519.61, closing at its 50-day high. Like Fortinet, the PANW share also touched a new high late last year and then plummeted to launch in 2022. The RS lineup for the Palo Alto is high.

New Relic Stock

NEWR stock came in above its 50-day mark, which may indicate an early entry into a better market. But New Relic shares were down 0.4% at 105.61. Officer Buy point Is 129.80.

New Relic was once a leader in data analysis software, but stocks plummeted in 2019 and the company lost money in fiscal 2021 and is expected to do so again in FY 2022, which ends in March. But profits will return in the next financial year.

NEWR shares rose 38.5% in its last earnings report in early November. New Relic revenue for the 4th fiscal year 2022 is pending on February 8th.

Stock market correction analysis

The stock market plunged below key levels after a sharp sell-off on Tuesday. It is not surprising to see the market trying to get up. But despite solid earnings and lower bond yields, key indices moved out of the opening gate and backed down.

But it’s classic market correction behavior: open strong, close weakness.

The Nasdaq mix, already below its 200-day mark, goes to its lowest level in early October. It roughly corresponds to the February 2021 peak. The Big-Cap Nasdaq 100, led by Apple Stock and Microsoft, is approaching its 200-day limit. The Dow Jones and S&P 500 indices are not far behind.

Russell 2000, which cut its December low on Tuesday, fell to its lowest level in more than a year, reducing its long-term integration.

Software led by PANW and some others rose slightly on Wednesday, but closed at a high. The sector has been at zero growth in recent months.

Meanwhile, the latest market leadership is now struggling. Financials had another failure session. Mixed bank revenues and low treasury returns did not help. Energy stocks fell as crude oil prices continued to rise.

Only 39.8% of investment newsletters in the recent weekly reading were positive, which is the lowest level since the Corona virus crash. About 60.2% saw a correction or bear market.

The CBOE Volatility Index, or VIX, is set to rise significantly in 2022, but let alone the so-called market fear measurement, bigger fears than the December highs.

However, bull-bear reading and VIX are secondary indicators. Key indices and leading stocks are primary indicators, and they are terrible.

Market time with IBD’s ETF Marketing Strategy

What to do now

Even if the key codes mobilize strongly for a full session or two, it is not enough to get excited. The stock market has seen many one, two or three day improvements over the last two months, but the overall trend is low.

Investors should look for one The following day. First, the market rally effort should take a few days. We were not even on the first day.

IBD founder Bill O’Neill is a lifelong hopeful, but do not confuse the steady hope for eternal positivity. You can count on the stock market to have better opportunities in 2022, and you are almost right. But that doesn’t mean you have to be refreshed now.

Instead of trying to recover, they wallow in their sadness and thus, experience more failure. Look for stocks with strong relative strength that hold key support levels. But comparative strength remains in motion, especially in stock market corrections.

Apple stock, Qualcomm (QCOM) And Builders First Source (BLDR), Which had 50-day queues until Tuesday, broke that key position on Wednesday.

So keep adjusting your watchlist. Some software names, such as Microsoft and FordNet, may begin to reassert relative strength, or they may be delayed or broken. Let the market be your guide.

According to The big picture Every day the direction of the market and the leading stocks and sectors must be consistent.

Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.

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