Stock Market Update: Dow Jones Futures Rise Amid Inflation Fears and Fed News

Strategic Insights -

The Dow Jones futures rose early Wednesday morning, while S&P 500 and Nasdaq futures also advanced, as investors await key inflation reports and Federal Reserve news. The 10-year Treasury yield approached 4% again, causing Dow futures to pare gains. The major indexes faded to mostly negative by the close, with chip stocks continuing to sell off due to weak demand and US controls on China sales. Experts advise investors to stay on the sidelines, either in cash or nearly all cash.

Key Takeaways:

  • Dow Jones futures climbed 0.25% vs. fair value, while S&P 500 futures advanced 0.45% and Nasdaq 100 futures rose 0.7%.
  • The 10-year Treasury yield climbed 2 basis points to 3.96%, nearing 12-year highs and the 4% level.
  • Chip stocks, such as Intel and AMD, continued to sell off, with Intel planning to cut thousands of jobs amid the PC slowdown.
  • Several reports highlight PC weakness, with Advanced Micro Devices reporting preliminary Q3 revenue below views.
  • Major indexes faded to mostly negative by the close, with the Dow Jones Industrial Average falling 0.67%.
  • The Nasdaq composite sank 1.1%, with the small-cap Russell 2000 closing fractionally higher.
  • Energy stocks, such as ExxonMobil and Cheniere Energy, boast at or near highs, with most close to potential buy points.
  • Vertex Pharmaceuticals and LNG stock are on the 5-3-2-1 Buy Point Watchlist.
  • Microsoft and Google stock are on the Entering the Matrix list.

Statistics:

  • Dow Jones futures rose 0.25% vs. fair value.
  • S&P 500 futures advanced 0.45%.
  • Nasdaq 100 futures rose 0.7% early Wednesday.
  • The 10-year Treasury yield climbed 2 basis points to 3.96%.
  • Chip stocks, such as Intel and AMD, fell 2.5% and 3.4%, respectively.
  • The Nasdaq composite sank 1.1% to a fresh bear market low.
  • The small-cap Russell 2000 closed fractionally higher.
  • Energy stocks, such as ExxonMobil and Cheniere Energy, rose 1.2% and 0.9%, respectively.
  • Vertex Pharmaceuticals and LNG stock showed growth of 0.2% and 0.15%, respectively.

Sources:

  • Bloomberg
  • The Street
  • IBD
  • Seeking Alpha
  • WSJ Market Data
  • NYSE
  • Nasdaq
  • Dow Jones
  • S&P 500
  • Nasdaq 100
  • Treasury Department
  • Labor Department
  • Federal Reserve
  • Bank of Japan
  • Bank of England