HomeBusinessStock Market Holds Modest...

Stock Market Holds Modest Gains As It Waits For The Fed; Chinese EV Stock Slumps

The stock market weakened slightly in the past hour of trading, with the major indexes off the highs of the day. Investors are unsure ahead of the Federal Reserve’s meeting this week.


Eyes and ears will be on the Fed this week, with the latest meeting of the Federal Open Market Committee on Tuesday and Wednesday. The tone taken by Federal Reserve Chair Jerome Powell during his post-meeting media conference will once again be key.

The CME FedWatch tool shows the Fed will most likely not raise rates and currently shows the likelihood of rates standing pat at the November meeting at nearly 66%. The current target rate is 5.25%-5.5%.

The benchmark 10-year Treasury yield shed 1 basis point to 4.32%.

The Nasdaq continued to struggle, now up 0.2% in afternoon stock market action.

The Dow Jones Industrial Average edged up 0.2% and the S&P 500 added 0.3%. The S&P and Nasdaq remain below their 50-day moving averages. The small-cap Russell 2000 pulled back 0.3% and tested its 200-day moving average.

Volume fell on the NYSE and the Nasdaq vs. the same time on Friday, but Friday’s trading was heavy due to witching options and futures expirations.

The Nasdaq 100-tracking Invesco QQQ Trust ETF (QQQ) reversed course and added 0.2%. The Innovator IBD 50 ETF (FFTY) also changed course and gained 0.1%.

Global GDP Strength In Some Regions

S&P Global Market Intelligence raised slightly its global real GDP estimate to 2.6% in 2023, with varying results across regions. The U.S. is expected to show strength, along with Japan, India and Brazil. S&P Global sees pressure in the eurozone with a looming recession and a drop in mainland China’s GDP. It forecasts September global GDP growth at 2.3%.

S&P Global projects higher global inflation in 2023 and 2024, due in part to higher crude prices. It also believes that interest rates are either at or close to top levels and doesn’t see rate cuts until mid-2024.

Stock Market Action: Chinese EV Stock Slumps

IBD 50 stock Li Auto (LI) sold off 2% and fell back below its 50-day line. The Chinese EV stock has wavered around the line in mostly light volume since mid-August, following its steep drop after the company reported its Q2 earnings on Aug. 8.

Tesla (TSLA) shed 2.5%. The company is in early discussions with Saudi Arabia for an EV factory.

BWX Technologies (BWXT) rose 2.1% and hit the 76.26 buy point of a flat base, but in light volume. Shares are just in the 5% buy zone that goes to 80.01. The nuclear component manufacturer’s relative strength line hit a 52-week high as shown by the blue dot on its MarketSmith charts.

Vita Coco (COCO) pared losses and is now down 0.5%, following a two-day sell-off. The negative action triggered a 7% sell signal from the stock’s move above the 29.70 buy point of a cup base. The coconut water stock is slightly below its 50-day line.

Pure Storage (PSTG) also trimmed losses and is off 0.8%, on track for a five-day losing streak. The stock has flashed a 7% sell signal from a 39.19 buy point of a flat base. The data storage stock fell further below the 50-day line.

IPO Stock Tanks

Thursday IPO Arm Holdings (ARM) sank 8.8%. Bernstein started coverage on the semiconductor intellectual-property stock with an underperform rating and a 46 price target. The IPO stock priced 95.5 million shares at $51 apiece, making it the biggest IPO of 2023 so far.

Alteryx (AYX) shares popped 5.9% after Morgan Stanley upgraded the data analytics software firm to overweight from equal weight and maintained its 54 price target. The stock reclaimed its 50-day line on the move. Shares jumped 13.8% in huge volume Sept. 6 on news that the company was considering a potential sale.

DoorDash (DASH) gained 2.5% after Mizuho Securities upgraded the delivery service to buy from neutral and raised its price target to 105 from 90. The stock retook its 50-day line Monday.

Stock Market Movers: Chip Stock Lifts On Upgrade

IBD 50 stock Novo Nordisk (NVO) sank 1.7% after Reuters reported that the Food and Drug Administration found “objectionable conditions” at a plant that makes diabetes and weight-loss drugs. The stock gapped below its 50-day line.

PayPal (PYPL) slid 1.3% after MoffettNathanson downgraded the digital payments stock to market perform from outperform and cut its price target to 75 from 85.

Micron (MU) rose 1% after Deutsche Bank upgraded the chip stock to a buy from a hold rating and raised its price target to 85 from 65. Shares have been trying to break out past a 71.16 buy point of a cup-with-handle base.

Shares of Clorox (CLX) eased larger losses, now down 0.3% on news that a cyberattack previously announced in August is disrupting operations, according to the Wall Street Journal. The company said the attack will have a “material impact” in its fiscal first-quarter financial results. The consumer products stock fell further below its 50-day line.

Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.


Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest

What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It

IBD Live: Learn And Analyze Growth Stocks With The Pros

Looking For The Next Big Stock Market Winners? Start With These 3 Steps

Want More IBD Insights? Subscribe To Our Investing Podcast

Source link

Most Popular


Please enter your comment!
Please enter your name here

More from Author

Peloton co-founder and Chief Product Officer Tom Cortese is leaving the company

Peloton co-founder and Chief Product Officer Tom Cortese is leaving...

NFL Week 4 injury tracker: Will Jones, Watson and Montgomery play Thursday?

ESPN FantasySep 26, 2023, 04:56 PM ET6 Minute ReadESPN's Fantasy...

How the Writers Deal Got Done: Inside the Room

Getty Images; Adobe Stock; THR Illustration On Saturday, Sept. 23, Disney...

Read Now

Judge Finds Trump Inflated Property Values, a Victory for New York A.G.

A New York judge ruled on Tuesday that Donald J. Trump persistently committed fraud by inflating the value of his assets, and stripped the former president of control over some of his signature New York properties.The decision by Justice Arthur F. Engoron is a major victory...

Peloton co-founder and Chief Product Officer Tom Cortese is leaving the company

Peloton co-founder and Chief Product Officer Tom Cortese is leaving the company after nearly 12 years.He'll be replaced by Silicon Valley veteran Nick Caldwell, who previously held positions at Twitter, Google and Microsoft."After nearly 12 years of pouring myself into Peloton and serving our Members, I...

NFL Week 4 injury tracker: Will Jones, Watson and Montgomery play Thursday?

ESPN FantasySep 26, 2023, 04:56 PM ET6 Minute ReadESPN's Fantasy Football Week 4 injury tracker, featuring an aggregation of injury updates for quarterbacks, running backs, wide receivers and tight ends whose teams are scheduled to play this week. Here we'll track practice reports, injury updates and...

How the Writers Deal Got Done: Inside the Room

Getty Images; Adobe Stock; THR Illustration On Saturday, Sept. 23, Disney CEO Bob Iger was in Beverly Hills, seemingly living his best life. He was at dinner with Paul McCartney and Eagles alum Joe Walsh at La Dolce Vita, an Old World Italian restaurant with long white...

Top Apple Executive Defends Favoring Google on iPhones

Apple’s top deal maker on Tuesday defended his company’s favoritism of Google on iPhones, a pivotal collaboration that has shaped the modern tech industry and is at the center of a federal antitrust trial against the search giant.Eddy Cue, Apple’s senior vice president of services, testified...

‘Unprecedented’ Secrecy in Google Trial as Tech Giants Push to Limit Disclosures

In a court filing last month, Google argued that it needed its privacy in an antitrust trial that would spotlight its dominance in online search.“Once commercially sensitive information is disclosed in open court, the resulting harm to the party’s competitive standing cannot be undone,” the internet...

How Jalen Hurts finally got the best of Todd Bowles

His stats weren’t particularly pretty. Two interceptions will do that. Still, there were some very encouraging signs from Jalen Hurts Monday night, and he didn’t hide his happiness – or maybe relief is a better word – for finally leaving Tampa with a win. It was at...

‘PAW Patrol 3’ In The Works From Paramount, Nickelodeon & Spin Master

Paramount Days before Spin Master/Paramount/Nickelodeon’s PAW Patrol: The Mighty Movie opens with a shot at No. 1 and $20M, a third theatrical movie has been announced for 2026. The long-running preschool franchise, which is celebrating its tenth anniversary, saw its first theatrical release under Paramount (and Elevation...

David McCallum, Heartthrob Spy of ‘The Man From U.N.C.L.E.,’ Dies at 90

David McCallum, the Scottish-born actor who became a surprise sensation as the enigmatic Russian spy Illya Kuryakin on “The Man From U.N.C.L.E.” in the 1960s and found television stardom again almost 40 years later on the hit series “N.C.I.S.,” died on Monday in Manhattan. He was...

CMF by Nothing launches earbuds, smartwatch, charger (Update: Availability)

TL;DR CMF by Nothing is a new sub-brand that uses the same in-house design team as mainline Nothing products. The first three devices from this sub-brand are earbuds, a smartwatch, and a GaN charger. The products are incredibly inexpensive and will come to the UK at first. India is...

Warriors newcomer Chris Paul can win the room with 11-word declaration

The wisest and classiest move Chris Paul can make in the coming days is to extinguish the fire that started with his cryptic response in his first meeting with reporters assigned to the Warriors. Sometime before next Monday, when Paul and his new teammates gather for media...

Biden, Trump to woo unions in Michigan as auto strikes grow

DETROIT, Sept 26 (Reuters) - Joe Biden and Donald Trump will speak to striking auto workers in rare back-to-back events in Michigan this week, highlighting the importance of union support in the 2024 presidential election, even though unions represent a tiny fraction of U.S. workers.Biden will...