Dow Jones Today, Futures Slip: Nike hits China Friction; Altria retreats over possible limits for nicotine

Dow Jones futures led to moderate declines in the market on Tuesday, with Nike putting Dow’s downside on a downgrade of the analyst. Earnings news is processed early into action, increasing Steel Dynamics and Dover in the direction of buying points. Railroad stocks were on the rise as Kansas City Southern sparked a takeover bid. And IBM topped the Dow Jones today, after reporting its first revenue gain in nearly three years.




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Dow futures and S&P 500 futures increased 0.3% below fair value. Nasdaq 100 futures fell 0.2%, with rail CSX (CSX) 1.8% to the top of the index. Small-cap trading traded almost flat, with Russell 2000 futures contracts a fraction below fair value.

Kansas City Southern (KSU) increased by 14%, while Canada’s National Railroad (CNI) fell more than 7%. A $ 30 billion takeover bid for Canadian National from Kansas City has surpassed the previous offer of Canadian Pacific Railroad (CP). Canadian Pacific shares rose 1.4%.

Cigarette Manufacturer Altria Group (MO) fell more than 7% after Monday’s 6.1% dip in news that the government in Biden is considering regulating the amount of nicotine allowed in cigarettes. British American tobacco (BTI) dipped more than 3% in the pre-traded trade.

Shares in China were under early pressure, but New Oriental Education and Technology (EDU) increased by 4% against earnings. Equities test resistance against the exponential moving average of 21 days, and try to start the right side of a two-month consolidation.

The Vanguard Russell 1000 Value ETF (VONV), Vanguard Russell 2000 ETF (VTWO) and Vanguard Russell 1000 Growth ETF (VONG) saw extraordinary operations due to share split.

CSX, Netflix (NFLX) and Intuitive surgical (ISRG) is among the companies to report after today’s close.

Earnings: Dover, Steel Dynamics Eye Buy Points

In earnings news, local bank Silvergate Capital (SI) rose 2.3%. Industrial products manufacturer Dover (DOV) rose 4%, indicating that the stock would open above a buying point of 141.41 in a three-week tight pattern.

Steel Dynamics (STLD) rose 1.4% in early trading after reporting its first-quarter results late Monday. Shares ended Monday’s session less than 3% below a buyout of 52.72 in a four-week tight formation.

AutoNation (AN) rose 2.2% on earnings and news of an acquisition. United Airlines Holdings (UAL) tumbled 3.2% on mixed results, the biggest loss among Nasdaq 100 shares.

Dow Jones Today: IBM vs. Nike

IBM (IBM) gained 2.4% in the pre-trade, while Nike (NKE) fell 1.8% today to below the Dow Jones.

IBM posted a 4% drop in earnings and a 1% revenue drop late Monday, both above analysis forecasts. It was also the company’s first increase in 11 quarters.

The manufacturer of medicines and medical products Johnson & Johnson (JNJ) also reported sales and earnings above analysts’ targets in the first quarter. Shares fell 0.6% shortly after its report.

Nike fell after Citi downgraded the stock to neutral. According to the letter, the company faced a weakened demand for China due to the dispute over cotton originating from Xinjiang, lowering the share’s price target to 140, from 160.

Among other Dow shares, Ruspe (CAT) is around 2% below a 237.88 buying point in a bullish rising base pattern. JPMorgan (JPM) test support, about 6% below a 161.79 buy point in a flat base.

LPX Stock Leads IBD 50, Futu Dives

Material Games led the IBD 50 list in early trading. Wood products supplier Louisiana Pacific (LPX) climbed 0.6%. Ore Miner Southern Copper (SCCO) rose a fraction. Louisiana Pacific is extended with an annual profit of 81%. Southern Copper is below an alternative early entry of 79.72, and a proper buying point at 83.25 in a nine-week cup base.

China-based Futu Holdings (FUTU), an IBD Leaderboard stock, is down 9.8% after proposing a follow-up offer of 9.5 million US deposit stocks.

Bitcoin, CoinBase slip

Bitcoin prices dropped to just under $ 56,000 early Tuesday, according to CoinDesk, after losing some ground on Saturday and Sunday that disappeared during a steep dive. Bitcoin reached a new high above $ 64,800 last week before the Coinbase Global (MUNT) IPO. Shares fell below $ 54,000 on Sunday, but the cryptocurrency remains more than 90% higher, after the year started just over $ 29,000.

Shares of the currency exchange Coinbase rose 36.8% in their first few days last week. Coinbase’s stock market share was initially 250 and Coinbase’s share slipped 0.5% early Tuesday.

CAN SLIM rules recommend not jumping to IPOs too early, amidst all the initial speculation and excitement. It is better to look at the chart of the new stocks. Waiting for the formation and outbreak of an IPO base can limit the negative risk.

Key signs of the market: oil, copper, bond yields

The oil price rose higher early Tuesday, and buyers held a ten-year high early Tuesday as bonds rose after a two-day slippage.

West Texas Intermediate Oil rose 0.7% to above $ 63 a barrel, the highest level since mid-March and 10% higher than a low in March. At the beginning of March, WTI reached $ 65.05, the highest price since January 2020. Copper and oil prices are both important indicators of confidence in the world economy.


Stock Market ETF Strategy and How to Invest in the Current Rising Trend


Copper rose 2.3%, to above $ 4.26 per pound. Prices hit a nearly 4-year high of $ 4.30 on February 24th.

Bond yields hovered, with the 10-year yield weakening to 1.59% after a two-day rebound boosted yields, according to CBOE data on Monday at 1.60%. Yields last week experienced their worst week since July when traders piled back into a safe haven. Bond prices and returns move in reverse.

The Dow Jones Today And The Daily Grind

While the S&P 500 and the Dow Jones industrial average have gradually fallen to new highs, the Nasdaq composite remains shy around the 14,000 level. This was the obstacle that turned the index back in February. After Nasdaq now carved two closures above the line, it fell back into the thirteen on Monday.

This is not a defeat, but it raises the question of whether the Nasdaq will fall back to its exponential moving average of 21 days, just above 13,600.

At the same time, the index in the Russell 2000 four-week battle to hold on to its ten-week moving average closed just below the line. It could turn the support around and take in again, or could fall back to a test of its low point at the end of March, around 2,100.


For a more detailed analysis of the current stock market and its status, study the big picture.


Meanwhile, the S&P Smallcap 600 has positioned itself above its 50-day and 21-day exponential moving averages. In addition, the Invesco bought QQQ Trust ETF (QQQ) in a buy zone above 338.29 above a fixed base.

The differences between the Russell 2000 and the S&P Smallcap 600, and between the Nasdaq Composite and the Invesco QQQ Trust, indicate how challenging the stock market’s upward trend has become. Investors watching SwingTrader and Leaderboard will see the slight adjustments to lock in profits and include portfolios in zones of market strength – including materials, construction, beverages, leisure products and services, etc. – while the Nasdaq power systems sectors sort themselves out. .

The IBD 50 Index and the iShares Russell 1000 Growth ETF (IMF) both hold reasonable margins above support. The market is leaving the lighter breathing period from March to February, to deal with gravity again and adapt to the daily grind.

Find Alan R. Elliott on Twitter @IBD_Aelliott

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