Dow Jones Futures Rise As Market Tries To Rebound; Exxon, Tesla shares near buy points

Dow Jones futures rose overnight, as did S&P 500 and Nasdaq futures. The stock market rally rebounded on Wednesday, but it was an uneven advance that only recovered part of Tuesday’s huge sell-off.




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Investors should keep exposure light until the major indices return to their 50-day moving averages.

Energy stocks took the lead on Wednesday, with crude oil prices rising and natural gas futures jumping. Devon Energy (NDV) deleted an early entry. Exxon Mobil (XOM) is about to issue a buy signal.

You’re here (TSLA) flirted with an aggressive entry on Wednesday, retaking a key level.

Arista Networks (A NET) and Pure storage (PSTG) have some work to do.

DVN stock is enabled IBD classification and Swing Trader. Devon Energy was also the IBD share of the day on Wednesday. Tesla, Devon, Arista Networks and Pure Storage stocks are all on the INN 50. Arista Networks and XOM stocks are on the IBD Big Cap 20.

Dow Jones Futures Today

Dow Jones futures were up 0.1% from fair value. S&P 500 futures climbed 0.1% and Nasdaq 100 futures rose 0.2%.

Investors will be receiving a slew of economic data ahead of Thursday’s trading open. August retail sales along with September’s Philadelphia Fed manufacturing index and New York Fed’s Empire State index are due out at 8:30 a.m. ET, in addition to weekly jobless claims data. . Industrial production for August is set for 9:15 a.m. ET.

Remember that overnight action on futures contracts on Dow and elsewhere does not necessarily translate into actual trading in the next regular trading session.


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Stock market rally

The stock market rally rebounded modestly on Wednesday morning, then faded to negative before rebounding late to close higher.

The Dow Jones Industrial Average rose 0.1% in trading on Wednesday. The S&P 500 index gained 0.3%. The Nasdaq composite advanced 0.7%. The small-cap Russell 2000 rose 0.4%.

US crude oil prices rose 1.3% to $88.48 a barrel, although that was off session highs. Natural gas prices jumped 9.2% to $9.114 in British thermal units (BTU)

The 10-year Treasury yield fell 1 basis point to 3.41%. But it is just below the 11-year high of 3.48% set on June 14.

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Among the best ETFs, the Innovator IBD 50 ETF (FFTY) jumped 2.35% at the close on Wednesday, helped by energy stocks on the list. The Innovator IBD Breakout Opportunities ETF (FIGHT) climbed 0.65%. The iShares Expanded Tech-Software Sector ETF (VIG) increased slightly by 0.1%. The VanEck Vectors Semiconductor ETF (SMH) increased by 1.1%.

SPDR S&P Metals & Mining ETF (XME) fell 3.1% and the Global X US Infrastructure Development ETF (PAVE) fell 1.7%. The SPDR Energy Select ETF (XLE), with XOM stock in a massive position and Devon Energy also in ETF XLE, rose 2.8%. SPDR Healthcare Sector Fund (XLV) increased by less than 0.1%.

Reflecting more speculative history stocks, ARK Innovation ETF (ARKK) rebounded 2.75% and ARK Genomics ETF (ARKG) 1.6%. TSLA stock is a major holding in Ark Invest ETFs.


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DVN share

DVN stock rose 4.5% to 72.17, bouncing off its 21-day moving average, hitting 73.29 intraday. The oil and natural gas producer breached Monday’s high at 71.57, offering early entry into a cup-with-handle base. The official buy point is 75.37.

XOM Stock

XOM stock climbed 2.45% to 97.67. Shares of the integrated oil giant are working a buy point of 101.66 handle cups, according to MarketSmith analysis. Investors could use a move above Monday’s high of 99.19 as an early entry.

Tesla Stock

Tesla stock rose 3.6% to 302.61, bouncing above its 200-day moving average after breaking above that key level in Tuesday’s market rout. Intraday, TSLA stock hit 306, just above Monday’s high at 305.49. This could have offered an aggressive entry, emphasizing the aggressive. Investors may want to use 306.10 now as a trigger point.

Tesla’s relative stock strength line has improved significantly over the past week, reaching its best levels since late April.

ANET Share

Arista Networks stock rose nearly 2% to 122.26, rebounding slightly from its 200-day line after falling 3.9% on Tuesday. The ANET stock has a buy point of 132.97 from a double bottom handle base. But investors could use 126.80, just above Monday’s high, as an early entry.

PSTG Stock

PSTG stock edged up 0.1% to 29.67 on Wednesday, trading around its 21-day moving average after slipping 3.8% on Tuesday. Pure Storage’s stock has a buy point of 31.62 cups with handle. Investors could use 30.98, just above Monday’s high, as a slightly lower entry.


Market rally analysis

The stock market rally rebounded on Wednesday, but it was hardly a blow after the Nasdaq plunged more than 5% on Tuesday.

Wednesday’s relatively consistent PPI reading likely gives the Federal Reserve reason to stick with a third consecutive 75 basis point rate hike on September 21, although markets are pricing in a quarter chance of 100 basis points. Perhaps more importantly, the FedWatch CME Tool now shows that markets are pricing in a year-end fed funds rate range of 4.25% to 4.50%. That’s 50 basis points higher than before Tuesday’s consumer price index.

A potential strike by railway workers on Friday is a possible negative effect for a large number of sectors of the “real economy”. Meanwhile, Wednesday Nucor (NUDE) the earnings warning is a reminder that the negative prior announcements are likely to start to heat up.

It only took a few minutes for the major indices to fall below their 50-day moving averages on Tuesday, but it could take a long time to get back above this key level. The stock market rally may encounter resistance there, or at the nearby 21-day lines. Meanwhile, the S&P 500 and Nasdaq are near last week’s lows, with the Dow Jones having already broken above those levels.

Energy stocks were winners on Wednesday, but closed well off intraday highs. While oil and gas names move with commodity prices, they are also subject to stock market trends.

ANET and Pure Storage stocks aren’t as close to being mineable, but there is an upside. They could be sending buy signals as the major indices rebound above their 50-day moving averages.


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What to do now

But until major indices return above their 50-day lines, investors should be cautious about increasing exposure. This is a market rally under significant pressure, not a powerful uptrend.

If you take new positions, consider taking partial profits particularly quickly.

That being said, major stocks look better overall than stock indices. Investors should build their watchlists, look for quality names that set up or emit buy signals.

Read The Big Picture every day to stay in tune with market direction and top stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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