The Dow Jones Industrial Average declined late as recession fears increased after the Federal Reserve meeting. Tesla (TSLA) CEO Elon Musk criticized a verbal collective recall. Queen Piece (Currency) And the Blockchain riot (riot), even with the rise of Bitcoin. Eli Lilly (LLY) appeared when upgrading.
Volume was mixed, rising on the Nasdaq but lower on the New York Stock Exchange, according to early data.
The yield on the benchmark 10-year Treasury rose 19 basis points to 3.7%. West Texas Intermediate crude rose 0.7% to close at $83.53 a barrel.
Stocks hit amid recession fears
Dow Jones and other stocks have a hangover after the last meeting of the Federal Reserve on Wednesday. The Federal Open Market Committee, led by Federal Reserve Chairman Jerome Powell, raised interest rates by 75 basis points.
It also predicted the “dot chart” that the Fed funds rate will reach 4.6% next year before the tightening ends.
Nomura’s chief US economist, Rob Dent, said the Fed’s latest move “really underscores” the possibility of a recession over the next 12 months.
“Global stocks are struggling as the world expects higher prices to trigger an urgent and possibly severe global recession,” Edward Moya, chief market analyst at Oanda, said in a note to clients. “The Fed has managed to convince the markets that it will remain aggressive in fighting inflation and that is why many are expecting another rate hike of 75 basis points in November.”
Dow Jones gains, Nasdaq Falls, lowercase diving
The Dow Jones fell late to close down 0.4%. The Nasdaq was suffering the most, dropping 1.4%. The S&P 500 also lagged, shedding 0.8%.
The S&P 500 sectors were mostly negative. Health and telecom services were the only winners, while finance and consumer appreciation suffered the most.
The small hats were also attacked by bears, with the Russell 2000 ending the day 2% lower.
The Innovator IBD 50 ETF (fifty), which is considered a leader in stock growth, by 2.6%.
Inside Dow Jones: Merck Shines and American Express Lags
Merck was the best performer on the Dow today with a gain of 3.5%. However, it is still rooted below the main 50-day moving average.
American Express stock was the worst on average, down 3.8%. It is now sitting below all of its major moving averages.
Another loser? These five buckle camps with higher yields
Elon Musk annoyed by the summons; Tesla stock chips
Tesla stock fell after NHTSA issued a safety recall report for 1,096,762 Tesla vehicles. The problem involves the Tesla window’s auto-reversing system.
CEO Elon Musk took to Twitter to criticize the recall.
Terminology is outdated and inaccurate Tweeted on Thursday. “This is a small software update over the air. To our knowledge, there have been no infections.”
Tesla stock It fell by 4.1%, and lost ground on a short consolidation pattern with entry point at 314.74.
However, the long-term performance of Tesla stocks remains strong.
Earnings have grown by an average of 173% over the past three quarters, well above CAN SLIM requirements. Annual results are also impressive, with a three-year EPS growth rate of 197%.
Bitcoin Gains Coinbase Stock Falls
Coinbase pulled back hard despite Bitcoin’s fight on Thursday. Coinbase ended the session down 7%, although volume was light.
The arrow was hit after a The Wall Street Journal report About an alleged new speculative cryptocurrency trading project.
The company, which lowered its full-year forecast last month, lost ground on all of its major moving averages. COIN shares are down about 75% since the start of the year.
Bitcoin is fighting back from its lows and above $19,000 after rising 4.8% on Thursday.
Eli Lilly Stock Pops
Pharma Eli Lilly’s play was sparkling after UPS upgraded it to ‘buy’ from ‘neutral’. It closed the session 4.9% higher.
Analyst Colin Bristow said in a research note that the company’s new weight loss treatment could be “the biggest drug ever.” He estimated that annual peak sales could reach $25 billion.
Bristow also insisted that LLY stock is now the “most attractive name” in the big-cap UBS coverage.
The RSI line is rising while the stock has formed a flat base, with an ideal entry point at 335.43 according to MarketSmith.
Outside the Dow: These three stocks flex the muscle
J.M. Smucker saw his relative strength line reach new heights. This comes because it is looking to enter a cup with a handle at 150, According to MarketSmith analysis.
The packaged foods game is in the top 9% of stocks by price performance over the past 12 months. It is a double threat, as it provides investors with a solid dividend yield of 2.9%.
Eastern Bankshares also saw its RS line reach new heights. It’s near the handle cup purchase point of 21.55.
EBC is in the top 7% of the stocks tracked in terms of earnings performance. It’s steady so far in 2022, better than most stocks in this turbulent year.
Finally, HealthEquity is up more than 2% in value. It is in the buy zone of a consolidation pattern with a buy point of 72.80. It’s among the top 5% of stocks in terms of price performance over the past 12 months.
The RS line is trading at recent highs, which is an encouraging sign. Big money has also been behind Health Savings Account play lately, with an impressive B+ Accumulation-Distribution rating.
Please follow Michael Larkin on Twitter at Tweet embed For further analysis of growth stocks.
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