Tuesday saw new bear market lows for the Nasdaq and S&P 500. The major indices began to decline before closing, with the Dow Jones leading the intraday rally. Chip stocks are still declining as a result of the sluggish demand and U.S. sales restrictions in China. Tesla's (TSLA) rapid decline continued.
Investors should avoid investing and keep most or all of their money in cash.
The producer pricing index, which serves as a practice run for Thursday's consumer price index, will be released by the Labor Department on Wednesday morning. The Fed's September policy meeting minutes will be released on Wednesday in the late afternoon.
On Tuesday, the market caps of Apple (AAPL), Microsoft (MSFT), Google parent Alphabet (GOOGL), Amazon.com (AMZN), and particularly Tesla stock all dropped to new lows or extended lows. Relative strength lines for the equities of Exxon Mobil (XOM), Albemarle (ALB), Cheniere Energy (LNG), Eli Lilly (LLY), and Vertex Pharmaceuticals (VRTX) are at or near highs, with the majority at possible purchase marks.
On the IBD Leaderboard are Vertex and LNG stock. On the IBD 50 is the VRTX stock. Vertex, Albemarle, and XOM stock are included in the IBD Big Cap 20. The long-term leaders among IBD stocks are Microsoft and Google. The video included in this article examined Deckers Outdoor, LNG stock, Commercial Metals (CMC), and Tuesday's market activity (DECK).
Major News
Westinghouse Electric will be purchased by uranium miner Cameco (CCJ) and Brookfield Renewable Partners (BEP) for roughly $8 billion. 49% will be owned by Cameco, and 51% by Brookfield. Overnight, CCJ stock fell. BEP shares The BEP stock price was inactive.
According to a late-Tuesday Bloomberg story, Intel (INTC) plans to slash thousands of positions amid the PC downturn, significantly cutting back on sales and marketing. Early on Wednesday, INTC stock modestly increased. The shares of Advanced Micro Devices (AMD), Intel, and many other companies took a beating after the company's preliminary Q3 revenue announcement last week. Other reports have highlighted PC flaws.
PepsiCo (PEP) revealed third-quarter earnings that were higher than anticipated early on Wednesday. In premarket trading, PEP stock increased slightly. However, despite the RS line trending higher over the past few weeks, shares have fallen.
Today's Dow Jones Futures
In comparison to fair value, Dow Jones futures increased 0.7%. Futures for the S&P 500 rose 0.8%. The Nasdaq 100 futures increased 1.1%.
The yield on the 10-year Treasury fell a bit. 3.93% to 1 basis point. The 10-year yield hit 3.97% earlier, approaching 4% and 12-year highs.
Futures for crude oil grew a little.
Below the level that prompted Bank of Japan intervention last month, the yen dropped to a 24-year low. A rumor that the Bank of England would continue its emergency bond-buying program past Friday was denied.
A full day before the CPI inflation data, at 8:30 a.m. ET, the Labor Department will release the producer price index. The Federal Reserve will publish the minutes of its September meeting at 2 p.m. ET.
Keep in mind that overnight trade in Dow futures and other markets may not necessarily reflect real trading during the following normal stock market session.
Join IBD professionals as they examine trading stocks in the resurgent stock market on IBD Live
NASDAQ on Tuesday
The Nasdaq led a shaky start to the stock market that sought to rebound before fading once more.
Tuesday's stock market trading saw a 0.1% increase in the Dow Jones Industrial Average, with Amgen (AMGN) playing a significant role due to an analyst upgrade. S&P 500 index decreased by 0.7%. Nasdaq's composite index fell 1.1%. The Russell 2000 small-cap index ended marginally higher.
U.S. crude oil prices decreased by about 2% to $89.35 per barrel, retracing just slightly from their peak last week.
The 10-year Treasury yield increased by 6 basis points, from 3.88% on Friday to 3.94% today. The intraday 10-year yield reached 3.97%, barely shy of the 12-year high reached on September 27. Monday's U.S. bond markets were closed, but bonds still Global futures and sovereign yields had indicated that the 10-year Treasury yield will increase once more.
ETFs
The Innovator IBD 50 ETF (FFTY), one of the top ETFs, decreased by 1.1%, while the Innovator IBD Breakout Opportunities ETF (BOUT), a better ETF, up by 0.15%. The iShares Expanded Tech-Software Sector ETF (IGV), which holds a significant amount of Microsoft stock, lost 1.75%.
VanEck Vectors Semiconductor ETF (SMH) lost 3.15% of its value. Manufacturers of chip equipment like Lam Research (LRCX) and just-falling market leaders like On Semiconductor were among the biggest losses (ON).
XME, the SPDR S&P Metals & Mining ETF, fell 0.9%. U.S. Global Jets ETF (JETS) lost 0.65% of its value. The Energy Select SPDR ETF (XLE) lost 0.8% of its value. The health care sector SPDR fund (XLV) saw a 0.5% increase.
Taking into account speculative story stocks,Both the ARK Innovation ETF (ARKK) and the ARK Genomics ETF (ARKG) experienced declines. All of Ark Invest's ETFs hold a significant amount of Tesla stock.
The Top Five Chinese Stocks to Watch Right Now
Stocks To Monitor
After hitting intraday lows on Tuesday, the price of XOM stock increased by 0.85% to 98. After rocketing last week on surging oil prices and a solid Q3 statement, the oil major appears to be trying to get a hold on things. Exxon stock currently has a consolidation purchase point of 105.67.
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