Dow futures: jobs report will test ‘soft landing’ market rally; Tesla stock split system approved

Dow futures were little changed on Friday morning, along with S&P 500 and Nasdaq futures, with the July jobs report looming large. Tesla (TSLA) Shareholders approved a 3-for-1 stock split Thursday evening.




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The stock market closed mixed higher on a relatively quiet Thursday for the major indexes, but there were some big profit drivers.

Vertex Pharmaceuticals (VRTX), Amgen (AMGN) And the Neurobiological Sciences (NBIX) reported better-than-expected earnings Thursday night as biotech remains a leading sector. All closed near buy points and key support levels.

Dow jones futures contracts today

Dow Jones index futures are up less than 0.1% against fair value. S&P 500 futures lost 0.1% and Nasdaq 100 futures lost 0.25%.

The 10-year Treasury yield rose 2 basis points to 2.7%.

Crude oil futures fell.

Senator Kirsten Senema, Democrat of Arizona, threw her support behind the tax spending and climate bill Thursday night. The legislation would add a 1% selective tax on share buybacks and remove a requirement to end the transferred interest loophole.

The Labor Department will release its jobs report for July at 8:30 a.m. ET. Employment data will surely swing in Dow Jones futures and Treasury yields.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.


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Jobs Report

Economists expect to see non-farm payrolls rise by 250,000 in the US Jobs report for the month of July, down from 372,000 in June. This still points to healthy employment amid a slowing economy.

Watch the Household Survey, which showed a significant drop in employment in June. It’s more error-prone than payroll, but it often shows that the job market shifts first.

Meanwhile, the unemployment rate is expected to remain steady at 3.6%, with annualized hourly earnings growth slowing to 5%.

Unemployment claims rose to 260,000 in the last week, the highest in nine months. Although job opportunities are still high, they have declined rapidly in the past two months.

The Federal Reserve, and in particular Fed Chairman Jerome Powell, argued that an easy landing was possible. Over the past two weeks, investors have begun to buy into the idea that the economy will weaken It is enough To cool inflation enough to motivate the Federal Reserve to slow and then stop interest rate hikes, without causing a significant drop in demand and employment.


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Biotechnology Profits

VRTX stock tilted lower in overnight trading as Vertex earnings topped views and the biotech giant raised its full-year product revenue target. Shares fell 0.1% to 274.85, below the 50-day line and buying 276.10 and 279.23 points.

AMGN stock lost 1% in the extended business after Amgen’s earnings topped The company has largely reaffirmed its full-year guidance. Shares were down 0.1% at 246.98 on Thursday, trading near the 50-day line. Amgen stock has 253.87 buy handle points. Biotech giant announced a $3.7 billion acquisition From ChemoCentryx (CCXI) before opening on Thursday.

NBIX stock fell slightly overnight after that Neuro profits Revenue topped. The company raised revenue guidance for its main drug, but it also discontinued a treatment that didn’t work as well. Shares rose 2% Thursday to 95.93, rebounding from the 50-day line. NBIX stock has a buy point of 100.10.

VRTX stocks are on IBD Leaderboard and the IBD Big Cap 20 . Indicator. iShares Biotechnology ETF (IBB) is running SwingTrader.

Split Tesla, Annual Meeting

Tesla shareholders approved a 3-for-1 stock split Thursday night at the annual meeting, two years after a 5-for-1 stock split. Tesla proposed a TSLA split in June. It’s unclear if the actual split will have a significant impact on Tesla’s stock. A TSLA stock split will make play options cheaper.

At the annual meeting, CEO Elon Musk said “I swear this year,” Tesla will replace self-driving, laughing.

Musk hinted that Cybertruck’s pricing and specifications will be different from what Tesla initially touted in 2019, citing inflation. Pulled back on prices and specifications always seemed highly unlikely, while material costs and battery delays added the 4680 to the software.

Musk also expects to ramp up production in the second half of 2022, reaching 2 million vehicles by the end of the year. The Shanghai plant gets upgrades to boost capacity while Tesla has two new plants in Berlin and Austin that are climbing at an icy pace. Musk said Tesla may eventually have 10 to 12 plants, and may make an announcement about the location of the next plant later this year.

Tesla stock fell early Friday. Shares rose 0.4% to 925.90 on Thursday, just above the 200-day line. TSLA stock rose strongly on the stock split news, but that likely reflects a broad market rally and better-than-expected Tesla earnings on July 20. A consolidation near the 200-day line or the handle up could create a buying opportunity.

China Stock EV

Meanwhile, Chinese electric car makers are showing some strength. BYD (BYD), which posted booming July sales on Wednesday, rose 2.6% to 38.10 on Thursday, topping the 50-day streak. BYD stock likely to have a new base after another week, but a move above the August 1 high at 38.35 may provide an early entry.

Lee Otto (LI) rose 1% to 34.32, continuing to trade between the 21-day and 50-day lines. LI stock should have a new base on the weekly chart after Friday. Li Auto is in stock at defect 50.

New (NIO) rose 3% to 20.90, rebounding from the 50-day streak. NIO stock is still below the 200-day streak.


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Thursday’s stock market rally

The stock market rally didn’t move much on the major indicators heading into the July jobs report.

The Dow Jones Industrial Average fell 0.3% on Thursday stock market trading. The S&P 500 was down 0.1%. The Nasdaq Composite Index is up 0.4%. Small cap Russell 2000 lost 0.2%.

US crude oil prices fell 2.3% to $88.50 a barrel, hitting their lowest levels since before the Russian invasion of Ukraine in late February. Gasoline futures are down 4.1%, indicating a continued slide in prices at the pump.

The 10-year Treasury yield fell 7 basis points to 2.68%.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 0.35%, while the IBD Breakout Opportunities ETF (Innovator)fit) increased by 1 cent. iShares Expanded Technology and Software Fund (ETF)IGV) made a gain of 0.2%. VanEck Vectors Semiconductor Corporation (SMH) rose 1%.

SPDR S&P Metals & Mining ETF (XME(Up 1% and ETF Global X US Infrastructure Development Fund)cradle) added 0.8%. US Global Gates Foundation (ETF)Planes) rose 0.5%. SPDR S&P Homebuilders ETF (XHB) gained 1.7%. SPDR Specific Energy Fund (SPDR ETF)XLE) down 3.7% and the Financial Select SPDR ETF (XLF) decreased by 0.3%. SPDR Healthcare Sector Selection Fund (XLV) down 0.5%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) advanced 0.8% and the ARK Genomics ETF (ARKG) rose 1.7%, both at three-month highs. Tesla shares are principal ownership via Ark Invest’s ETFs. Cathie Wood’s Ark funds also own small stakes in BYD and Nio stocks.


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Market Rise Analysis

The stock market rally had a mixed session on Thursday, trading in a narrow range. After recent strong gains, particularly tech-led advances on Wednesday, a pullback or pause would not be surprising and could be healthy.

The Nasdaq Composite is comfortably sitting above its early June highs, with the Dow Jones, S&P 500 and Russell 2000 indexes just below that resistance level.

While the major indices were quiet on Thursday, there was a lot of action in the sectors and individual stocks.

Oil and gas stocks are struggling again, with energy prices, especially crude oil, plunging. It’s hard to see the sector making meaningful progress without higher core prices.

Biotechs had another strong session, with the IBB ETF up 2.2% after Wednesday’s 3.8% jump.

While there were many dividend winners on Thursday, profit losers showed the risks of having a small cushion heading into the results. Ares Water Solutions (Appear) rose 21% following earnings after closing on Wednesday in buy territory. fortinet (FTNT) decreased by 16%, Eli Lilly (LLY) And the Quanta Power (PWR) decreased modestly, but far from buying points.

Lanthius (LNTHIt was a wild session, recording 81.43 just after the open, dropping to 66.26 a few minutes later, and briefly turning positive again before closing down 6.1% to 71.24.


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What are you doing now

The market rally is working, but investors have reasons to be wary about rapidly increasing exposure. A pullback could lead to a temporary setback for the indices, but there could be significant losses for many individual names. There is still a significant risk that the market rally will soon lose steam and decline significantly, although it may not have bottomed out recently.

Be careful about profits.

Keep working on watch lists. Stay engaged with the market, but you don’t have to stare at a computer screen all day.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

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