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Dow Jones Futures: Nasdaq Fall While Bond Rates Rise; Apple, Qualcomm, JB Hunt Hold key levels

Dow Jones futures tipped lower last night, along with S&P 500 futures and Nasdaq futures. The stock market again suffered heavy losses on Tuesday as 10-year government bond yields jumped to a new high in two years.

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The Nasdaq, Russell 2000 and Dow Jones broke below the recent low levels, while the S&P 500 suffered heavy losses in a wide sale in the market.

Apple stock, Qualcomm (QCOM), CF Industries (CF), Builders FirstSource (BLDR) and Advanced car parts (AAP) are five stocks trying to find support on their 50-day or 10-week line. Apple (AAPL) retreated to its 10-week line, while QCOM shares and Builders FirstSource found support on their 50-day lines. CF Industries and to a lesser extent AAP shares jumped off these key levels.

None of these stocks are active, given the current market environment, although the CF stock is flashing with some positive signals. But everyone is worth looking closely. The relative strengths are strong for all five names.

JB Hunt Transport Service (JBHT) reported earnings after closing. The trucking company comfortably beat the views with an EPS of 58% and a turnover of 28%. The JBHT stock was slightly changed during the night. Shares fell Tuesday but have found support on their 50-day line in recent sessions, unlike many other truck stocks. The RS line for JB Hunt is at new heights.

JBHT shares and BLDR shares are at IBD 50.

The video embedded in this article analyzes the market action as well as Apple stocks, Builders FirstSource and CF Industries.

Dow Jones Futures today

Dow Jones futures fell 0.1% at fair value. S&P 500 futures fell 0.15% and Nasdaq 100 futures fell 0.2%.

In day-to-day trading, the 10-year government interest rate rose to 1.88 per cent. U.S. crude oil prices to nearly $ 87 per barrel when an explosion took an Iraq-Turkey pipeline offline.

Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.


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Stock exchange Tuesday

The stock market started weak and remained so. The Dow Jones Industrial Average fell 1.5% in Tuesday's trading session. The S&P 500 index fell 1.8 percent. The Nasdaq composite dipped 2.6 percent. Small-cap Russell 2000 fell 3.1 percent.

The 10-year government bond yield rose more than 9 basis points to 1.865%, reaching its highest in two years. US crude oil prices rose 1.9% to $ 85.43 per barrel. barrel, the highest closure since 2014.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 4%, while the Innovator IBD Breakout Opportunities ETF (BOUT) slipped 2.5%. iShares Expanded Tech-Software Sector ETF (IGV) fell 1.8 percent. VanEck Vectors Semiconductor ETF (SMH) gave up 4.5%, with the QCOM stock a remarkable holding.

The SPDR S&P Metals & Mining ETF (XME) lost 1.6% and the Global X US Infrastructure Development ETF (PAVE) fell 2.1%. The US Global Jets ETF (JETS) fell 1.8%. SPDR S&P Homebuilders (XHB) withdrew 2.85%. Energy Select SPDR ETF (XLE) increased by 0.4% and Financial Select SPDR ETF (XLF) decreased 2.2%. Health Care Select Sector SPDR Fund (XLV) fell 1.4%

ARK Innovation ETF (ARKK) reflects stocks with more speculative stories, and ARK Innovation ETF (ARKK) retreated by 4.15% and ARK Genomics (ARKG) lost 5.6%. Both are trading at an 18-month low.


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Market analysis

The stock market suffered another punitive loss on Tuesday, easily wiping out Friday's recovery from lows as soaring government interest rates shook Wall Street again.

The Nasdaq composition closed below its 200-day moving average for the first time since April 2020, undercutting the low intraday levels in January 10. The next obvious support area would be the low point in early October.

The S&P 500, which is already below its 50-day line, also below last week's lows. The Dow Jones went below its 50-day line and recent lows. Russell 2000 fell to its lowest levels since March, close to undercutting years of consolidation.

The losses were great and deep. Losers crushed the winners and growth stocks crashed again.

Many energy stocks turned lower Tuesday, although crude oil and natural gas prices rose again.

Financial conditions declined despite soaring government interest rates. Much of it had to do with Goldman Sachs (GS) sells out of its earnings miss. But rising government interest rates are a mixed blessing for the financial sector. First, the spread between short-term and long-term interest rates will not be widened. This is not good for the banks' net interest margins and may indicate concerns about economic growth, which is not great for the banks either.

All in all, Friday's recovery from low levels during the day now seems like a crack. The major indices have been selling hard from January 12th intraday highs, and more generally since January 3rd. The Nasdaq index has been volatile lower since before Thanksgiving.


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What should I do now

The stock market continues to deteriorate. Tech and small-cap stocks, as usual, led to the declines. But there were few safe havens in Tuesday's sale - except cash.

Could the market jump on Wednesday? Of course, the market has had lots of rejections, some lasting a few days, over the last few weeks. But they have not held.

Investors should wait for clear evidence of a sustained upward trend. You must preserve your capital - and your mental capital.

Relative strength remains paramount, as well as stocks that find key support, such as Apple shares and Builders FirstSource. Keep in mind that many stocks that had held up well are starting to break down. So keep your lists up to date.

Patience is the key. Do not jump with the gun, but do not walk away. Stay engaged so you are ready to take advantage of the next bullish market move. It may come in a few days or a few weeks or months.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

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

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