Major stock indices posted small losses in a quiet Monday session as investors look to the Federal Reserve this week for answers. The central bank meets on Tuesday and Wednesday, with policymakers expected to raise rates another 75 basis points.
X
The S&P 500 fell 0.5% while the Nasdaq composite fell 0.9%. The Dow Jones Industrial Average fell 0.3%. The Russell 2000 Small Cap Index held up better than other benchmarks, gaining 0.2%. The Dow is finding support at its 200-day moving average.
The technology-heavy Invesco QQQ Trust (QQQ) ETF of the Nasdaq 100 lost 1%.
The NYSE and Nasdaq traded lower volume than Friday at the same time.
Crude oil fell 1.4% to $86.61 a barrel, while ETF Energy Select Sector SPDR (XLE) edged up 0.6%. Natural gas climbed 8.8% and topped $6 per million British thermal units.
The yield on 10-year Treasury bills rose 2 basis points to 4.04%. Bitcoin gave back 1.4% to $20,390.
European markets were all positive, with Germany’s DAX stock index up 0.4%, London’s FTSE 100 1.1% and Paris’s CAC 40 0.2% in trading. afternoon.
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Investors on the alert for the Fed
The FOMC announcement is scheduled for Wednesday, November 2 at 2:00 p.m. ET, with Fed Chairman Jerome Powell hosting a press conference at 2:30 p.m. ET. 86% now expect the Fed to hike rates by 75 basis points while 14% expect a hike of 50 basis points, according to the CME FedWatch Tool.
Investors and analysts will be looking for clues about the scale of rate hikes that could push the economy into recession next year.
They are also closely monitoring inflation figures and the employment picture, with the ADP jobs report due out Wednesday at 8:15 a.m. ET.
Stock market movements: Brazilian oil stocks plunge
Howmet Aerospace (HWM) fell 3.2% after reporting a slight drop in sales in the third quarter. It also lowered fourth-quarter sales guidance and EPS guidance for 2022.
caterpillar (CAT) fell 1% after UBS downgraded the equipment giant to neutral and raised the price target to $230.
CAT stock rose 7.7% on Thursday after beating third-quarter EPS and sales.
Actions build the right side of a base. The relative strength line has reached a new high, as indicated by the blue dot on the MarketSmith chart.
Brazilian public oil giant Petrobras (PBR) fell 5.4% on heavy volume, adding to last week’s decline after Luiz Inacio Lula da Silva won Sunday’s presidential run-off.
AMD sinks during a downgrade
Advanced micro-systems (AMD) fell 2.8% after Northland Capital Markets downgraded the stock’s performance to the outperformance market and lowered its price target to $60.
The chipmaker reports third-quarter results after the closing bell on Tuesday, with analysts looking for earnings of 72 cents per share on $5.69 billion in revenue.
AMD stock hit a two-year low earlier this month, caught in a downward spiral driven by supply chain disruptions and political disputes with China. It has lost more than 60% since hitting an all-time high in November 2021.
There is still no sign of bottoming and the relative strength rating currently sits at an abysmal 13.
Pharma Stock appears after upgrade
Manufacturer of rare disease drugs BioMarin Pharmaceutical (BMRN) rose earlier but fell 0.5%, after Oppenheimer upgraded the stock to outperform and raised its price target to $110.
Other important earnings reports this week include UberTechnologies (UBER), Arista Networks (A NET), Eli Lily (THERE IS), NXP Semiconductor (NXPI) and Pfizer (EFP).
IBD 50 Stock Market Movers
The Innovator IBD 50 ETF (FFTY) rose 0.7%, holding up better than the major equity indices.
earth stone energy (ESTE) an IBD 50 leader, adding 3.6% on lightweight volume.
Medical technology company Axonic (AXNX) gained 4.1% ahead of third-quarter results after Monday’s close.
UnitedHealth Group (UNH) rose 1.2% on light volume and broke out of a cup with handle base and hit the buy point of 553.23.
Pure storage (PSTG) rose 2.1% after Morgan Stanley overweight the stock and raised its price target to $37. Stocks are in a choppy base with a buy point of 31.52. The relative strength line has reached a new high on the chart. The company has the best EPS rating of 99.
On semiconductor (ON) fell 5.3% despite reporting third-quarter EPS and sales. The ON is ranked No. 1 in the Electronic Components and Semiconductor Manufacturing industry group. The group is ranked 141st among the 197 IBD groups. Stocks are finding support at its 50-day moving average.
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