News:
The three major indexes posted losses for a second day in a row on Tuesday. But the small-cap tracker managed to eke out a small gain.
- Dow Jones -0.2%
- Nasdaq -0.9%
- S&P 500 -0.4%
- Russell 2000 +0.2%
Beneath the surface, things didn’t look so bad. 58% of stocks advanced, while 37% declined.
Sector Round Up
The sectors were split too. 5 of 11 sectors ended Tuesday higher.
At the top…
- Energy (XLE) +1.0%
- Utilities (XLU) +0.4%
- Financials (XLF) +0.3%
At the bottom…
- Consumer Discretionary (XLY) -1.0%
- Technology (XLK) -0.8%
- Communications (XLC) -0.6%
Notable Names
Uber (UBER) stock gained 12% on Tuesday after posting better-than-expected earnings.
- Gross bookings were up
- Bottom-line losses came in three times higher than estimates
- Looking forward, the company expects growth to continue in the Q4
Amazon (AMZN) fell another 5% on Tuesday…
- The stock is now 49% below its all-time high in July 2021 and has shed about 20% in the last five trading sessions
- Its market cap dropped below $1 trillion for the first time since April 2020
- The recent earnings miss and poor holiday guidance continue to drag the stock lower
Technicals:
The S&P 500 is holding critical support.
$380 is the area to watch as the Fed takes the stage today. A close below this level would be concerning for the bulls.
Other signals remain generally bullish…
- The VIX is on the decline
- RSI levels 3 of 4 are neutral, 1 is overbought
- The Put-to-Call Ratio is neutral
Timing:
Today the Fed will conclude its 2-day FOMC meeting.
At 2 pm, it will announce the size of the latest rate hike. 0.75% is expected and priced in.
We don’t know what the Fed plans to do in December. In the Fed’s final meeting of 2022, it could turn dovish and raise the rate by just 0.5%. That’s the best-case scenario for the bulls.
Markets will hang on every word Fed Chair Powell utters when he takes the stage at 2:30. He could provide clues about next month’s rate hike decision.
Three things to keep in mind today…
- The market’s reaction is more important than the announcement
- Never trust the first move
- The market loves Powell
Watchlist:
*Low Float
^Open Position
*KLXE support at $15
*^RELL resistance at $24
*NINE support at $5, resistance at $6
SLS resistance at $4
IMRA support at $4.60
ATNM on watch
AEHR support at $19
ASC on watch
ETNB support at $9, resistance at $10
NUVL on watch
^IMVT support $11
WNC on watch
PCVX support at $42
ZYME resistance at $8
HRMY support at $55 or $57
PARR support at $20 or $21
VIST support at $12.50, resistance at $14
OII support at $13.50
MCRB on watch
HLX on watch
ROL on watch
ELP resistance at $8
GILD resistance at $80