Stock Market Indexes Closed Mixed; Equipment Stock In Buy Zone – Investor's Business Daily

BREAKING: Market Retreats As Energy Stocks Fall 

The major stock market indexes faded in the final half-hour, and closed mixed to end the session. Chinese stocks remained in a slump after a strong start to the day.
The S&P 500 was off 0.4% and the Nasdaq fell 1.4%. But the Dow Jones Industrial Average rose 0.1%. The Russell 2000 small-cap index lost 0.7%.
The S&P 500 remains below its 50-day moving average. The Dow is above its 50-day line but finding resistance at its 21-day exponential moving average.
The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF (QQQ) lost 1.4%. Volume on the NYSE and Nasdaq was higher vs. the same time on Friday, according to preliminary data.
Crude oil pulled edged up 0.2% to $79.74 per barrel. The Energy Select Sector SPDR ETF (XLE) popped 1.1%. Natural gas regained 2.2% and is trading above $5 per million British thermal units.
Bitcoin futures gave back 1.1% to $16,595. The 10-year Treasury note yield gained 10 basis points to 3.85%.
European markets closed higher, with the German DAX adding 0.4% while the Paris CAC 40 gained 0.7%. The London FTSE 100 rose 0.1%.
Odds for a 25-basis-point hike by the U.S. Federal Reserve at the February meeting stand at 63.7%. such an increase would take the fed funds rate to the 4.5%-4.75% range. Meanwhile, 36.3% are looking for a 50-basis-point hike, according to the CME Group FedWatch Tool.
October’s Case-Shiller home price index came in better than expected, down 0.5% vs. the consensus estimate for a 1.2% decline. This added to September’s 1.2% drop, and makes for a year-over-year increase of 8.6%.
Chinese authorities said the country would end its incoming travelers’ mandatory quarantine beginning on Jan. 8. Restrictions on the numbers of passengers and international flights will also be lifted. The news gave hotel and gaming stocks a lift.
IShares MSCI China ETF (MCHI) rose 3.9% and closed back above its 200-day moving average for the first time since Dec. 8.
Hotel and gaming giant Wynn Resorts (WYNN) gapped up 4.5% and led the S&P 500. The bump pushed the stock above its 21-day exponential moving average. Las Vegas Sands (LVS) also gapped up 4.2% and is back above its 21-day line. The companies have casino operations in Macao. Las Vegas Sands holds the fifth spot in IBD’s gaming and equipment industry group, while Wynn is seventh.
Solar parts manufacturer Daqo New Energy (DQ) reversed lower 0.6% as solar stocks fell broadly. Solar product component maker JinkoSolar (JKS) also retreated from earlier gains, down 0.4%, adding to Friday’s 6.7% drop.
Nio (NIO) was a big Chinese loser, down 8.3% on news it is cutting its Q4 deliveries forecast, citing Covid-related production and deliveries plus supply-chain issues.
Caterpillar (CAT) gained 1.4% and is in the 5% buy zone of a flat base from a buy point of 239.95 to 251.95. The heavy equipment maker is a Dow Jones leader today and helped the index outperform. The stock received interest after getting mentions in Reddit’s Wallstreetbets discussion board.
Moderna (MRNA) plummeted 9.5%, sending it below its 21-day line and below the 188.75 buy point. This is the third day of losses in a row for the vaccine and drugmaker. MRNA broke out of a cup-with-handle base mid-December, following positive midstage clinical trial news on its skin cancer vaccine. Shares have been choppy since that breakout, which is now looking bad.
Southwest Airlines (LUV) plunged 6% after the carrier canceled about 3,000 flights on Monday, for a total of almost 8,000 canceled flights from Thursday to Monday. The Department of Transportation called the cancellations “disproportionate and unacceptable.” While airlines in general encountered weather-related problems, Southwest got hit harder.
Dow Rises While Tesla, Moderna Lead Growth Retreat
The Innovator IBD 50 ETF (FFTY) dipped 0.4% and was in line with the S&P 500 Index.
Crocs (CROX) gained 4.8% on light volume and is extended from the 20%-25% profit zone of a base with 83.74 buy point. CROX started a run following a beat on Q3 top and bottom lines on Nov. 3.
Mobileye Global (MBLY) rose 1% as shares are starting to consolidate. The stock returned to the stock market on Oct. 26. The Israeli company is the dominant supplier of camera-based technologies used in self-driving-car systems. The company is looking to lead the autonomous-vehicle market.
Lattice Semiconductor (LSCC) was the IBD 50’s big loser, down 3.6% in light volume. Shares of the power-management chipmaker are below the 21-day line.
YOU MAY ALSO LIKE:
Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest
What Is CAN SLIM? If You Want To Find Winning Stocks, Better Know It
IBD Live: Learn And Analyze Growth Stocks With The Pros
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Want More IBD Insights? Subscribe To Our Investing Podcast
12/28/2022 The Dow Jones rose Wednesday after key economic data. Tesla stock hit a new low, threatening to add to December’s…
12/28/2022 The Dow Jones rose Wednesday after key economic data. Tesla…
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2022 Investor’s Business Daily, LLC. All rights reserved

source