Dow Jones futures and S&P 500 futures dipped Wednesday morning, while Nasdaq futures fell modestly. The stock market rally diverged Tuesday, with the Dow Jones and S&P 500 hitting fresh record highs while the Nasdaq fell sharply, though it closed well off intraday lows. Surging Treasury yields drove much of the action.
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The 10-year Treasury yield rose 4 basis points to 1.67%, just below seven-month highs, after surging 12 basis points on Monday. Financial stocks boomed again, with Wells Fargo (WFC), Bank of America (BAC), JPMorgan Chase (JPM), Raymond James Financial (RJF) and Ameriprise Financial (AMP) breaking out or triggering trendline buy points.
Energy stocks also continued to rally as crude oil prices moved back toward recent highs. EOG Resources (EOG) and Diamondback Energy (FANG) broke out, while Pioneer National Resources (PXD) was among shale stocks breaking trendlines near their 50-day moving averages.
GM stock, Ford Motor (F) and Toyota (TM) led traditional automakers higher, booming on very heavy volume. General Motors (GM) and Toyota reported better-than-expected U.S. auto sales for the fourth quarter, with the latter becoming the first foreign automaker to be No. 1 in the U.S. for a full year.
Ford says it’ll double F-150 Lightning production capacity by mid-2023, with GM set to unveil the Silverado EV on Wednesday. GM stock jumped 7.5%, breaking out past two buy points. Ford and TM stock respectively raced higher 11.7% and 6.9%, both at highs and out of range.
Meanwhile, EV makers such as Tesla (TSLA) retreated, though TSLA stock is still in buy range. Most of Tesla’s EV peers fell much more.
Chip stocks also tumbled. Nvidia and AMD stock once again fell below their 50-day lines, though the latter closed above that key level.
Medical stocks continued to struggle broadly after faring well late last year.
Finally, the heavy selling in software continued, with late 2021 holdouts such as Fortinet (FTNT) plunging to start the new year.
Stocks To Watch
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