The Dow Jones Industrial Average rose as Federal Reserve Chairman Jerome Powell issued an inflation pledge. Twitter (TWTR) rebounded as takeover bid Tesla (TSLA) CEO Elon Musk has taken another turn. New Warren Buffett stock City Group (C) increased. Boeing (BA) The top was blue chip.
A number of already significant stocks, including bullish moves Broadcom (AVGO), ZIM Integrated Shipping (ZIM) and Hunter (SHE).
According to preliminary data, volumes on both the Nasdaq and the New York Stock Exchange have risen. This is a good sign when the market is trying to rally. IBD has taken its market outlook to a “sure uptrend”.
Meanwhile, the benchmark 10-year Treasury note yield reached 10 basis points at 2.98%. Although West Texas Intermediate crude oil fell nearly 2% to more than 11 112 per barrel.
Jerome Powell market purse in inflation promise
Fed Chairman Jerome Powell has become a pipeline for the equity market. And the stock market whisper hit again because it helped guide the market higher as it issued another inflation promise.
The powerful central banker says he will not hesitate to continue raising interest rates until he can control rising prices. Powell told the Wall Street Journal, “We would not hesitate to do so if it involves taking the levels of understanding broadly into the past.”
And he said that “we are not in a place where we can say that the financial situation is in the right place” so there will be “no hesitation” to take action.
Amid fears that inflation could spiral out of control, Powell’s remarks helped boost confidence that he could achieve his so-called “soft landing”.
Nasdaq is jumping as small caps surge
Nasdaq has risen the most among the major indices as tech stocks recover. It closed the day up 2.8%. Small instruments of the future (AMD) was a major winner, up 8.7%.
The S&P 500 also took a strong move, closing up 2%. Paramount Global Warren Buffett’s news (PARA) rose 15.4% Berkshire Hathaway (BRKB) has taken a large part in the firm.
US Stock Market Today Overview
|Indicator||Symbol||Price||Profit loss||% Change|
|S&P 500||(0S & P5)||4088.93||+60.92||+2.02|
Last updated: 4:08 PM ET 5/17/2022
The S&P sector was almost all green. Consumer prudence and technology were the best performers. Consumer staples were the only area that was lower closed.
The small caps are most affected by the Russell 2000 3.1% growth.
Growth stocks had a strong day. Innovator IBD 50 ETF (FFTY), a bellowser for growth stocks, closed 2.5% higher.
Dow Jones Today: Boeing stocks close
The Dow Jones Industrial Average lags behind other key indicators but is still up 400 points, or 1.3%.
Boeing stock was the top performer as it exploded 6.5%. Marketsmith’s analysis shows that it remains well shy of its main average.
American Express (AXP) was the next best performer as it increased by 3.5%. Walmart (WMT) dived 11.4% after a disappointing earnings report.
Donald Trump gained Twitter stock by digging Elon Musk with the fall of SPAC
Tesla CEO Elon Musk was able to bring back some lost ground on Twitter as he tried to take over the social media giant. The bizarre executive has now called on the SEC to evaluate the number of Twitter users.
He said Monday that a deal for the company at a lower price was “not out of the question”, so it could be an attempt to strengthen the social media giant to accept a lower price.
Musk said in a tweet early on Tuesday that the deal “could not proceed” unless the company proved less than 5% of its accounts were fake. The CEO of Tesla claims that at least 20% of all Twitter accounts contain spam and fake accounts.
Twitter CEO Parag Agarwal defended the firm’s speculation. He said in a tweet that “internal estimates for the last four quarters were well below 5%.” And Twitter said in a statement on Tuesday that it was “committed to completing the transaction at agreed prices and terms.”
TWTR Day rose 2.5%, although it remained below the 39.31 price on April 1, just before the mask bid became public knowledge. It will take a lot of work to reach the 54.20 price offered by Mask to take the firm privately.
EV stock Tesla also ended the day 5.1% higher. It remains stagnant below its main moving average. TSLA stocks have been hit hard since news broke that Mask was trying to snap Twitter.
Donald Trump SPAC Acquisition of Digital World (DWAC), which is set to host the former president’s rival social media network Truth Social, fought late to get about a 1% increase. This remains below the original 10-week moving average.
New Warren Buffett stock has risen
Bank stock Citigroup’s news is that this is Warren Buffett’s new stock.
His firm Berkshire Hathaway has added more than 55 million shares of the firm to its portfolio. It has grown by about 8%, taking out its short-term moving average in the process.
The next move in the C-stock will be to retake its 50-day moving average. The 200-day moving average will be even harder to crack as the stock sits about 19% below this key benchmark.
While Citigroup does not qualify as a can slim stock, it certainly offers some features that will appeal to valued investors like Warren Buffett.
It currently has a very low PE ratio of 6, much lower than the S&P 500 average. It also offers a dividend yield of 4%, which is much better than the S&P 500 average.
Market rally shows bullish action; Buy one of these chip giants
Outside the Dow Jones: Makes 3 stock bases
Chip giant Broadcom ended the day with a trendline entry of 593.40. The stock has a cup-handle handle entry of 645.41. The line of relative strength has just reached a new height and remains on a long-term uptrend.
As a result of this bullish action, the stock gained a place on the prestigious IBD Leaderboard list of leading stocks on Monday.
Jim Integrated Shipping is one of the reasons to add it to your watchlist because it creates a cup base to the right. The buy point here is 79.05. It can also go to form a handle, which will provide a lower entry.
One reason for the caution is the first-quarter earnings for offshore container fleet operators due to Wednesday.
One method highlighted by Investors Business Daily is to use options as a risk reduction strategy around earnings. This is a way to capitalize on the inverse possibility of moving around the earnings of a stock, while minimizing the negative risk.
Finally, Huntsman is also worth a look because it builds a foundation with a standard buy point of 41.75. On Tuesday it rose above its 50-day moving average as it rose 3%.
Huntman Hall is a chemical manufacturer located at the top of the Highflying Basic Chemical Industry Group. Both earnings and, in particular, stock market performance are strong.
Please follow Michael Larkin on Twitter IBD_MLarkin More for growth stocks and analysis
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