D&D Note (7.19.2022) ~ Stocks Surge with NASDAQ Gaining 3% ~ #stockmarket

D&D Note (7.19.2022) ~ Stocks Surge with NASDAQ Gaining 3% ~

We are currently in the quiet period for FED officials which creates a vacuum for stocks to rally ahead of next weeks FOMC rate meeting.

Rally stocks did today with the NASDAQ gaining 3.11%, the S&P 500 up 2.76% and the DOW rising 2.43%.

All sectors finished the day firmly in the green.

The NASDAQ retook its 50 day moving average for the first time since April which is a positive sign however the moving averages are all currently downward sloping.

The markets aren’t in the clear yet and could still retest or make new lows before rallying into year end.

The S&P 500 needs to close above 4100 to create more conviction that the low has been put in.

The UK has the hottest day ever on record hitting 104.5 degrees Fahrenheit with airport runways literally melting causing flights to be canceled.

Bitcoin is back above $23,000 with most of the leverage in the system being wiped out which should create more price stability.

Stock Specific News:

Twitter won its motion for an expedited trial in their lawsuit against Elon Musk with the 5-day trial to take place in October.

Netflix was up 7% in post market trading after reporting better-than-expected subscriber loss with only losing half as much as expected.

IBM fell over 6% after warning of a potential $3.5 billion hit from a stronger dollar.

Boeing rose 4% after announcing more orders for planes.

Semiconductor stocks rose head of the key Senate vote on the CHIPS act which would give domestic chip makers $52 billion in government subsidies.

Goldman Sachs added another 5% following their positive earnings released Monday.

Travel stocks as a general basket rallied today with travel demand among consumers remaining strong.

Hasbro gained 2% after beating an earnings with strong demand for tabletop games.

Halliburton rose 1% after reporting better-than-expected earnings.

Ford was up 6% after unveiling the F-150 Raptor pickup truck yesterday.

Exxon Mobil gained 2% after being upgraded to overweight at Piper Sandler citing another 25% gain to come in the stock.

Closing Markets (as of 1:15pm PST)

DOW up 2.43%

S&P 500 up 2.76% (3,936.69)

NASDAQ up 3.11%

VIX down -3.00% to 24.54

2 Year Note up 5.56bp to 3.23%

10 Year Note up 3.17bp to 3.02%

Oil up 1.296% to $103.93 a barrel.

Gold down -0.018% to $1709.90 an ounce.

Bitcoin up 8.05% to $23,278.43

Ethereum up 7.55% to $1,561.82

~ Dave James / Principal Trader and Market Strategist