Dow Jones rides on smaller hikes;  Russia Oil Cap Jitters: Tesla Upgrade;  Bitcoin ban in New York

Dow Jones rides on smaller hikes; Russia Oil Cap Jitters: Tesla Upgrade; Bitcoin ban in New York

The Dow Jones Industrial Average rose after Fed minutes showed smaller bulls heading into the market soon. The blue chip index rose 0.3% after the news.


The S&P 500 held at its key 4,000 level even after paring its modest earlier gains. The index rose 0.2%. The Nasdaq led the way with a 0.4% gain early in the afternoon.

The Russell 2000 Small Cap Index lagged 0.5%.

Nasdaq composite volume jumped while NYSE volume fell from Tuesday’s levels.

The S&P 500 returned gains in 51 out of 72 years between Thanksgiving and the end of the year, according to Dow Jones Market Data. Since 1950, the 50-year average performance over the roughly 40 trading sessions between those dates has only gained 1.8%.

Crude oil fell more than 4% to $77.56 a barrel as confusion over Russia’s price cap grows.

According to reports, the final cap negotiated within the G-7 is likely to be $65-$70 per barrel. This may be too high to effectively sanction Russian oil trade.

Concern that a low cap will force Russia to cut oil production could lead to a more dovish stance. Meanwhile, U.S. gasoline inventories were higher than expected.

The yield on the benchmark 10-year Treasury fell 2 basis points to 3.7%.

Economic data

First-time jobless claims rose more than the 225,000 expected. Signs of a cooling labor market, initial claims of 240,000 were up from 222,000 last week.

Durable goods rose 1% in October, raising hopes of a less severe economic downturn in 2023, rather than something more pronounced. Durable goods rose 0.2% in August and 0.3% in September.

However, the S&P Global Purchasing Managers Index signaled a contraction in October.

Services activity fell to 46.1 from 47.8 in October. Manufacturing activity also fell below the 50 threshold, to 47.6. The PMI index measures data on sales, inventories, employment and prices in the private sector. The data is likely putting pressure on the Dow Jones and other indices.

Home sales increased in October, countering rising interest rates and high prices. Seasonally adjusted new home sales reached 632,000. The Northeast and South saw increases while the Midwest and West saw declines.

The stock exchange is closed Thursday for Thanksgiving. The short session on Friday will close the week.

New York has banned Bitcoin mining which does not use renewable energy, but mining new digital assets requires high energy consumption. The ban could have a domino effect in the United States, which is currently the biggest mining hub for Bitcoin.

Dow Jones Stocks

Apple (AAPL) fell slightly but remains above its 50-day line. Other Dow leaders are posting small gains.

Selling power (CRM) and Microsoft (MSFT) gained ground. Microsoft is above its 50-day line as CRM tests it.

Energy stocks on the IBD 50 are affected by the fall in crude oil. New Fortress Energy (ENF) fell by more than 2% while Matador Resources (MTDR) plunged more than 3%. United States (MUSA) fell 1% more moderately

Stocks move today

IBD Ranking Stock Deere (DE) rose 5% after earnings. Sales were boosted by higher prices for agricultural and construction equipment. The stock is now extended from a cup-with-handle base and a buy point of 406.12.

Tuesday, Nordström (JWM) added to several retail sector earnings reports. Sales of $3.4 billion fell 3% while earnings per share of 20 cents fell 49% from a year earlier.

Shares of You’re here (TSLA) rose 5% after Citigroup analyst Itay Michaeli upgraded the sell action to neutral with a new price target of $176.

Follow Vramakrishnan @IBD_VRamakrishnan for more stock market news today.


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