stock market weakens at midday as it awaits Powell’s speech; This IBD indicator excels

The stock market weakened at midday on Tuesday, sending major indexes near today’s lows. The apparent easing of Covid restrictions in China cannot offset stock market fears about upcoming data and Jerome Powell’s rhetoric.

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The Nasdaq Composite fell 0.6% and the S&P 500 fell 0.4%. The Dow Jones Industrial Average fell 0.3%. apple (AAPL) weakened, and fell deeper below the 50-day moving average.

Small caps challenged the major benchmarks, with the Russell 2000 up 0.3%. Trading volumes on the New York Stock Exchange and Nasdaq jumped compared to the same time on Monday.

Today’s declines compound Monday’s losses of about 1.5% in the major indexes. The The S&P 500 fell back below 4,000 Monday’s sell-off and remained below this level.

Hibit (HIBB) fell more than 11% on heavy volume, although it pared losses after bouncing off the 50-day line. According to FactSet, the sporting goods retailer missed its first-quarter sales and profit forecasts.

Chinese stock markets rose

Beijing has indicated it will ease some of the Covid lockdowns that have sparked protests in several Chinese cities.

China’s National Health Regulator Reduce the risks of the Covid Omicron variant And she announced that she would increase vaccinations for the elderly. In addition, Chinese regulators have eased restrictions on real estate companies seeking to increase equity financing domestically.

The Shanghai Composite Index jumped 2.3%, hitting its highest close since Sept. 15, according to market data from Dow Jones. The Hang Seng rose 5.2%, its best day since November 11th. The Hong Kong benchmark is up 24% in the month so far.

iShares Hong Kong ETF (EWH) approximately 3%. Support ETF held in 50-day moving average Since the gap above it Nov 11th.

A handful of Chinese stocks rebounded after earnings reports. video streaming service Bilibili (Bailey) rose by more than 22%, rising again above the 50-day moving average. Social networking platform Joey (YY) rose nearly 8% and Kanzhun (BZ) gained 13.5%. software company Pawson (bzun) missed the rally, closing 2.2% at midday.

All of these stocks are in deep corrections.

E-commerce portal binduodu (PDD) broke the base of the cup on Monday after a strong earnings report and added 6% in midday trade. It is now extended beyond 5% buy zone.

The Innovator IBD 50 ETF (fifty) was flat, yet it outperformed the major stock indices. The same energy stocks that hurt the index on Monday gave the IBD 50 a boost today.

Crude oil pared its gains by 0.2%, at $77.33 a barrel. Earlier, oil rose about 2% on hopes of easing the Chinese lockdown.

The housing market stretched weak spell.

The S&P CoreLogic Case-Shiller home price index slowed to an increase of 10.9% in September, from 13.1% a year earlier. Economists had expected a 10.9% increase, according to Econoday. The index fell 1.5% in September from the previous month – the third consecutive monthly decline.

SPDR S&P Homebuilders ETF (XHB) 0.2% and corresponds to resistance at The 200-day moving average.

Investors are waiting for Powell’s comments

On the economic front, Federal Reserve Chairman Jerome Powell will deliver a speech on Wednesday at the Brookings Institution that will get the full attention of stock market investors. Powell will also take some questions from the participants.

In other economic events, the November jobs report is released on Friday. The latest jobless claims and manufacturing sector data are due on Thursday.

The Conference Board’s consumer confidence survey for November fell to 100.2 from 102.2 the previous month. The survey hit a four-month low and was the second consecutive monthly decline.

In an analysis of the survey, BMO Capital Markets economist Priscilla Thiagamurthy said consumers cut back on their plans to make major purchases in the next six months.

“This is good news for the Federal Reserve in an effort to curb demand and restore price stability,” she noted. “While households have, thus far, proven to be more resilient than expected amid a strong labor market and excess savings, inflationary pressures will continue to be a significant headwind to consumer sentiment and spending plans.”

Also in the poll, 45.8% of respondents said jobs remain plentiful, up from 44.8% in October. Those who think it is difficult to get steady jobs at 13%.

The yield on the 10-year Treasury rose 2 basis points, to 3.72%.

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