Dow Jones futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures. The stock market rally rebounded Tuesday, with the S&P 500 retaking the 4,000 level. A huge Apple iPhone factory in China faced riots overnight amid Covid restrictions.
Deere (DE) reports earnings early Wednesday, with DE stock in a buy zone. Deere earnings and guidance could be important for a variety of agriculture stocks, including CF Industries (CF) and Archer-Daniels-Midland (ADM), as well as machinery makers such as Caterpillar (CAT).
Energy stocks continue to do well. Solar leader Enphase Energy (ENPH), coal producer Peabody Energy (BTU), refiner CVR Energy (CVI), natural gas producer EQT Corp. (EQT) and LNG stock Excelerate Energy (EE) are all near buy points.
EE stock broke out on Wednesday, with Enphase moving back into a buy zone. BTU stock, CVR Energy and EQT are actionable.
Apple iPhone Factory Riots
Riots reportedly have broken out overnight at a Apple’s biggest iPhone factory in China, as hundreds of employees clashed with security. Over 100,000 workers have been forced to live on the Foxconn campus in Zhengzhou for weeks due to Covid concerns, with many reportedly not paid during that time.
This comes amid renewed lockdowns and severe restrictions across much of China as Covid cases surge.
Apple recently warned that Apple iPhone 14 Pro models would be in short supply due to the Foxconn factory in Zhengzhou.
Apple stock rose 1.5% to 150.18 on Tuesday, finding support near its 50-day line but still below its 200-day moving average.
Dow Jones Futures Today
Dow Jones futures were little changed vs. fair value. S&P 500 futures edged lower. Nasdaq 100 futures fell 0.2%.
New Zealand’s central bank hiked rates by a record 75 basis points, as expected.
Fed minutes from the November meeting will be released Wednesday.
Stock Market Rally
The stock market rally opened mixed Tuesday but gained stream for broad-based gains, closing near session highs.
The Dow Jones Industrial Average rose 1.2% in Tuesday’s stock market trading. The S&P 500 index and Nasdaq composite both jumped nearly 1.4%. The small-cap Russell 2000 popped 1.1%.
The 10-year Treasury yield fell 7 basis points to 3.76%. But the two-year Treasury yield, more closely tied to Fed policy, was roughly flat at 4.53%.
The dollar, after rallying for the prior three sessions, fell back on Wednesday. The greenback has fallen significantly since late September, especially from early November.
U.S. crude oil prices rose 1.1% to $80.95 a barrel, continuing a rebound from Monday’s short-lived dive. Gasoline futures jumped 4.3%, good news for refiners. Natural gas futures edged higher after falling more than 2% intraday.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) jumped 3.4%, helped by a number of energy and metals stocks. The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.8%. The VanEck Vectors Semiconductor ETF (SMH) popped 2.9%.
SPDR S&P Metals & Mining ETF (XME) gained 3.2%, and the Global X U.S. Infrastructure Development ETF (PAVE) tacked on 1.3%. SPDR S&P Homebuilders ETF (XHB) rebounded 1.9%. The Energy Select SPDR ETF (XLE) climbed 3.1%. The Health Care Select Sector SPDR Fund (XLV) edged up 0.9% to a seven-month high.
Energy Stocks Near Buy Points
Enphase stock rose 4% to 320.44, closing above a 316.97 cup-with-handle buy point for the first time. However, the last three…