Bearish fears rise as Dow Jones falls; Elon Musk Lashes Over Recalls; Bitcoin Rallies, Coindesk Falls

The Dow Jones Industrial Average fell of late as fears of a recession grew after the Federal Reserve meeting. Tesla ,TSLA) CEO Elon Musk verbally recalled in a big way. coindesk ,coin) And Riot Blockchain ,riot) fell, even as bitcoin gained momentum. Eli Lilly ,LLY) popped up on an upgrade.

Meanwhile, a trio of stocks were showing impressive relative strength near buy points. JM Smucker (Swadeshi Jagran Manch, East Bankshare ,EBC) And healthequity ,Remove) all affected.


According to preliminary data, volumes on the Nasdaq were mixed, but slipped on the New York Stock Exchange.

The yield on the benchmark 10-year Treasury note rose 19 basis points to 3.7%. West Texas Intermediate crude was up 0.7% at $83.53 a barrel.

Stocks hit amid fears of recession

There is a hangover in the Dow Jones and other stocks after the latest Federal Reserve meeting on Wednesday. The Federal Open Market Committee, led by Fed Chairman Jerome Powell, raised rates by 75 basis points.

“Dot Plot” also forecasts that the fed funds rate will reach 4.6% next year before the tightening ends.

Rob Dent, senior US economist at Nomura, said the Fed’s latest move “really underscores the likelihood” of a recession within the next 12 months.

“Global equities are struggling as the world expects rate hikes too soon and potentially leading to a severe global recession,” Edward Moya, senior market analyst at Oanda, said in a note to clients. “The Fed has been able to convince the markets that they will remain aggressive in fighting inflation and many expect a further increase of 75 basis points in November.”

Dow Jones Gains, Nasdaq Falls, Small Caps Dive

The Dow Jones closed down 0.4% of late. The Nasdaq was struggling the most from the index, falling 1.4%. The S&P 500 is also trailing, down 0.8%.

S&P 500 Sectors remained mostly negative. Health and communication services were the only gainers, while financial and consumer discretionary struggled the most.

The small cap was also hit by the bears, with the Russell 2000 ending the day down 2%.

The Innovator IBD 50 ETF (ffty), a bellwether for growth stocks, dropped 2.6%.

Inside Dow Jones: Merck Shines, American Express Is Lagging

Merck was the best performer on the Dow Jones today as it converted a gain of 3.5%. However, it remained below the key 50-day EMA.

American Express stock was the worst at the venerable average, down 3.8 percent. It now sits below all of its major moving averages.

Others were the worst performers Boeing ,B. A), which fell 3.2%, and Goldman Sachs ,gs), which declined 2.4%.

Elon Musk annoyed by the recall; Tesla Stock Slide

Tesla stock fell after NHTSA released a safety recall report for 1,096,762 Tesla vehicles. This issue involves Tesla’s window automatic reversal system.

CEO Elon Musk took to Twitter to criticize the recall.

“The terminology is out of date and wrong,” he tweeted on Thursday, “This is a minor over-the-air software update. To the best of our knowledge, there have been no casualties.”

Tesla store Dipped 4.1%, losing ground on a short consolidation pattern with the 314.74 entry.

Still, the long-term performance for Tesla stock remains strong.

Earnings have grown by an average of 173% in the last three quarters, which is quite high can slim requirements, The annual results are impressive too, with its three-year EPS growth rate coming in at 197%.

bitcoin rally; Coindesk Stock Plunge

Coinbase fell hard despite bitcoin fighting back on Thursday. Coinbase ended the session down 7%, although volumes were light.

Stock got hit after following a Wall Street Journal report About an alleged new speculative crypto trading venture.

The company, which slashed its full-year forecast last month, lost ground on all of its major moving averages. COIN shares are down about 75% since the start of the year.

After gaining 4.8% on Thursday, bitcoin bounced back from lows and is well above the $19,000 mark.

However, other cryptocurrency plays struggled. Grayscale Bitcoin Trust (GBTC) gained 0.4% during bitcoin mining play Riot Blockchain ,riot) 0.5% skid.

Eli Lilly Stock Pops

Pharma play Eli Lilly was shining after UBS raised it from “neutral” to “buy.” It closed the session up 4.9%.

Analyst Colin Bristow said in a research note that the company’s new weight loss treatment could be “the greatest drug ever.” He estimated peak annual sales could reach $25 billion.

Bristow also emphasized that LLY stock is now “the most attractive name” in UBS’s large cap coverage.

The relative strength line is picking up while the stock has formed a flat base, with an ideal entry point of 335.43 Marketsmith,

Outside the Dow Jones: These 3 Stocks Flex Muscles

JM Smucker saw his relative strength line reach new heights. It comes as a cup-with-handle entry at 150, According to MarketSmith analysis,

Packaged Food Play is among the top 9% stocks in terms of price performance over the past 12 months. This is a double threat, as it offers investors a 2.9% dividend yield.

Eastern Bankshares also saw its RS line reach new heights. This is close to the cup-with-handle buying point of 21.55.

EBC is among the top 7% of stocks tracked in terms of earnings performance. It’s flat so far in 2022, which has outperformed most stocks this troubled year.

In the end, HealthEquity grew over 2%. It is in a buying zone of a consolidation pattern with a buy point of 72.80. It is among the top 5% of stocks in terms of price performance over the past 12 months.

Its RS line is trading at recent highs, which is an encouraging sign. With its impressive B+ accumulation-distribution rating, the health savings account game is getting big money behind it too.

Please follow Michael Larkin on Twitter @IBD_MLarkin For more analysis of growth stocks.

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