US stock markets pared gains in Tuesday afternoon trading. The index slid after reports on Twitter that two rockets had hit a city in Poland.
The Nasdaq composite surged 2.5% at midday but cut its gain to 0.6% at 1:40 pm ET. The S&P 500’s previous gain of 1.5% was nearly wiped out.
The S&P 500 is getting closer to its 200-day moving average. The line is a resistance level for the index, especially in April and August. Watch how the S&P handles the next test of the line, which is still down.
The 4,000 level is an important benchmark for the S&P 500. The index met the resistance on Friday and Monday. While it rose past that day, the index was below 4,000 in afternoon trading.
The Dow Jones Industrial Average returned down 0.5%.
Indexes took a sharp drop after the report Twitter account of Faytuks News said two rockets hit the city of Przewodow in Poland, on the border with Ukraine. Two people were killed, the report said.
There is no confirmation from US news organizations. The The Wall Street Journal reported earlier that the Russian missile struck part of Ukraine. Oil prices jump on the news.
Walmart, Home Depot Earnings Report
Dow Jones component Walmart (WMT) gapped up, gaining 7% after beat sales and profit estimates in the premarket. The world’s largest retailer by revenue saw same-store sales jump 8.2% and also raised guidance. Walmart had its best day yet on July 7, 2020, when it jumped 6.7%, according to Dow Jones Market Data.
The small-cap Russell 2000 vaulted 2.1%.
Lincoln Electric (midget) has broken out of the language cup-without-handle, but the volume in the maker of light welding system. the buying point is 148.60.
Volume rose on the NYSE and Nasdaq compared to the same time on Monday.
In another bit of good news for the economy, the October producer price index (PPI) rose 8% on a monthly basis and 0.2% from the previous month. Both of those readings smaller than expected economists. Core wholesale prices, which exclude food and energy, rose 6.7% annually and were flat from September, according to the Bureau of Labor Statistics.
The report offers more evidence that businesses are losing pricing power in a slowing economy, said Bill Adams, chief economist for Comerica Bank.
“But even after the PPI’s report is good news about inflation, the Fed is likely to strike a fairly hawkish tone in its decision next month,” said Adams. “Home heating costs will be considerably higher this season than last, which may be behind the uptick in consumer inflation expectations reported by the New York Fed’s survey released yesterday. Inflation expectations in the University of Michigan’s survey have also ticked higher in the last two months. report.”
The yield on the 10-year Treasury note fell 6 basis points to 3.8% in afternoon trade.
Stock Market Gets Boost From Chinese Stocks
Chinese stocks contributed to the US stock rally.
President Joe Biden and Chinese leader Xi Jinping are meeting in Indonesia in hopes of improving frayed ties between the two countries. early The reaction from both sides was optimistic.
The Innovator IBD 50 ETFFFTY) rose 1% after lagging the previous stock market.
Flex LNG (FLNG) surpassed earnings and revenue expectations amid strong demand in the liquefied natural gas market. Yet the stock slid more than 7% in heavy volume. Flex LNG is still forming a the base of the cup with 37.09 buy points.
Chips also boost the Stock Market
Lattice semiconductors (LSCC) led the IBD 50, leaping 6.7% to its highest price since January. Susquehanna raised its price target from 72 to 75.
The Philadelphia semiconductor index rallied nearly 4%.
On the downside, lithium producers live (LTHM) slid 7% in heavy volume. Other lithium stocks also fell.
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