The major stock market indexes were mixed and off the highs of the day in afternoon trading. Chinese stocks gave back earlier gains on news that China will loosen its travels restrictions from its zero-Covid policy.
X
The S&P 500 shed 0.2% and the Nasdaq gave back 1.1%. But the Dow Jones Industrial Average rose 0.3%. The Russell 2000 small-cap index also saw losses, giving up 0.4%.
The S&P 500 is below its 50-day moving average. The Dow is above but finding resistance at its 21-day exponential moving average.
The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF (QQQ) lost 1.2%.
Volume on the NYSE and Nasdaq was lower vs. the same time on Friday.
Crude oil gained 1.2% to $80.71 per barrel. The Energy Select Sector SPDR ETF (XLE) popped 1.2%. Natural gas regained 1.2% and is trading above $5 per million British thermal units.
Bitcoin futures gave back 1.1% to $16,595. The 10-year Treasury note yield gained 10 basis points to 3.85%.
European markets closed higher, with the German DAX adding 0.4% while the Paris CAC 40 gained 0.7%. The London FTSE 100 rose 0.1%.
Odds for a 25-basis-point hike by the U.S. Federal Reserve at the February meeting stand at 60.7%. That would take the fed funds yield to the 4.5%-4.75% range. Meanwhile, 39.3% are looking for a 50-basis-point hike, according to the CME Group FedWatch Tool.
October’s Case-Shiller home price index came in better than expected, down 0.5% vs. the consensus estimate for a 1.2% decline. This added to September’s 1.2% drop, and makes for a year-over-year increase of 8.6%.
China Loosens Restrictions; Hotel Stocks Benefit
Chinese authorities said the country would end its incoming travelers’ mandatory quarantine beginning on Jan. 8. Restrictions on the numbers of passengers and international flights will also be lifted. The news gave hotel and gaming stocks a lift.
Hotel and gaming giant Wynn Resorts (WYNN) gapped up 4.6% and leads the S&P 500. The bump pushed the stock above its 21-day exponential moving average. Las Vegas Sands (LVS) also gapped up 3.9% and is back above its 21-day line. The companies have casino operations in Macao. Las Vegas Sands holds the fifth spot in IBD’s gaming and equipment industry group, while Wynn is seventh.
Solar parts manufacturer Daqo New Energy (DQ) reversed lower 0.8% as solar stocks fell broadly. Solar product component maker JinkoSolar (JKS) also retreated from earlier gains, adding to Friday’s 6.7% drop.
Nio (NIO) is a big Chinese loser, down 8.6% on news it is cutting its Q4 deliveries forecast, citing Covid-related production and deliveries plus supply-chain issues.
Stock Market Movers
Southwest Airlines (LUV) plunged 4.8% after the carrier canceled about 3,000 flights on Monday, for a total of almost 8,000 canceled flights on Thursday to Monday. The Department of Transportation called the cancellations “disproportionate and unacceptable.” While airlines in general encountered weather-related problems, Southwest got hit harder.
Egg producer Cal-Maine Foods (CALM) dropped more than 1% ahead of its fiscal Q2 2023 earnings release Wednesday after the market close.
IBD 50 In Line With Stock Market
The Innovator IBD 50 ETF (FFTY) dipped 0.2% and was in line with the S&P 500 Index.
Crocs (CROX) gained 3.6% on light volume and is extended from the 20%-25% profit zone of a base with 83.74 buy point. CROX started a run following a beat on Q3 top and bottom lines on Nov. 3.
Mobileye Global (MBLY) jumped 2.5% as shares are starting to consolidate. The stock returned to the stock market on Oct. 26. The Israeli company is the dominant supplier of camera-based technologies used in self-driving-car systems. The company is looking to lead the autonomous-vehicle market.
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Stock Market Sees Pockets Of Strength; Hotel Stocks Jump
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