January 29, 2023


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Stock Market 2023: What to do after the year of ‘staying out’; Tesla, New and BYD Due Delivery

Dow futures will open Monday night, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) and China’s electric vehicle makers, such as Nio, Li Auto and BYD, will report deliveries at the end of the year and 2022 over the New Year holiday weekend.


Investors will be looking for a brighter stock market in 2023 after the “away” year, especially for growth. The Dow, S&P 500, and Nasdaq indexes experienced their biggest annual declines in 14 years. An attempt to rally in the stock market is underway, but it still has a long way to go to prove itself.

The Dow Jones fell below its 50-day moving average on Friday. The S&P 500 and especially the NASDAQ have some distance to go to the 50 day lines, with several other major areas of resistance along the way.

Centennial Holdings (CELH), monastery (DE), Biomarine Pharmacy (BMRN), Exxon Mobil (xom) And the midpiece (MEDP) Five stocks near the purchase points. It’s a diverse list that reflects potential areas to lead the market in the new year.

DE stock and Medspace running IBD Leaderboard. Celsius, MEDP stock is at defect 50. Deere and BMRN stocks are on IBD Big Cap 20.

It was a monastery on Friday IBD stock today.

But whether or not these stocks work depends on whether the market is heading higher. Now it is not. Investors should remain very careful.

The video embedded in the article discussed recent market action in depth and discussed what investors should do as the 2023 stock market gets underway. The video also analyzed CELH, Deere and BioMarin stocks.

The struggle of the Chinese economy

Economic activity is deteriorating in China as the abrupt end to strict Covid rules triggers huge waves of infections. The government said on Saturday that its official manufacturing index fell 1 point in December at 47. The non-manufacturing PMI, which covers the services sector and construction activities, fell 6.1 points to 41.6. Both are the lowest since February 2020, when Covid-19 first hit the country. Readings below 50 indicate contraction.

China EV delivery

New (nio), Lee Otto (L.I) And the XPeng (XPEV) on tap to report for the month of December, the fourth quarter and the full year electric vehicle delivery On Sunday, January 1, Li Auto said Friday that December shipments of its hybrid SUVs will surpass 20,000, breaking November’s record of 15,034. Nio recently lowered its fourth-quarter delivery guidance, citing issues related to Covid. The guidance included delivery of 14,263-15,263 electric vehicles in December, which would top November’s record of 14,178 vehicles. Xpeng should see deliveries pick up after several month-to-month declines, but its model lineup is struggling.

BYD will likely announce its December sales on January 3, before the US market opens on Tuesday. The EV and battery giant recently said that Covid infections among workers were reducing production by at least 2,000 vehicles per day. BYD recently said that full-year deliveries of all-electric and plug-in hybrid vehicles should be about 1.88 million. That means December deliveries are between 247,000 and 250,000, which would still be a record.

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Nio, Li Auto, Xpeng, and BYD stocks have all had a tough 2022, as have other electric vehicle makers and growth stocks in general. They all bottomed out in October or early November, but have eased in recent weeks.

Tesla vs. BYD: Which EV giant is the best to buy?

Tesla EV delivery

Tesla is expected to release electric vehicle production and delivery numbers for the fourth quarter on January 2. Analysts expect Tesla’s Q4 deliveries of 418,000, although the consensus has softened in recent days amid further weakness in China. Tesla offered great incentives at the end of the year, especially in China and the United States, to increase sales. That didn’t provide much of a boost in China, but it appears to have led to inventory liquidation in the US

In 2023, Tesla will benefit from up to $7,500 in new U.S. tax credits, though year-end incentives of $7,500 for the Model 3 or Model Y — with Model S and X vehicles added on December 30 — may have benefited from some of this. the demand . A $55,000 price cap for most Model Y vehicles could limit Tesla EV credit increases.

Meanwhile, China ends subsidies for electric cars. Combined with the massive Covid wave, that could cool sales of electric car makers out there, including Tesla. Tesla may need new deep price cuts in China, where competition from BYD, Nio, Li Auto, Xpeng and others continues to heat up.

In Europe, many countries are cutting or ending subsidies for electric vehicles, providing another headwind for Tesla as the backlog there fades.

Tesla stock fell 65% in 2022, its worst annual drop yet. Shares collapsed 37% in December to their lowest levels since September 2022. The EV giant rebounded from bear market lows in the middle of the week to end the week virtually unchanged. TSLA’s inventory volume has been very high in the past several weeks.

Dow jones futures today

Dow Jones futures open at 6 p.m. ET on Monday, along with futures for the S&P 500 and Nasdaq 100.

US stock and bond markets will be closed on Monday, January 2, in observance of the New Year.

On Tuesday, investors will receive the ISM Manufacturing Index for December. On Friday, the December jobs report looms large as the Federal Reserve looks for signs of labor market weakness.

Remember to work in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market share.

Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live

The stock market ends 2022

The stock market fell into a correction on Wednesday, but a new attempt to rally began on Thursday. Major indexes fell on Friday, closing a slightly negative week.

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The Dow Jones Industrial Average fell 0.2% in the past week Stock market trading. The S&P 500 fell 0.1%. The Nasdaq Composite fell 0.3%. The small-cap Russell 2000 lost a small part.

For the full year, the Dow Jones fell 8.8%, the S&P 500 fell 19.4% and the Nasdaq fell 33.1%. It was their worst annual performance since 2008.

The 10-year Treasury yield jumped 13 basis points last week to 3.88% after rising 27 basis points in the previous week. The 10-year yield ended in 2021 at 1.51%.

US crude oil futures rose 0.9 percent to $80.26 a barrel last week, the third consecutive weekly gain. Crude oil prices are up 6.7% for the year, but closed to highs above $130 a barrel.

Exchange Traded Funds

Among the growth ETFs is iShares Expanding Technology and Software Sector Fund (IGV) decreased by 0.3%. VanEck Vectors Semiconductor Corporation (SMH) increased by 1%.

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark) rose 0.9% last week, but after hitting a five-year low on Wednesday. ARK Genomics ETF (ARKG) decreased by 0.7%. TSLA stock is a major holding via Ark Invest’s ETF. Cathie Wood’s Ark also holds a small position in BYD stock.

SPDR S&P Metals & Mining ETFs (XME) fell by 1.9%% last week. Global Infrastructure Development Fund X US (cradle) lost 1.2%. US Global Gates Foundation ETF (Planes) fell 0.9%. SPDR S&P Homebuilders ETF (XHB) decreased by 0.8%. Energy Defined Fund SPDR ETF (xle(Up 0.5% and Financial Select SPDR ETF)XLF) advanced 0.7%. SPDR Health Care Sector Selection Fund (XLV) decreased by 0.2%.

Top five Chinese stocks to watch now

Stock market 2023: 5 stocks to watch

BioMarin fell 0.8% to 103.49 last week, declining in the second half of December, but holding support around the 21-day line. A strong rally from current levels may provide a strong entry. But investors may want to wait for BMRN shares to form a new base, or find support at the 10-week line. BioMarin’s profits are expected to triple in 2023.

Deere stock fell 1.9% to 428.76 in the past week, pulling back to its 10-week moving average, with Flat base Now on the weekly chart. the official Point purchase is 448.50. Investors may use the retracement of the 10-week line as an early entry for DE stock, perhaps after the retracement of the 21-day line.

CELH stock pulled back from its record highs in December, declining for the past four weeks, but rebounded from its 50-day line on Friday, closing at 104.04. The percentage stock could make an early entry if it decisively clears the 21-day line, with a move above the Dec. 27 high of 109.31 as a defining trigger.

XOM stock rose 1.5% last week to 110.30, just above the 50-day moving average. A move above 110.47 Dec 27 high would provide an early entry. According to MarketSmith Analysis.

MEDP stock rose modestly on Thursday from its 50-day moving average, breaking above the downtrend line on its recent consolidation. This provided an early entry into its consolidation. On Friday, as the major indexes fell again, Medpace stock fell back to the 50-day high, but closed well.

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Medpace’s move could still work, but it shows just how difficult it is for stocks to make progress.

Stock market analysis

The stock market tumbled last week, even with Thursday’s strong bounce, capping off a tough year.

Major indices are off their October bear market lows but are well below their December highs in the short term. An attempt to technically rally is underway as the 2023 stock market kicks off, but it needs to Follow-up day to confirm the new bullish trend.

Until then, the market will face a number of technical hurdles, with the S&P 500, Nasdaq, and Russell 2000 all within striking distance of the 50-day and 200-day lines. The Dow Jones, the relative leader in recent months, has fallen below the 50-day line through the end of 2022 but is above the 200-day mark.

Until there is clarity on the Fed rate endgame and the economy, the market could be range bound in a choppy sideways move.

The December jobs report on Friday, January 6th will be important. A significant slowdown in hiring and wage gains should bolster expectations for a further slowdown in Fed rate hikes, and raise hopes that peak rates are near. But strong or accelerating job and wage growth is likely to prompt a large sell-off.

It’s time to market with IBD’s ETF Market Strategy

What are you doing now

At the end of the year on IBD Live, Charles Harris, Portfolio Manager of O’Neill Global Consulting, said that it is a “hold out” market in 2022. There will be great opportunities in the future, including in innovative companies and directions, but not yet.

A number of stocks are well established, including Deere, BioMarin, and Medpace. The problem is that in the past few months a lot of stocks have been created, but these settings have generally not worked.

But investors must remain engaged and ready to act. If there is a confirmed rally in early 2023, many stocks have the potential to move quickly aggressively or sharply higher.

So work on your watchlists but enjoy the long weekend. Return to the new year refreshed, waiting for the next bull market.

Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at @employee For stock market updates and more.

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