Major stock market indexes opened the new trading week on a positive note but tumbled in the first hour of Monday’s session. The Dow Jones Industrial Average led the pack, rising more than 0.6%, adding to its best three-week stretch since 2020. Chinese stocks slumped after the party congress ratified Xi’s full leadership .
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The S&P 500 reversed course after a strong open but held on to 0.3% gains. The Nasdaq composite was the top loser, down 1.1%, worse than the Russell-2000 small-cap index, which was trading 0.2% lower.
The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF (QQQ) fell 1%.
The NYSE traded lower volume than the same time on Friday while Nasdaq volume was higher.
Crude oil traded flat near $85.00 a barrel while the SPDR Select Energy ETF (XLE) gained 0.4%.
Natural gas rebounded, adding 3.9%, and returned above $5 per million British thermal units.
The 10-year Treasury note yield rose to 4.27%. Bitcoin added 0.3% to $19,255.
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European markets were all positive, with the German DAX stock index up 2.2%, the Paris CAC 40 2.3% and the London FTSE 100 1% in afternoon trading.
The PMI’s October manufacturing index missed the 51.2 consensus with a 49.9 reading, while the services index came in at 46.6 versus 49.3.
Global Stock Markets: Chinese Stocks Fall
Hong Kong’s Hang Seng index fell overnight following the Chinese government shake-up and the delayed release of Q3 economic data.
Chinese stocks focused on technology sold the hardest.
Pinduoduo (PDD) sank almost 30%, Alibaba (DOWN) 16.9%, Baidu (BIDU) 17.8% and Nio (NIO) 21.9%. Instructor New Oriental Education and Technology (EDU) fell 21.8%.
KraneShares China Internet EFT (KWEB) sold off 17.6%.
Auto Parts Retailer Breaks Out
McKesson (MCK) rose 1.4% and broke out of a flat base, reaching 375.33 buy points on the MarketSmith chart.
Vertex Pharmaceuticals (VRTX) added 2.6%, breaking out of a flat base and passing a 306.05 buy point.
O’Reilly Automotive (ORLY) gained 2%, also coming off a flat base. It has reached the 750.98 buy point.
Stock Market: Big Mover With Upgrades
Semiconductor chip manufacturer Wolfspeed (WOLF) rose in early trade but fell, down 0.9% after JP Morgan upgraded the stock to overweight with a 160 price target. The company is scheduled to release fiscal Q1 2023 earnings on Wednesday. Remember that stocks can be extremely volatile with earnings releases.
Northern Oil and Gas (NOG) rose 0.6% after Raymond James raised its price target to 60 and maintained its strong buy.
Service Today (NOW) added 0.2% after Guggenheim upgraded the stock to buy. BMO Capital raised its target price to 430 and maintained its outperform rating.
Vaxcyte (PCVX) is up more than 70% on positive results from a Phase 1/2 study of its VAX-24 vaccine.
IBD 50: Movers
The Innovator IBD 50 ETF (FFTY) gained 0.6%, in line with the major stock market indexes.
Devon Energy (DVN) added 1.8% and exited a cup-with-handle base, hitting a 75.37 buy point.
Coal miner Alpha Metallurgical Resources (AMR) fell 1.8% as an IBD 50 loser.
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