Some stock market gains fade after report of missile attack in Poland

The US stock market posted gains in afternoon trading on Tuesday. Indexes fell after a message on Twitter that two missiles had hit a city in Poland.




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The Nasdaq composite was up 2.5% in the afternoon, but trimmed gains to 0.6% by 1:40 PM ET. The S&P 500’s previous gains of 1.5% had all but disappeared.

The S&P 500 is approaching its 200-day moving average. The line was a level of resistance for the index, particularly in April and August. Watch how the S&P handles the next test of the line, which is still on a downtrend.

The 4,000 level is another key benchmark for the S&P 500. The index encountered resistance there on Friday and Monday. Climbing past it today, the index was below 4,000 during afternoon trading.

The Dow Jones Industrial Average returned 0.5% lower.

Indexes fell sharply after a report on the Twitter account of Faytuks News said two rockets hit the town of Przewodow in Poland, on the border with Ukraine. According to the report, two people were killed.

There was no confirmation from US news organizations. The Wall Street Journal previously reported that Russian missiles hit parts of Ukraine. Oil prices jumped on the news.

Walmart, Home Depot reports earnings

Dow Jones component walmart (WMT) moved up to gain 7% after beating premarket sales and earnings estimates. The world’s largest retailer by revenue saw same-store sales rise 8.2% and also raised expectations. Walmart has surpassed its previous best day of July 7, 2020, when it was up 6.7%, according to Dow Jones Market Data.

Another major Dow retailer, DIY store (HD) beat earnings and sales expectations for the quarter ended October, confirming its outlook. The stock returned almost 1% higher.

The small-cap Russell 2000 rose 2.1%.

Lincoln Electric (LECO) breaks out of a cup without a handle, but the volume on the maker of welding systems is light. The buy point is 148.60.

On the NYSE and Nasdaq, volume was up from the same time on Monday.

Another bit of good news for the economy: October’s producer price index (PPI) was up 8% year-on-year and up 0.2% from the previous month. Both readings were smaller than economists had expected. According to the Bureau of Labor Statistics, core wholesale prices, excluding food and energy, rose 6.7% year-on-year and were stable as of September.

The report provides more evidence that firms are losing pricing power in a cooling economy, said Comerica Bank chief economist Bill Adams.

“But even after the good news of the PPI report on inflation, the Fed will probably take a fairly aggressive tone in its decision next month,” Adams said. Home heating costs will be significantly higher this winter than last, which could account for the rise in consumer inflation expectations, as reported by the New York Fed’s survey released yesterday. the University of Michigan reports have also risen higher in the past two months.”

The yield on the 10-year Treasury fell 6 basis points during afternoon trading to 3.8%.

Stock market gets boost from Chinese stocks

Chinese equities contributed to the US equity rally.

The iShares MSCI China ETF (MCHI) was up 5.1% and the KraneShares China Internet ETF (KWEB) was up 9.4%. The Shanghai Composite closed 1.6% higher while the Hong Kong Hang Seng rose 4.1%.

President Joe Biden and Chinese leader Xi Jinping meet in Indonesia in hopes of improving the frayed relationship between the two countries. The initial reaction from both sides was optimistic.

The Innovator IBD 50 ETF (FFTY) was up 1% after previously underperforming the stock market.

Flex LNG (FLNG) exceeded earnings and sales expectations amid strong demand in the liquefied natural gas market. Still, the stock fell more than 7% in heavy volume. Flex LNG still forms a cup base with a buy point of 37.09.

Chips also boost the stock market

Lattice semiconductor (LSCC) led the IBD 50, rising 6.7% to its highest price since January. Susquehanna raised the price target from 72 to 75.

Lattice and other chip stocks appear to be rising on news that Warren Buffett’s Berkshire Hathaway (BRKB) has made its first purchase of Taiwan semiconductor (TSM) shares. Taiwan Semi gained 12%.

The Philadelphia Semiconductor Index rose nearly 4%.

Also in the IBD 50, steel maker tenary (TS) breaks out past the 34.19 buy point of a cup-with-handle base. Medpace Holdings (MEDP) regained a buy point of 231.10.

On the other hand, lithium producer living (LTHM) slid 7% in heavy volume. Other lithium stocks also fell.

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