BREAKING: Dow Leads Solid Market Gains; Chinese Stocks Plunge
The major stock market indexes are all in positive territory, up in the last hour and near the highs of the day. The Dow Jones Industrial Average led the pack, up more than 1.2%, and up over 350 points. Chinese stocks held their morning losses after the party congress affirmed Xi Jinping’s absolute leadership.
The S&P 500 reversed course after a strong open but still held a 1.2% gain. The Nasdaq composite strengthened, up 0.3% and nearly matching the Russell-2000 small-cap index’s 0.4% gain.
The tech-heavy Nasdaq 100-tracking Invesco QQQ Trust ETF (QQQ) added 0.5%.
The NYSE and the Nasdaq traded on higher volume than the same time on Friday.
Crude oil traded down 0.4% at $84.73 per barrel while the SPDR Select Energy ETF (XLE) gained 0.6%.
Natural gas rebounded, adding 3.9%, and is back above $5 per million British thermal units.
The 10-year Treasury note yield dipped to 4.22%. Bitcoin added 0.3% to $19,255.
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European markets were all positive, with the German DAX stock index up 1.6%, the Paris CAC 40 1.6% and the London FTSE 100 0.6% in afternoon trading.
The October Flash PMI came in a 47.3 Composite Output Index registered 47.3 in October, down from 49.5 in September. The rate of decrease was the second-fastest since 2009.
PMI manufacturing index missed the 51.2 consensus with a 49.9 reading, while the service index came in at 46.6 vs. 49.3 forecast.
Hong Kong’s Hang Seng index plunged overnight following a China government shakeup and the delayed release of Q3 economic data.
Tech-oriented Chinese stocks sold off the hardest.
Pinduoduo (PDD) sank over 24%, and down 33.64% month-to-date. The drop puts the stock pace for worst month on record, with data going back to July 2018.
Alibaba (BABA) 15.1%, Baidu (BIDU) 13.4% and Nio (NIO) 17.2%. Educator New Oriental Education & Technology (EDU) dropped 18%.
Invesco Golden Dragon China ETF (PGJ) tanked 16% as China stocks fell hard. the fund is down 52.12% year-to-date; putting it on track for its worst year since 2008, when it fell 56.5%.
KraneShares China Internet EFT (KWEB) sold off 17.6%.
McKesson (MCK) rose 1.4% and broke out of a flat base, hitting a 375.33 buy point 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 breaking out of a flat base. It has reached the 750.98 buy point.
Auto parts retailer Genuine Parts (GPC) was up 2.2% and broke out of a flat base hitting a buy point of 165.09. The relative strength line hit a new high as indicated by the blue dot on the chart.
Parsons (PSN) was up 1.3% and broke out of a flat base hitting the 43.94 buy point. The relative strength line hit a new high as indicated by the blue dot on the chart.
Semiconductor chip manufacturer Wolfspeed (WOLF) soared in early trading but has pulled back, down 1.2% after JP Morgan upgraded the stock to overweight with a 160 price target. The company is set to release fiscal Q1 2023 earnings on Wednesday. Keep in mind that stocks can be extra volatile around earnings releases.
Northern Oil & Gas (NOG) trimmed 0.3% despite Raymond James raising its price target to 60 and maintaining its strong buy rating.
ServiceNow (NOW) added 1.6% after Guggenheim upgraded the software stock to buy. BMO Capital raised its price target to 430 and maintained its outperform rating.
Vaxcyte (PCVX) skyrocketed over 69% on positive results from a Phase 1/2 study on its VAX-24 vaccine.
The Innovator IBD 50 ETF (FFTY) gained 1.2%, better than the major stock market indexes.
Devon Energy (DVN) added 1% and broke out of a cup-with-handle base, hitting the 75.37 buy point.
Coal miner Alpha Metallurgical Resources (AMR) reversed morning losses, up 2.5%.
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9:40 AM ET China stocks faced a bloodbath on Wall Street after President Xi Jinping shock move to consolidate his grip on power.
9:40 AM ET China stocks faced a bloodbath on Wall Street after President…
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