Dow Jones futures trimmed losses in volatile trading on Wednesday morning, along with S&P 500 and Nasdaq futures, after the Bank of England abruptly announced plans to buy long-dated UK bonds, supporting the drop in the pound sterling.
The 10-year Treasury yield, briefly topping 4%, fell sharply.
In the meantime, Apple (AAPL) is reportedly holding back iPhone production. That iPhone report is weighing on shares of Apple and iPhone chipmakers like Taiwan Semiconductors (SST), broadcom (AVGO), Qualcomm (QCOM) Y Qorve (QRVO).
biogene (BIB) and Japanese partner Eisai reported that their Alzheimer’s drug reduced cognitive decline in a late-stage trial. BIIB shares soared.
Early Wednesday, Tesla’s rival BYD (I’M GOING TO) will carry out a european launch event, as rapid global expansion continues. Commissioning of electric vehicles in China child (LITTLE BOY) will hold its own European event next week.
BOE buy bonds
The Bank of England announced that it will temporarily buy long-term British bonds, a major setback for a central bank that has been tightening for months.
The British pound rebounded, at least briefly. Gold yields fell sharply.
The pound had tumbled in recent days after new UK Prime Minister Liz Truss announced a package of deficit-financed loans. UK bond yields had soared, straining the global financial system.
Dow Jones Futures Today
Dow Jones futures fell 0.1% against fair value in the Bank of England move, swinging between slight gains and losses. S&P 500 futures fell 0.2%. Nasdaq 100 futures were down 0.7% but were down more than 1%.
Futures are definitely volatile.
Apple stock is a member of the Dow Jones Composite, S&P 500 and Nasdaq. Broadcom, Qorvo and QCOM stock are all on the S&P 500 and Nasdaq, along with TSLA stock.
The 10-year Treasury yield hit 4.005% earlier in the morning, but then fell 8 basis points to 3.9% on the BOE move.
Crude oil futures rose.
Remember that the overnight action in dow futures and elsewhere does not necessarily translate to actual trading in the next regular stock Exchange session.
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stock market tuesday
The stock market closed mixed on Tuesday, but after a strong open it quickly pulled back lower, with the S&P 500 index undermining its intraday bear market lows.
The Dow Jones Industrial Average fell 0.4% on Tuesday stock trading. The S&P 500 index fell 0.2%. The Nasdaq Composite rose 0.25%. The small-cap Russell 2000 rose 0.3%.
The 10-year Treasury yield jumped 9 basis points to 3.96%, a new 12-year high.
Five best Chinese stocks to watch now
Apple iPhone production
Apple has told vendors to plan for 90 million iPhone phones in the current fiscal year, Bloomberg reported. Tech titan Dow Jones had hoped to make six million more phones, but the expected surge in demand failed to materialize, the latest sign of weak spending on consumer electronics.
Apple shares fell 3.5% before the open.
The shares rose 0.7% to 151.76 on Tuesday, a second straight slim gain. Stocks are still below their 50 and 200 day moving averages. But relative strength line for AAPL shares is at a record high, according to MarketSmith Analysis.
Shares of TSM, Broadcom, Qorvo and Qualcomm are at or near 52-week lows. Taiwan Semi and QRVO shares fell 2% before trading, while Qualcomm sank 1%. AVGO shares were not yet listed.
Biogen Alzheimer’s Drug
Biogen and Eisai reported late Tuesday that their drug lecanemab reduced cognitive and functional decline by 27% compared to a placebo in an 18-month phase 3 trial in patients with early-stage Alzheimer’s.
Alzheimer’s drugs have been elusive. The FDA, in a controversial move, last year approved Biogen’s aducanumab for Alzheimer’s despite concerns about its efficacy. Medicare has limited coverage of aducanumab, severely limiting its use.
Biogen shares, after an initial spike in June 2021 with FDA approval, have been trending lower for months.
BIIB shares were up 43% early Wednesday.
Tesla vs. BYD: Which giant EV is the best buy?
BYD Europe launch event
The Chinese electric vehicle and battery giant held a virtual event to kick off its grand European expansion and release European prices. BYD currently sells the Tang SUV in limited numbers in Norway. The automaker will expand into Germany and much of Europe, adding the Han sedan and Atto 3 small crossover to its options. With BYD looking to at least double sales by 2023 to four million, it needs to gain a solid foothold in the world’s No. 2 electric vehicle market.
On October 7, Nio will hold his own European event. It will showcase its 2022 models, the ET7 luxury sedan, the ES7 SUV and the ET5, a rival to the Tesla Model 3 that will begin deliveries in China on September 30.
On October 1, Nio will launch September and Q3 deliveries, but the startup expects record sales every month in Q4. BYD is likely to release monthly and quarterly sales a day or two later. Both should be records once again.
Tesla should release third quarter global production and deliveries over the weekend. Tesla should report record deliveries, but demand from China is a bit of a concern.
BYD shares fell 1.4% on Tuesday to 26.68, near four-month lows. Nio shares fell 2.4% to 17.19, still on a bottoming basis but falling further from its 200 and 50 day lines.
Shares of Tesla rose 2.5% to 282.94 on Tuesday, although they found resistance at the 50-day line. TSLA shares have a buy point of 314.74 from a short base within a long deep consolidation.
Tesla fell modestly on Wednesday as Citigroup cut third-quarter delivery targets and said the fourth quarter was at risk.
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