Stock Market Today Mid-Morning Updates
On Wednesday, the Dow Jones Industrial Average is up by over 400 points. This follows Tuesday’s solid gains, which some analysts say may have been an overdue relief rally. Ukraine President Volodymyr Zelenskyy today addressed the U.S. Congress in an effort to get more aid for his embattled country to fight against its invasion by Russia. Analysts also say that Kyiv could face the same scale of destruction as Aleppo in Syria or Chechen capital Grozny if the war continues to drag on.
Also, semiconductor company Nvidia (NASDAQ: NVDA) is up by over 2% on today’s opening bell after Wells Fargo (NYSE: WFC) added it to its signature picks list. The firm anticipates upbeat announcements from Nvidia at its upcoming investor day, possibly announcing its next-generation graphic cards. Aircraft parts manufacturer Boeing (NASDAQ: BA) also opened higher today after Baird says it is bullish on the company following a recent sell-off and noted that 737 MAX deliveries to China are almost resuming.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 1.15% today while Microsoft (NASDAQ: MSFT) is also up by 1.71%. Meanwhile, 3M (NYSE: MMM) and Nike (NYSE: NKE) are trading higher on Wednesday. Among the Dow financial leaders, Visa (NYSE: V) is up by 2.54% while Goldman Sachs (NYSE: GS) is also up by 2.37%.
Shares of EV leader Tesla (NASDAQ: TSLA) are up by 1.87% on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) are up by 5.01%. Lucid Group (NASDAQ: LCID) is also up by 3.30% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) opened higher today.
Dow Jones Today: 10-year Treasury Yields Highest Since 2019 Ahead Of Key Fed Decision.
Following the stock market opening on Wednesday, the S&P 500, Dow, and Nasdaq are trading higher by 1.55%, 1.36%, and 1.98% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 2.09% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is up by 1.49%.
The 10-year Treasury yield soared to above 2.16%, its highest level since 2019. Furthermore, oil prices continue to trend downwards after a record rally in the last few weeks. West Texas Intermediate crude dipped below $95 per barrel. Investors are also eagerly awaiting for the Fed to make an announcement today at 2 p.m. ET after it concludes its two-day policy meeting.
The U.S. central bank is widely expected to announce its first interest rate hike since December 2018. Fed Chairman Jerome Powell is scheduled to hold a news conference 30 minutes later. This latest step by the Fed is part of its policy tightening cycle as inflation in the U.S. economy runs hot, with the highest figures seen in decades. Also, the fallout from Russia-Ukraine could add to inflation concerns.
[Read More] Top Stock Market News For Today March 16, 2022
U.S. Listed Chinese Stocks Soar As Regulatory Pressures Ease
Among the top gainers in the stocks market today would be Chinese tech stocks. Across the board, mainstay names such as Alibaba (NYSE: BABA), JD.com (NASDAQ: JD), and Pinduoduo (NASDAQ: PDD) are gaining. In detail, these trio’s respective stocks are up by over 15%, 24%, and 35% at today’s opening bell. At the same time, there is also a similar movement among the top Chinese EV stocks in the market now. To highlight, the likes of Nio, Xpeng, and Li Auto (NASDAQ: LI) are particularly in focus right now. Overall, the companies’ shares are currently gaining by over 15%, 20%, and 24% respectively. To point out, Nio also received an upgrade from analysts over at Citi (NYSE: C). The firm cites its market share growth opportunities and ET7 deliveries as possible growth catalysts.
The current movement in all these firms is likely thanks to the latest update from the Chinese authorities on regulatory requirements. In essence, the U.S. and China are now making headway in discussions regarding the listing of Chinese stocks in U.S. markets. By extension, this would see the Chinese government ease its regulatory crackdown on major growth names in the space. This, in turn, would serve to alleviate some of the pressure from investors holding on to stocks in this section of the market today. As such, it would not surprise me to see investors turning towards the top Chinese stocks today.
Starbucks Stock Jumps After Stellar Upgrade From JPMorgan
In other news, the Starbucks (NASDAQ: SBUX) is another firm turning heads in the stock market now. For the most part, this is thanks to the company receiving a noticeably positive update from JPMorgan (NYSE: JPM). Diving right in, analyst John Ivankoe is upgrading SBUX stock from a Neutral rating to an Overweight rating. Moreover, the firm is also assigning a December 2022 price target of $101 a share to Starbucks. This would suggest a possible upside of about 13.8% from its current price of $88.73 a piece.
All in all, the analyst argues that Starbucks’ near-term headwinds will likely subside. He also adds while navigating China’s domestic policy is challenging, pandemic-era restrictions will likely loosen with time. Ivankoe also provides his technical analysis writing, “Taking price to an increasingly broad and frequent customer base always poses a risk, but the brand should still maintain its ‘affordable luxury’ status. Starbucks is the single most difficult (and tempting) stock call in our coverage. Valuation supports ‘more upside than downside,’ even on lower numbers, and while the catalyst for near-term movement is elusive, investors should allow for mean-reversion and valuation in itself to drive stock outperformance.”
After taking all this into consideration, investors are understandably keen on SBUX stock. This is evident as the company’s shares are up by over 7% at today’s opening bell. The question now is whether Starbucks can continue to effectively navigate its current operating environment effectively.