Dow Jones futures fell Wednesday morning, along with S&P 500 and Nasdaq futures. The 10-year Treasury yield edged closer to 4%, while Apple (AAPL) would hamper iPhone production.
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This iPhone report will likely weigh on Apple stocks and iPhone chipmakers such as Taiwan semiconductor (TSM), Broadcom (AVGO), Qualcomm (COMQ) and Qorvo (QRVO).
Meanwhile, biogenic (IBIB) and its Japanese partner Eisai reported that their Alzheimer’s drug reduced cognitive decline in a late-stage trial.
Early Wednesday, Tesla’s rival BYD (BYDDF) will hold a European launch event, as it continues rapid global expansion. Electric start in China Nio (NIO) will host its own European event next week.
Dow Jones Futures Today
Dow Jones futures fell 0.4% from fair value. S&P 500 futures fell 0.55%. Nasdaq 100 futures fell 0.8%. Apple stock is part of the Dow Jones, S&P 500 and Nasdaq composite. Broadcom, Qorvo and QCOM stocks are all on the S&P 500 and Nasdaq, as well as TSLA stocks.
The 10-year Treasury yield rose 2 basis points to 3.98%.
Remember that overnight action in Futures contracts on Dow and elsewhere does not necessarily translate into actual trading over the next stock Exchange session.
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Stock market tuesday
The stock market closed mixed on Tuesday, but after a strong open, it quickly reversed lower as the S&P 500 index moved above its intraday bear market lows.
The Dow Jones Industrial Average slipped 0.4% on Tuesday stock market trading. The S&P 500 index fell 0.2%. The Nasdaq composite climbed 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.
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Apple iPhone production
Apple has asked its suppliers to forecast 90 million iPhone handsets in the current fiscal year, Bloomberg reported. Tech titan Dow Jones expected to manufacture an additional six million handsets, but the expected surge in demand failed to materialize, the latest sign of weak spending on consumer electronics.
The news broke after extended trading ended, so investors will have to wait until Wednesday’s pre-market to get a sense of the impact. Apple stock 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 the relative force line for AAPL stock is at an all-time high, according to MarketSmith Analysis.
TSM, Broadcom, Qorvo and Qualcomm stocks are all near or near 52-week lows.
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 disease.
Drugs for Alzheimer’s disease have been elusive. The FDA, in a controversial move, last year approved Biogen’s aducanumab for Alzheimer’s disease despite concerns about its effectiveness. Medicare has limited coverage of aducanumab, which severely limits its use.
Biogen stock, after initially peaking in June 2021 with FDA approval, has been trending lower for months.
BIIB’s stock was halted overnight.
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BYD Europe Launch Event
The Chinese electric vehicle and battery giant will host a virtual event to kick off its big European expansion. BYD is currently selling the Tang SUV in limited quantities in Norway. The automaker will expand to Germany and much of Europe, adding the Han sedan and Atto 3 small crossover to its options. As BYD looks to at least double its sales in 2023 to four million, it needs to establish a firm foothold in the world’s second-largest electric vehicle market.
On October 7, Nio will host their own European event. It will showcase its 2022 models, the ET7 luxury sedan, ES7 SUV and ET5, a Tesla Model 3 rival that will begin deliveries in China on September 30.
On October 1, Nio will release September and Q3 shipments, but the startup expects record sales every month in Q4. BYD will likely release monthly and quarterly sales a day or two later. They should both be records again.
Tesla is expected to release third-quarter global production and shipments over the weekend. Tesla is expected to report record deliveries, but Chinese demand is a bit of a concern.
BYD stock fell 1.4% on Tuesday to 26.68, near four-month lows. Nio shares fell 2.4% to 17.19, still at a low base but falling further from its 200 and 50-day lines.
Tesla stock soared 2.5% to 282.94 on Tuesday, although it hit resistance at the 50-day line. TSLA stock has a buy point of 314.74 from a short base in a deep long consolidation.
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