Stock Market Rally Awaits Fed Chief Powell, Key Economic Data; Apple Extends Slide

Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures, with Fed chief Jerome Powell and the start of key economic data on tap.

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The stock market rally closed mixed Tuesday with Apple (AAPL) once again a drag on the major indexes, along with Amazon.com (AMZN) and Tesla (TSLA). Meanwhile, Apple’s fellow Dow giants Boeing (BA), Chevron (CVX) and Goldman Sachs (GS) are near buy points.

Hewlett Packard Enterprise (HPE) and NetApp (NTAP) headlined earnings reports late Tuesday, with CrowdStrike (CRWD) and Workday (WDAY) kicking off big software reports this week.

HPE stock rose modestly in overnight trade after HPE earnings topped views. HP Enterprise stock, above its 200-day line, is working on a long cup base. NTAP stock plunged in extended action on weak NetApp revenue and guidance. WDAY stock jumped overnight on a Q3 beat and a $500 million buyback. CRWD stock dived despite beating Q3 views as subscriptions came in light and the cybersecurity firm implied a Q4 revenue miss.

On Wednesday morning, ADP will release its November employment estimate of private payrolls. The Labor Department will release job openings in the October JOLTS report. Job openings are watched closely by Fed chief Jerome Powell, who will speak Wednesday afternoon.

All that foreshadows the Fed’s favorite inflation gauge, the PCE price index, on Thursday morning, along with the November jobs report on Friday, as well as several other notable economic releases.

Investors should be cautious about opening new positions until there’s more clarity on the economy and Fed rate hike outlook. If anything they may want to be lightening positions in the very short term.

CVX stock is on IBD Leaderboard. BA stock is on SwingTrader.

Fed Chief Powell Speech

Fed Chief Jerome Powell will speak at the Brookings Institution at 1:30 p.m. ET on Wednesday. He’s expected to reinforce expectations that the central bank will shift to a 50-basis-point rate hike on Dec. 14. Markets see a 67.5% chance of a half-point move, but still a decent chance of a fifth straight Fed…

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