Market Pullback Continues As Inflation Jumps; DoorDash, Upstart, And Gold Miners In Focus

TL;DR

Major indexes experience a pullback, tech stocks hit hard due to concerns about inflation and rising yield. DoorDash and Upstart report earnings, while VanEck Gold Miners ETF may provide a hedge against inflation.

Transcript

good afternoon everyone and welcome to stock market today alec quorum along with justin nielsen here with a look at the action in today's session which a lot of right across the board justin your thoughts as we kick off today's show well it certainly wasn't unexpected this is something that we've been talking about indexes being a little bit uh you... Read More

Key Insights

• 🫰 Pullbacks in major indexes were expected after an extended period of gains.
• 🧘 Exit strategies and managing positions are crucial during market fluctuations.
• 🍧 Upstart's plunge highlights the importance of having an exit strategy and considering both company performance and technical analysis.
• 🤩 Inflation and rising yield continue to be key concerns for investors.
• 💨 GDX offers an alternative way to play gold and potentially benefit from inflation.
• 👨‍🔬 Technical analysis, along with company research, helps with market timing and decision-making.
• ✳️ Defense strategies and risk management are essential components of successful trading.

Questions & Answers

Q: What led to the pullback in major indexes?

The pullback was driven by concerns about inflation and rising yield, particularly in the tech sector. The extended rally in these stocks was unsustainable, leading to a correction.

Q: How did DoorDash and Upstart perform in their earnings reports?

DoorDash initially saw an increase but closed lower due to overall market sentiment. Upstart experienced a significant plunge, missing investors' expectations despite solid growth.

Q: Why are inflation concerns and the 10-year yield causing worries in the market?

Inflation is surging, with the biggest jump since 1990. This raises concerns about a potential Fed rate hike, which could impact market conditions and profitability for banks and other sectors.

Q: Can VanEck Gold Miners ETF be a hedge against inflation?

Yes, GDX can provide exposure to gold miners and potentially benefit from inflation. However, it needs to hold above the 200-day moving average line for sustained bullish momentum.

Summary & Key Takeaways

• Major indexes, including Nasdaq, Russell 2000, Dow, and S&P 500, experienced a pullback, with Nasdaq closing below its 10-day line for the first time in a while.

• Tech stocks, such as DoorDash and Upstart, reported earnings. DoorDash saw a decrease after a potential entry level at 220 was not sustained, while Upstart plunged after raising guidance but not meeting investors' expectations.

• Inflation concerns and rising 10-year yield led to a sell-off, particularly in tech stocks. The fear of a Fed rate hike looms as inflation continues to surge.

• VanEck Gold Miners ETF, GDX, gained strength as a hedge against inflation, but it needs to hold above the 200-day moving average line for sustained upward movement.