S&P 500 Tops Key Level In Market Rally; Riots Hit Apple iPhone

Dow Jones futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures. The stock market rally rebounded Tuesday, with the S&P 500 retaking the 4,000 level. A huge Apple iPhone factory in China faced riots overnight amid Covid restrictions.

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Deere (DE) reported better-than-expected earnings early Wednesday. DE stock was not yet trading after closing Tuesday in a buy zone.

Deere earnings and guidance are important for a variety of agriculture stocks, including CF Industries (CF) and Archer-Daniels-Midland (ADM), as well as machinery makers such as Caterpillar (CAT).

Energy stocks continue to do well. Solar leader Enphase Energy (ENPH), coal producer Peabody Energy (BTU), refiner CVR Energy (CVI), natural gas producer EQT Corp. (EQT) and LNG stock Excelerate Energy (EE) are all near buy points.

EE stock broke out on Wednesday, with Enphase moving back into a buy zone. BTU stock, CVR Energy and EQT are actionable.

ENPH stock is on IBD Leaderboard. EQT stock is on SwingTrader. Deere stock is on the IBD 50. Peabody Energy is Tuesday’s IBD Stock Of The Day.

Apple iPhone Factory Riots

Riots broke out overnight at a Apple’s biggest iPhone factory in China, as hundreds of employees clashed with security. Over 100,000 workers have been forced to live on the Foxconn campus in Zhengzhou for weeks due to Covid concerns, with many reportedly not paid during that time.

Protests also are picking up elsewhere amid renewed lockdowns and severe restrictions across much of China as Covid cases surge.

Apple recently warned that Apple iPhone 14 Pro models would be in short supply due to the Foxconn factory in Zhengzhou.

Apple stock fell a fraction early Wednesday. AAPL rose 1.5% to 150.18 on Tuesday, finding support near its 50-day line but still below its 200-day moving average.

Dow Jones Futures Today

Dow Jones futures edged up vs. fair value. S&P 500 futures rose 0.1%. Nasdaq 100 futures tilted higher.

Crude oil futures fell 3%. U.S. natural gas prices jumped 8%. On Tuesday, Europe released details on a natural price cap, starting for one year as of Jan. 1, that’s more than double current levels.

New Zealand’s central bank hiked rates by a record 75 basis points, as expected.

Fed minutes from the November meeting will be released Wednesday.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally opened mixed Tuesday but gained stream for broad-based gains, closing near session highs.

The Dow Jones Industrial Average rose 1.2% in Tuesday’s stock market trading. The S&P 500 index and Nasdaq composite both jumped nearly 1.4%. The small-cap Russell 2000 popped 1.1%.

The 10-year Treasury yield fell 7 basis points to 3.76%. But the two-year Treasury yield, more closely tied to Fed policy, was roughly…