Dow Jones futures fell slightly after hours, and S&P 500 futures and Nasdaq futures also fell. Netflix (NFLX) and intuitive surgery (ISRG) reported better-than-expected first-quarter profits after the close.
X
Thursday’s stock market rally once again failed to sustain early gains. Although it was technically a mixed session, the overall tone remained bearish. The Nasdaq power trend that has been going on since November is coming to an end.
NVIDIA stock briefly fell below the 50-day line and then rose slightly. However, other AI stocks were mixed. Nvidia (NVDA) Chip manufacturer taiwan semiconductor (TSM) fell below its 50-day line despite strong earnings and guidance.
meta platform (meta), hubspot (hub) and allstate (All) rebounded from major support.
tesla TSLA fell to a 52-week low as analysts became wary of Elon Musk’s new focus on robotaxis.
Nvidia and Meta stocks are listed on the IBD Leaderboard. Nvidia, Netflix, and HubSpot stocks are included in the IBD 50. Netflix, Nvidia, HubSpot, and Meta platforms are included in IBD Big Cap 20.
Dow Jones futures today
Dow Jones futures were slightly below fair value. S&P 500 futures fell. Nasdaq 100 futures fell 0.1%, weighed down by Netflix stock.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
Netflix subscribers, other revenue
NFLX stock fell solidly in extended trading, indicating a move below its 50-day line. Netflix’s subscriber numbers, revenue, and revenue all exceeded first-quarter viewing numbers, but the streaming giant fell short of second-quarter revenue. Netflix also announced that it will stop disclosing subscriber numbers starting in 2025.
Netflix shares fell 0.4% to 611.15 in regular trading Thursday.
ISRG stock rose slightly in overnight trading. Intuitive Surgical’s revenue outperformed on the back of strong growth in da Vinci surgery. The stock fell 0.35% to 372.85 on Thursday, falling further below its 50-day line. Intuitive Surgical stock performed well from late October to late March.
stock market rise
The stock market’s rally on Thursday morning tried to recover, but quickly fizzled, with the S&P 500, Nasdaq, and Russell 2000 all suffering five straight losses.
The Dow Jones Industrial Average rose about 0.1% in Thursday’s stock market trading. The S&P 500 index fell by 0.2%, but remained at the 5,000 level. The Nasdaq Composite fell 0.5%. The small-cap Russell 2000 fell 0.2%.
All major indexes are well below their 50-day moving averages.
The Nasdaq’s 21-day moving average is almost certain to fall below its 50-day line on Friday. Therefore, a down day on Friday would officially end the power trend and further confirm the change in the nature of the market.
US crude oil prices rose 4 cents to $82.63 per barrel.
Copper prices rose 2.3% to a new 52-week high.
The 10-year Treasury yield rose 6 basis points to 4.65% after the Philadelphia Fed’s manufacturing index unexpectedly rose to a two-year high.
ETF
Among growth ETFs, the iShares Expanded Technology Software Sector ETF (IGV), which includes HUBS stock, fell 0.7%. VanEck Vector Semiconductor ETF (SMH) fell 1.75%. The top SMH holdings are NVIDIA stock and TSM stock.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) fell 0.3% and the ARK Genomics ETF (ARKG) fell 0.1%. Tesla stock is a major holding across Ark Invest’s ETFs.
The SPDR S&P Metals and Mining ETF (XME) fell 0.4%. The U.S. Global Jets ETF (JETS) rose 1.4%. The SPDR S&P Home Builders ETF (XHB) fell 0.1%. The Energy Select SPDR ETF (XLE) fell 0.3%, and the Healthcare Select Sector SPDR Fund (XLV) closed marginally lower.
Industrial Select Sector SPDR Fund (XLI) fell 0.35%. The Financial Select SPDR ETF (XLF) rose 0.35% on Allstate stock.
Timing the Market with IBD’s ETF Market Strategy
nvidia stock
Nvidia stock fell below its 50-day intraday line for the first time in 2024, rising 0.8% to 846.71. The stock remains below its 21-day and 10-week lines after falling 3.9% on Wednesday.
NVDA stock has a buy point of 974 from a flat base.
Nvidia chipmaker Taiwan Semiconductor topped its earnings outlook early Thursday, posting second-quarter revenue growth driven by strong AI demand. However, due to the declining outlook for the semiconductor industry as a whole, Taiwan Semi stock fell 4.9%, below its 50-day price.
hubspot inventory
HubSpot stock rose 2.55% to 649.58, bouncing back from its 10-week line and returning volume to its 21-day line. According to MarketSurge analysis, the stock briefly regained its flat-based buy point of 660 points. HUBS stock soared on April 4th following reports from Google’s parent company. alphabet (GOOGL) was considering a bid for marketing software maker.
metastock
Meta stock rose 1.5% to 501.80, rebounding from the first 50-day test of 2024. Barring a market downturn and Meta’s upcoming earnings, the stock looked viable at its session high of 512.21.
The company has launched its Meta AI assistant and plans to roll it out across its social sites.
allstate stock
Allstate stock rose 3.8% to 169.11, with volume rebounding from its 50-day line, breaking a short downtrend and regaining a buy point at 168.05.
The relative strength line, which measures stock performance against the S&P 500 index, is at a 52-week high. The RS line is the blue line on the chart provided.
Insurers have traditionally been on the defensive and are doing well in the current market. But Allstate’s profits are expected to soar in 2024, supported by much higher premiums.
tesla stock
Tesla stock fell 3.2% to 150.44, below its April 2023 low and its worst level since January 2003. Deutsche Bank downgraded TSLA stock due to Tesla’s apparent shift from small EVs to robotaxis. That means Tesla’s current growth woes could last for several years.
Tesla’s financial results are scheduled to be released on April 23, and investors and analysts are looking for answers from Elon Musk on a conference call.
market rise analysis
The stock market was “scheduled” to bounce back, but once again it failed to sustain even the morning’s modest gains.
There is little to no reason to make new purchases in the current market, especially now that the revenue wave is coming.
Now is the time to work on your watchlist and look for stocks that maintain or recover from key levels and show relative strength.
There are very few strains that can be put to practical use.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
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