Dow Jones futures rose after hours, as did S&P 500 futures, especially Nasdaq futures. microsoft (MSFT) and Google’s parent company alphabet (GOOGL)’s earnings soared, leading the way on a big night for quarterly results.
X
The stock market’s attempt to rally suffered heavy losses Thursday morning. meta platform (META) fell after guidance and GDP reports showed weaker-than-expected growth and strong inflation. However, major indexes narrowed their losses.
Nvidia (NVDA), broadcom (AVGO) and other AI chip and hardware businesses have rebounded due to Meta’s large capex plans.
Meanwhile, many non-tech sectors and major stocks rose.especially Chipotle Mexican Grill (CMG) broke out on earnings, and several other restaurant stocks also showed bullish moves.
Thursday’s market rally attempt showed some resilience, but nothing has been proven yet. Investors need patience.
Microsoft and Google’s earnings, guidance, and spending plans will have a huge impact on so many sectors.
dexcom (DXCM) and western digital (WDC) was among hundreds of other companies that filed reports Thursday night.
early Friday morning, exxon mobil (XOM) and the Dow Giant chevron (CVX) is up and running.
On Friday, investors will also learn the March value of the Core PCE Price Index, the Fed’s favorite inflation report. Considering the first quarter PCE data in Thursday’s GDP report, this data may have less impact on the market.
Nvidia stock is listed on the IBD Leaderboard. Microsoft stock is on the IBD Long-Term Leaders List. Google stock is included in the IBD 50 and IBD Big Cap 20. Chipotle was the IBD Stock Of The Day on Thursday.
Dow Jones futures today
Dow Jones futures rose 0.1% to fair value. S&P 500 futures rose 0.95%. Nasdaq 100 futures rose 1.4%. Microsoft is a component of the Dow Jones, S&P 500, and Nasdaq, and Google stock is a behemoth of the S&P 500 and Nasdaq.
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.
Attempt to raise the stock market
The stock market rallied from Monday to Tuesday, stalled on Wednesday, but any attempt at a rally sold off on Thursday morning following high inflation numbers in the Metaplatform and GDP reports. Although the major indexes have fared well from their early lows, they are still in a downtrend.
The Dow Jones Industrial Average fell 1% in stock market trading Thursday; IBM (IBM) and caterpillar (CAT) Decrease due to poor sales. The S&P 500 index fell 0.5%. The Nasdaq Composite plunged 2.35% immediately after the market closed, and then fell 0.6%. The small-cap Russell 2000 fell 0.7%.
Meta stock fell 10.6% to 441.38, although it bounced back from its low of 414.50. Nvidia stock rose 3.7% to 826.32, but remains below its 50-day line. Broadcom stock rose 3% and hit 50-day resistance. 50 days. Arista Networks (ANET), which counts Meta and Microsoft as its two biggest customers, surged 3.85%.
A follow-through date that confirms the market’s new attempt to move higher could come at any time, but it’s also possible that the market heads down and a longer correction takes hold.
US crude oil prices rose 0.9% to $83.57 per barrel.
The 10-year Treasury yield rose 5 basis points to 4.71%, its highest level since Nov. 1. The two-year Treasury yield, a good proxy for the Fed’s outlook for interest rates, is back in the 5% range.
ETF
Among growth ETFs, the iShares Expanded Technology Software Sector ETF (IGV) fell 0.9%. Microsoft is a big member of his IGV. The VanEck Vectors Semiconductor ETF (SMH) rose 2%, with NVDA stock its largest component and Broadcom its major holding.
The SPDR S&P Metals Mining ETF (XME) rebounded 1.7%. The SPDR S&P Home Builders ETF (XHB) fell 0.2%. Energy Select SPDR ETF (XLE) rose 0.5%, with Exxon and Chevron accounting for 40% of his ETF holdings. Healthcare Select Sector SPDR Fund (XLV) fell 0.6% and held Dexcom stock.
Industrial Select Sector SPDR Fund (XLI) rose 0.3%. Financial Select SPDR ETF (XLF) fell 0.5%.
Timing the Market with IBD’s ETF Market Strategy
microsoft revenue
Microsoft’s profit and revenue growth slightly outpaced views. Revenue from Azure and other cloud services increased 31%, outpacing views and rebounding from 30% in the second fiscal year. The Dow tech giant is scheduled to provide guidance on a conference call.
Microsoft stock rose solidly in extended trading, signaling a return to its 50-day line. The stock fell 2.45% to 399.04 on Thursday, after hitting a three-month low of 388.03 during the day.
Nvidia stock rose slightly overnight, hinting at the possibility of a 50-day ordeal. Along with Metaplatform, Arista, which counts Microsoft as a major customer, also made a leap forward.
google revenue
Google’s revenue rose 61%, easily outpacing views.
Google stock soared 15% overnight. The stock fell to 150.87 on Thursday morning, but recovered to close 2% lower at 138.01. GOOGL stock closed within buy points of 152.15 and 153.78.
Other income
Dexcom’s revenue exceeded its views. The major diabetes product company raised its full-year sales forecast, but the mid-year forecast was a little weak. The stock price fell sharply after hours, suggesting a move below the buy point. Dexcom stock rose 0.1% to 138.01 on Thursday, holding within a flat base buy point of 132.03. The stock has performed well over the past few weeks, finding support at the 50-day line.
Western Digital’s revenue outpaced its views, but its revenue outlook for the fiscal fourth quarter was a little less positive. WDC stock fell slightly in overnight trading. Memory Play stock fell 0.2% to 69.44 on Thursday, bouncing back from an intraday test of the 10-week line and an upside buy point at 65.92.
meanwhile, T-Mobile US (TMUS), intel (INTC), snap (snap), Roku (Roku), KLA (KLAC) and atlassian (TEAM) There were a number of other earnings reports late Thursday.
Exxon, Chevron On Tap
Exxon and Chevron’s financial results are expected to be released Friday morning. Exxon stock rose 0.3% Thursday to 121.36, just above its cup-based buy point of 120.70. XOM stock has a three-week last entry of 123.75, which could also act as a buy point on the handle.
Chevron stock rose 1% Thursday to 165.27, clearing the cup-with-handle buy point of 163.87. This is CVX stock’s seventh straight session of gains, and Thursday was the first time that volume was above average.
Chipotle stock leads restaurant rally
Chipotle’s revenue outpaced viewership, and growth accelerated for the second consecutive quarter. CMG stock rose 6.3% to 3,111.97, decisively breaking through the 3,023.98 buy point from its three-week low.
wingstop (WING) rose 2% to 369.90, rebounding from its 10-week line and rising near the high end of a range dating back to early March. However, the proceeds will be paid out on May 1st.
kava group (CAVA) reversed upwards, rising 3.6% to 62.59, retaking the 50-day line, entering a sharp downtrend and offering an entry. Cava’s proceeds are expected to be paid out in the coming weeks.
what to do now
The market is in a correction. The market’s attempt at a rebound began this week, but it does not yet signal a real change in character.
Waiting does not mean sitting idle. It’s important to be prepared for the next market turn, whether it’s Friday, next week, or even months away.
Energy stocks, infrastructure stocks, financial stocks, medical stocks, and some restaurant stocks continue to perform well. However, most technicians require some or a large amount of repair work.
So cast a wide net on your watchlist and stay engaged with the market. Look for stocks that are showing relative strength in a weak market and are holding support or recovering.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
Follow Ed Carson’s thread @edcarson1971 and X/Twitter. @IBD_ECarson The latest information on the stock market, etc.
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