Dow Jones futures rose slightly overnight, while the S&P 500 and Nasdaq futures rose solidly as Facebook’s Meta Platforms (FB) parent rose sharply.
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The stock market tried to rebound on Wednesday, with Dow Jones giants Microsoft (MSFT) and Visa (V) jumping profits while Boeing (BA) fell. But the Nasdaq destroyed a big day’s profit to close steadily, while the Dow and S&P 500 made little progress.
Shares of Tesla rose, but regained only a fraction of Tuesday’s decline. Meanwhile, shares of TWTR fell for the second day in a row amid fears that Tesla CEO Elon Musk may abandon the deal with Twitter.
Facebook reported profits after the closure, along with other technology companies PayPal (PYPL), ServiceNow (NOW) and Qualcomm (QCOM), as well as Ford Motor (F). But all these former leaders are in significant decline.
Meanwhile, the winner of the pandemic action Teladoc Health (TDOC) also announced. TDOC shares have already improved their huge profits for 2020.
Early Thursday, Eli Lilly (LLY) and giant Dow Jones Merck (MRK) are available, both near points of purchase. Shares of Dow Caterpillar (CAT) and McDonald’s (MCD) are also pre-opening, along with Twitter.
Meanwhile, Apple (AAPL) emerges on Thursday night. Shares of Apple rose on Wednesday, but hit resistance at its 200-day moving average.
Shares of Tesla (TSLA) and Microsoft are on the IBD Leaderboard. Shares of Microsoft and NOW are among the long-term leaders of IBD.
Dow Jones futures today
Dow Jones futures rose 0.3% to fair value. S&P 500 futures rose 0.8%. Nasdaq 100 futures jumped 1.4%, driven by FB stocks and other technology gains.
Remember that the action at night in Dow futures and elsewhere does not necessarily turn into actual trading in the next regular session of the stock market.
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Key profits
Profits on Facebook and daily active views exceed forecasts, while revenues come to light. Shares of FB rose 18% in overnight trading. Shares fell 3.3 percent to 174.95 on Wednesday, the lowest level in two years after Alphabet, the parent of Google (GOOGL), missed out on earnings, a bad sign for online advertising.
PayPal’s profits were consistent, while revenues slightly exceeded targets. Shares of PYPL rose 5% over the long term. Shares fell 1.3% to 82.61 on Wednesday, just above the lowest level of the coronavirus since March 2020.
ServiceNow’s profits easily outperform, while revenue is also at the top. Shares of NOW jumped 7% overnight. Shares of ServiceNow rose 2.3 percent on Wednesday to 466.29 after hitting a 23-month low on Tuesday.
Qualcomm’s profits exceeded forecasts and the company is looking higher for the current quarter, alleviating fears of declining demand for smartphones. QCOM shares rose more than 5% in expanded trading. Shares of Qualcomm rose 1.2% to 135.10 on Wednesday after falling to its worst level since October. Qualcomm’s earnings and guidelines are also encouraging signs of Apple’s earnings on Thursday night.
Ford’s profits slightly outpaced viewings, while the carmaker confirmed its full-year targets. Shares of Ford rose overnight. Shares rose 0.5% to 14.78 on Wednesday after General Motors (GM) said it saw solid output growth in 2022.
Teladoc reported a larger-than-expected loss and a surprising $ 6.6 billion impairment charge. The telehealth specialist also cut guidelines for 2022. TDOC shares fell 37% overnight, targeting a four-year low. Shares of Teladoc fell 3.1% on Wednesday to 55.99, from a February 2021 peak of 308.
An attempt to rally on the stock market begins
The stock market was up and down on Wednesday, with the close closing slightly changing. The Dow Jones industrial average rose 0.2% on Wednesday. The S&P 500 also rose 0.2%. The Nasdaq index fell less than 2 points. Russell 2000 with a small capitalization fell 0.4% to its lowest point since December 2020.
Crude oil prices in the United States rose 0.3% to $ 102.02 a barrel. The yield on 10-year bonds increased by 4 basis points to 2.82%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.3%, while the Innovator IBD Breakout Opportunities ETF (BOUT) earned 0.1%. The iShares Expanded Tech-Software Sector ETF (IGV) closed slightly above profitability, with MSFT and ServiceNow shares large. The VanEck Vectors Semiconductor ETF (SMH) fell 0.5%, with QCOM shares in SMH.
Reflecting the more speculative stock history, the ARK Innovation ETF (ARKK) fell 2.2% and the ARK Genomics ETF (ARKG) 0.65%. Both reached 23-month lows during the day. Tesla shares remain No. 1 in Ark Invest’s ETFs. TDOC shares are also a major holding of Ark Invest, as fund manager Katie Wood added to the position recently. ARKK and ARKG fell solidly overnight.
The SPDR S&P Metals & Mining ETF (XME) rose 1.8 percent and the Global X US Infrastructure Development ETF (PAVE) rose 0.8 percent. The US Global Jets ETF (JETS) rose 0.9%. The SPDR S&P Homebuilders ETF (XHB) was down 0.2%. The Energy Select SPDR ETF (XLE) was up 1.5% and the Financial Select SPDR ETF (XLF) was down 0.1%. The Health Care Select Sector SPDR Fund (XLV) lost 0.2%.
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Tesla shares
Shares of TSLA rose 0.6% to 881.51 after falling 12.1% on Tuesday, undermining the 50-day and 200-day lines. Shares rose to 918 during the day, but faded badly, failing to close their 200-day line on Wednesday.
Tuesday’s sell-off may have been sparked by fears that CEO Elon Musk would sell shares in TSLA to fund his Twitter buyout. But in the context of stock growth, Tesla shares have not fallen particularly sharply in the last few weeks.
Meanwhile, shares of Twitter fell 2.1% to 48.64, falling even further than the takeover price of $ 54.20. The market sees a small but not insignificant risk of Musk abandoning the deal, causing a massive sell-off of TWTR shares. Musk continued to make derogatory comments about Twitter and its staff and policies following the announcement of the deal on Monday.
BYD is almost equal to the hot profit growth of Tesla, ready to take the crown of EV
Market Analysis
The stock market tried to bounce back on Wednesday with the profits of Microsoft and Visa, but the profits disappeared. The Dow Jones and S&P 500 technically started rally attempts on the stock market, but not Nasdaq, which closed partially lower.
Even at the highest values of the session, the main indices were still well below their 10-day moving averages, not to mention their 21-day or 50-day lines. If the Dow and S&P 500 manage to keep the bottom from Wednesday, the next day may come as early as next week to confirm a new market rally.
But until then, it’s a market correction, with the Nasdaq in a full bear market.
Profit season will remain fierce for the next few weeks, with Apple shares making huge headlines on Thursday. Next week, the Federal Reserve is likely to raise interest rates by 50 basis points and agree to start cutting its balance sheet.
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What should we do now
Wednesday’s action was definitely not inspiring. Even if the market had closed at the maximum of the session, this in itself would not have made sense.
For now, investors should stay away, with little or no exposure. But stay engaged and make these watch lists.
Defense companies still look strong, while energy reserves are usually kept in bases. The game of steel and fertilizer maintains key levels. Tourist stocks and REITs are trying to hold back or form new points of purchase.
But as mining stocks have recently shown, even the leading sectors can quickly fall apart in a weak market.
Read the Big Picture every day to stay in line with market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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