Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. Amazon.com[ticker symb=AMZN] Major earnings, but the internet giant slipped Thursday night on cloud computing concerns.
The stock market advanced sharply higher on Thursday. Meta platforms (meta) boomed with Microsoft (MSFT) stock, apple (AAPL), a parent from Google the alphabet (Google) and AMZN strongly, too.
There have been strong gains outside of these tech giants. However, market breadth remains a concern. while, Mobileye (MBLY) And Crocs (CROX) due to poor routing.
amazon, Cloud Flair (network), Skechers (SKX), First Solar (FSLR), dexcom (DXCM) And pop (popEarnings reports were notable Thursday night.
Amazon stock has fallen strongly of late after initially rallying on results. However, Safi’s share collapsed against the backdrop of mixed results and directions. SNAP also fell behind on weaker revenue and guidance. FSLR and Dexcom shares fell. SKX stock rose.
Exxon Mobil (xom) and giant Dow Jones chevron (CVX) is due Friday morning.
META stock is running IBD Leaderboard, with DXCM shares play dividend options. MSFT stock is at IBD Long-Term Leaders.
Dow jones futures today
Dow Jones futures lost a fraction of their fair value. S&P 500 futures were roughly flat. Nasdaq 100 futures fell 0.1%. AMZN stock is a giant of the S&P 500 and Nasdaq.
The Commerce Department will release the Personal Consumption Expenditures Price Index for March at 8:30 a.m. ET. PCE and core PCE are the Fed’s preferred measures of inflation, but Thursday’s first-quarter GDP report gave some strong signals about what that will be.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Amazon’s earnings easily beat first-quarter views while also increasing revenue. The e-commerce and cloud computing giant was guided by second-quarter revenue, but slightly less than operating profit. On Amazon’s earnings call, management said the Amazon Web Services cloud unit saw slower growth in April versus the first quarter.
AMZN stock, which initially rose more than 10% after hours, fell 2% on cloud comments.
Shares rose 4.6% to 109.82 in Thursday’s regular session, regaining the 200-day line and surpassing last week’s high. If it weren’t for the earnings report, investors could have used that as an early entry for Amazon stock into a bottom base dating back to February 2nd.
Other major earnings
Cloudflare’s profits outpaced, but revenue just fell. The cloud and security software company guided Q2 and full-year EPS but with a decline in revenue. NET stock fell 25% in extended action. Shares rose 0.1% to 59.58 on Thursday, closing near session lows and below the 50-day line. Cloudflare stock has a 66.30 COP with an underlying buy point.
Skechers earnings topped views but second-quarter guidance was weak. SKX rose in the night traffic. Shares fell 0.3% to 49.87 Thursday, but after plunging to 47 shortly after the open in sympathy with CROX stock. This briefly undermined the buy handle at 47.80.
First Solar’s earnings and revenue fell significantly from the views, but the company gave optimistic guidance. FSLR stock fell 8% in overnight trading, indicating a decline below the 50-day line. Shares rose 0.7% to 208.83 Thursday. First Solar slid 5.2% on Wednesday on the weak back of Enphase energy (ENPH). Investors can use the strong bounce from the 50-day line as a buying opportunity, or look at the recent consolidation as a semi-flat base with entry around 219-221.
Dexcom’s earnings modestly beat Views with revenue guidance for the full year. DXCM stock fell 3% in late trading. The maker of continuous glucose monitors fell 1.1% to 123.58 on Thursday. During the day, Dexcom stock briefly exceeded a buy point at 125.65.
Snap’s stock collapsed overnight. Parent Snapchat earned 1 cent of share in the first quarter against the expected loss of 1 cent. But revenue, users and revenue per user came to light. Snap was also guided by lower second quarter revenue. SNAP stock rose 6.3% Thursday in sympathy with Meta Platforms, but closed below the 50-day and 200-day lines.
In addition to these names, Intel (INTC) Overnight earnings, while Gilead Sciences (Moh / lacquer) And Amgen (AMGN) changed a bit. Trix (AYX) And pinterest (pins) sold.
XOM stock rose 1.2% to 116.87 Thursday, just below a 117.28 cup handle buy point, according to MarketSmith analysis.
CVX rose 0.6% to 166.95 on Thursday, finding support at the 200-day line. Chevron stock has a consolidation buy point of 189.78 but it looks much weaker than Exxon at the moment.
Stock market rise
The stock market opened higher and gained strength during the day.
The Dow Jones Industrial Average rebounded 1.6% in stock market trading Thursday. The S&P 500 jumped nearly 2%. The Nasdaq Composite Index jumped 2.4%. Small cap Russell 2000 rose 1.3%.
US crude oil prices rose 0.6% to $74.76 a barrel.
The 10-year Treasury yield jumped 10 basis points, to 3.53%. The two-year yield rose 17 basis points, to 4.1%. With economic data on Thursday showing weaker growth, stronger inflation and tighter-than-expected labor markets, the odds of another rate hike next Wednesday have returned to a default lock-down.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty) fell 0.9%, dragged down by some earnings losers such as MBLY stock and Crocs. The Innovator IBD Breakout Opportunities ETF (fit) increased by 0.4%. iShares Expanded Technology and Software ETF (IGV) rose 1.6%, supported by MSFT shares. VanEck Vectors Semiconductor Corporation (SMH) advanced by 1%, led by the chip equipment giants while some winners collapsed in early 2023.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(up 1.4% and ARK Genomics ETFs)ARKG) increased by 0.5%.
SPDR S&P Metals & Mining ETFs (XME(Boosting 1.85% and the US X Global Infrastructure Development Fund (ETF) )cradle) advanced 2.4%. US Global Gates Foundation ETF (Planes) rose 0.5%. SPDR S&P Homebuilders ETF (XHB) by 3.4%. Energy Defined Fund SPDR ETF (xle) increased by 0.4%. XOM and Chevron stocks are huge holdings in XLE. SPDR Health Care Sector Selection Fund (XLV) rose 0.5%. DXCM stock is in XLV.
SPDR Financial Selection Fund (XLF) gained 1.6%. SPDR S&P Regional Banking ETF (KRE) rebounded 1.9%.
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Market rally analysis
The rise of the stock market still relies heavily on giant technologies.
Meta stock rose 14% to a 52-week earnings high. Microsoft shares rose 3.2 percent, adding to Wednesday’s 7.2 percent gain. GOOGL stock jumped 3.7%, returning to buy territory. Apple stock rose 2.8% and Amazon cleared key levels in earnings.
However, unlike on Wednesday, all major indices rose on Thursday.
The Nasdaq Composite jumped back above the 12,000 level and recovered the 21-day moving average, after a day of bouncing back from the 50-day line. The S&P 500 and Dow Jones are back above the 21-day lines.
More importantly, market gains have been strong outside of the majors.
First Trust Nasdaq-100 Equal Weighted Index Fund (QQEWIt started slow but eventually rose 1.65%, back above the 50-day line. Invesco S&P 500 Equal Weight Fund (RSP) rose 1.6%, crossing the 200-day mark, with the 50-day line just above. But both of these ETFs are still down 1% or more for the week.
Gainers led losers strongly on Thursday, but market breadth remains a concern. New lows are easily outpaced by new highs, especially on the Nasdaq.
Some of the blue-chip stocks flashed buy signals on Thursday, but many of them are extended or returning to their positions. More broadly, market leadership is narrow and quick to shift.
Major indices still need to clear April highs and clear 2023 peaks. RSP reaching above the 50-day line will also lead to broader participation outside Meta, Microsoft and other tech majors. More buying opportunities would also be a positive sign.
At present, the stock market rally is still a bullish trend under pressure.
Earnings season beware
Net Stocks and Snap look like the latest major earnings losers.
Several blue-chip stocks suffered from an earnings sell-off on Thursday. imping (bye) fell by 39% while Mobileye and CROX stocks fell by 19% and 16%, respectively, after closing everything around buy points. Even if there was a good cushion, say a 10% gain heading into earnings, investors suffered painful losses.
A slew of massive earnings moves in recent days should remind investors to be aware of upcoming reporting dates for their positions and set rules for holding or selling ahead of results.
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What are you doing now
The market witnessed a strong rally, although it was not as strong as the large capital indicators indicate. There weren’t a lot of stocks flashing buy signals on Thursday, although several found major support during the day. Many stocks still generate profits in the next two weeks.
If the market rally continues to recover, buying opportunities will increase. Investors should have their watchlists ready with potential leaders in various sectors. But also be prepared to get out if the broad market goes down.
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
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