Dow Jones Futures: Facebook Leads Revenue Winners After Market Strikes Back; ARK Stock Teladoc crashes

Dow Jones futures rose slightly overnight, while S&P 500 futures and Nasdaq futures rose solidly as Facebook parents Metaplatforms (FB) increased with strong earnings.


The stock market tried to bounce on Wednesday with the Dow Jones giants Microsoft (MSFT) and Visa (V) Jump on revenue while blue-chip Boeing (BA) fell. But the Nasdaq wiped out a large intraday gain to close flat while the Dow and S&P 500 made small gains.

Tesla shares rose higher, but only recovered part of Tuesday’s fall. Meanwhile, the TWTR share fell for the second day in a row amid fears that Tesla boss Elon Musk could walk away from the Twitter agreement.

Facebook reported earnings after the close, along with other technology companies PayPal (PYPL), ServiceNow (NOW) and Qualcomm (QCOM), as well as Ford Motor (F). But all of these former leaders are in significant downturns.

Meanwhile, winner of pandemic stock Teladoc Health (TDOC) also reported. The TDOC share had already reversed its huge gains in 2020.

early Thursday, Eli Lilly (LLY) and the Dow Jones giant Merck (MRK) is in print, both close to buying points as well. Dow shares larva (CAT) and McDonald’s (MCD) is also before the opening, along with Twitter.

Meanwhile, apple (AAPL) threatens Thursday night. Apple shares rose on Wednesday, but met resistance at their 200-day moving average.

Tesla (TSLA) and Microsoft stocks are on the IBD Leaderboard. Microsoft and NOW shares are on IBD Long-Term Leaders.

Dow Jones Futures today

Dow Jones futures rose 0.3% relative to fair value. S&P 500 futures rose 0.8%. Nasdaq 100 futures rose 1.3%, led by FB shares and other technology revenue winners.

Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

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Key income

Facebook earnings and daily active views beat the forecasts while earnings came to light. The FB share rose 18% in overnight trading. Shares fell 3.3% to 174.95 on Wednesday, the lowest level in two years, after Google parent Alphabet (GOOGL) lost revenue, in a bad sign for online advertising.

PayPal revenue was in line while revenue exceeded targets slightly. The PYPL share rose 4% in extended action. Shares fell 1.3% to 82.61 on Wednesday, just above the corona lows in March 2020.

ServiceNow revenue easily beat impressions while revenue also peaked. The NOW stock jumped 7% overnight. The ServiceNow share rose 2.3% on Wednesday to 466.29, after reaching a low of 23 months on Tuesday.

Qualcomm revenues topped forecasts, and the company led higher for the current quarter, easing fears of declining demand for smartphones. QCOM shares rose 6% in expanded trading. Qualcomm shares climbed 1.2% to 135.10 on Wednesday, after falling intraday to the worst level since October. Qualcomm revenue and guidance are also hopeful signs for Apple revenue on Thursday night.

Ford revenues barely topped the number of impressions, while the carmaker confirmed its full-year targets. Ford shares rose more than 1% in overnight action. Shares rose 0.5% to 14.78 the following Wednesday General motors (GM) said they see solid production growth in 2022.

Teladoc reported a larger-than-expected loss and a surprising write-down of $ 6.6 billion. The telecommunications health specialist also cut the guidance for 2022. The TDOC share crashed 37% overnight, on target for a low level of four years. The Teladoc share fell 3.1% on Wednesday to 55.99, against the peak in February 2021 at 308.

Attempts at stock exchange rally begin

The stock market was up and down on Wednesday, and ended in the end little changed. The Dow Jones Industrial Average rose 0.2% in Wednesday’s trading session. The S&P 500 index also rose 0.2 percent. The Nasdaq composite closed less than 2 points. Small-cap Russell 2000 fell 0.4% to its lowest point since December 2020.

The US crude oil price rose 0.3 percent to $ 102.02 a barrel. The 10-year government interest rate rose 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) gained 0.1%. iShares Expanded Tech-Software Sector ETF (IGV) closed just over break-even, with MSFT shares and ServiceNow both large holdings. VanEck Vectors Semiconductor ETF (SMH) fell 0.5%, with the QCOM stock in SMH.

As a result of more speculative history shares, the ARK Innovation ETF (ARKK) fell 2.2% and the ARK Genomics ETF (ARKG) 0.65%. Both reached a 23-month low during the day. The Tesla stock is still number 1 across Ark Invest’s ETFs. The TDOC share is also a large holding in Ark Invest, as fund manager Cathie Wood recently added to the position. ARKK and ARKG fell solidly overnight.

The SPDR S&P Metals & Mining ETF (XME) rose 1.8% and the Global X US Infrastructure Development ETF (PAVE) rose 0.8%. US Global Jets ETF (JETS) rose 0.9%. SPDR S&P Homebuilders ETF (XHB) fell 0.2%. Energy Select SPDR ETF (XLE) rose 1.5% and Financial Select SPDR ETF (XLF) fell 0.1%. Health Care Select Sector SPDR Fund (XLV) lost 0.2%.

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Tesla shares

The TSLA stock rose 0.6% to 881.51 after plunging 12.1% on Tuesday, falling below the 50-day and 200-day lines. The stock rose to 918 during the day, but faded poorly and could not close above the 200-day line on Wednesday.

Tuesday’s sale may have been triggered by concerns that CEO Elon Musk will sell TSLA shares to fund his Twitter purchase. But in connection with growth stocks, the Tesla stock has not fallen particularly hard in recent weeks.

Meanwhile, Twitter shares fell 2.1% to 48.64, further withdrawing from the $ 54.20 acquisition price. The market sees a small but not small risk that Musk will deviate from the agreement, triggering a massive TWTR share sale. Musk has continued to make derogatory comments about Twitter, its employees and guidelines, since the announcement of the agreement on Monday.

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Market analysis

The stock market tried to bounce on Microsoft and Visa revenues on Wednesday, but the gains withered. The Dow Jones and S&P 500 have technically started stock market rally attempts, but not Nasdaq, which closed fractionally lower.

Even at high sessions, the large indices were still well below their 10-day moving averages, let alone their 21-day or 50-day lines. If the Dow and S&P 500 can hold Wednesday’s lowest levels, a follow-up day could occur as soon as next week to confirm a new market rally.

But until then, it is a market correction, with Nasdaq in a full-fledged bear market.

The earnings season will remain furious for the next few weeks, with Apple shares on a massive Thursday. Next week, the Federal Reserve is likely to raise interest rates by 50 basis points and agree to start cutting the balance sheet.

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What to do now

Wednesday’s action was certainly not inspiring. Even if the market had closed at session heights, it would not have made sense in itself.

For now, investors should stay on the sidelines, with little or no exposure. But stay engaged and build these watch lists.

The defense companies still look strong, while energy stocks generally remain in bases. Steel and fertilizer spills hold key levels. Travel shares and REITs try to hang on or form new purchase points.

But as mining stocks recently showed, even leading sectors can quickly crumble in a weak market.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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