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Dow Jones Futures: Market Rebounds, But For How Long? Apple, Amazon Hit Techs




Dow Jones futures fell slightly overnight, while S&P 500 futures and Nasdaq futures fell sharply. apple (AAPL) and Amazon stock led key earnings late Thursday, with Exxon Mobile (XOM) and Chevron (CVX) is expected early Friday.




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The stock market rally attempt gained momentum as a Facebook parent Metaplatforms (FB) increased and a number of other depressed former technology leaders returned. Dow fight Merck (MRK) and Eli Lilly (LLY) rose on earnings, both flashing buy signals.

Tesla shares fell on Thursday, but after reducing large intraday losses.

Apple makes and Amazon.com (AMZN) reported earnings after closing, along with Intel (INTC) and Atlassian (TEAM). But apart from Apple, all of these stocks have good peaks.

Along with oil majors Exxon and Chevron, medical giants AbbVie (ABBV) and Bristol Myers Squibb (BMY) report before Friday’s opening. XOM stock and Dow giant Chevron are close to buying points. The ABBV share finds support on its 50-day line while Bristol Myers is on its 21-day, both after strong progress.

Tesla (TSLA) and LLY shares are on the IBD Leaderboard. The MRK share is on SwingTrader. The TEAM stock is on IBD Long-Term Leaders. Exxon Mobil, Chevron and BMY shares are on IBD Big Cap 20. Merck was the IBD Stock Of The Day.

The video built into this article discusses the strong market upturn and analyzes FB stocks, Merck and Eli Lilly.

Dow Jones Futures today

Dow Jones futures fell 0.1% relative to fair value, with Apple and Intel stocks hitting blue chips. S&P 500 futures fell 0.6 percent. Nasdaq 100 futures fell 1.3% as Apple and AMZN shares and other technology revenue losers dragged on. They are outside Thursday night’s worst levels.

The 10-year government interest rate fell 4 basis points to 2.82%.

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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Apple action

Apple’s earnings and sales topped the forecasts, amid strong iPhone sales. Dow Jones technology giant OK provided an additional $ 90 billion to repurchase shares in AAPL, increasing dividends by 5% to 23 cents per share. Apple stock rose modestly after hours, but then turned lower after warning of a $ 4-8 billion headwind this quarter from the ongoing China shutdowns. The AAPL stock is down 2% overnight.

The shares fell 4.5% to 163.64 in Thursday’s ordinary session, and regained the 200-day line. The AAPL stock has a buy point of 179.71 from a handle that is very large for a consolidation that is only 18% deep. Without a doubt, it is an early entry from a short trend line just above the 50-day moving average. The relative strength of the Apple stock is not far from highs, a reflection of broad market weakness.

Amazon action

Amazon reported a large loss in the first quarter, reflecting its declining value Rivian (RIVN) effort. Revenue lost a little. Amazon Web Services topped the revenue targets slightly. But Amazon guided low on Q2.

AMZN shares plunged almost 9% in extended trading. Shares fell 4.65% on Thursday to 2,891.93, but have traded close to their lowest levels since mid-2020.

Intel action

Intel revenue was just above the views. But the weary chip giant guided low on Q2 EPS and sales. The INTC share fell 4% in extended action. The stock rose 3.6% on Thursday to 46.84.

LAGET Action

Atlasian revenues beat consensus. But the collaborative software maker led low on EPS for the current quarter. The TEAM stock fell 6% overnight. Shares of Atlassian jumped 6.7% on Thursday to 259.98.

Merck action

Merck shares rose 4.9% to 88.58 after better-than-expected earnings. The MRK share is technically still below a buy point of 89.58 cups with handles, according to MarketSmith analysis. But stocks broke the downward trend in the handle, and it turned in its best end since early November. The RS line for the MRK share is the highest since January 2021.

Eli Lilly Stock

Eli Lilly shares fell 4.3% to 297.27 on the result for the first quarter. After rounding out a cup-base breakout earlier this month, the LLY stock went into earnings just above the 284 buy point. The shares are still in the buying zone, but also broke a short-term downward trend and moved above the 21-day moving average.

Stock exchange Thursday

The attempt at the stock exchange rally initially wavered, but then gained momentum.

The Dow Jones Industrial Average rose 1.85% in Thursday’s trading session. The S&P 500 index rose 2.5 percent. The Nasdaq composite rose 3.1 percent. Small-cap Russell 2000 rose 1.8% after reaching a new 52-week low intraday.

The US crude oil price rose 3.3% to $ 105.36 a barrel. The 10-year government interest rate rose 4 basis points to 2.86%.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 1.1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 1.4%. iShares Expanded Tech-Software Sector ETF (IGV) rose 4%. VanEck Vectors Semiconductor ETF (SMH) rose 5.7%.

SPDR S&P Metals & Mining ETF (XME) jumped 1.85% and Global X US Infrastructure Development ETF (PAVE) 1.9%. US Global Jets ETF (JETS) rose 2%. SPDR S&P Homebuilders ETF (XHB) rose 2.8%. Energy Select SPDR ETF (XLE) rose 3%, with XOM shares and CVX shares as main components. Financial Select SPDR ETF (XLF) rose 1.3%. Health Care Select Sector SPDR Fund (XLV) climbed 1.4%, with ABBV shares and Bristol Myers large holdings.

The ARK Innovation ETF (ARKK) reflects more speculative history stocks, falling 1.4% and the ARK Genomics ETF (ARKG) 3.5%, both reaching a 24-month low during the day. The Teladoc Health (TDOC) crash weighed on both funds.

The Tesla share is still number 1 across Ark Invest’s holdings. The stock fell 0.45% to 877.51 on Thursday, but had to be drawn to that point by a large upturn in the market. Intraday, the TSLA stock fell as low as 821.70. Technically, Tesla still has a buying point of 1,152.97 cups with handles, but the chart looks damaged with stocks below the most important moving averages.


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Market Rally Analysis

The stock market finally had a strong session, with sharp price rises across the board. But it’s just one day. The best one-day percentage gains in stock market history are in bad markets.

Nasdaq has now started a new stock market rally attempt, while Thursday was day two for the Dow Jones and S&P 500. If the major indices hold their last lowest level, investors can look for a follow-up day to confirm the new rally as soon as possible. as next week. In practical terms, it seems unlikely that a follow-up day will occur before the Federal Reserve’s two-day meeting ends next Wednesday.

For now, the market is still in a correction.

Many of Thursday’s big winners were downtrodden technicians who gathered around incomes that were not as bad as feared – like Facebook, PayPal (PYPL) and ServiceNow (NOW) – but not close to buying opportunities. Merck and LLY shares were welcome exceptions.

But the rally can quickly fade, with Apple and Amazon leading futures lower overnight.

Energy, steel and fertilizer groups remain resilient, along with defense stocks. Drug manufacturers and health insurance companies look strong. Travel names are still interesting.


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What to do now

Thursday’s market action does not matter. What matters is what comes next. If the major indices soon rise to new lows, Thursday is just a sting in an ongoing correction or bear market. If the major indices continue higher and confirm a new market upturn, it makes sense.

Investors with little or no exposure could have bought the MRK stock or Lilly on Thursday. Another option would be to buy a broad market ETF, hoping for at least a short-term return. But if you are going to make new purchases before a follow-up day, keep your exposure minimal and be extremely nimble. Take partial profits quickly and be ready to quit.

Being 100% in cash is still a good strategy.

Your primary goal right now is to be ready when the market turns. Build watch lists. They need to be revised as the earnings season and recent market losses lift some names and pull down others.

And stay engaged. You do not have to stare at your screens while watching the market uninterrupted, but watch so you are not surprised.

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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