Dow Jones futures fell after hours, as did S&P 500 and Nasdaq futures. Dow Jones giant Salesforce.com (RCMP) headlined the results after the close.
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The stock market rally retreated as Treasury yields jumped for a second straight session. Nvidia (NVDA) rose slightly on Wednesday, extending its strong advance, but that only helped limit losses for the Nasdaq and S&P 500. Meanwhile, the Dow Jones, Russell 2000 and others suffered more technical damage in an anemic context.
Nvidia stock gets closer Apple (AAPL) for stock market valuation, with the $3,000 billion mark and even Microsoft (MSFT) not far away.
Meanwhile, Salesforce, Pure storage (PSTG), Nutanix (NTNX), Okta (OKTA), UiPath (PATH), C3.ai (AI) And American Eagle Outfitters (AEO) reported after closing. Salesforce, Nutanix and American Eagle sold out late while UiPath faltered. Okta stood up modestly. AI stock and Pure Storage surged.
Nvidia shares are in progress MII classification and the MII 50. Microsoft stock is on Long-term leaders in IBD.
Dow Jones Futures Today
Dow Jones futures fell 0.7% from fair value, with CRM stock a notable drag. S&P 500 futures fell 0.3% and Nasdaq 100 futures lost 0.4%.
Remember that overnight action Dow Jones Futures and elsewhere does not necessarily translate into real exchanges during the next regular class sotck exchange session.
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Stock market rally
The stock rally had a negative session, with Nvidia stock no longer overriding the underlying weakness.
The Dow Jones Industrial Average fell 1.1% on Wednesday stock market trading, falling further below the 50-day line. The S&P 500 index fell 0.7%. The Nasdaq composite index lost 0.6%.
The scale of the market was appalling. Losers outpaced winners by nearly 3 to 1 on the Nasdaq and more than 5 to 1 on the NYSE.
The small-cap Russell 2000 index fell 1.5%, below the 50-day line. The S&P MidCap 400 fell 1.3%, now clearly below the 50-day line.
The Invesco S&P 500 Equal Weight ETF (RRSP), without the dominance of Nvidia, Microsoft and other mega-cap techs, fell 1.2% after closing just below the 50-day line.
The First Trust Nasdaq 100 Equal-Weighted Index ETF (QQEW) fell 1.1%, almost right over its 50 days.
Major stocks are generally still doing well, although many lost ground on Wednesday.
Some consumer names have performed well. Abercrombie & Fitch (ANF) And Dick’s Sporting Goods (DKS) have soared on their profits, while Cava Group (HOW ARE YOU) erased the big initial losses to close sharply higher.
In the meantime, American airlines (AAL) came across a second trimester warningalso hitting some rivals. UnitedHealth (A H) comments on Medicaid Rebates Hit Health Insurers and weighed on the industrial stocks of the Dow Jones.
US crude oil prices fell 0.75% to $79.23 per barrel.
The 10-year Treasury yield jumped 8 basis points to 4.62%, up 15 basis points so far this week.
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Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (VAT) fell 0.3%. Microsoft and Salesforce shares make up a large IGV holding, with Nutanix also in the ETF. The VanEck Vectors Semiconductor ETF (SMH) fell 1.7%, even with Nvidia stock as the #1 stock.
Reflecting more speculative stocks, ARK Innovation ETF (ARKK) fell 1.25% and ARK Genomics ETF (ARKG) fell 3.8%. UiPath stock is a major holding of Ark Invest.
SPDR S&P Metals & Mining ETF (XME) fell 1.6% and the GlobalPAVE) fell by 1.4%. US Global Jets ETF (JETS) lost 2.3%, with American Airlines as a major component. SPDR S&P Homebuilders ETF (XHB) fell by 1.5%. The Energy Select SPDR ETF (XLE) lost 1.8% and the Health Care Select Sector SPDR Fund (XLIV) slipped 0.8%.
The Select Industrial Sector SPDR Fund (XLII) lost 1.4%. The Financial Select SPDR ETF (45) decreased by 0.8%.
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Deep dives into Salesforce stocks
Salesforce profits narrowly exceed, but revenue fell short while the software giant declined. CRM stock plunged more than 15% in overnight trading. Shares edged up 0.7% to 271.62 during Wednesday’s regular session, well below a 50-day moving line.
Although Salesforce is listed on the NYSE, it hits software stocks, which are mostly listed on the Nasdaq. Many were already in shock at their weakness Working day (WDAY) results last week.
The IGV ETF, with a significant weight in Salesforce, fell solidly overnight.
Other key gains
Nutanix’s profits exceeded those of the fiscal third quarter, but the storage software company reported low fourth-quarter revenue. NTNX stock fell sharply in extended action. Shares rose 2.1% to 73.29 on Wednesday, right around record highs. Nutantix Stock Is Slightly Extended From Shallow double bottom base.
Pure storage gains exceeded views, with the storage firming slightly driving second-quarter revenue but down slightly for the full year. PSTG stock jumped overnight. Shares edged up 0.8% to 63 on Wednesday, hitting record highs. The Pure Storage stock is extended from a double bottom base.
UiPath’s earnings beat expectations but remained low on news of its CEO’s departure, sending PATH stock plunging about 30% late. Shares fell 2.4% as of 6:30 p.m. Wednesday, a 2024 low.
Okta’s earnings beat views and the cybersecurity company rose. Shares rose slightly in extended and choppy trading. Okta shares edged up 0.2% to 96.36 on Wednesday, below the 50-day line.
C3.ai reported a smaller-than-expected fiscal loss in the fourth quarter and higher revenue for fiscal 2025. AI stock climbed after hours. The AI ​​software company fell 0.75% to 23.92 on Wednesday, below all of its moving averages.
American Eagle’s profits peaked, but sales growth fell short. AEO stock fell overnight. Shares edged up 0.6% to 24.05, just above the 50-day line as part of a 17% consolidation.
Nvidia moves closer to Apple shares
Nvidia shares edged up 0.8% to 1,148.25, hitting a new all-time high and extending its post-earnings run by four sessions to 20.9%. NVDA stock now has a market cap of $2.871 trillion.
Meanwhile, Apple stock edged up 0.2% to 190.29, bringing its market capitalization to $2.918 trillion. AAPL stock forges an improper handle into a cup base.
Nvidia isn’t far from the $3 trillion mark, while Microsoft isn’t much above that at $3.189 billion. MSFT stock fell 0.3% to 429.17, continuing to hover just below a flat base buy point of 430.82.
What to do now
The stock market rally is reaching all-time highs, at least for the S&P 500 and Nasdaq. Nvidia stands out for the most part. However, a large number of flagship stocks are still doing well. Investors with these names are in a good position.
But the low magnitude is worrying. A divided market recovery is more unstable, with the risk of sector rotation or simply leading groups joining the laggards.
Investors may want to be careful about adding exposure. Staying put is good, taking care to reduce assets that show weaknesses. If you choose to add exposure, be nimble, willing to exit positions that aren’t working.
The underlying market weakness could be short-lived, giving stocks the opportunity to create new entries or quickly develop relative strength. So keep working on your watchlists.
Read The big picture every day to stay in tune with the direction of the market and the main values ​​and sectors.
Please follow Ed Carson on the discussions at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
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