Dow Jones futures were little changed overnight, as were S&P 500 and Nasdaq futures. Deckers and Intuit reported key results after a tough trading day.
X
The stock market rally retreated Thursday, with the Nasdaq and S&P 500 reversing from their record highs while the Dow and Russell 2000 fell toward the 50-day line. Stronger-than-expected economic data sent Treasury yields higher.
Nvidia (NVDA) kicked off a new quarter of booming earnings and bullish forecasts. But the magnitude was so anemic that NVDA stock seemed to be the only stock rising.
Even other AI stocks have pulled back or hit record highs, including chipmakers. Taiwan Semiconductor (TSM), Super microcomputer (SMCI), Advanced microsystems (AMD) And Broadcom (AVGO), as well as software games such as Microsoft (MSFT) And ServiceNow (NOW). All stocks except Taiwan Semi were at buy points or early entries early Thursday.
Arista Networks (Aneta) came up against fears that Nvidia posed a competitive threat.
In the meantime, Exterior decks (BRIDGE), Intuition (INTU), Working day (WDAY) And Ross Stores (PINK) reported Thursday evening. Deckers and Ross Stores surged while Intuit and Workday fell.
Nvidia shares are in progress MII classification. Reservation stock is activated Swing Trader. Microsoft stock and Synopsys are on Long-term leaders in IBD. Nvidia and Arista Networks are on the MII 50. Super Micro stock, Nvidia and Deckers are on the market IBD large cap 20.
Dow Jones Futures Today
Dow Jones futures fell 0.1% from 2017. fair value. S&P 500 and Nasdaq 100 futures rose. Workday and Intuit stocks are Nasdaq 100 giants and are members of the S&P 500 along with DECK stock.
Remember that overnight action Dow Jones Futures and elsewhere does not necessarily translate into real exchanges during the next regular class sotck exchange session.
Join IBD experts as they analyze top stocks and the market on IBD Live
Earnings
Deckers Profits Beat Easily after closing. Sales of Hoka running shoes increased by 34%. DECK stock jumped in late trading, signaling a breakout Friday. The specialty shoe maker climbed 1.3% to 904.65 during Thursday’s regular session. Deckers stock has a 916.65 cup with handle point of purchase.
Workday revenue outpaces views but the software maker lowered its sales forecast for the full year. WDAY stock plunged overnight. Shares of the customer and financial management software maker edged up 0.4% to 260.90 on Thursday, closing just above the 50-day line.
Intuitive gains comfortably exceeded fiscal third-quarter forecasts, but implied fourth-quarter earnings forecasts were weak. INTU stock fell sharply during extended trading. The maker of Turbo Tax fell 1.2% Thursday to 662.26, trading slightly below a flat-base buy point of 671.01. Intuit stock issued an early buy signal on May 15 as it broke through a downtrend line.
Ross Stores’ profits beat forecasts, with ROST stock solidly up after hours. The discount clothing retailer edged up 0.3% on Thursday to 131.86, on 200-day trading. Ross Stores is still in a downtrend and below its 50-day line.
Stock market rally
The stock market rally began with the Nasdaq and S&P 500 hitting record highs, led by Nvidia. But a flash reading of the PMI shortly after the open indicated that economic activity was accelerating, reviving doubts about the Fed’s rate cuts. The Nasdaq and S&P 500 reversed lower while the Dow Jones and Russell 2000 suffered steep losses.
The Dow Jones Industrial Average fell 1.5% on Thursday stock market tradingpartly because of the fresh produce Boeing (B.A.) misfortunes. The Dow Jones is back near the 50-day line. The S&P 500 index fell 0.7% and the Nasdaq composite index fell 0.4%.
Losers crushed winners on the NYSE and Nasdaq. The small-cap Russell 2000 index fell 1.7%, testing the 50-day but closing above that level.
The Invesco S&P 500 Equal Weight ETF (RRSP) fell 1.4%, slightly above the 50 day mark.
The First Trust Nasdaq 100 Equal-Weighted Index ETF (QQEW) lost 1%.
U.S. crude oil prices fell 0.9% to $76.87 a barrel, down 4% so far this week.
The 10-year Treasury yield rose 4 basis points to 4.47%. The yield reached 4.31% intraday on May 16.
AND F
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (VAT) slipped 0.9%. Microsoft and Intuit stocks are among IGV’s largest holdings, with Workday also a member. The VanEck Vectors Semiconductor ETF (SMH) increased by 1.4%. Nvidia stock is SMH’s No. 1 stock, with AMD, Taiwan Semiconductor and Broadcom also major components.
SPDR S&P Metals & Mining ETF (XME) fell 1.2% and the SPDR S&P Homebuilders ETF (XHB) lost 0.8%. The Energy Select SPDR ETF (XLE) lost 0.9% and the Health Care Select Sector SPDR Fund (XLIV) lost 1.1%.
The Select Industrial Sector SPDR Fund (XLII) slipped 1.2% and the Financial Select SPDR ETF (45) decreased by 1.4%. The innovative IBD 50 (FFTY) outperformed, down just 0.14%.
Five Best Chinese Stocks to Watch Now
Nvidia Stock, AI Plays
Nvidia shares rose 9.3% to 1,037.99, rising from a low to a record high. THE line of relative force also hit a new high, reflecting NVDA stock’s outperformance versus the S&P 500. At this point, investors could wait to see if Nvidia consolidates or maintains the gap for a few days.
Nvidia’s profits soared 461% with revenues up 262%. The AI ​​chip leader reported the fourth consecutive quarter of triple-digit growth for both on Wednesday evening. Guidance for the current quarter was also strong.
Nvidia hasn’t really improved AI games. Taiwan Semiconductor, which makes Nvidia’s chips, hit a record high but closed only 0.6% higher. TSM stock is extended from a buy point.
Broadcom stock edged up 0.1% after an early intraday entry. AMD stock reversed lower for a 3.1% decline after hitting some short-term highs to start.
Super Micro stock, up 11.1% early, closed down 3%, below the 50-day line.
Microsoft stock fell 0.8%, falling one buy point for a third consecutive session, according to MarketSurge Analysis. ServiceNow stock fell 1.7% after reporting an early trendline entry.
Meanwhile, Arista Networks fell 8.6% after Nvidia seems optimistic about its networking business, which could harm Arista’s Ethernet business. ANET stock rebounded from its 10-week line to close down 4.8% at 301.32. Stocks closed below 307.74 cup base buy point but above the 21 day line.
What to do now
Thursday was disappointing given Nvidia’s powerful move, with the narrowing of scope being a concern. Investors should be quick to cut back on new or add-on purchases from last week that don’t work.
However, the market recovery has been strong in recent weeks. Maybe the major indexes and stocks just need another break. This could allow stocks to build handles and moving averages to catch up.
So work on your watchlists while updating your release plans. Medical products, including biopharmaceuticals and other products, are a large area to watch. They are not part of AI, although they are relatively insulated from the slowdown fears hitting consumer and commodity names.
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.
YOU MAY ALSO LIKE:
Want to get quick profits and avoid big losses? Try SwingTrader
Best Growth Stocks to Buy and Watch
IBD Digital: Unlock IBD’s premium stock lists, tools and analysis today
