Dow Jones futures rose after hours, as did S&P 500 and Nasdaq futures. Micron technology (IN) reported on Wednesday evening a key report for semiconductors, including chip equipment makers such as Applied materials (HUGE).
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The stock market rally saw modest gains turn into solid losses on major indexes, and many leaders skidded lower.
Parent Google Alphabet (GOOGLE) broke out on Wednesday in great volume following the announcement of a possible restructuring of advertising sales, but then reduced its gains with the market. Trucking Companies Skirt (SKIRT) And Former Dominion freight line (ODFL) also issued intraday buy signals.
In the Oil Machinery sector, WFRD stock continued its strong advance from Tuesday, providing additional early entry.
In the meantime, You’re here (TSLA) fell below an early entry amid a Reuters report that the electric vehicle giant was blaming drivers for failures of parts it knew for years were defective.
Amazon meta-platforms and actions are enabled MII classification. Meta and Amazon are also present Swing Trader, with AMAT stock. Meta and CCL stocks are on the MII 50. The meta-stock is on the IBD large cap 20.
Meteoford International (WFRD) was Wednesday’s IBD Stock of the Day.
The video embedded in the article reviews Wednesday’s market action and analyzes the stocks of Google, ODFL and MongoDB (BMD).
Dow Jones Futures Today
Dow Jones futures rose 0.1% from fair value. S&P 500 futures rose slightly. Nasdaq 100 futures rose 0.2%, led by MU stock.
At 8:30 a.m. ET, investors will receive weekly data on jobless claims, the Philadelphia Fed manufacturing index and the final third-quarter GDP reading.
Remember that overnight action Dow Jones Futures and elsewhere does not necessarily translate into real exchanges during the next regular class sotck exchange session.
Gains in microns
MU stock rebounded in overnight trading. Micron reported smaller than expected result fiscal loss in the first quarter while sales rose 16%, ending five quarters of steep year-over-year declines. The memory chip giant also grew during the current second quarter. Micron shares fell 4.2% to 78.69 during Wednesday’s regular session, but remain near a 52-week high.
Chip equipment manufacturers Applied materials (HUGE), KLA Corp. (CLUTCH) And Search Lam (LRCX) didn’t move much after the close, but Micron’s guidance and comments could have a big impact on Thursday.
All three fell about 3% on Wednesday, but are trading around their 52-week highs.
Carnival (CCL) And CarMax (KMX) report before opening. Carnival and KMX stock are moving up on the right side of the bases, but CCL stock is much closer to the top.
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Stock market rally
The stock market’s rally was slightly to modestly higher for much of Wednesday, but began to pull back by mid-afternoon and gained momentum, closing at session lows.
The Dow Jones Industrial Average fell 1.3% on Wednesday stock market trading. The S&P 500 index and Nasdaq composite fell 1.5%. The small-cap Russell 2000 index fell 1.9%.
The Dow and Nasdaq ended nine straight winning sessions, with the latter falling back below 15,000.
There doesn’t appear to be any specific catalyst, but the reversal isn’t really a surprise either. The Nasdaq was more than 8.5% above its 50-day line intraday Wednesday, so the chances of a pullback were increasing. The CBOE Volatility Index, or VIX, was hovering near a four-year low, signaling excessive bullishness. The market fear gauge jumped 9.1% on Wednesday.
It’s unclear whether Wednesday’s market sell-off is just an incident, the start of a slight pullback, or the first stage of something more serious.
Unsurprisingly, growth stocks were hit harder on Wednesday than indexes.
U.S. crude oil prices edged up 0.4% to $74.22 a barrel, up 3.9% so far this week.
The 10-year Treasury yield fell 4.5 basis points to 3.88%, hitting its lowest level since late July.
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Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (VAT) fell 1.4%. The VanEck Vectors Semiconductor ETF (SMH) fell 2.8%. MU stock is a major holding in SMH, along with AMAT, KLAC and LRCX stock.
Reflecting more speculative stocks, ARK Innovation ETF (ARKK) fell 4.1% and ARK Genomics ETF (ARKG) 4.9%. Tesla stock is still a major holding in Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) fell 1.8% and the GlobalPAVE) 1.6%. US Global Jets ETF (JETS) fell by 1.6%. SPDR S&P Homebuilders ETF (XHB) fell by 1.1%. The Energy Select SPDR ETF (XLE) slipped 0.9% and the SPDR Health Care Select Sector Fund (XLIV) lost 1.45%.
The Select Industrial Sector SPDR Fund (XLII) fell by 1.6%. The Financial Select SPDR ETF (45) lost 1.8%.
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Google Stocks
Google shares rose 1.2% to close at 138.34. It was still one of the S&P 500’s best performers on Wednesday and the only Magnificent Seven stock to finish higher.
In the morning, shares jumped to 141.70, topping 139.42. cup with handle point of purchase in large volume. Stocks retook to the 50-day line on Monday.
GOOGL stock jumped early Wednesday after The Information reported that the search giant may restructure its 30,000-person ad sales team, relying more on machine learning to enable customers to buy ads on Google, YouTube and more.
Trucking Stocks
Saia shares rose 2% to 436.54, breaking above a trendline and early entry of 428.79, then surpassing 443.85. point of purchase.
ODFL stock edged up 0.2% to 402.03. During the day, Old Dominion reached 415.95, decisively crossing the 50-day line and breaking a descending trendline.
Both Saia and Old Dominion are in the LTL business. Gains in trucking sector came despite weakness FedEx (FDX) results and directions Tuesday evening.
Weatherford Stock
WFRD stock edged up 0.3% to 96.01. During the day, shares hit 98.69, clearing a downtrend line. Tuesday’s strong move above the 50-day line also offered early entry into a cup base. The official buy point is 100.93, according to MarketSmith Analysis.
Tesla Stock
Tesla stock fell 3.9% to 247.14 on Wednesday, back below an early entry of 252.75. Stocks trading at 278.98 double bottom point of purchase.
On Wednesday, Reuters reported that tens of thousands of drivers had suffered suspension or steering part failures over several years. The report, based on a Reuters review of the documents, reveals that the electric vehicle giant knew many parts were defective but often blamed drivers for the resulting failures.
The report and underlying documents potentially raise risks of costly recalls, lawsuits and even potentially criminal liability.
The news comes as Tesla launches a live “recall” to improve monitoring of drivers when using Autopilot.
Still, TSLA stock’s decline Wednesday appeared linked to the broader market reversal, not the Reuters report.
What to do now
The stock market recovery has stretched, both in terms of the main indices and the main stocks. A pause and a modest withdrawal would be healthy; there are no compelling reasons to add exposure now.
From a practical standpoint, there aren’t many buying opportunities right now, although Google, Saia and Weatherford stocks are exceptions.
Investors could choose to take some profits and reduce their exposure, especially if they have not done so in recent days, on the upside. Remember, if you’re not selling up, you’re selling down.
Keep your watchlists updated and stay engaged.
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 X/Twitter at @IBD_ECarsonDiscussions about @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
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