Dow Jones futures rose early Friday, as did S&P 500 and especially Nasdaq futures. Microsoft (MSFT) jumped and Google parent Alphabet (GOOGLE) soared on its earnings, leading another big night of quarterly results.
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The attempted stock rally suffered steep losses Thursday morning as Metaplatforms (META) fell following forecasts and a GDP report showing slower-than-expected growth and hot inflation. But the major indexes pared their losses.
Nvidia (NVDA), Broadcom (AVGO) and other AI chipsets and hardware have rebounded on Meta’s big capital spending plans.
At the same time, a number of non-tech sectors and leading stocks advanced. Notably Chipotle Mexican Grill (GCM) broke out on earnings, with several other restaurant stocks making bullish moves.
The market’s attempted rally showed some resilience on Thursday, but it hasn’t proven anything yet. Investors need patience.
Microsoft and Google’s earnings, forecasts and spending plans will have a huge impact on many industries.
Dexcom (DXCM) And Western digital (WDC) were among hundreds of other companies that released their reports Thursday evening.
Friday morning, Exxon Mobile (XOM) and the Dow giant Chevron (CLC) are at your disposal.
On Friday, investors will also receive March figures from the core PCE price index, the Fed’s preferred inflation report. This data may have less impact on the market given Thursday’s first quarter PCE data in the GDP report.
Nvidia shares are in progress MII classification. Microsoft stock is on the stock market Long-term leaders in IBD list. Google stock is on the rise MII 50 and the IBD large cap 20. Chipotle was Thursday’s IBD Stock of the Day.
Dow Jones Futures Today
Dow Jones futures rose 0.1% from fair value. S&P 500 futures gained 0.8%. Nasdaq 100 futures jumped 1.1%. Microsoft is a component of the Dow Jones, S&P 500 and Nasdaq, while Google stock is a giant of the S&P 500 and Nasdaq.
The 10-year Treasury yield fell slightly to 4.7%.
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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Attempted stock market rally
After rebounding from Monday to Tuesday and stagnating on Wednesday, the attempted stock market rally ended Thursday morning with meta-platforms and high inflation figures in the GDP report. The main indices certainly came out of their first lows, but it was a bearish session.
The Dow Jones Industrial Average fell 1% on Thursday stock market tradingwith IBM (IBM) And caterpillar (CAT) plummeting due to weak sales. The S&P 500 index fell 0.5%. The Nasdaq Composite Index fell 0.6% after plunging 2.35% shortly after the open. Small cap Russell 2000 loses 0.7%
Meta stock plunged 10.6% to 441.38, although it came off a low of 414.50. Nvidia stock rose 3.7% to 826.32, but remains below its 50-day line. Broadcom stock rose 3%, hitting resistance at the 50-day line. 50 days. Arista Networks (Aneta), which counts Meta and Microsoft among its two largest clients, jumped 3.85%.
A follow-up day could come at any time to confirm the new attempt at a market rally. Microsoft and Google could provide this catalyst. But it is also possible that the market falls and a longer correction sets in.
US crude oil prices rose 0.9% to $83.57 per barrel.
The 10-year Treasury yield rose 5 basis points to 4.71%, its highest level since November 1. The two-year Treasury yield, a good indicator of the Fed’s rate outlook, has returned to the 5% level.
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Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (VAT) fell by 0.9%. Microsoft is a big member of the IGV. The VanEck Vectors Semiconductor ETF (SMH) gained 2%, with NVDA stock the largest component and Broadcom a key holding.
SPDR S&P Metals & Mining ETF (XME) rebounded by 1.7%. SPDR S&P Homebuilders ETF (XHB) fell 0.2%. The Energy Select SPDR ETF (XLE) rose 0.5%, with Exxon and Chevron accounting for 40% of the ETF’s holdings. The SPDR Fund for the Selected Health Care Sector (XLIV) fell 0.6%, with Dexcom stock a holding.
The Select Industrial Sector SPDR Fund (XLII) increased slightly by 0.3%. The Financial Select SPDR ETF (45) decreased by 0.5%.
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Microsoft Earnings
Microsoft Earnings and revenue growth slightly exceeded views. Revenue from Azure and other cloud services rose 31%, beating views and retaking 30% from the fiscal second quarter.
The Dow tech titan sounded optimistic about AI demand during the conference call. Microsoft forecasts strong cloud growth in the future, although it is somewhat cautious about overall profits and revenue. He expects capital spending to increase “significantly” in the current fourth quarter.
Microsoft stock rose sharply in extended trading, suggesting a return to the 50-day line. Shares fell 2.45% on Thursday to 399.04 after hitting a three-month low of 388.03 intraday.
Nvidia stock rose slightly overnight as big tech’s spending blitz continued, signaling a possible 50-day test. Arista, which counts Microsoft as a major customer alongside meta-platforms, also made progress.
Several software stocks which fell on Thursday ServiceNow (NOW) bounced overnight on Microsoft.
Google Earnings
Google Earnings jumped 61%, easily surpassing views. Revenue growth from Google Cloud ads, YouTube and online search all exceeded expectations.
Google announced its first-ever quarterly dividend of 20 cents per share, along with a $70 billion buyback.
Google shares soared more than 10% overnight. Shares fell as low as 150.87 Thursday morning, recovering to close down 2% at 138.01. GOOGL stock closed in a buy point range at 152.15 and 153.78.
Other earnings
Dexcom Earnings beat the views. The diabetes products giant raised its sales forecast for the full year, but it was a little light at the midpoint. Shares plunged after hours, signaling a move below a buy point. Dexcom shares edged up 0.1% to 138.01 on Thursday, holding in a range of 132.03. flat base point of purchase. Stocks have consolidated over the past few weeks and found 50-day line support.
Western Digital’s earnings beat views, but sales guidance for the fiscal fourth quarter was a bit light. WDC stock fell slightly in overnight trading. Shares of the memory game fell 0.2% to 69.44 on Thursday, rebounding from an intraday test of the 10-week line and a 65.92. ascending base point of purchase.
In the meantime, T-Mobile United States (TMUS), Intel (INTC), Instant (INSTANT), Year (YEAR), UCK (CLUTCH) And Atlassian (TEAM) were the many other earnings reports Thursday evening.
Exxon and Chevron on sale
Results from Exxon and Chevron are expected Friday morning. Exxon shares rose 0.3% to 121.36 on Thursday, just above a 120.70 buy point. XOM stock has a tight three-week entry at 123.75, which could also serve as a high buy point.
Chevron shares rose 1% to 165.27 on Thursday, breaking through a level of 163.87. cup with handle point of purchase. This is the seventh consecutive advance for CVX stock, the first Thursday to be in above-average volume.
Chipotle Stock Leads Restaurant Rally
Chipotle’s earnings beat expectations, with growth accelerating for a second straight quarter. CMG stock jumped 6.3% to 3,111.97, decisively breaking through a 3,023.98 buy point from a three tight weeks.
Wing stop (WING) climbed 2% to 369.90, bouncing from the 10-week line until near the top of a range dating back to early March. But earnings are expected on May 1.
Cava Group (HOW ARE YOU) reversed higher, rising 3.6% to 62.59, retaking the 50-day line and a strong downtrend, providing entry. Cava winnings are not due for several weeks.
What to do now
The market is in correction. This week saw an attempted market rally, but has yet to signal any real change in character.
Waiting does not mean sitting idly by. It’s important to be ready for the next market turnaround, whether it’s Friday, next week, or months later.
Some stocks in energy, infrastructure, finance, medicine and restaurants continue to do well. But most technicians need a few or many repair jobs.
So cast a wide net for your watchlists and stay engaged with the market. Look for stocks that are holding or regaining support, showing relative strength in a weak market.
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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