Dow Jones futures rose modestly early Thursday, along with S&P 500 futures and Nasdaq futures. Carvana (CVNA) and Qualcomm (QCOM) led the way in its earnings report Wednesday night.
X
Efforts to push stocks higher had a rough afternoon. Major indexes rose sharply after the central bank agreed to slow the pace of balance sheet reductions, with Fed Chair Jerome Powell taking a less hawkish stance. However, in the final hour, it significantly reduced profits and closed mixed.
AI stocks faced a difficult situation the next day. Advanced Micro Devices (AMD) and super microcomputer (SMCI) was sold following the financial results. Nvidia (NVDA) pared some of its steep losses, but fell again towards the close.
After the transaction, Qualcomm, door dash (dash), Sprouts Farmers Market (SFM) and Carvana reported.
novo nordisk (NVO) while announcing its expected earnings release early Thursday. apple (AAPL) reported after the close of trading on Thursday.
Nvidia stock and Novo Nordisk are listed on the IBD leaderboard. Novo Nordisk stock sits at IBD 50. Nvidia and Super Micro stocks are in the IBD Big Cap 20.
Fed meeting
In a meeting statement, the Fed said it had seen “no further progress” toward its 2% inflation target in recent months, leaving interest rates unchanged.
Starting in June, the Federal Reserve will reduce balance sheet outflows from $95 billion to $60 billion per month. This deceleration of quantitative tightening is de facto easing.
Fed Chairman Jerome Powell said it would likely take “longer than previously expected” for inflation to subside. But Powell allayed fears of a more hawkish tone, saying he still expects inflation to slow by the end of the year, although he is less confident than at the beginning of the year.
The probability that the Fed will cut rates before its September meeting is now 53.8%, compared with 45.9% on Tuesday and 69.8% a week ago. The market is expecting only one rate cut by the end of the year, and it is unlikely that anything will happen.
Early Wednesday morning, the Labor Department reported that job openings in March fell to the lowest in three years. Meanwhile, the ISM Manufacturing Business Index unexpectedly fell just below the break-even level of 50. However, the price paid by ISM for the gauge rose more than expected.
On Friday, the Labor Department will release employment statistics for April.
Dow Jones futures today
Dow Jones futures rose 0.4% to fair value. The S&P 500 rose 0.5% and Nasdaq 100 futures rose 0.7%.
The 10-year government bond rose slightly to 4.61%.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
The stock market's rally didn't make much progress until the Fed's announcement at 2:00 p.m. ET. However, after initially rising strongly following Fed Chairman Jerome Powell's press conference, the major indexes deviated sharply from their highs and ended mixed, slightly worse than before the Fed's news announcement.
The Dow Jones Industrial Average rose 0.2% in stock market trading Wednesday. The S&P 500 Index and Nasdaq Composite fell 0.3%. The small-cap Russell 2000 rose 0.25%.
At the high of the session, the stock market appeared to be on track for a scheduled follow-through date to confirm the attempt to move higher.
However, none of the major indexes exceeded their 50-day moving averages, and all ended below their 21-day moving averages.
Friday's jobs report sheds new light on Powell's comments, and the stock market could react on the second day of the Fed meeting.
Supermicro stocks plunged 14% and AMD fell nearly 9% after AI trends showed lackluster guidance. Nvidia, the most important stock and company of the AI boom, recovered from a 6% drop during the day, but was still down 3.9%, below its 50-day line.
transmedics (TMDX), Powell Industries (Pole), garmin (GRMN) and pinterest (PINS) all saw their revenues soar.
U.S. crude oil prices have fallen 5.8% so far this week, falling 3.6% to $79 a barrel as domestic inventories swell.Gasoline futures fell 4.2% on Wednesday.
The 10-year Treasury yield fell 9 basis points to 4.59%.
ETF
Among growth ETFs, the iShares Expanded Technology Software Sector ETF (IGV) rose 0.2%. The VanEck Vector Semiconductor ETF (SMH) fell 2.9%. Nvidia stock is SMH's No. 1 stock, and AMD is also a major holding.
The SPDR S&P Metals Mining ETF (XME) closed just above break-even. The SPDR S&P Home Builders ETF (XHB) fell 0.4%. The Energy Select SPDR ETF (XLE) fell 1.6% and the Healthcare Select Sector SPDR Fund (XLV) rose 0.2%.
Industrial Select Sector SPDR Fund (XLI) fell 0.25%. Financial Select SPDR ETF (XLF) closed flat.
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revenue
Qualcomm's earnings and outlook were positive, and QCOM stock rose steadily overnight. The wireless chip giant fell 1.1% Wednesday to 164.03, just below its 50-day mark. The double bottom buy point for Qualcomm stock is 175.99.
DoorDash reported higher-than-expected losses. DASH stock fell more than 10% in extended trading. The delivery app giant fell 1.45% to 127.38 on Wednesday. The DASH stock is now close to a flat base.
Sprout had the highest revenue. SFM stock rose solidly overnight, returning to the buy zone. The natural food grocer's stock fell 2.6% to 64.29 on Wednesday, below its flat buy point of 65.53.
While guidance was strong, Carvana's revenue easily outpaced views. CVNA stock soared more than 30% overnight. The online used car seller rose 5% to 87.09 on Wednesday, its highest gain in 50 days. Carvana stock has been consolidating since late March, but it is expected to rise even further.
Novo Nordisk's results are expected to be released early Thursday. NVO stock rose 0.7% to 129.21 on Wednesday, slightly above 50 days. The weight loss drug giant has a flat-base buy point of 138.28, but Tuesday's high of 130.46 could serve as an early entry.rival Eli Lilly (LLY) soared on Tuesday after strong earnings and guidance.
Apple's financial results are scheduled to be released Thursday night. Expectations are low, and stock prices have been on a downward trend since mid-December. AAPL stock fell 0.6% to 169.30, falling off its 50-day resistance. However, it is still a huge company that can move the market. Investors want to hear hints about AI products, but that may have to wait until later.
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what to do now
It was a gloomy day for the stock market. In his last hour, the market went from a day with a high probability of follow-through to a mixed session.
This is a reminder that investors should wait for real signs of strength before getting aggressive.
Many of the major stocks are above and below the 50-day line, and often within the reference line. It doesn't take much movement for many of these names to seem practical. However, it doesn't take long for many to appear to be seriously damaged.
So keep your watchlist up to date and prepare your exit plan.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
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