Dow Jones futures rose early Friday, along with S&P 500 futures and especially Nasdaq futures. Microsoft (MSFT) Hop and Google Original the alphabet (Google) on earnings, leading to another big night of quarterly results.
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An attempted stock market rally suffered steep losses Thursday morning Meta platforms (dead) hobbled by guidance and a GDP report showing slower-than-expected growth and hot inflation. But the major indices trimmed their losses.
Nvidia (NVDA), Broadcom (Afgo) and other AI chips and devices have been buoyed by Meta's massive capital spending plans.
Meanwhile, a number of non-technology sectors and blue-chip stocks advanced. Significantly Chipotle Mexican Grill (CMG) broke out on earnings, as several other restaurant stocks made upward movements.
The market's rally attempt showed some resilience on Thursday, but it hasn't proven anything yet. Investors need patience.
Microsoft and Google's earnings plans, guidance and spending will have a significant impact on many sectors.
Discom (DXCM) And Western Digital (WDC) were among hundreds of other companies that filed reports Thursday night.
Early Friday, the giant Dow Jones Chevron (CVX) And Exxon Mobil (XOM) reported mixed results.
Investors on Friday will also get the March reading of the Core Personal Consumption Expenditures Price Index, the Fed's preferred inflation report. This data may have less impact on the market given Thursday's first-quarter personal consumption expenditures data in the GDP report.
Nvidia stock is on IBD Leaderboard. Microsoft stock is on IBD's list of long-term leaders. Google stock exists Bahraini dinar 50 And the IBD Big Cap 20. Chipotle was IBD Stock of the Day on Thursday.
Dow jones futures today
Dow Jones futures rose 0.1% versus fair value. Microsoft's gains were offset somewhat by Intel and Chevron. Standard & Poor's 500 futures rose 0.7%. Nasdaq 100 futures jumped 0.9%, but far from their overnight highs. Microsoft is also a major component of the S&P 500 and Nasdaq, along with Google stock.
The yield on the 10-year Treasury note fell to 4.69%.
Crude oil futures rose 1%. The price of copper rose more than 1%.
Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Trying to go up the stock market
After bouncing from Monday to Tuesday and pausing on Wednesday, the stock market's bull run was sold off Thursday morning on Meta platforms and the hot inflation reading in the GDP report. The major indexes have come off their early lows, but it has been a bearish session.
The Dow Jones Industrial Average fell 1% in stock market trading on Thursday, with… IBM (IBM) And Larva (catFaltered due to weak sales. The S&P 500 index fell 0.5%. The Nasdaq Composite Index fell 0.6% after falling 2.35% shortly after the open. The small-cap Russell 2000 stock gave up 0.7%.
Meta stock fell 10.6% to 441.38, although it pulled back from its lows of 414.50. Nvidia stock rose 3.7% to 826.32 although it is still below its 50-day line. Broadcom stock rose 3%, hitting resistance at the 50-day line. 50 days. Arista Networks (network), which considers Meta and Microsoft its largest clients, rose by 3.85%.
A follow-up day may come at any time to confirm the market's new rally attempt. Microsoft and Google can provide this incentive. But it is also possible for the market to head lower and for the correction to take hold for a longer period.
US crude oil prices rose 0.9 percent to $83.57 per barrel.
The 10-year Treasury yield rose 5 basis points to 4.71%, the highest level since November 1. The two-year Treasury yield, a good indicator of Fed rate expectations, also returned to the 5% level.
ETFs
Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) decreased by 0.9%. Microsoft is a huge member of the IGV. VanEck Vectors Semiconductor ETF (Trait) by 2%, with NVDA stock being the largest holding and Broadcom being the main holding.
SPDR S&P Metals and Mining Fund (XME) rebounded by 1.7%. SPDR S&P Homebuilders ETF (XHB) decreased by 0.2%. Energy Select SPDR ETF (XLE(Advance 0.5%, as Exxon and Chevron account for 40% of ETF holdings. SPDR Healthcare Sector Fund (Forty-fifth) fell 0.6%, with Dexcom shares holding.
Selected Industrial Sector SPDR Fund (forty-first) by 0.3%. Financial Select SPDR ETF (XLF) decreased by 0.5%.
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Microsoft profits
Microsoft's earnings and revenue growth modestly exceeded views. Revenue from Azure and other cloud services grew 31%, beating views and up from 30% in the fiscal second quarter.
Tech giant Dow was optimistic about demand for AI on the conference call. Microsoft expects strong cloud growth going forward, though it has been somewhat cautious about overall profits and revenue. It expects capital spending to increase “substantially” in the current fourth quarter.
Microsoft stock rose strongly in extended trading, signaling a return to its 50-day line. Shares fell 2.45% on Thursday to 399.04 after hitting a three-month low of 388.03 during the day.
Nvidia stock rose modestly overnight amid the ongoing big spending campaign, suggesting a potential 50-day test. Arista, which counts Microsoft as a huge customer along with Meta Platforms, also stepped up.
Many software stocks fell on Thursday Service now (now) rebounded overnight on Microsoft.
Google earnings
Google revenue rose 61%, easily outpacing views. Google Cloud, YouTube advertising, and online search advertising revenue growth exceeded expectations.
Google announced its first-ever quarterly dividend of 20 cents per share, as well as a $70 billion buyback.
Google shares rose more than 10% overnight. Shares fell to a low of 150.87 on Thursday morning, and rebounded to close 2% lower at 138.01. GOOGL stock closed within a range of buy points at 152.15 and 153.78.
Other profits
Dexcom Earnings Beats Views The diabetes products giant raised its full-year sales guidance, but was a bit light at the midpoint. Shares fell strongly in pre-market trading, indicating a move to or below a buy point. Dexcom stock rose 0.1% to 138.01 on Thursday, staying within a steady 132.03 buy point. Shares have been consolidating over the past few weeks and finding 50-day support.
Western Digital's earnings topped the views but fiscal fourth-quarter sales guidance was a bit light. WDC stock rose slightly early Friday after falling overnight. 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 fundamental bullish buy point of 65.92.
while, T-Mobile USA (Tamos), Intel Corporation (you are K), pop (pop), Rocco (Rocco), Kosovo Liberation Army (KLAC) And Atlantic (a team) Several other earnings reports were late Thursday.
Chevron's earnings are mixed
Chevron's earnings beat views but revenue fell short. Exxon missed profits but beat revenues. Shrinking refining margins and falling natural gas prices have put pressure on both energy giants.
CVX stock lost a small portion early Friday, indicating a move below a buy point. Chevron stock rose 1% to 165.27 on Thursday, surpassing an entry level of 163.87 cups with handle.
XOM stock is down slightly, still within a 120.70 buy point range on a saucer base. Shares rose 0.3% to 121.36 on Thursday. Exxon stock has a tight three-week entry at 123.75, which could also serve as a high-handle buy point.
Chipotle Stock Leads Restaurant Rally
Chipotle's earnings beat views, with growth accelerating for the second straight quarter. CMG stock rose 6.3% to 3,111.97, decisively clearing a 3,023.98 buy point from a tight three-week level.
The wing stopped (wing) rose 2% to 369.90, rebounding from the 10-week line to near the top of the range dating back to early March. But the dividend is due on May 1st.
Cava group (reward) reversed higher, rising 3.6% to 62.59, reclaiming the 50-day line and the sharp downtrend, providing an entry. Cava dividends are not due for several weeks.
What are you doing now
The market is in a correction phase. This week, the market's rally attempt has begun, but it has not signaled a real change in character yet.
Waiting does not mean sitting on your hands. It's important to be prepared for the next shift in the market, whether that's Friday, next week, or the coming months.
Some energy, infrastructure, financial, medical and restaurant stocks continue to perform well. But most technologies need some or a lot of repair work.
So, take a wide look at your watchlists and keep interacting 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 on top of market trend and leading stocks and sectors.
Please follow Ed Carson on topics at @edcarson1971 And X/Twitter at @IBD_ECarson For stock market updates and more.
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