Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. Amazon.co.jp[ticker symb=AMZN] Despite headlining earnings, the internet giant fell Thursday night on cloud computing concerns.
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The stock market rally on Thursday progressed strongly. meta platform (meta) boom, and microsoft (MSFTMore) stock, apple (AAPL), the Google parent alphabet (Google) and AMZN are also doing well.
There have been big gains outside of these tech megacaps. But the breadth of the market remains a concern. in the meantime, mobile eye (MBLY) and crocs (crocs) plummeted with weak guidance.
Amazon, cloudflare (Net), sketchers (SKX), first solar (FSLR), Dexcom (DXCM) and snap (snap) was Thursday night’s notable earnings call.
Amazon’s stock price fell sharply in the second half after a surge in early results. However, mixed results and guidance caused NET stock to crash. SNAP also plunged on weak earnings and guidance. FSLR stock and his Dexcom fell. SKX shares rose.
exxon mobil (XOM) and the Dow Jones giant chevron (CVX) is Friday morning.
METAIn Stock IBD leaderboard, with DXCM shares the earning option is played. MSFT shares are long-term leaders in IBD.
dow jones futures today
Dow Jones futures suffered a small loss to fair value. S&P 500 futures were broadly flat. Nasdaq 100 futures fell 0.1%. AMZN stock is the S&P 500 and NASDAQ giant.
The Department of Commerce will release the PCE Price Index for March at 8:30 am ET. PCE and core PCE are the Fed’s favorite inflation indicators, but Thursday’s first-quarter GDP report gave some strong indications of what that could look like.
Note that overnight trading on Dow futures or elsewhere does not necessarily lead to actual trading on the next regular stock market session.
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Amazon earnings
Amazon’s earnings easily surpassed views in the first quarter, and earnings also surpassed them. The e-commerce and cloud computing giant posted strong sales in the second quarter but slightly lower operating profit. On Amazon’s earnings call, executives said growth in his Amazon Web Services cloud division slowed in April compared to the first quarter.
AMZN shares initially surged more than 10% after hours, but fell 2% on cloud comments.
The stock rose 4.6% to 109.82 in Thursday’s regular session, regaining its 200-day line and surpassing last week’s high. Without the earnings report, investors could have used this as an early entry for Amazon stock, which bottomed out on February 2nd.
Other main income
Cloudflare outperformed, but slightly underperformed. Cloud and security software companies led higher second-quarter and full-year EPS but underperformed earnings. NET stock plunged 25% in a long-term move. The stock closed 0.1% higher at 59.58 on Thursday, below the 50-day line and closing near session lows. Cloudflare stock has a handle cup-based buy point of 66.30.
Skechers revenue outpaced views, but Q2 guidance was weak. SKX rounded up higher in overnight action. The stock fell 0.3% to 49.87 on Thursday, but fell sharply to 47 shortly after opening in line with CROX shares. It briefly fell below the buy point of the 47.80 handle.
Earnings and profits for First Solar were far below expectations, but the company showed a positive outlook. FSLR stock shows him down 8% overnight, below the 50-day line. Shares on Thursday rose 0.7% to 208.83. First Solar shares plunged 5.2% on Wednesday. enphase energy (Enf). Investors can use the strong rebound from the 50-day line as a buying opportunity or view the recent consolidation as a near-flat base with entries around 219-221.
Dexcom earnings slightly outperformed views in line with full-year earnings guidance. DXCM shares fell 3% in late trading. The maker of continuous blood glucose monitors fell 1.1% to 123.58 on Thursday. During the day, Dexcom stock temporarily topped his buy point of 125.65 handles.
SNAP stock plummeted overnight. Snapchat’s parent company earned him 1 cent in the first quarter against an expected 1 cent loss. But revenue, users, and revenue per user came to light. Snap also posted lower earnings in the second quarter. SNAP shares rallied 6.3% on Thursday in line with Meta Platforms, but closed just below the 50- and 200-day lines.
In addition to these names, intel (INTC) will be reflected in earnings overnight, but Gilead Sciences (guild) and Amgen (AMGN) hardly changed. Ortex (AYX) and Pinterest (pin)sold out.
XOM shares climbed 1.2% to 116.87 on Thursday, just below the handle cup buy point of 117.28, according to MarketSmith analysis.
CVX shares rose 0.6% to 166.95 on Thursday with support at the 200-day line. Chevron’s stock currently appears to be significantly weaker than Exxon, although he has a consolidation buy point of 189.78.
stock market rally
Stock market gains rose and gained momentum during the day.
The Dow Jones Industrial Average rose 1.6% in stock market trading on Thursday. The S&P 500 index rose nearly 2% for him. The Nasdaq Composite rose 2.4%. Small-cap Russell 2000 rose 1.3% on him.
US oil prices rose 0.6% to $74.76 a barrel.
The 10-year Treasury yield rose 10 basis points to 3.53%. Two-year yields rose 17 basis points to him at 4.1%. The chances of a Fed rate hike next Wednesday are back in virtual lock as Thursday’s economic data showed more than expected slowing growth, stronger inflation and a tighter labor market.
ETFs
Innovator IBD50ETF (FFTY) fell 0.9% and was hit by several big profit-loss stocks such as MBLY shares and Crocs. Innovator IBD Breakout Opportunities ETF (game) rose 0.4%. iShares Expanded Tech Software Sector ETF (IGV) rose 1.6%, supported by MSFT shares. VanEck Vectors Semiconductor ETF (SMH) rose 1% led by chip equipment giants, but some early 2023 chip winners collapsed.
Reflecting more speculative story stocks, the ARK Innovation ETF (arc) rose 1.4%, while the ARK Genomics ETF (ARKG) increased by 0.5%.
SPDR S&P Metals & Mining ETF (XME) rebounded 1.85%, while the Global X US Infrastructure Development ETF (pave) increased by 2.4%. US Global Jets ETF (jet) rose 0.5%. SPDR S&P Homebuilders ETF (XHB) rose 3.4%. Energy Select SPDR ETF (XLE) rose 0.4%. XOM stock and Chevron are heavily held in XLE. Healthcare Select Sector SPDR Fund (XLV) increased by 0.5%. DXCM stock is XLV.
Financial Select SPDR ETF (XLF) increased by 1.6%. SPDR S&P Regional Banking ETF (Kure) jumped 1.9%.
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Market rally analysis
The stock market rally continues to rely heavily on megacap technology.
Meta shares surged 14% to a 52-week high. Microsoft rose his 3.2%, adding to his 7.2% rise on Wednesday. GOOGL shares rose 3.7%, returning to the buy zone. Apple stock rose 2.8%, and Amazon cleared key levels to post earnings.
But unlike Wednesday, Thursday saw gains in all major indices.
The Nasdaq Composite rebounded above the 12,000 level, regaining the 21-day moving average a day after rebounding from the 50-day line. The S&P 500 and Dow Jones have also crossed his 21-day line.
More importantly, the market rally outside the megacaps was solid.
The First Trust Nasdaq-100 Equal Weighted Index ETF (QQEW) started slowly but eventually climbed 1.65% to cross the 50-day line. Invesco S&P 500 Equal Weight ETF (RSP) rose 1.6%, above the 200-day line and just above the 50-day line. But both of these ETFs are still down more than 1% in a week.
Winners firmly outperformed losers on Thursday, but market breadth remains a concern. New lows easily beat new highs, especially on the Nasdaq.
Some major stocks posted buy signals on Thursday, but many extended or returned to positions. More broadly, market leadership is narrow and shifts quickly.
Major indices still need to beat their April highs to clear the 2023 peak. RSP crossing his 50-day line also marks broader participation beyond the megacaps for Meta, Microsoft, and other technologies. An increase in buying opportunities is also a positive sign.
For now, stock market gains are trending upward under pressure.
Watch out for profit season
Net stocks and Snaps look like the recent major losers in earnings.
Several major stocks suffered massive earnings declines on Thursday. impinge (PIs) plunged 39%, while Mobileye and CROX shares plummeted 19% and 16%, respectively. Even with a decent cushion, say a 10% gain towards profit, investors suffered painful losses.
Due to the large movements in earnings over the past few days, investors should be aware of the upcoming reporting dates for positions and set hold or sell rules prior to results.
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what to do now
The market rally had a solid session, but not as strong as the Large Cap Index would suggest. Found support. Many stocks in the setting are still profitable in the coming weeks.
If the market continues to recover, there will be more buying opportunities. Investors should have a watchlist of potential leaders in various sectors. But we are also ready to exit should the broader market deteriorate.
Read The Big Picture daily to understand the market direction and key stocks and sectors.
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