Dow Jones futures edged up overnight, along with S&P 500 and Nasdaq futures. apple (AAPL) and Amazon.com (AMZN) The July jobs report was released before trading opened on Friday, making headlines for the big earnings night.
X
Even as Treasury yields continued to surge after Wednesday’s selloff, the stock market rally capped a modest mid-morning drop, ending with only a slight drop on Thursday.
This day was also a day of crossing between winners and losers who made big profits. It lasted all night.
Play software in addition to Apple stock and Amazon cloudflare (Net), digital ocean (DOCN), Fortinet (FTNT), Atlassian (team), Appia (APPN) and drop box (DBX) reported Thursday night.
So do online travel stocks. Airbnb (ABNB) and Reservation holding (BKNGMore), even as draft kings (DKNG), coinbase global (coin), floor and decoration (FNDMore) and Gilead Sciences (guild).
microchip technology (MCHP), universal display (OLEDs), square parent block (Square), Progeny (PGNYMore), transmedics group (TMDX), 10X Genomics (TXG) and monster beverage (MNST) also announced quarterly results.
Cathie Wood’s ARK Invest holds large amounts of COIN stock, DraftKings and Block.
winner: Amazon stock won big. DKNG shares turned profitable for the first time since the adjustment. BKNG stocks, OLED and TEAM also rose as well. DBX, TMDX, BKNG, NET, GILD and PGNY rose.
loser: Fortinet, Transmedics and DOCN stocks sold while Floor & Decor fell. MCHP, SQ, ABNB, TXG, COIN, APPN, MNST fell. Apple stock fell slightly.
Some of the winning stocks, such as Amazon, could move into action on Friday.
Strong earnings from Amazon, Atlassian and Cloudflare also boosted software makers MongoDB (MDBs), snowflake (snow) and data dog (DDOG). FTNT drop has particularly low cybersecurity impact Palo Alto Networks (Panwoo).
Earnings for Apple and Amazon are detailed below.
DKNG stocks are IBD Leaderboard. FTNT shares are listed on the IBD long-term leader. DOCN Stocks, Fortinet, Microchip, Transmedics Listed IBD50.
job report
Economists expect nonfarm payrolls to rise by 200,000 in the July jobs report, following a 209,000 increase in June. The unemployment rate should remain at 3.6%. Average hourly wages are expected to rise 4.2% from a year earlier, down from 4.4% in June.
dow jones futures today
Dow Jones futures rose 0.1% against fair value. S&P 500 futures were up 0.2% and Nasdaq 100 futures were up 0.4%. Apple stock is a constituent of the Dow Jones, S&P 500 and Nasdaq. AMZN stock is part of the S&P 500 and Nasdaq.
The 10-year U.S. Treasury yield fell three basis points to 4.16%.
The jobs report, due at 8:30 a.m. ET, is sure to bring big swings to Dow futures and Treasury yields.
Note that overnight trading such as Dow Futures does not necessarily translate into actual trading in the next regular stock market.
IBD experts analyze hot stocks during the stock market rally on IBD Live.
stock market rise
The stock market rally started at a low, extending Wednesday’s tech-led decline as US Treasury yields continued to rise. However, the index mitigated losses and closed slightly after briefly turning positive.
The Dow Jones Industrial Average fell 0.2% in stock market trading on Thursday. The S&P 500 index fell 0.25%. The Nasdaq Composite fell 0.1%. Small-cap Russell 2000 fell 0.3%.
The 10-year Treasury yield rose 11 basis points to 4.19%, up 23 basis points in three days. The 10-year bond yield hit a nine-month high, not far from the long-term high of 4.33% reached in October.
US oil prices jumped 2.6% to $81.55 a barrel after Saudi Arabia extended its voluntary production cuts again.
Market gains are still in an ‘uptrend under pressure’ following Wednesday.
Although the index remained strong, there were many large movements in individual stocks, especially in terms of earnings.in the meantime Mercado Libre (Meri) and Clorox (CLX) was among the big winners, but there were also many losers. Some losers are: hubspot (hub.
Overall, the chip and software sector is at an important level, as are the major indices.
Industrial and housing stocks continue to look solid, while transportation, energy and financial sectors are also trending higher.
Travel dramas put additional pressure on them. Expedia (Exp) and Hyatt Hotel (H.) was the latest with disappointing results.
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ETFs
Among Growth ETFs, Innovator IBD 50 ETF (FFTY) fell 0.6%. iShares Augmented Technology Software Sector ETF (IGV) fell 0.7% and FTNT shares became members. VanEck Vectors Semiconductor ETF (SMH) fell 0.3%.
The ARK Innovation ETF (Arkuk) fell 1.1%, while ARK Genomics (Argu) fell 3.55%. DKNG stock, Coinbase and Square’s parent block are among the top 10 holdings across all ETFs on ARK Invest. Cathie Wood’s also owns MercadoLibre and a portion of her TXG stake.
SPDR S&P Metals & Mining ETF (XME) fell 0.2%. US Global Jets ETF (Jets) fell 2.4%. SPDR S&P Homebuilders (XHB), of which FND shares are the major component, waived 1.1%. Energy Select SPDR ETF (XLE) rose 1%, while the Healthcare Select Sector SPDR Fund (XLV) fell 0.5%.
Industrial Select Sector SPDR Fund (XLI) retreated by 0.6%. Financial Select SPDR ETF (XLF) increased by 0.1%. SPDR S&P Regional Banking ETF (KRE) rose 0.9%.
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Apple earnings
Apple’s profits were slightly lower than historical estimates and better than expected, with sales down 1%. Services revenue boosted performance, but iPhone revenue declined for the third straight quarter.
Apple shares fell 2% in late trading. AAPL shares fell 0.7% to 191.17 on Thursday, closing below the 21st line for the first time in about five months.
Amazon earnings
Amazon’s earnings and earnings surpassed views, with Amazon Web Services up 12%. The e-commerce and cloud-computing giant also offered bullish guidance. CFO Brian Orsubsky said AI will be “at the heart of what we do.”
AMZN shares climbed nearly 9% to 140 in overnight trading. Amazon shares climbed 0.55% to 128.91 on Thursday, holding on to the 50-day line but stopping short of the 21-day line.
A bullish move from the 50-day line could provide a buying opportunity for Amazon, and the July 31 high of 133.87 could be a trigger point. Investors may view the recent moratorium as going back almost a year. Its buy point is 136.65, but 133.87 is an early entry.
Timing the Market with IBD’s ETF Market Strategy
what to do now
Despite the pressure on the market to rise, it’s good that the index resisted further selling for at least a day. This could be the long-needed pause to allow major stocks to build a real base or pull back to the 50-day line and then continue their sustained rally. But now is the time to be more defensive.
If the Nasdaq retreats to the relatively gradual 50-day line, many tech leaders could drop another 5%, 10% or more. Some stocks may be doing well so far, but sometimes they stay strong until the leader breaks.
You can also reduce your exposure by cutting back on recent buys, add-on buys that have faded or deteriorated, or by reducing earnings on some long-term holdings.
A few stocks are giving buy signals mainly on earnings, but it’s not the best time to increase exposure. It is better to plan for the next clear uptrend. So create a watchlist. A market downturn and earnings season could further increase the listing’s sales.
Read “The Big Picture” daily to stay on top of market direction and key stocks and sectors.
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