The stock market attempted to rally on Wednesday with Dow Jones giants Microsoft ( MSFT ) and Visa ( Fifth ) jumping on earnings while preferred shareholders Boeing ( B.A. ) fell. But the Nasdaq shed significant intraday gains to close flat, while the Dow and S&P 500 both made modest gains.
Tesla shares rose but offset a small part of Tuesday’s stumble. Meanwhile, shares of TWTR fell for the second day in a row on concerns that Tesla CEO Elon Musk may walk out of the Twitter deal.
Facebook reported earnings after the close, along with other tech companies. Paypal ( PPPL ), Service Now ( Right Now ) and Qualcomm ( QCOM ), Beside Ford Motor ( F ). But all of these former leaders are in deep recession. Meanwhile, the Tilladock Health ( TDOC ) epidemic stock winner also mentioned. TDOC shares had already surpassed their huge 2020 gain.
Early Thursday, Eli Lilly ( LLY ) The giant Dow Jones merck ( Lord ) on tap, and both are also close to buying points. Dow shares Larva ( cat ) and McDonald’s ( MCD ) also before opening, along with Twitter. meanwhile, apple ( AAPL ) was looming Thursday night. Apple shares rose on Wednesday but found resistance at the 200-day moving average.
tesla ( TSLA ) and Microsoft shares are running IBD League Table . Shared resources from Microsoft and NOW are running Long-Term Leaders of the IBD .
Dow jones futures contracts today
Dow futures were up 0.2% against fair value. S&P 500 futures rose 0.7%. Nasdaq 100 futures rose 1.4%, led by FB and other tech gains winners.
The Commerce Department will present its first estimate of economic growth in the first quarter. Economists forecast a slowdown in economic growth to 1.1% at an annual rate from 6.9% in the fourth quarter. Partly due to weak inventories, consumer spending rose 3.4%. Remember to work overnight on Dow Jones Futures Contracts and elsewhere that may not necessarily translate into actual circulation in the next regular Stock Exchange session.
facebook earnings Daily active views exceeded expectations, while earnings came to light. FB shares were up 18% in overnight trading. The shares fell 3.3 percent to 174.95 on Wednesday, the lowest level in two years, after Google the Alphabet ( The Google ) lost profit, a bad sign for online advertising. PayPal’s earnings were in line, while revenue slightly exceeded targets. PYPL shares rose 3% in shares extended. The shares fell 1.3 percent to 82.61 on Wednesday, just above the March 2020 coronavirus low.
ServiceNow revenue easily exceeds views and also exceeds revenue. NOW shares rose 7% overnight. Shares of ServiceNow rose 2.3% on Wednesday to 466.29, after hitting a 23-month low on Tuesday.
Qualcomm earnings beat expectations and took the company to a higher level in the current quarter, easing fears of a decline in demand for smartphones. QCOM shares rose 6% in extended trading. Qualcomm shares rose 1.2% to 135.10 on Wednesday, after falling intraday to their worst level since October. Qualcomm’s earnings and guidance are also hopeful signs for Apple’s earnings on Thursday night.
Ford’s earnings topped views by a narrow margin as the automaker reaffirmed its full-year targets. Ford shares rose 2% overnight. The shares rose 0.5% to 14.78 on Wednesday after that General Motors ( GM ) said it expects strong production growth in 2022.
Teladoc reported a larger-than-expected loss and surprise impairment charge of $6.6 billion. The telehealth specialist also cut guidance for 2022. TDOC shares crashed 38% overnight, targeting a four-year low. Shares of Teladoc fell 3.1% on Wednesday to 55.99, down from its February 2021 high of 308.
Start a Stock Market Recovery Attempt
The stock market went up and down on Wednesday, little changed at the end. The Dow Jones Industrial Average rose 0.2% in Wednesday stock trading . The S&P 500 also rose 0.2%. The Nasdaq Composite closed less than 2 points lower. The small-cap Russell 2000 fell 0.4% to its lowest level since December 2020.
US crude prices rose 0.3% to $102.02 a barrel. The 10-year Treasury yield rose 4 basis points to 2.82%.
Among the Best ETFs The IBD Breakout Opportunities ETF 50 ( fifty ) was up 0.3%, while the IBD Breakout Opportunities ETF (Innovator) was up 0.1%. Expanded software and technology fund iShares (ETF) IGV ) closed just above break-even, with shares of MSFT and ServiceNow as big holdings. VanEck Vectors Semiconductor Corporation ( SMH ) by 0.5%, with QCOM shares in SMH.
Stocks reflect more speculative stories, with the ARK Innovation ETF ( see you ) down 2.2% and the ARK Genomics ETF ( ARKG ) down 0.65%. Both hit 23-month lows on the day. Tesla shares continue to rank number one among Ark Invest ETFs. TDOC shares are also a key holding company for Ark Invest, which fund manager Cathy Wood recently added to the position. ARKK and ARKG fell hard overnight.
SPDR S&P Metals and Mining ETF ( XME ) was up 1.8% and the US ETF X Global X Infrastructure Development Fund ( cot ) was up 0.8%. US Global Gates Foundation (ETF) planes ) rose 0.9%. SPDR S&P Home Builders ETF ( XHB ) decreased 0.2%. SPDR Specific Energy Fund (SPDR ETF) XLE (Up to 1.5% and the SPDR Financial Select ETF) XLF ) decreased 0.1%. SPDR Healthcare Sector Selection Fund ( XLV ) lost 0.2%.
TSLA shares rose 0.6% to 881.51 after falling 12.1% on Tuesday, snapping their 50- and 200-day streaks. Shares rose to 918 on the day but faded badly, unable to close above the 200 line on Wednesday.
Tuesday’s sell-off may have been sparked by concerns that CEO Elon Musk may sell TSLA stock to fund the Twitter acquisition. But against the backdrop of stock growth, Tesla shares haven’t fallen all that much in recent weeks.
Meanwhile, shares of Twitter fell 2.1% to 48.64, more than its purchase price of $54.20. The market sees a small, but not small, risk that Musk walks away from the deal, leading to a sell-off of shares in TWTR. Musk has continued to make disparaging comments about Twitter, its employees and its policies since the deal was announced Monday.
The stock market tried to rally Wednesday on the back of gains from Microsoft and Visa, but the gains fizzled out. The Dow Jones and S&P 500 technically began attempts to rally the stock market, but not the Nasdaq, which closed partially lower.
Even at session highs, the major indicators were still well below their 10-day moving averages, not to mention their 21 or 50-day lines. If the Dow Jones and S&P 500 can hold Wednesday’s lows, a follow-up day could happen as soon as next week to confirm a further market rally.
But until then, this is a market correction as the Nasdaq is in a full bear market. Earnings season will continue to be moody for the next two weeks, with Apple shares peaking on Super Thursday. Next week, the Fed is likely to raise interest rates by 50 basis points and agree to start reducing its balance sheet.
Wednesday’s work was certainly not inspiring. Even if the market had closed at the session high, it would be meaningless on its own. For now, investors should remain on the sidelines, with limited or no exposure. But stay committed and create these watch lists.
Defense companies still look strong, while energy stocks generally remain on the basics. Steel and fertilizers play key levels. Travel stocks and REITs are trying to hold their own or make new buying points.
But as mining stocks have recently shown, even major sectors can quickly collapse in a weak market.