Dow futures drop: Market rally hits resistance as Treasury yields soar; Snap snorkeling

Dow futures fell overnight, along with S&P 500 futures and Nasdaq futures. The stock market’s bullish attempt on Thursday started strong but gave up gains, hitting major resistance as Treasury yields continued to rise on the back of fresh economic data.

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A parent on Snapchat Explode, Explode (Explode, Explode) declined again with mixed results and without guidance, affecting fellow social media companies meta pads (dead) And the Pinterest (pins).

at Thursday’s session, Tesla (TSLA) to a 16-month low, after mixed earnings and mixed signals late Wednesday.

tech giants apple (AAPL), Microsoft (MSFT), a parent of Google the alphabet (The Google), identification platforms, Amazon.com (AMZN) And the nvidia (NVDA) all hit resistance at their 21-day moving averages, just like the S&P 500 and Nasdaq. All of them were badly damaged, most of them not far from the recent lows.

While the bullish attempt continues, this market is still bearish until proven otherwise. Investors should be wary of making any new purchases in the current environment.

Snap stock crash again

Explode, Explode (Explode, Explode) Views topped the third quarter earnings. But Revenue rose less of 6%, which is a record low and just below the consensus. But Snapchat’s dad won’t offer guidance. Despite the $500 million buyback announcement, SNAP stock is down 27% in after-hours trading. That’s after crashing 43% and 39%, respectively, after the previous two earnings reports.

Meta stock, to be announced next Wednesday, is down modestly in extended trading. PINS stock sold after reversing lower at the 50-day and 200-day lines on Thursday. Both report next week. Twitter (TWTR) hasn’t changed much as investors see Tesla CEO Elon Musk close his $44 billion acquisition deal soon.

Early Friday, the oilfield services giant Schlumberger (SLBEarnings reports. The SLB stock is moving fast up the right side of a 38% deep cup base, but it’s not actionable yet. Dow Jones ingredients American Express (AXP) And the Verizon Communications (VZ) also on tap. AXP and Verizon stock are near 52-week lows.

Dow jones futures contracts today

Dow futures were down 0.1% against fair value. S&P 500 futures were down 0.3%. Nasdaq 100 futures fell 0.65%, and META was a major negative.

The 10-year Treasury yield rose one basis point to 3.24%.

Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.

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stock market rise

The stock market rallied in the first hour of trading, but melted as Treasury yields rose again.

The Dow Jones Industrial Average fell 0.3% on Thursday stock market trading. The S&P 500 fell 0.8%. The Nasdaq Composite Index fell 0.6%. Small cap Russell 2000 fell 1.3%.

The 10-year Treasury yield jumped 10 basis points to 4.23%, a new 14-year high after jumping 13 basis points on Wednesday. The benchmark Treasury yield is on track for its 12th consecutive weekly gain.

Ahead of the opening, the Labor Department reported that initial jobless claims fell last week, defying views for a third straight gain. The Philadelphia Fed Manufacturing Index remained negative in October, slightly worse than consensus, but the employment sub-index indicated strong labor demand. This is not what the Fed wants to see.

The two-year Treasury yield is around 4.6%, as the Fed recently indicated that the Fed funds rate could peak. With that said, markets are currently expecting 4.75%-5% after the February meeting.

Crude oil futures expiring in November rose 0.5% to $85.98 a barrel, but pulled back from morning highs. The price of December crude oil fell 1 cent to $84.51. Natural gas prices fell 1.9%, extending their steep losses to their worst close since late March.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) decreased by 0.9%. iShares Expanded Technology and Software Fund (ETF)IGV) by 0.8%. VanEck Vectors Semiconductor Corporation (SMH) added 0.8%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) and the ARK Genomics ETF (ARKG) both fell 0.4%. TSLA stock continues to lead across ETFs on Ark Invest.

SPDR S&P Metals & Mining ETFs (XME) was up 0.5%, with STLD stock holding significantly. US Global Gates Foundation (ETF)Planes) gave up 0.8%. SPDR S&P Homebuilders ETF (XHB) down 2.5%. SPDR Specific Energy Fund (SPDR ETF)XLE) up 0.1% and the Financial Select SPDR ETF (XLF) slipped 1.6%. SPDR Healthcare Sector Selection Fund (XLV) down 0.8%.

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Tesla Stock

Tesla stock sold 6.65% to 207.28 Thursday, crashing to a 16-month low. Late Wednesday, Tesla’s earnings narrowly beat third-quarter views while revenue came in sluggish. While Elon Musk promised an “epic” fourth quarter and said demand remains strong, he admitted that China and Europe are showing some weakness.

Tesla plans to produce far more cars than it offers in the fourth quarter, after production exceeded sales by 22,000 in the third quarter. The electric car giant says it’s doing it to ease deliveries versus the usual quarter-end madness. But this move comes as production capacity increases and the backlog in China fades.

New EV credits should support Tesla sales in the US in 2023.

Meanwhile, Tesla CEO Elon Musk is said to be looking for new equity partners to fund his Twitter acquisition to avoid sales of new TSLA shares. It comes after Musk said he was “excited” to run Twitter, but admitted he was “overpaid”.

TWTR stock rose 1.2% to 52.44 Thursday, just below the buyout price of $54.20. It’s the highest shutdown since Musk first announced his interest in Twitter.

US government officials are considering subjecting Musk’s Twitter and Starlink deal to national security reviews, Bloomberg reported late Thursday. This comes after Musk’s threats to cut off Starlink’s access to Ukraine and Russia-friendly peace proposals.

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Market Rise Analysis

The stock market’s bull run got off to a strong start Thursday, with the Nasdaq up nearly 1.5% in the first hour. But the Nasdaq, S&P 500 and Russell 2000 hit the resistance at the 21-day moving average again. Dow Jones continues to hold above 21 days.

Technical resistance coincided with Treasury yields rising once again.

Major indices remain solidly higher this week, despite trading near weekly lows. If yields see a sustained decline or pause, a market rally may be triggered. But if yields continue to rise, it is easy to imagine indicators pulling back towards bear market bottoms.

Still trying to get the market up Follow-up day To confirm the uptrend.

Many of Thursday’s winners were stocks with terrible charts, including dividend-fueled L research (LRCX) And the AT&T (T).

Energy stocks remain the clear lead. But many 50-day streaks have been extended. Energy stocks are subject to significant fluctuations with core oil and natural gas prices.

Some steel stocks show their strength. Medical names such as humana (hmmm), Cardinal’s health (CAH) And the Vertex Pharmaceuticals (VRTX) were mixed. Despite the height Lines of relative forceMany drugs do not make much progress.

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What are you doing now

Market volatility adds to investor risk. The stock could look promising, but it sees solid gains fading away within a few minutes or hours. This is with the indices rising strongly during the week. If it is flat or low, negative reversals can be more painful.

Put the volatility aside and there are still good reasons to invest heavily now. The market rally did not have a follow-up day. The S&P 500 and Nasdaq are struggling at the 21-day line.

Next week, Dow Jones shares in Apple, Microsoft, Google, Meta Platforms and Amazon, Boeing (BA), Intel Corporation (INTC) and hundreds of other companies will report. These profits may be a catalyst for big market gains, sharp losses, or more downside actions.

The market may take an upward turn at any moment. A number of stocks can be actionable quickly if a definite rally begins. So stay engaged and keep your watchlists updated.

Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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