Dow futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally eased slightly on Wednesday, amid rising Treasury yields and a strong dollar. Meta launched its Twitter rival on Wednesday night.
Major indices just fell. It was another quiet session on the major indices, and the Fed’s minutes had little impact. META stock, Google’s flagship the alphabet (Google) And Salesforce.com (CRM) Balances poor amplitude in general.
Meta platforms (metaInstagram competitor launched Twitter on Wednesday night, joining Facebook and other social sites with more than 3 billion daily users. Instagram Thread debuted amid ongoing issues with Twitter, which is now owned by Tesla (TSLA) CEO Elon Musk. Meta shares rose in extended trading.
GOOGL stock and Salesforce flash buy signals on Wednesday. while, MercadoLibre (millie) on the cusp of early entry.
META stock is running IBD Leaderboard. Google stock is on SwingTrader. Google was Wednesday’s stock of IBD.
Dow jones futures today
Dow futures were down 0.15% from fair value. S&P 500 futures were down 0.15% and Nasdaq 100 futures were down.
At 8:15 a.m. ET Thursday, investors will receive the ADP employment report for June. At 8:30 a.m., the Labor Department will release weekly unemployment claims, with the ISM Services Index for June presented at 10 a.m. ET. Friday morning, the Labor Department will release the jobs report for June.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
What are Instagram Meta threads?
The new text-based Meta Threads are described as a place where you can “follow and connect directly with your favorite creators and others who love the same things,” according to the App Store description. The Themes app shares many features with Twitter. Allows users to “like” a post, reply to it, or repost it. Search capabilities are limited.
Meta Platforms launched its text-based app at 7pm PT Wednesday, and it went up 12 hours from 7am PT for the first time Thursday.
Meta CEO Mark Zuckerberg launched Instagram Stories in 2016 to counter Snapchat, which is owned by a company pop (pop). Instagram Reels, which was unveiled in 2020, is taking aim after TikTok.
Other potential Twitter competitors, such as Mastodon and Bluesky, have gained users, but are not yet major threats. Thread, which launches with a number of celebrities and other high-profile users, may be able to quickly attract a large number of users.
It will join an ecosystem of more than three billion daily users of at least one of the Meta apps – Facebook, Instagram and WhatsApp.
Since Musk acquired Twitter for $44 billion last year, the social site has alienated advertisers and many users with a variety of issues. Last week, Twitter restricted the number of tweets users could read. This “rate limit”, purportedly intended to crack down on unauthorized data scraping and bots, further impacts unverified users.
META stock rose 2.9% to 294.37, marking a 17-month high. It is well extended from any possible point of purchase. Meta Platforms rose 1% in after-hours trading.
The stock market rose on Wednesday
The stock market rally saw major indexes drop slightly, with smaller companies losing a little more. The Fed’s minutes from the June 13-14 meeting did offer some surprises. While pausing rate hikes at that meeting, Fed officials favored further tightening. This is something Federal Reserve Chairman Jerome Powell and other policymakers have confirmed since then.
The Dow Jones Industrial Average fell 0.4% in stock market trading Wednesday. The S&P 500 and the Nasdaq Composite lost 0.2%. The small cap Russell 2000 fell 1.3%, ending a six-session winning streak.
US crude oil prices rose 2.9% to $71.79 a barrel. Saudi Arabia has indicated that it will do what it takes to support prices. It comes after it announced on Monday that it would extend a voluntary production cut for another month, into August.
The 10-year Treasury yield jumped 9 basis points to 3.94%, the highest level in four months.
Amid rising US Treasury yields and weak economic data in Europe and Asia, the US dollar rose modestly near key levels.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty) fell 0.8%. iShares Expanded Technology and Software ETF (IGV) closed fractionally higher with a staple of CRM stock. VanEck Vectors Semiconductor Corporation (SMH) declined 1.9%.
SPDR S&P Metals & Mining ETFs (XME) decreased by 1.8%. US Global Gates Foundation ETF (Planes) increased by 0.3%. SPDR S&P Homebuilders ETF (XHB) decreased by approximately 1%. Energy Defined Fund SPDR ETF (xle(down 0.55% and SPDR Fund)XLV) is closed directly below the break-even point.
SPDR Industry Selection Fund (XLI) fell 0.5%.
Top five Chinese stocks to watch now
Google stock rose 1.5% to 121.75, rebounding from the 10-week moving average and breaking a downtrend in a short consolidation. Stocks also cleared the 21-day streak. Investors can use the 21-day line, or the June 30 high of 121.08, as a limit entry. GOOGL stock is on its way to have a new base after this week.
CRM stock rose 1%, to 213.82. Just like Google, Salesforce rose from its 10-week streak and broke out of a short downtrend. The stock has 225 buys from a steady base, amid several weeks of a tight weekly close, according to MarketSmith analysis.
MELI stock jumped 4.5%, to 1,247.36. Volume was above average and picked up as MercadoLibre stock rose. Shares of the Latin American e-commerce and payments giant decisively cleared the 21-day moving average for the first time in a month and broke a short bearish trend. But MELI stock stopped just below the 50-day line. A clear move over 50 days would provide an early entry. MercadoLibre stock operates at 1,365.64 buy points.
Keep in mind that MELI stock has suffered a number of declines in above-average volume over the past several weeks.
Market rally analysis
Major indices fell slightly on Wednesday after a small gain on Monday. Meta platforms, Salesforce, Google stock and a few other giants have cushioned broader losses elsewhere.
Losers outperformed sharply higher stocks on Wednesday, but many of the losers showed little damage. Generac (GNRC) And Aehr Test Systems (AEHR) were the exceptions, dropping 8% and 11% on heavy volume.
Invesco S&P 500 Equal Weight Fund (RSP) fell 0.4%, down from its best level in more than four months.
First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW) fell 0.3% against the stable Nasdaq 100 Index.
Steelmakers, base metal miners, and casinos have had a rough day. Some of the software leaders lost ground, but many hit intraday lows. Medicinal product companies had another rough session.
Traveling plays have generally fared well, or at least been turned off. So did the industries.
After last week’s market rebound, stocks are reeling from previous pullbacks. A longer pause or a slight pullback over several days or weeks could be beneficial for the stock market rally. The Nasdaq Composite closed 7% above its 50-day moving average, with the Nasdaq 100 up 7.9% from this key level. These aren’t extreme levels, but they’re not far from being either.
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What are you doing now
Market rally will do what it will do. But investors may want to be careful about adding too much exposure in the short term, given the high potential for a sideways move or renewed pullback.
In any case, there weren’t a lot of stocks flashing buy signals on Wednesday, with the exception of Google and CRM stocks.
Plenty of stocks are hovering around overbought territory in a variety of sectors, even if several stocks fell on Wednesday.
Work on those watchlists.
Read the big picture every day to stay in sync with the market trend, leading stocks and sectors.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
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