Dow Jones futures fell overnight, while S&P 500 futures and Nasdaq futures fell slightly. Microsoft (MSFT) and Meta platforms (dead) Q3 views exceeded, but shares fell on guidance.
Robinhood Markets (Capture), Coinbase (currency), Accurate strategy (MSTR), DoorDash (Dash), Godaddy (GDDY) and Rayyan Specialty Holding (Rayyan) were among other notable gains after the close.
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Nasdaq hits new high again; Reddit, Alphabet, restaurants in focus
The stock market’s rally eased modestly on Wednesday, with the Nasdaq falling short of a record high even with parent company Google alphabet (Google) led the movers to big profits.
Nvidia, Meta, and DoorDash stocks were up and running IBD Leaderboard. Nvidia stock is on SwingTrader. Microsoft stock is on IBD’s list of long-term leaders. Nvidia, Meta, and Ryan shares are in the market Bahraini dinar 50. Meta Stock and Robinhood are on IBD Big Cap 20.
Dow jones futures today
Dow futures were roughly flat versus fair value, with Microsoft a Dow component. S&P 500 futures fell 0.3%, and Nasdaq 100 futures fell 0.4%. Microsoft and Meta are major holdings in the S&P 500 and Nasdaq.
The yield on 10-year Treasury bonds rose slightly to 4.29%.
China’s official manufacturing index rose 0.3 points in October to 50.1, above the 50 parity level for the first time since April. The forecast was 49.9.
Remember, an overnight move in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market pool
The stock market rally fizzled into the close, with the Nasdaq leading the declines after hitting a new all-time high during the day.
The Dow Jones Industrial Average fell 0.2% in stock market trading on Wednesday, once again hitting resistance at the 21-day line. The S&P 500 index fell 0.3%. The Nasdaq Composite Index fell 0.6%. The small-cap Russell 2000 fell 0.1%, still above its 21-day line.
Reddit (RDT) rose by 42%, while Garmin (GRMN) by 23%, among many leading stocks that rose on earnings. But there were a lot of losers, though Eli Lilly (LLY) Decreased 13%. Nvidia competitor Advanced micro devices (AMD) decreased by approximately 11%.
US crude oil prices rose 2.1 percent to $68.61 per barrel.
The yield on the 10-year Treasury note fell one basis point to 4.26%.
ETFs
iShares Extended Technology Software Fund (ETF)IGV) fell 0.2%, with Microsoft stock a significant holding for IGV. VanEck Vectors Semiconductor ETF (Name it) fell 2.4%, with AMD leading the decline. Ark Innovation ETF (Ark) decreased by 0.4%.
SPDR S&P Metals and Mining Fund (XME) decreased by 1.7%. SPDR S&P Homebuilders ETF (XHB), SPDR Healthcare Sector Fund (Forty-fifth(and the SPDR Industrial Sector Fund)forty-first) decreased by 0.2%.
Financial Select SPDR ETF (XLF) advanced by 0.45%.
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Microsoft, Meta Earnings
Microsoft’s earnings and revenue beat financial outlooks in the fiscal first quarter, with Azure cloud computing revenue growth reaching 33%, higher than expectations.
The Dow Jones Technology Index was slightly below views for the fiscal second quarter. Microsoft said it plans $80 billion in capital spending in the current fiscal year 2025, which began in July. That’s up from $49 billion in fiscal 2024. This could impact Microsoft’s profits, but it’s good news for AI hardware gaming.
Microsoft stock fell hard in extended trade. Shares rose 0.1% to 433.53 in Wednesday’s regular session, beating Google’s cloud earnings. MSFT stock has moved away from its 21-day, 50-day and 200-day lines. The traditional consolidated buy point is 468.35, with 441.85 offered for early entry.
But Microsoft has been lagging for most of 2024.
Meta earnings easily outperform while revenue slightly outperforms. Daily active users came in slightly lower than views. Parent company Facebook and Instagram guided fourth-quarter revenue slightly higher at the midpoint. Meta guided full-year expenditures slightly lower but guided a portion of capital spending and forecast “significant growth in capital expenditures in 2025.”
Meta stock fell modestly in overnight action. Shares fell 0.25% to 591.80 on Wednesday, just below the high of the short consolidation.
Microsoft’s earnings, guidance and Meta are key Nvidia (NVDA) and other plays on artificial intelligence devices.
Nvidia stock fell slightly in late trading. Shares fell 1.4% to 139.34 on Wednesday, just below a buy point of 140.76, after AMD’s weak sales guidance.
Arista Networks (Annette), which boasts Microsoft and Meta as major clients, lost a small chunk overnight. Shares fell 1.4% on Wednesday, holding a 21-day streak.
Robinhood, cryptocurrency earnings
Cryptocurrency trading app Robinhood, cryptocurrency exchange Coinbase, and bitcoin investor MicroStrategy all reported weaker-than-expected results in the third quarter. MicroStrategy, which has borrowed heavily to buy Bitcoin, announced plans to raise $42 billion in equity and debt to buy more of the cryptocurrency.
Robinhood stock fell while Coinbase fell hard and MicroStrategy fell. COIN stock has been flirting with a buy point.
Other profits
Ryan Specialty and GoDaddy stock were little changed. DoorDash rose higher.
lemonade (Lamnd) rose thanks to better-than-expected results, while another emerging insurance company, root (root), rose. Communications software maker Twilio (Tolo) and Sprouts Farmers Market (Sfm) also jumped overnight.
early Thursday, SharkNinja (SN), Uber technologies (Uber) and Roblox (RBLX) Click to report earnings.
What are you doing now
So far, the stock market rally has handled earnings season well, but there is much more to come. We’ll see how the markets respond on Thursday to Microsoft and Meta Amazon.com (Amzn) and apple (Apple) scheduled for Thursday night. Friday’s jobs report comes along with Election Day on November 5, the Fed meeting announcement on November 7 and more.
Aside from earnings gaps, there haven’t been many recent buying opportunities, and many of these companies have earnings in the next few days.
Therefore, apart from additional purchases or portfolio adjustments, investors do not need to do much. But stay involved and have your watchlists ready.
Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.
Please follow Ed Carson on topics at @edcarson1971 And X/Twitter at @IBD_ECarson For stock market updates and more.
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