The stock market tried to bounce back on Wednesday with the Dow Jones giants Microsoft (MSFT) And Visa (Fifth) Jumping on gains while they are preferred stock holders Boeing (Bachelor of) fell. But the Nasdaq wiped out significant intraday gains to close flat while the Dow and S&P 500 made slight gains.
Tesla stock rose, but made up for a small part of Tuesday’s stumble. Meanwhile, TWTR stock fell for a second day in a row on concerns that Tesla CEO Elon Musk may walk away from the Twitter deal.
Facebook reported earnings after the shutdown, along with fellow tech companies PayPal (PYPL), Service now (right Now) And Qualcomm (QCOM), Beside Ford Motor (F). But all of these former leaders are in deep recession.
Meanwhile, the epidemic stock winner Tilladock Health (TDOC) also mentioned. TDOC stock had already passed its massive 2020 gain.
early Thursday, Eli Lilly (LLY) The Dow Jones giant merck (Mrk) on tap, and both are close to points of purchase as well. Dow stock Larva (cat) And McDonald’s (MCD) also before opening, along with Twitter.
Dow jones futures contracts today
Dow Jones futures are up 0.3% against fair value. S&P 500 futures rose 0.85%. Nasdaq 100 futures jumped 1.5%, led by FB stock and other technology earnings winners.
Crude oil prices fell more than 1% to below $101 a barrel. The 10-year Treasury yield rose one basis point to 2.83%.
The Commerce Department will present its first estimate of economic growth in the first quarter. Economists see economic growth slowing to 1.1% at an annual rate from 6.9% in the fourth quarter. Partly due to weak inventories, consumer spending saw a 3.4% rise.
Facebook earnings Daily active views beat expectations while earnings came in light. FB stock is up 18% in overnight trading. Shares fell 3.3 percent to 174.95 on Wednesday, the lowest level in two years, after parent Google the alphabet (The Google) He missed out on earnings, a bad sign for online advertising.
PayPal’s earnings were in line while revenue slightly exceeded targets. PYPL stock is up 3% under extended actions. Shares fell 1.3 percent to 82.61 on Wednesday, just above the March 2020 coronavirus low.
ServiceNow’s revenue easily beats views while also topping revenue. NOW stock jumped 7% overnight. ServiceNow stock rose 2.3% on Wednesday to 466.29, after hitting a 23-month low on Tuesday.
Qualcomm Earnings It beat expectations and led the company higher in the current quarter, alleviating fears of waning demand for smartphones. QCOM stock jumped 6% in the extended trade. Qualcomm’s stock rose 1.2% to 135.10 on Wednesday, after falling intraday to its worst level since October. Qualcomm earnings and guidance are also hopeful signs for Apple’s earnings Thursday night.
Ford profits Views topped by a narrow margin as the automaker reaffirmed its full-year goals. Ford stock is up 2% overnight. 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 a $6.6 billion surprise impairment charge. The telehealth specialist also cut 2022 guidance. TDOC stock collapsed 38% overnight, targeting a four-year low. Teladoc stock fell 3.1% Wednesday to 55.99, versus its February 2021 peak of 308.
Starting a stock market recovery attempt
The stock market was up and down on Wednesday, little changed in the end. The Dow Jones Industrial Average rose 0.2% on Wednesday stock market trading. The S&P 500 also rose 0.2%. The Nasdaq Composite closed less than 2 points lower. Small cap Russell 2000 fell 0.4% to its lowest level since December 2020.
US crude oil prices rose 0.3% to $102.02 a barrel. The 10-year Treasury yield rose 4 basis points to 2.82%.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 0.3%, while the IBD Breakout Opportunities ETF (Innovator)fit) made a gain of 0.1%. iShares Expanded Technology and Software Fund (ETF)IGV) closed just above the break-even point, with MSFT shares and ServiceNow both being big holdings. VanEck Vectors Semiconductor Corporation (SMH) by 0.5%, with QCOM stock in SMH.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) is down 2.2% and the ARK Genomics ETF (ARKG) 0.65%. Both hit 23-month lows on the day. Tesla stock continues to rank number one among Ark Invest’s 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 & Mining ETF (XME) rose 1.8% and the US ETF Global X Infrastructure Development Fund (cradle) by 0.8%. US Global Gates Foundation (ETF)Planes) rose 0.9%. SPDR S&P Homebuilders ETF (XHB) decreased by 0.2%. SPDR Specific Energy Fund (SPDR ETF)XLE(Up 1.5% and the Financial Select SPDR ETF)XLF) decreased by 0.1%. SPDR Healthcare Sector Selection Fund (XLV) lost 0.2%.
TSLA stock rose 0.6% to 881.51 after falling 12.1% on Tuesday, cutting its 50-day and 200-day streaks. Shares rallied to 918 on the day but faded badly, unable to close above the 200 line on Wednesday.
Tuesday’s massive sell-off may have been triggered by concerns that CEO Elon Musk might sell shares of TSLA to fund the Twitter takeover. But in the context of stock growth, Tesla stock hasn’t fallen so hard over the past few weeks.
Meanwhile, Twitter stock fell 2.1% to 48.64, down more than its $54.20 acquisition price. The market sees a small but not small risk that Musk will walk away from the deal, leading to a massive sell-off in shares in TWTR. Musk has continued to make derogatory comments about Twitter, its employees, and its policies since the deal was announced on Monday.
The stock market tried to rebound on Wednesday on the earnings of Microsoft and Visa, but the gains faded. 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-day or 50-day lines. If the Dow and S&P 500 can maintain Wednesday’s lows, a Follow-up day It could happen as soon as next week to confirm a new market rally.
But until then, this is a market correction, as the Nasdaq is in a complete bear market.
Earnings season will remain grumpy for the next couple of weeks, with Apple shares topping out on Super Thursday. Next week, the Fed is likely to raise interest rates by 50 basis points and agree to begin reducing its balance sheet.
What are you doing now
Wednesday’s work certainly wasn’t inspiring. Even if the market had closed at session highs, it wouldn’t make sense in and of itself.
For now, investors must stay on the sidelines, with limited or no exposure. But stay engaged and build these watchlists.
Defense companies still look strong, while energy stocks generally remain at bases. Steel and fertilizer plays play key levels. Travel stocks and REITs are trying to hold on or make new buying points.
But as mining stocks have shown recently, even major sectors can collapse quickly in a weak market.
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