Dow Jones futures: S&P 500, Nasdaq tumble as Google declines; Meta is the opposite of less

Dow Jones futures fell after hours. S&P 500 futures and Nasdaq futures fell. Meta platforms (dead) And Service now (now) Key earnings reports, Amazon’s report is scheduled for Thursday evening. Several major economic reports are on tap.

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The stock market suffered sharp losses on Wednesday, as the S&P 500 and Nasdaq fell to recent lows, ending their attempts to rally. The small-cap Russell 2000 index hit a 52-week low. The 10-year Treasury yield rose several basis points, while earnings reactions were generally weak.

Microsoft (MSFT) rose modestly over his results and guidance. But Google the parents the alphabet (Google) It fell on a weak cloud. Most of the technologies followed Google, pulling down the Meta stock, a bunch of software runs, and Amazon.com (Amzn), which is presented on Thursday nights.

Meta stock turned slightly lower overnight, along with the chip equipment maker Kosovo Liberation Army Company (KLAC). Software giant ServiceNow rose strongly. All viewpoints prevailed and optimistic guidance was provided.

Meta stock is running IBD Leaderboard, with ServiceNow on the leaderboard watchlist. Microsoft stock is on the IBD Long-Term Leaders list. META is on IBD 50 list. The video embedded in this article reviews Wednesday’s ugly market action and analyzes Google stock, Vertif (VRT) And cm group (Continuing medical education).

Dow jones futures today

Dow Jones futures fell against fair value. S&P 500 futures fell 0.3%. Nasdaq 100 futures fell 0.7%. Meta Stock, ServiceNow, and KLA are components of the S&P 500 and Nasdaq 100. Google, Amazon, and Microsoft are slightly behind.

Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

Economic data

At 8:30 a.m. EDT, the Commerce Department will release its first estimates of third-quarter GDP growth, which will include a quarterly version of the personal consumption expenditures price index. The September PCE price index will be released on Friday.

The Commerce Department will also announce durable goods orders for September at 8:30 a.m. EST on Thursday, as the Labor Department reveals weekly unemployment claims.

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Stock market

The stock market sold off on disappointing earnings and the 10-year Treasury yield rose higher.

MSFT stock rose 3.1%, but Google stock fell 9.5% to a three-month low. Most other reactions to earnings were negative, with other technology companies in particular following suit. Amazon stock fell 5.6% due to Google Cloud concerns.

The Dow Jones Industrial Average fell 0.3% in stock market trading on Wednesday. The S&P 500 fell 1.4%, with Google shares leading the downside. The Nasdaq Composite Index fell 2.4%.

The Nasdaq and S&P 500 indices have shattered their recent lows, meaning their short-term rally attempts are over. The S&P 500 is now significantly below its 200-day line. The Nasdaq is approaching long-term support.

The Dow Jones did not cut Monday’s lows, so technically its attempt to move higher continues. But the overall trend is bleak.

This includes market breadth.

The small-cap Russell 2000 index fell 1.7% to its lowest level since October 2022.

Invesco S&P 500 Equal Weight Fund (RSP) fell 1.1%, reducing recent lows to their worst levels since early November 2022.

The yield on the 10-year Treasury note rose 11 basis points to 4.95%. While the 10-year Treasury yield was lower than Monday’s brief spike above 5%, it was higher during the week.

US crude oil prices rose by 2% to $85.39 per barrel.

ETFs

Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) slid by 2.25%. iShares Extended Technology Software Fund (ETF)IGV) gave up 2.7%, with Microsoft and NOW shares both… VanEck Vectors Semiconductor ETF (Trait) sold at 3.9%. KLAC stock is a major component of SMH.

Mirroring stocks with more speculative stories is the ARK Innovation ETF (Ark(decreased by 5.25% and ARK Genomics)Arkj) decreased by 5.4%.

SPDR S&P Metals and Mining Fund (XME) decreased by 0.7%. SPDR S&P Homebuilders ETF (XHB) stepped down by 2.2%. Energy Select SPDR ETF (XLE(down 0.2%, Healthcare SPDR Fund)Forty-fifth) decreased by 0.9%.

Selected Industrial Sector SPDR Fund (forty-first) sank 1.3%. Financial Select SPDR ETF (XLF) decreased by 0.4%.

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Meta profits

Meta earnings rose 168% compared to the previous year. Revenues were up 23% compared to the previous year, beating slightly, while costs were down 7% compared to the previous year. Meta gave bullish guidance for Q4 revenue. The parent company of Facebook and Instagram slightly trimmed the top end of its capital spending forecast for 2023. It expects capital expenditures to increase in 2024, but not as much as the Street expected. This is potentially bad news for suppliers such as… Arista Networks (network).

Meta stock initially rose after hours, but turned slightly lower. Shares fell 4.2% to 299.53 in Wednesday trading, crossing their 50-day line. Investors can still use 326.50 as a buy point. Aggressive traders can use Tuesday’s high of 318.35 as an early entry point, but market conditions increase the risk significantly.

Service profits now

ServiceNow revenue jumped 49% with revenue up 25%, both leading in views. The business software giant is also guided by subscription revenue

Now the stock has jumped in action overnight. Shares fell 4.4% to 530.17 on Wednesday, falling below the 21-day line, which is below the 50-day line. ServiceNow stock pared the bottom of its flat base, hitting a four-month low. The official buy point is 607.90 of a crushing double bottom pattern. There could be early entries above the 50-day line, even though market conditions are not favourable.

Other major profits

KLA’s profits beat while sales beat financial expectations for the first quarter of the year, although down compared to the previous year. The chip equipment giant was guided in the second quarter.

KLAC stock was little changed in extended trade. Shares fell 3.3% on Wednesday to 454.84, retreating from resistance at the 21-day line, which is below the 50-day line. KLAC stock has a cup-with-handle base with a buy point of 506.92.

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What are you doing now

It’s not very complicated. The market is in a correction phase. Indices are falling, with most blue-chip stocks badly damaged.

Investors should be very careful and have largely, if not all, cash.

Definitely wait for real signals that a downtrend of the market will turn into an uptrend of the market. A strong opening or even a strong day or two is not enough.

If you feel compelled to make purchases, keep them small, don’t buy right out of the park and be prepared to move out quickly.

The market could rebound relatively quickly, especially if earnings and Treasury yields become tailwinds rather than headwinds. Admittedly, the word “if” does indeed carry the burden on this bullish thesis.

What’s the bright side of selling technology on Google’s dark cloud? Some of the potential bad news is being priced in, reducing the level of profits from Amazon and other stocks. But that doesn’t mean stocks can’t go down a lot.

Keep an eye on stocks that are holding up well and showing relative strength. These may be the leaders in the next market rally. Remember, amid a market correction and a massive earnings wave, resilient stocks can suddenly crash. This includes names like Google shares and VRT.

Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.

Please follow Ed Carson on X/Twitter at @IBD_ECarsonTopics in @edcarson1971 And Bluesky V @edcarson.bsky.social For stock market updates and more.

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