Dow Jones futures showed little change early Friday, as did S&P 500 futures and Nasdaq futures. Adobe (ADBE) reported earnings late Thursday. The stock market rally saw a retreat due to another hot inflation report causing Treasury yields to rise sharply. Major indexes experienced modest losses, largely attributed to Microsoft (MSFT), Apple (AAPL), Google parent Alphabet (GOOGL), and Amazon.com (AMZN). Nvidia (NVDA) and Tesla (TSLA) also saw losses, but their charts looked different. Market breadth was weak overall, with small caps taking a hit. Microsoft stock and Google stock both showed buy signals on Thursday. Arista Networks (ANET), Ares Management (ARES), and HubSpot (HUBS) were close to forming new bases, with HUBS potentially offering an early entry. Adobe, Ulta Beauty (ULTA), Jabil (JBL), and GigaGloud Technology (GCT) reported earnings on Thursday night. Nvidia stock is on IBD Leaderboard, while Microsoft stock is on the IBD Long-Term Leaders list. GigaCloud stock, Nvidia, Arista Networks, Microsoft, HubSpot, and Ares are on the IBD 50. Nvidia and Arista stock are on the IBD Big Cap 20, and Ares was Thursday’s IBD Stock Of The Day.
Dow Jones futures fell slightly vs. fair value, while S&P 500 futures remained flat and Nasdaq 100 futures declined 0.2% with ADBE stock impacting tech stocks. The 10-year Treasury yield dropped to 4.28%, and Bitcoin fell to around $68,000. Adobe earnings slightly exceeded expectations, but the company guided just below consensus for current-quarter revenue. ADBE stock sold off overnight despite announcing a $25 billion buyback. Ulta Beauty earnings surpassed views, but the company guided slightly lower on 2024 EPS. Jabil stock and GigaCloud stock also saw declines. The stock market rally saw losses on Thursday due to a stronger-than-expected producer price index pushing up Treasury yields. The Dow Jones Industrial Average fell 0.35%, while the S&P 500 index and Nasdaq composite slipped 0.3%. Market breadth was weak, with losers surpassing winners, and small-cap indexes took a hit. The market rally has been pausing for a few days, which could be healthy for the overall market. U.S. crude oil prices climbed to $81.26 a barrel, and the 10-year Treasury yield surged to 4.3%.
Microsoft stock hit a record high on Thursday, while Google stock moved above the 50-day moving average. Arista stock continued to bounce back from the 50-day and 10-week lines. Ares stock found support at the 21-day line and is due to have a flat base with a buy point after Friday. HubSpot stock bounced from the 10-week line and is on track to form a base-on-base formation. Tesla stock and Nvidia stock saw declines on Thursday, with Tesla falling to a 10-month low. Nvidia stock is still holding its 10-day line but is at risk of a significant correction. Tesla remains the worst performer on the S&P 500 in 2024, while Nvidia is the top performer so far this year.
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