Dow Jones Futures: Market Rally Hits High On Fed Decision, But This

Dow Jones futures were little changed late Wednesday, along with S&P 500 futures and Nasdaq futures, with Booking Holdings among notable earnings movers late. The stock market rally rose to record highs Wednesday after a long-awaited Fed decision to taper bond buys.

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Tesla (TSLA) rallied to a new all-time high in Wednesday’s session. Meanwhile, Apple (AAPL), Google parent Alphabet (GOOGL) and ASML (ASML) are setting up near buy points.

The market rally is looking strong with broad strength. But there are some signs that the Nasdaq, which has rallied for eight straight sessions, is close to being extended.

Key Earnings

Lithium giant Albemarle (ALB), Booking Holdings (BKNG), Roku (ROKU), MGM Resorts (MGM) and Revolve (RVLV) were among the notable earnings reports after the close.

Albemarle earnings beat views, pushing ALB stock higher, further out of buy range. Lithium peer Livent (LTHM) reports Thursday.

Booking.com earnings also topped, signaling a possible BKNG stock breakout. Expedia (EXPE) and Airbnb (ABNB) rose slightly on Booking.com results, nearing buy points ahead of their earnings Thursday.

MGM modestly beat views and said it’s selling the Mirage casino on the Las Vegas Strip. MGM stock is pointing to a new high, clearing another shelf and offering at least an add-on buy opportunity.

Revolve earnings beat but RVLV stock fell modestly after popping to a closing high and the edge of a buy area. Roku stock tumbled as revenue missed and Roku user growth fell short. Guidance also was disappointing.

Meanwhile, Etsy (ETSY), HubSpot (HUBS), Tandem Diabetes (TNDM) and SunPower (SPWR) were also notable losers in addition to Revolve and Roku stock.

TSLA stock and Google are on IBD Leaderboard. GOOGL stock is on SwingTrader. Google and ASML stock are on IBD Long-Term Leaders. Google stock is on the IBD 50.

The video embedded in this article analyzed the market rally reaction to the Fed taper and looked at three stocks: Academy Sports & Outdoors (ASO), Element Solutions (ESI) and Bunge (BG).

Why This IBD Tool Simplifies The Search For Top Stocks

Fed Decision

A long-awaited Fed decision came Wednesday with policymakers agreeing to begin scaling back asset purchases. The actual Fed taper will likely start in mid-November. The $120 billion in monthly purchases — $80 billion in monthly Treasury purchases and $40 billion in government-backed mortgage securities — will drop to zero by mid-2022. The Fed will taper Treasury purchases by $10 billion a month and mortgage securities buys by $5 billion per month.

After the bond taper ends, Fed rate hikes could be on the table.

The Fed meeting statement said the U.S. economy continues to gain strength. Policymakers still see inflation as “transitory,” but hedged a little bit on that front.

After the Fed meeting announcement, Fed chief Jerome Powell said that he expects higher inflation to “persist” well into 2022 but start to cool by Q2 or Q3.

Dow Jones Futures Today

Dow Jones futures were…