Dow Jones Futures: Market Rally Flashes Bearish Signals As Russia War

Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally sold off Thursday, with the S&P 500 tumbling back below its 200-day line as Russia-Ukraine tensions once again were front and center.

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Roku (ROKU) reported mixed earnings after the close. Roku stock plunged overnight.

Deere (DE) earnings are on tap Friday morning, with DE stock holding around a buy zone. Apple (AAPL) and UNP stock are also showing some strength. But Nvidia (NVDA) sold off following earnings. Tesla (TSLA) reversed downward amid some negative headlines.

Russia Invasion Threat ‘Very High’

The threat is “very high” that Russia will likely invade “in the next several days,” President Joe Biden warned Thursday. “Every indication we have is they’re prepared to go into Ukraine, attack Ukraine,” he said.

Earlier the U.S. envoy to the United Nations warned of an “imminent invasion” by Russia. U.S. officials say Russia is massing additional forces near the Ukraine border, refuting Kremlin claims that it’s withdrawing some troops.

Russia accused Ukraine of genocide in eastern Ukraine, offering a possible pretext to invasion. Cease-fire violations between Ukraine and pro-Russian separatists in the eastern part of the country spiked.

Moscow also expelled the No. 2 official at the U.S. embassy from the country.

Major Russia war games with Belarus are slated to end on Sunday, Feb. 20, the same day the Winter Olympics end in Beijing.

Key Earnings

Roku earnings topped views Thursday night, along with user levels. But revenue came in light and the streaming media platform guided low on Q1 revenue. Roku stock fell 22% overnight. Shares already sold off 10% in Thursday’s regular session to 144.71. Roku stock is set to break below its late January lows to its worst level since mid-2020. Shares peaked at 490.76 in July 2021.

Heading into Friday’s earnings, Deere stock fell 2.6% to 380.53 on Thursday, back below the 388.20 handle buy point. DE stock also seems to be forming a new handle for the broader consolidation going back nine months. The relative strength line for DE stock has been trending higher for several weeks and is at a nine-month highs.

Stocks In Focus

Apple stock fell 2.1% to 168.88 on Thursday, just below its 50-day line. But it’s not far from a cup-with-handle buy point of 176.75. The RS line for AAPL stock is holding at record highs.

Union Pacific (UNP) dipped 1.1% to 250.99. It’s just below a 256.21 buy point in a flat base that’s just 8% deep, according to MarketSmith analysis. The rail operator reclaimed its 50-day line on Tuesday. Even at the traditional buy point, UNP stock would be close to its 50-day line.

On the downside, Nvidia stock tumbled 7.6% on Thursday. Nvidia earnings and guidance were strong late Wednesday, though there were some concerns about margins. NVDA stock had been coming up to short-term highs, a trendline and a falling 50-day line, signaling a possible aggressive entry. But…