Dow Jones futures fell modestly early Friday, along with S&P 500 futures and Nasdaq futures, as Intuitive Surgical and especially Snap weighed on several online giants. The stock market rallied, with Tesla (TSLA) and lower Treasury yields driving the Nasdaq higher.
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There’s growing optimism that the market bottomed in mid-June. The Nasdaq could be ready for a pullback, however, especially with so many earnings coming next week.
In Thursday’s session, Tesla stock surged on earnings, blasting higher. Shares cleared an aggressive buy area, but now look extended while still being well off highs.
Key Earnings Late
Snap (SNAP) and Intuitive Surgical (ISRG) plunged late Thursday on disappointing results.
SNAP stock crashed 27% in after-hours trading, not far from its mid-June bottom. Shares had closed up 5.6% to 16.38. Snap reported a Q2 loss that was slightly worse than expected, while revenue fell short. The Snapchat parent also wouldn’t offer Q3 guidance. While announcing a $500 million buyback program, Snap will slow hiring and curb operating expenses. All that is a bad sign for social media firms and online ad-dependent firms. Facebook parent Meta Platforms (META) lost nearly 5% and Google parent Alphabet (GOOGL) sank 3% ahead of their earnings next week. Trade Desk (TTD) retreated 7%.
Twitter earnings are due Friday morning. TWTR stock fell only 2% late Thursday, with Elon Musk’s contested takeover deal providing some support.
Intuitive Surgical earnings fell for a second quarter, while revenue growth slowed for a fourth straight quarter, to just 4%. Both missed views as the robotic surgery giant blamed Covid’s ongoing impact on elective procedures. ISRG stock dived 13%, set for a tumble back below its 50-day line. The Intuitive Surgical earnings and commentary could be a bad sign for other medical device, products and systems makers.
Stocks Near Buy Points
Ulta Beauty (ULTA), Ollie’s Bargain Outlet (OLLI), Fortinet (FTNT), Neurocrine Biosciences (NBIX) and Quanta Services (PWR) are stocks setting up.
Ollie’s Bargain Outlet and PWR stock are on the IBD Leaderboard watchlist. OLLI stock is on SwingTrader. FTNT stock is on the IBD Long-Term Leaders list. ULTA stock is on the IBD 50 list. Neurocrine Biosciences was Thursday’s IBD Stock Of The Day.
The video embedded in the article discussed Thursday’s market rally and analyzed Tesla stock, Carlisle (CSL) and elf Beauty (ELF).
Dow Jones Futures Today
Dow Jones futures dipped 0.1% vs. fair value. S&P 500 futures sank 0.4%. Nasdaq 100 futures fell 0.8%. ISRG stock is on the Nasdaq 100, along with Meta Platforms and Google stock.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market Rally
The stock market rally kept moving higher, with Tesla and the Nasdaq leading the way.
The Dow Jones…
Read More: Dow Jones Futures Fall: Snap Crash Hits Online Giants After Tesla