Dow Jones futures rose slightly early Thursday, along with S&P 500 futures and Nasdaq futures, with Nvidia and Cisco earnings in focus.
X
The stock market rally retreated amid weak Target (TGT) earnings and holiday guidance, as well as Micron Technology (MU) cutting memory chip production plans. The bond market is flashing brighter recession risks with the 10-year Treasury yield continuing to tumble while short-end rates hold up high.
EV giant Tesla (TSLA) retreated, showing the weakest recent performance among the megacap stocks.
Earnings
Nvidia (NVDA), lithium giant Sociedad Quimica y Minera de Chile (SQM) and Cisco Systems (CSCO) headlined Wednesday night earnings.
NVDA stock climbed modestly in overnight trade, following mixed earnings and guidance.
CSCO stock rose 4% in extended action as Cisco topped fiscal Q1 views and guided up on revenue. Cisco stock dipped 1.1% on Wednesday, trading between its 50-day and 200-day lines. IBD Leaderboard stock Arista Networks (ANET) rose slightly on the Cisco earnings.
SQM earnings and revenue topped Q3 views, but the report came too late for after-hours trading. SQM stock fell 2.6% on Wednesday, down more than 10% this week amid lithium price concerns. The Chilean lithium-and-fertilizer giant is in a cup base with a 115.82 buy point. It could be working on a handle.
China e-commerce giant Alibaba (BABA) and U.S. department store chains Macy’s (M) and Kohl’s (KSS) are due early Thursday. BABA stock fell modestly Wednesday, but after soaring 11% on Tuesday. Macy’s and KSS stock tumbled Wednesday on Target’s holiday warning.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed 0.25%. Nasdaq 100 futures gained 0.4%. CSCO stock is a Dow Jones, S&P 500 and Nasdaq component, but Nvidia is a bigger weight on the S&P 500 and Nasdaq.
The 10-year Treasury yield advanced 2 basis points to 3.71%.
Crude oil futures fell more than 1%.
Republicans have retaken control of the House, according to multiple media outlets. But it will be a wafer-thin majority, far less than expected before Election Day.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally lost ground Thursday, with small caps and techs leading the decline.
The Dow Jones Industrial Average dipped 0.1% in Wednesday’s stock market trading. The S&P 500 index gave up 0.8%. The Nasdaq composite slid 1.5%. The small-cap Russell 2000 retreated 1.8%.
U.S. crude oil prices fell 1.5% to $85.59 a barrel. Natural gas futures rose 2.8%.
Treasury Yield Curve Flashes Recession Risk
The 10-year Treasury yield tumbled 11 basis points to 3.69%, the lowest since early October and down from 4.15% just one week earlier. The benchmark Treasury yield is now below the current fed funds rate range of…
Read More: Dow Jones Futures: Cisco, Nvidia Move On Earnings; Key Recession