Dow Jones futures fell slightly Thursday morning, along with S&P 500 futures and Nasdaq futures. Micron Technology (MU) and Tesla (TSLA) were in focus.
X
The stock market rally had a solid advance Tuesday, with Nike (NKE) surging and FedEx (FDX) leading the way on earnings, also buoying some peers and related stocks.
The S&P 500 index rallied to just above its 50-day line, a positive sign but not a decisive one.
Apple (AAPL) managed to rise modestly, extending a bounce from just above bear market lows Tuesday. Tesla (TSLA) was unable to eke out a gain, closing slightly lower. Tesla late Wednesday doubled its year-end delivery discount in the U.S.
Investors should remain cautious. The market rally remains under pressure, and has had a nasty habit of pulling back after showing any strength.
Meanwhile, First Solar (FSLR), Medpace (MEDP), Aehr Test Systems (AEHR), Impinj (PI) and Schlumberger (SLB) are leading stocks still close to their 50-day or 10-week moving averages.
MEDP stock was added to IBD Leaderboard on Wednesday, with PI stock on the Leaderboard watchlist. SLB stock and KLA Corp. are on the IBD Big Cap 20.
Micron Earnings
Micron reported a wider-than-expected loss while Q1 revenue tumbled 47%. The memory chip giant guided slightly lower for the current Q2 and announced a 10% staff cut.
Micron also will continue to cut capital spending. That’s not good news for memory-exposed chip-equipment makers Applied Materials (AMAT), Lam Research (LRCX) and KLA (KLAC)
MU stock fell 4% in extended trade. Shares had climbed 1% to 51.19 on Wednesday, well off highs.
AMAT stock and Lam Research declined over 2% in premarket trade while KLAC stock sank 1%.
Separately, auto dealer giant CarMax (KMX) missed badly on fiscal Q3 earnings and sales. KMX stock dived, with other auto dealer stocks sliding.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures sank 0.3% and Nasdaq 100 futures declined 0.4%.
The 10-year Treasury yield fell 3 basis points to 3.65%.
Crude oil futures rose more than 1%.
China stocks rallied on hopes for further Covid policy easing, including on foreign travelers.
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 rebounded Wednesday, quickly climbing well over 1% and largely holding those gains into the close.
The Dow Jones Industrial Average climbed 1.6% in Wednesday’s stock market trading. The S&P 500 index rallied 1.5% with Dow Jones giant Nike the day’s top S&P 500 performer for the day. The Nasdaq composite also advanced 1.5%. The small-cap Russell 2000 rebounded 1.7%.
Apple stock rose 2.4% to 135.45 on Wednesday, still well below moving averages. On Tuesday, AAPL stock hit 129.89, just above its June bear market low of 129.04.
U.S. crude oil prices rose 2.7%…
Read More: Dow Jones Futures: S&P 500 Regains Key Level, But Stay Cautious;