Dow Jones futures fell slightly Thursday night, along with S&P 500 futures and Nasdaq futures. The stock market rally suffered heavy losses Thursday as the 10-year Treasury yields continued to soar. This time the Nasdaq did not rally off lows, closing below key support.
Nvidia (NVDA) and Teladoc Health (TDOC) joined stocks round-tripping sizeable gains, while Tesla (TSLA) plunged further below its 10-week line. Investors should be playing defense, especially with tech stocks. For those waiting to see how big winners held up at the end of the week, some key sell or hold decisions are coming.
Meanwhile, GameStop (GME) came well off its intraday high. GME stock rose 19% to 108.73 after doubling on Wednesday. But it came way off its intraday high of 184.68. AMC Entertainment (AMC) and Express (EXPR), two other squeeze plays that leapt Thursday morning, closed down. GME stock fell overnight in active trade.
Key Earnings Reports
Etsy, Zscaler, Salesforce, Autodesk and Farfetch topped earnings views. Airbnb and DoorDash reported huge quarterly losses in their first quarterly reports since their late 2020 IPOs, but beat on revenue.
Etsy stock jumped in late trade, reclaiming Thursday’s 5.5% drop. Zscaler stock climbed, recouping most of its 5.8% regular-session loss. Salesforce stock retreated overnight on weak guidance after CRM closed down 3.9%. Farfetch stock also fell in extended trade, extending a 4.15% Thursday’s slide. ADSK stock edged lower after a 5% slump.
ABNB stock rose modestly overnight after tumbling 9.1% Thursday. DASH stock sold off after closing with a 5.4% decline.
DraftKings (DKNG) reports early Friday.
Investors have been less forgiving of earnings results in the current market climate, even when profits and guidance appear strong. Nvidia stock tumbled 8.2% Thursday following earnings. Teladoc, Innovative Industrial Properties (IIPR), Progyny (PGNY), NetApp (NTAP) and Novocure (NVCR) all suffered double-digit losses.
Dow Jones Futures Today
Dow Jones futures fell less than 0.1% vs. fair value. S&P 500 futures lost a fraction. Nasdaq 100 futures retreated 0.1%.
Coronavirus cases worldwide reached 113.50 million. Covid-19 deaths topped 2.51 million.
Coronavirus cases in the U.S. have hit 29.04 million, with deaths above 520,000.
Stock Market Rally
The stock market rally suffered broad-based losses Thursday, with growth continuing to lead the downside.
The Dow Jones Industrial Average sank 1.75% in Thursday’s stock market trading, a day after hitting a record high. The S&P 500 index skidded 2.45%, but finding support at the 50-day line. The Nasdaq composite plunged 3.5%, closing below its 50-day line for the first time since Nov. 3. It is still above Tuesday’s intraday low.
The 10-year Treasury yield jumped 14 basis points to 1.52%. That surging yield has been putting pressure on growth stocks.
Nvidia reported strong earnings and guidance, but plunged 8.2% to 532.30. That’s more than round-tripped a 10% gain from the 560.07 buy point of 560.07 and is now below the 50-day line. Teladoc stock plunged 14% to 219.55. That wiped out a 30% run from a 236.76 handle entry and is now 7.3% below the buy point. TDOC stock is also well below its 50-day line.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 4.4%, while the Innovator IBD Breakout Opportunities ETF (BOUT) sank 5.5%. The iShares Expanded Tech-Software Sector ETF (IGV) fell 3.9%. The VanEck…