Dow Jones futures tilted higher Thursday night while S&P 500 futures and Nasdaq futures retreated modestly as Snap stock crashed and Intel (INTC) tumbled on earnings. That Snap Snap (SNAP) news also hit Facebook (FB), Google parent Alphabet (GOOGL) and Twitter (TWTR), Pinterest (PINS) and Trade Desk (TTD), while the Intel news boosted AMD stock.
The stock market rally was mixed Thursday, but the S&P 500 hit a record high while growth stocks led despite rising Treasury yields. Tesla (TSLA) neared a buy point Thursday and several stocks flashed buy signals. But the day’s big mover was the SPAC merger partner for Donald Trump’s new social media venture.
Dow Jones Futures Today
Dow Jones futures rose about 0.1% vs. fair value. S&P 500 futures fell 0.1%. Nasdaq 100 futures sank 0.5%. Intel stock is a Dow Jones, S&P 500 and Nasdaq member. Facebook and Google stock are S&P 500 and Nasdaq titans.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Tesla stock, Google and AMD are on IBD Leaderboard. AMD stock also is on SwingTrader. Google stock is on IBD Long-Term Leaders. Snap stock, AMD and Google are on the IBD 50.
The video embedded in this article reviewed the overall market action and analyzed Match Group (MTCH), Boot Barn (BOOT) and Netflix (NFLX).
Snap Stock Cracks, Facebook Slumps
Snap earnings came in far above third-quarter estimates. But revenue just missed. The Snapchat parent also guided low for Q4 revenue. Recent Apple (AAPL) privacy changes are taking a toll on Snap’s advertising business.
Snap stock plummeted 21%, signaling a plunge below the 50-day and 200-day lines and a possible five-month low. Snap stock had been trying to set up again after several head fakes in the past several months.
Meanwhile, Snap’s advertising woes are a bad sign for social media rivals and beyond.
FB stock, which has been trying to bounce back from its own woes, slumped 4% in overnight trading. Facebook has warned of headwinds from Apple privacy changes.
TWTR stock gave up 5%. Google stock sank 2%, back below its 50-day line. PINS stock slid nearly 4%. Pinterest shot up 13% Wednesday on reports that PayPal (PYPL) is in talks to buy the digital scrapbooking site.
The Trade Desk stock lost almost 6%. Facebook, Google and Twitter report next week, with Trade Desk earnings likely in early November.
Intel earnings topped views. But adjusted revenue fell short by some measures, led by data-center chips. Q4 earnings guidance was light, as operating expenses rise. The chip giant’s CFO is stepping down as well. Intel stock, which has been a laggard for quite some time, sank 9%.
AMD stock rose modestly on Intel’s woes, a common theme in recent years. Advanced Micro Devices (AMD), which reports earnings next week, climbed 2.5% to a record close on Thursday.
Tesla stock rose 3.3% in Thursday’s session to 894 following strong earnings. TSLA stock rose as high as 900, within a fraction of clearing a nine-month cup base and 900.40 buy point, according to MarketSmith analysis. Shares are on track to rise for a ninth straight week, with gains especially strong in the past two. So Tesla stock taking a break right at or below all-time highs would not be a surprise and would probably be healthy.
Trump Media SPAC Deal
After being barred from many social media sites, former Former President Donald Trump has formed his own. Trump Media & Technology Group will go public via a SPAC merger with Digital World Acquisition (DWAC). Trump Media & Technology will have a social media site named Truth Social, as well a subscription-based video-on-demand service, TMTG+.
DWAC stock shot up 357% to 45.50. Well over 400 million DWAC shares traded in Thursday’s session. DWAC stock rose sharply in extended trade as its social media rivals Snap, Facebook and Twitter sold off.
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Stock Market Rally Thursday
The stock market rally closed mixed but finished relatively strong.
The Dow Jones Industrial Average pared losses to just a fraction in Thursday’s stock market trading, nearly overcoming IBM (IBM) plunging 9.6% on weak sales. The S&P 500 index rose 0.3%, hitting an all-time high, a day after the Dow Jones did. The Nasdaq composite climbed 0.6%. The small-cap Russell 2000 advanced 0.3%
The 10-year Treasury yield rose 4 basis points to 1.68%, a five-month high.
Crude oil futures fell 1.1% to $82.50 a barrel, the first decline in six sessions. Copper prices tumbled nearly 4%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.15%, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 1%. The iShares Expanded Tech-Software Sector ETF (IGV) gained 1%. The VanEck Vectors Semiconductor ETF (SMH) added 1.1%.
SPDR S&P Metals & Mining ETF (XME) slumped 1.7%, as metal prices and mixed earnings took their toll. Global X U.S. Infrastructure Development ETF (PAVE) was just above breakeven. U.S. Global Jets ETF (JETS) dipped 0.1%. SPDR S&P Homebuilders ETF (XHB) edged up 0.3%. The Energy Select SPDR ETF (XLE) slumped 1.85% and the Financial Select SPDR ETF (XLF) slid 0.4%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) climbed 0.8% and ARK Genomics ETF (ARKG) 0.15%. Tesla stock remains the No. 1 holding across ARK Invest ETFs.
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Market Rally Analysis
The stock market rally had a solid Thursday, given various factors.
Falling crude and metals prices hit those sectors. As always, commodity stocks are going to follow the underlying commodity price.
Treasury yields rose to fresh highs. But growth stocks led the way Thursday, with several flashing new buy signals. Transports, at least rail and truck firms, continued to do well. Some retail and apparel names are looking strong, along with consumer discretionary names in general.
The Dow Jones and S&P 500 are at record highs. The Nasdaq isn’t far behind.
Nasdaq futures suggest that techs could retreat on Friday.
But a pause could be constructive for many leading stocks after running up over a few weeks, including Tesla stock. If the likes of ServiceNow (NOW), Apple, Microsoft (MSFT) and GOOGL stock could form handles around their buy points, they could look more attractive. All four of those tech giants report earnings next week, along with hundreds of other companies.
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What To Do Now
The stock market rally continues to act well and offers a number of fresh buying opportunities. Depending on your exposure, you can continue to make new buys. But there’s also nothing wrong with letting the market digest its recent gains and see how the next week plays out.
Obviously the goal is to make money, and to make it quickly during market uptrends. But that doesn’t mean it all has to happen in one day. So don’t try to make it happen.
Identify new potential winners by running screens and building up your watchlists. Pay special attention to those with upcoming earnings.
A slew of earnings reports will generate hundreds of winners and losers, as well as set the tone for various sectors and the overall market rally.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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