Dow Jones futures were little changed overnight, while S&P 500 futures and Nasdaq futures fell slightly. Microsoft (MSFT) and Meta platforms (Meta) beat Q3 views, but the stock was rejected based on guidance.
Robinhood Markets (HOOD), Coinbase (currency), Micro strategy (MSTR), Door Dash (DASH), Godadi (GDDY) and Ryan Specialty Holdings (Ryan) included in other significant revenues after closing.
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Nasdaq hits new highs again; Reddit, Alphabet, Eateries In Focus
The stock market rally eased modestly on Wednesday, with the Nasdaq retreating from record highs despite the Google-parent company. letters (Google) earned big.
Shares of Nvidia, Meta, and TorDash are on the move IBD Leaderboard. Nvidia stock is on SwingTrader. Microsoft stock is on the IBD Long-Term Leaders list. Stocks include Nvidia, Meta, and Ryan IBD 50. There’s also Meta Stack and Robinhood IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures are roughly flat and fair value, while Microsoft is a Dow component. S&P 500 futures fell 0.25% and Nasdaq 100 futures fell 0.4%. Microsoft and Meta are major S&P 500 and Nasdaq holdings.
The 10-year Treasury yield rose slightly to 4.28%.
The official Chinese manufacturing index rose 0.3 points to 50.1 in October, above the break-even 50 level for the first time since April. The forecast was 49.9.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market rally
The stock market’s rally has ended, with the Nasdaq falling after hitting a new all-time high intraday.
The Dow Jones industrial average fell 0.2% in stock market trading on Wednesday, hitting resistance at a 21-day streak again. The S&P 500 index fell 0.3%. The Nasdaq composite gave up 0.6%. The small-cap Russell 2000 fell 0.1%, breaking above its 21-day range.
Reddit (RDDTrose to 42%, over the same period Garmin (GRMN) among several leading earnings-rising stocks, reaching a gap of up to 23%. But there were plenty of losers Rat Lily (LLY13% falls. Nvidia is a competitor Advanced Micro Devices (AMD) sank almost 11%.
U.S. crude oil prices rose 2.1 percent to $68.61 a barrel.
The 10-year Treasury yield fell a basis point to 4.26%.
ETFs
iShares Expanded Technology-Software Sector ETF (VAT) fell 0.2%, with Microsoft stock a key IGV holding. VanEck Vectors Semiconductor ETF (SMH) fell 2.4%, with AMD leading the retreat. ARK Innovation ETF (sheetfell 0.4%.
SPDR S&P Metals & Mining ETF (XMEfell 1.7%. SPDR S&P Homebuilders ETF (XHB), Health Care Select Sector SPDR Fund (XLV) and Industry Select Sector SPDR Fund (XLIdecreased by 0.2%.
Fund Selection SPDR ETF (450.45% improved.
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Microsoft, Meta Revenue
Microsoft beat revenue and earnings fiscal Q1 views as its Azure cloud-computing revenue growth came in at a better-than-expected 33%.
Dow Tech titan funds guided slightly below views for Q2. Microsoft said it plans to spend $80 billion in capital spending in fiscal 2025, which began in July. It was $49 billion in fiscal year 2024. This may cut into Microsoft’s revenue, but it’s good news for AI hardware plays.
Microsoft shares fell sharply in extended trading. In the regular session on Wednesday, shares of Google’s cloud-led revenue rose 0.1% to 433.53. MSFT stock is moving away from its 21-day, 50-day and 200-day lines. A traditional consolidation buy point is 468.35, with 441.85 providing an initial entry.
But Microsoft stayed behind for most of 2024.
Meta earnings are easily beaten when earnings are slightly higher. Daily active users came in just below views. Facebook and Instagram parent Q4 earnings guided slightly higher at the midpoint. Meta guided for full-year spending slightly lower, but guided for a portion of capital spending and forecast “significant capital spending growth in 2025.”
Meta stocks fell modestly in overnight action. Shares fell 0.25% to 591.80 on Wednesday, just below a short consolidation.
Microsoft and Meta revenue and direction are key Nvidia (NVDA) and other AI hardware plays.
Nvidia stock fell slightly in after-hours trading. Shares fell 1.4% to 139.34 on Wednesday, below a 140.76 buy point, following weak AMD sales guidance.
Arista Networks (Aneta), which boasts Microsoft and Meta as major customers, lost a chunk overnight. Shares fell 1.4% on Wednesday, snapping a 21-day losing streak.
Robinhood, Crypto Earnings
Crypto-related trading app Robinhood, cryptocurrency exchange Coinbase and bitcoin investor MicroStrategy all reported weaker-than-expected Q3 results. MicroStrategy borrowed heavily to buy bitcoin, and announced plans to raise $42 billion in equity and debt to buy the cryptocurrency.
Robinhood stock fell, while Coinbase fell solidly and MicroStrategy fell. COIN stock flirts with the buy point.
Other revenues
Ryan Specialty Stock and GoDaddy are little changed. DoorDash was taller.
Lemonade (LMNT) rose on better-than-expected results, while another high-profile insurer, root (Root), rose to heaven. Communications software producer Twilio (TWLO) and Sprouts Farmers Market (SFM) jumped overnight.
Thursday morning, Shark Ninja (S.N), Uber Technologies (UBER) and Roblox (RBLX) tap to report earnings.
What to do now
So far the stock market rally has handled the earnings season, but there’s more to come. We’ll see how markets respond to Microsoft and Meta on Thursday Amazon.com (AMZN) and Apple (APL) Thursday night. Friday follows the jobs report, the November 5 election day, the November 7 federal meeting announcement and more.
Other than earnings gaps, there aren’t many recent buying opportunities, and many of those companies have earnings in the next few days.
So apart from incremental purchases or portfolio changes, investors don’t have to do much. But stay engaged and have your watch lists ready.
Read the big picture every day to stay in tune with market direction and leading stocks and sectors.
Follow Ed Carson on Threads @edcarson1971 and on X/Twitter @IBD_ECarson For stock market updates and more.
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