Dow futures turned slightly higher after hours, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA), service now (right Now) And L Research (LRCXKey earnings headlines after the close. Dow Jones giant chevron (CVX) reported a massive buyback, with CVX stock flashing a potential buy signal.
The stock market rally stumbled on Wednesday morning as follows Microsoft (MSFT) And Boeing (Bachelor’s) is among the early losers in terms of earnings. Major indices tested or eroded key levels but came off their lows, closing at or near intraday highs for the fourth consecutive session. The main reason: Boeing reversed a slight rally and MSFT stock cut losses.
Dow jones futures today
Dow Jones futures were just above fair value, with CVX and IBM stocks alike. S&P 500 futures rose 0.1% and Nasdaq 100 futures rose 0.3%. Tesla, LRCX, NOW, and STLD stocks are S&P 500 and Nasdaq 100 stocks.
Early Thursday, investors will get their first read of economic growth in the fourth quarter. It will include the GDP report as well Quarterly personal consumption expenditures price index, giving a strong indication of the December PCE inflation reading on Friday morning. Also Thursday, durable goods orders, new home sales, and unemployment claims are in play.
Tesla profits a little It topped analyst opinions, which have fallen significantly in the past few weeks. Revenue just missed out, according to FactSet. Tesla generated $324 million in fully self-driving revenue.
Gross auto margin fell to 25.9% from 27.9% in the third quarter and 30.6% a year earlier. It was also without consensus. Gross margins are expected to drop significantly in 2023 after sweeping price cuts around the world earlier this month.
CEO Elon Musk was upbeat on the conference call. He said orders were double production for the time being after the price cuts. But the question is how strong demand will remain in the coming weeks and months. Musk said achieving two million deliveries is the goal for 2023.
Tesla delivered 1,313,851 electric cars in 2022, producing 1,369,611. Production has outpaced deliveries by an increasing amount in the past three quarters.
Tesla said the Cybertruck will begin production later this year. She said she would provide more details about the upcoming car at Investor Day on March 1. It could be a smaller, cheaper EV or a revamped Model 3 with lower production costs.
Late Tuesday, Tesla said it would invest $3.6 billion in its giant factory in Nevada to mass-produce its semi-vehicles and 4,680 batteries. But much of the ad echoed key features of Tesla’s unfulfilled plans from 2014.
TSLA stock jumped 4% in extended trade. Shares rose 0.4% to 144.43 in the regular Wednesday session, hitting the 50-day/10-week lines after rallying from bear-market lows on Jan. 6.
Chevron stock repurchase
Energy giant Dow Jones said late Tuesday that Chevron will buy back $75 billion of its shares from CVX. This represents 20% of the shares outstanding. Chevron will boost its quarterly dividend by 6%, to $1.51 a share.
The oil major will announce its earnings early Friday.
CVX stock rose more than 2% to above 183, bouncing off the 50-day line. The stock has 189.78 points to buy from a shallow cup base. But investors could use a move above Monday’s high of 182.55 as income.
Other major earnings
ServiceNow earnings topped While the revenue was in line. The business software giant also gave bullish guidance on subscription revenue. NOW stock fell modestly after hours, after paring initial losses. Shares rose 1.2% to 448.77 on Wednesday after breaking the 200-day line on the day.
LAM Research’s earnings beat quarterly expectations. LRCX stock is down modestly in the extended business. The shares closed up 0.2% at 448.40 on Wednesday. Lam Research stock is on a bottoming base, with a lot of it above the 50-day and 200-day lines. the Point purchase is 504.65, but a move above Monday’s high will provide a slightly lower entry.
Teradyne’s earnings topped Views, but the guidance also disappointed. TER stock has fallen strongly of late. Shares rose 0.4% to 103.44 on Wednesday, holding above the 200-day line.
LRCX and TER’s earnings track ASML’s earnings before Wednesday’s open, with KLA Corp. (KLACLate appointment Thursday.
Steel Dynamics earnings topped the views. STLD stock rose after hours. The shares closed up 2.2% at 110.41 on Wednesday. Steel Dynamics stock tried to end a short consolidation with a buy point of 113.22 last week, but it fell.
Nucor’s earnings entitlement Thursday morning. NUE stock closed up 1.7%, at 156.67. Nucor stock is approaching 160.03 mug with handle Point purchase.
United Rentals lost profits while revenue was in line. But the heavy equipment rental giant gave bullish guidance for 2023. URI stock rose strongly overnight. Shares fell 0.3% on Wednesday to 392.48, at the edge of buy territory from 374.01 buy points in a consolidation dating back to late 2021. URI earnings and guidance could be key for heavy equipment makers such as Larva (Never).
IBM earnings Views topped while earnings topped. IBM stock fell modestly after hours. Shares fell 0.5 percent to 240.61 on Wednesday. IBM stock formed a firm base at 153.31 buy points after a strong rise for two months, but is currently trading below the 50-day line.
Stock market rise
The stock market rally started off poorly, but picked up again to close little changed, near the best levels of the day.
The Dow Jones Industrial Average rose slightly on Wednesday Stock market trading. The S&P 500 finished just below the break-even point. The Nasdaq Composite fell 0.2%. Small cap Russell 2000 rose 0.3%.
US crude oil prices rose two years to $80.15 a barrel. Natural gas fell 5.9% to its lowest close since June 2021.
The 10-year Treasury yield fell 1 basis point, to 3.46%.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty(up 0.2%, while the Innovator IBD Breakout Opportunities ETF)fit) decreased by 0.3%. iShares Expanded Technology and Software ETF (IGV) was down 0.2%, with Microsoft and NOW stock being major components. VanEck Vectors Semiconductor Corporation (SMH) increased by 0.1%. LRCX stock is owned by SMH
Reflecting stocks with more speculative stories, the ARK Innovation ETF (ark(up 0.1% and the ARK Genomics ETF)ARKG) rose 0.5%. Tesla stock is a major holding across Ark Invest’s ETFs. Cathie Wood’s Ark has been loaded.
SPDR S&P Metals & Mining ETF (XME(up 1.25%, US X Global Infrastructure Development Fund (ETF) )cradle) was flat. American global aircraft (Planes) climbed 1.1%. Homebuilders SPDR S&P (XHB) increased by 0.4%. Energy Defined Fund SPDR ETF (xle(settled just below break-even, Financial Select SPDR ETF)XLF) by 0.8%. SPDR Health Care Sector Selection Fund (XLV) got broken.
Stock market rally analysis
The stock market rally was sold off Wednesday morning, but it has rebounded off its lows. Major indices closed near highs for the fourth consecutive session.
The S&P 500 fell 1.7% on the day, lowering the 200-day line and approaching the 50-day line on the day. But the benchmark index closed essentially flat.
The Nasdaq Composite and Russell 2000 have both bounced back from their lows, comfortably above their 50-day lines. The Dow Jones fell below the 50-day line during the day, but closed above it again.
The Dow giants, Microsoft and Boeing, slid at the opening, but bounced back to finish with little change. Many of the cloud-related names that slipped into Microsoft’s guidance reduced losses.
The blue-chip stocks generally showed a healthy move, including chip, travel, pharmaceutical and housing stocks. It’s saying something when one of the biggest complaints about leading stocks is that a slightly longer pause or pullback in the past week would have helped.
A number of recent breakouts have fallen below buy points but could still work, eg slb (slb), imping (PI) And midpiece (MEDP). Meanwhile, some other stocks that have been extended from bottom bases may serve as handles on long-running mergers, such as Boeing and Shift4Payments (four).
The overall market movement was encouraging. Major indices still need to decisively surpass their highs in late 2022, but they are heading towards those levels.
Earnings season is still brisk, with Tesla and ServiceNow weighing in overnight trading.
Several major economic reports Thursday, Friday and next week, along with the announcement of the Fed’s February 1 meeting, will also move the markets as well as earnings.
What are you doing now
Just because major indices and several leading stocks found support on Wednesday doesn’t mean they will continue to do so. A few weeks from now, it may seem obvious that investors should either have extensive exposure or head for exits. But it is not clear now.
So be careful about adding bid and stick to the rules of minimizing losses.
Definitely working on your watchlists. Cast a wide net: A variety of sectors are showing strength, which in itself is a bullish sign of a market rally.
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