Dow futures changed little overnight, along with S&P 500 futures and Nasdaq futures, with nike (NKE) And the micron technology (mo) Earnings are in focus and the Fed’s favorite inflation gauge is on deck.
X
The stock market sold out heavily on Thursday, erasing Wednesday’s gains. The S&P 500 has reached its lowest levels in a bear market. The Nasdaq Composite didn’t quite cut its June lows, but the big Nasdaq 100, led by Apple Inc. Tesla (TSLA).
Treasury yields rebounded somewhat on Thursday, while unemployment claims fell to a five-month low, something the Fed doesn’t want to see. apple (AAPL) And the Carmax (KMX) caused massive losses on Thursday. After paring losses on Wednesday due to a report of iPhone production cuts due to weak demand, Apple shares sold sharply on Thursday, in part due to an analyst downgrade, with iPhone chip makers also suffering.
Carmax (KMX) severely lost earnings views Thursday morning, warning of “affordability challenges.” For largely similar reasons, Moody’s lowered its outlook for the global auto industry to negative from stable. KMX stock crashed, and other auto dealers were swamped. But General motors (GM), Ford Motor (F), Stilants (STLA) Tesla shares were also sold.
Tesla has a lot of news to come. Tesla will hold its annual AI Day on Friday night. Over the weekend, Tesla will likely release its third-quarter delivery numbers. But TSLA stock investors won’t have a chance to react to those events until Monday morning.
Main earnings
Nike earnings and sales It narrowly topped the fiscal consensus in the first quarter. But gross margins decreased significantly compared to the previous year, mostly due to the liquidation of excess inventory in North America. North American stock is up 65% over the previous year. Sportswear giant Dow Jones said it would take “decisive action” to get rid of wanted goods.
NKE shares were sold at 9% under extended proceedings. Nike stock fell 3.2% in the Thursday session to 95.52, hitting a two-year low on the day.
Micron’s profits slightly exceeded, while revenues fell. The memory chip giant has tended to decline significantly in the first quarter of the current fiscal year. It also plans to cut spending on wafer equipment by up to 50% in the current fiscal year versus fiscal 2022.
MU stock was little changed in overnight trading. Micron’s shares fell 1.9 percent to 50.01 in Thursday’s session, after hitting a 23-month low last week.
Micron’s capital spending cut is bad news for memory chip equipment giants like Applied materials (AMAT), KLA Corp. (KLAC) And the L research (LRCX). All three stocks slipped modestly in extended measures.
in other news, IBM (IBM), reduced its quarterly earnings by 78% to 37 cents per share. IBM shares rose in overnight trading.
Dow jones futures contracts today
Dow Jones futures contracts were fixed to fair value. NKE and IBM stocks are components of Dow Jones. S&P 500 futures rose 0.1% and Nasdaq 100 futures rose 0.1%.
The 10-year yield rose 3 basis points to 3.78%.
At 8:30 a.m. ET, the Commerce Department will release its Personal Income and Consumer Spending report for August. Investors will focus on the personal consumption expenditures price index, the Fed’s preferred inflation measure. The overall PCE index should show a slight increase of 6.1% over the previous year. But core inflation in core PCE is expected to rise to 4.8% from 4.6%.
Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.
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Thursday stock market
The stock market fell sharply at the open and remained deep in the red throughout the day, closing modestly above session lows.
The Dow Jones Industrial Average lost 1.5% on Thursday stock market trading. The S&P 500 fell 2.1%. The Nasdaq Composite Index fell 2.8%. Small cap Russell 2000 fell 2.2%.
Apple shares fell 4.9% to 142.48, their worst level since early July, although still far from the lowest level in June. Bank of America downgraded Apple’s stock to neutral with a 160 target price.
CarMax earnings are down 54% year-over-year, well below expectations. Used car prices are starting to come under pressure, and the car dealer is citing affordability problems. KMX stock is down nearly 25%. Carvana (CNVA) decreased by 20%.
CarMax misses out, downgrades Moody’s industrial rating and slams automakers. General Motors fell 5.65%, Ford 5.8%, and Chrysler Stylantis fell 4.8%. Tesla stock is down 6.8%, pulling back near the 50-day and 200-day lines, but holding above short-term lows.
The 10-year Treasury yield rose 4 basis points to 3.75%, after hitting 3.81% on the day. This comes after Wednesday’s drop of 26 basis points. However, the benchmark Treasury yield is still on track for its ninth consecutive weekly gain.
US crude oil prices fell 1.1% to $81.23 a barrel.
ETFs
between the Best ETFsThe Innovator IBD 50 ETF (fifty) decreased by 1.2%. iShares Expanded Technology and Software Fund (ETF)IGV) is down 1.7%. VanEck Vectors Semiconductor Corporation (SMH) lost 3.15%. MU stock is a prominent SMH stock, along with AMAT, LRCX and KLAC.
SPDR S&P Metals & Mining ETFs (XME) down by 1.8%. SPDR Specific Energy Fund (SPDR ETF)XLE) and the Financial Select SPDR ETF (XLF) down 1.3%. SPDR Healthcare Sector Selection Fund (XLV) decreased by 0.8%.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) ARK Genomics ETFs fell 5.5% and ARK Genomics ETFs (ARKG) 4% after sharp gains Wednesday. Tesla stock is a major ownership across Ark Invest ETFs.
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stock market analysis
So much for the stock market bounce on Wednesday. It only took a few minutes on Thursday for the major indicators to wipe out all of the one-day bounce.
The S&P 500 index lowered Tuesday’s levels, hitting a new low in the bear market. The Nasdaq 100 just fell off its June lows, and Apple and Tesla were among the biggest losers.
The Nasdaq Composite by itself did not cut its June lows, but it did drop below the intraday low on September 23rd.
The S&P 500 and Nasdaq rally day numbers are back to zero. The Dow didn’t quite break through the lows of the bear market on Tuesday, so Thursday was technically the second day of its attempt to rally.
Treasury yields rose on Thursday, but only made up for a fraction of Wednesday’s losses. The US dollar lost its strength for the second consecutive session. However, the 10-year Treasury yield and the dollar have risen sharply over the past several weeks.
Apple, CarMax and Nike have raised new concerns about consumer spending. Apple stock names and iPhone chipsets, along with GM, Tesla, and the auto sector account for a fairly large market share. Nike alone is a $150 billion premium ingredient.
a meta pads (deadThe hiring freeze and potential downsizing, combined with Micron’s weak outlook, added to the problems for broader companies.
But you don’t have to look for reasons to sell stocks on Thursday. It is a bear market. The Federal Reserve is raising interest rates significantly, even as the US economy risks falling into a clear recession.
Wednesday’s rebound was late, but it also did not indicate that the sharp downtrend was over.
The CBOE Volatility Index, or VIX, rose on Thursday. But it was an inside day for the fear gauge in the market after the downtrend reversed on Wednesday. This suggests that the major indicators may need to decisively break below their June lows before they reach the bottoms of the bear market.
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What are you doing now
Investors need patience. At some point, the bear market will end and a new ongoing uptrend will develop. But don’t jump at the first rise. Follow-up days A good way to get into a quick rally in the new market, but with at least some indication that it might have staying power.
If you bought the shares on Wednesday’s bounce, you should be prepared to bounce back quickly. a few like Vertex Pharmaceuticals (VRTX) And the double check (DV) held up well on Thursday. But several interesting names on Wednesday wiped out those gains.
For now, focus on updating your watchlists. Look for stocks with strong relative strength. If they hold the major moving averages, that’s great, but at this point there are several relative “winners”, such as world wrestling entertainment (WWE), below the 50-day and 200-day lines.
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