Dow Jones futures rose early Thursday, along with S&P 500 futures and especially Nasdaq futures, after the stock market closed mixed Wednesday as the Federal Reserve Chairman Jerome Powell signaled he's in no rush to cut.
Microsoft and Meta Platforms led earnings after the close, along with Robinhood Markets, Arm Holdings, Lam Research and Carvana.
Meta and Microsoft jumped before the open, with their reports having big implications for the artificial intelligence sector and overall market. Carvana also leaped. Robinhood fell modestly. Lam Research and Arm stock took a big leg down.
Quantum computing stocks such as IonQ, Rigetti Computing, D-Wave Quantum rose overnight as Microsoft CEO Satya Nadella said, "The next big accelerator in cloud will be quantum."
The Federal Reserve left interest rates steady on Wednesday, though two policymakers voted in favor of a cut. Fed chief Powell cited elevated uncertainty and "two-sided risk" as reasons to wait. Markets now see a 45% chance of a September rate cut, down from 63% on Tuesday.
Robinhood stock is on the IBD Leaderboard watchlist. Microsoft stock is on the IBD Long-Term Leaders. Robinhood stock is on the IBD 50.
Dow Jones Futures Today
Dow Jones futures climbed 0.24% vs. fair value. S&P 500 futures advanced 0.9%. Nasdaq 100 futures rallied 1.2%. Microsoft and Meta are S&P 500 and Nasdaq titans, with MSFT stock also in the Dow.
The 10-year Treasury yield fell to 4.34%.
At 8:30 a.m. ET, investors will get the Fed's favorite inflation gauge, the June core PCE price index. Wednesday's GDP report showed that it rose slightly faster than expected in Q2.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally was slightly higher before the Fed's 2 p.m. ET announcement, turned lower as Powell spoke before improving to finish mixed.
Shortly after the Fed announcement, President Donald Trump said he will impose 50% tariffs on Brazil, in large part on internal political issues, but with a one-week delay and many exceptions. Copper prices dived as Trump exempted refined copper from a 50% tariff.
Late Wednesday, Trump said the U.S. will impose a 15% tariff on South Korean goods.
Before the open, Q2 GDP came in stronger than expected, rebounding to a 3% annual rate after a 0.5% drop in Q1. But final sales, which avoids trade shifts, slowed to a 1.2% pace, the weakest since 2022.
The Dow Jones Industrial Average fell 0.3% in Wednesday's stock market trading, bouncing off the 21-day line. The S&P 500 index dipped 0.1%, coming off the 10-day line. The Nasdaq composite rallied to finish up 0.15%. The small-cap Russell 2000 sank 0.5%, holding the 21-day
U.S. crude oil prices rose 1.1% to $70 a barrel, the highest since late June.
The 10-year Treasury yield popped five basis points to 4.38%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF gained nearly 1%. The iShares Expanded Tech-Software Sector ETF fell 0.3%, with Microsoft stock a huge holding. The VanEck Vectors Semiconductor ETF popped 1.15%, with Lam Research stock in the ETF. ARK Innovation ETF advanced 1.2%. Robinhood stock is a major holding across ARK Invest's ETFs.
SPDR S&P Metals & Mining ETF slumped 2%. The Energy Select SPDR ETF gave up 1.4%. The Industrial Select Sector SPDR Fund shed 0.5%. The Financial Select SPDR ETF declined 0.2%.
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Microsoft, Meta Earnings
Microsoft earnings easily beat fiscal fourth-quarter views with Azure cloud-computing revenue growth topping estimates as well.
The Dow Jones tech giant also guided higher on current-quarter revenue and capital spending..
Microsoft stock jumped in overnight action. Shares edged up 0.1% Wednesday, right at record highs.
Meta earnings also easily beat views, while also guiding higher on Q3 revenue. The social media giant raised the low end of its capital spending forecast, bringing the midpoint in line with consensus.
Meta stock shot up more than 10% in extended trade. Shares dipped 0.7% to 695.21 on Wednesday, between the 21-day and 10-week lines. Investors could use last week's high of 724.74 as an early entry. Meta stock had been due to have a flat base with a 747.90 buy point after this week.
Arm, Lam Research Earnings
Arm largely met fiscal Q1 results but guided lower on Q2 EPS. The AI chipmaker fell sharply in premarket trade. ARM stock slipped 0.1% to 153.33 on Wednesday, working on a 168.31 buy point from a very deep cup-with-handle base.
LRCX stock fell solidly overnight after initially rising as Lam Research beat views and guided higher. Investors see China sales as unsustainably high, while the back half of the fiscal year looks weaker. LRCX stock ticked up 0.15% on Wednesday to 99.09. Shares have been pausing near a 52-week high. That could be viewed as a handle on a long consolidation going back to July 2024.
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Robinhood Earnings, Carvana
HOOD stock fell modestly in extended action after Robinhood earnings easily beat but crypto revenue slightly missed. Robinhood stock closed up 2.7%. Shares have been pausing recently after running to a record high.
CVNA stock surged more than 15% in overnight trade after Carvana earnings beat. The online used-car seller fell 0.8% to 333.82 Wednesday, but found support at the 50-day line. Shares look set to vault higher, clearing a three-weeks-tight entry at 364.
What To Do Now
The stock market rally reversed lower for a second straight session, but the uptrend looks strong on the S&P 500 and Nasdaq
Earnings reactions to Microsoft, Meta and more will swing markets early Thursday, along with the Fed inflation gauge.
Thursday night, Amazon.com and Apple are on tap, with the jobs report due Friday morning.
So be ready for market, sector and individual stock volatility. Keep that in mind when considering new buys. There were some actionable stocks Wednesday, with Rubrik flashing an aggressive entrys.
Definitely have your watchlists and exit strategies in place.
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