Dow Jones futures fell slightly early Friday, along with S&P 500 futures and Nasdaq futures. Israel struck Iran overnight, but futures slashed sharp initial losses as it became clear that it was a narrow attack. Crude oil erased big overnight gains to turn lower.
Netflix and Intuitive Surgical reported better-than-expected first-quarter earnings Thursday night. Tesla recalled Cybertruck vehicles to fix a faulty accelerator pedal
Israel carried out a military operation in Iran overnight, apparently around Isfahan, home to several military bases as well as some key nuclear facilities. But the attack seemed limited, with Iran's state media playing down the incident.
So it's possible that the two sides could deescalate from here.
The stock market rally on Thursday once again was unable to hold early gains. While technically a mixed session, the overall tone remained bearish. The Nasdaq's power trend in force since November is on the cusp of ending.
Nvidia stock edged higher after testing support. But Nvidia chipmaker Taiwan Semiconductor fell below its 50-day line despite strong earnings and guidance.
Meta Platforms, HubSpot and Allstate rebounded from key support.
Nvidia and Meta stock are on IBD Leaderboard. Nvidia, Netflix and HubSpot stock are on the IBD 50. Netflix, Nvidia, HubSpot and Meta Platforms are on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures lost a fraction vs. fair value. S&P 500 futures edged lower. Nasdaq 100 futures retreated 0.2%. All were far off Thursday night lows, amid the first reports of Israel's Iran strike. Netflix and Tesla stock were drags on the S&P 500 and Nasdaq.
The 10-year Treasury yield fell a few basis points to 4.59%, but far off their worst levels.
Crude oil futures declined slightly after briefly spiking 4%.
Bitcoin, which plunged initially, reversed higher.
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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Netflix Subscribers, Intuitive Earnings
NFLX stock fell sharply in premarket trade, set to move below the 50-day line. Netflix subscribers, earnings and revenue all beat first-quarter views, but the streaming giant guided lower on Q2 revenue. Netflix also said it will stop giving subscriber figures, starting in 2025.
ISRG stock rose modestly early Friday. Intuitive Surgical earnings beat amid solid da Vinci surgical procedures growth. Shares dipped 0.35% on Thursday, falling further below the 50-day. Intuitive Surgical stock had a strong run from late October to late March.
Stock Market Rally
The stock market rally tried to bounce Thursday morning, but that quickly fizzled, with the S&P 500, Nasdaq and Russell 2000 all suffering their fifth straight loss.
The Dow Jones Industrial Average rose about 0.1% in Thursday's stock market trading. The S&P 500 index fell 0.2%, but still holding the 5,000 level. The Nasdaq gave up 0.5%. The small-cap Russell 2000 lost 0.2%.
The Nasdaq's 21-day moving average will almost certainly undercut the 50-day line on Friday. So if Friday is a down day, that will officially end the power trend, providing more confirmation of the market's character change.
U.S. crude oil prices rose four cents to $82.63 a barrel. Copper prices jumped 2.3% to a new 52-week high.
The 10-year Treasury yield climbed 6 basis points to 4.65%, rebounding as the Philly Fed manufacturing index unexpectedly jumped to a two-year high.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF fell 0.7%, with HUBS stock in the ETF. The VanEck Vectors Semiconductor ETF slumped 1.75%. Nvidia and TSM stock are the top SMH holdings.
Reflecting more-speculative story stocks, ARK Innovation ETF dipped 0.3% and ARK Genomics ETF edged down 0.1%. Tesla stock is a major holding across Ark Invest's ETFs.
SPDR S&P Metals & Mining ETF fell 0.4%. The U.S. Global Jets ETF ascended 1.4%. SPDR S&P Homebuilders ETF slipped 0.1%. The Energy Select SPDR ETF declined 0.3% and the Health Care Select Sector SPDR Fund closed fractionally lower.
The Industrial Select Sector SPDR Fund retreated 0.35%. The Financial Select SPDR ETF climbed 0.35%, with Allstate stock a component.
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Nvidia Stock
Nvidia stock rose 0.8% to 846.71 after undercutting the 50-day line for the first time in 2024. Shares are still below the 21-day and 10-week lines after tumbling 3.9% on Wednesday.
NVDA stock has a 974 buy point from a flat base.
Nvidia chipmaker Taiwan Semiconductor topped views early Thursday and guided higher on Q2 revenue, fueled by strong AI demand. But Taiwan Semi stock tumbled 4.9%, below its 50-day, on a lowered chip industry outlook.
HubSpot Stock
HubSpot stock rose 2.55% on Thursday to 649.58, rebounding from the 10-week line in heavy volume. Shares briefly reclaimed the 660 flat-base buy point, according to MarketSurge analysis. HUBS stock broke out April 4 on a report that Google parent Alphabet was mulling a bid for the marketing software maker.
Meta Stock
Meta stock gained 1.5% to 501.80, rebounding from its first 50-day line test of 2024. The company launched its Meta AI assistant, which it will roll out across its social sites.
Allstate Stock
Allstate stock climbed 3.8% to 169.11, rebounding from the 50-day, breaking a short downtrend and reclaiming a 168.05 buy point.
The relative strength line, which tracks a stock's performance vs. the S&P 500, is at a 52-week high.
Tesla Stock
Tesla stock fell slightly in premarket trade after the EV giant recalled certain Cybertruck vehicles to repair an accelerator pedal pad that may dislodge and get stuck.
The recall affects 3,878 Cybertrucks, which affects all those delivered so far. It follows an apparent halt or slowdown in Cybertruck deliveries for the past week, reportedly due to accelerator pedal issues.
On Thursday, Tesla stock slumped 3.2% to 150.44, breaking below its April 2023 low to its worst levels since January 2003. Deutsche Bank downgraded TSLA stock, citing Tesla's apparent shift away from a small EV to focus on a robotaxi.
Tesla earnings are due on April 23, with investors and analysts wanting answers from Elon Musk on the conference call.
Market Rally Analysis
The stock market rally has been "due" for a bounce, but couldn't hold even modest morning gains.
There's little or no reason to make new buys in the current market, especially with the earnings wave coming.
This is a time to be working on watchlists, looking for stocks holding or regaining key levels and showing relative strength.
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