Thursday morning Dow Jones futures slipped slightly, along with S&P 500 and Nasdaq futures, with focus on the Russian/Ukrainian crisis and Nvidia topped overnight earnings. The stock market rallied strongly during the course of Wednesday, but rose to close slightly after the newly released Federal Reserve meeting minutes which did not include fresh and hawkish surprises.
The US envoy to the United Nations said that Russia is heading towards an imminent invasion of Ukraine. Late Wednesday, a senior US official said Russia had added about 7,000 troops near the border, refuting the Kremlin’s allegations that it was withdrawing some troops. The Kremlin said overnight that it was concerned about an outbreak of unrest in eastern Ukraine. Both the Ukrainian government and pro-Russian separatists have claimed ceasefire violations
Wednesday Night Main Earnings
Nvidia stock fell modestly early Thursday despite strong earnings and guidance. AMAT stock rose slightly as a result of its positive results.
Cisco stock delivered strong results, a 3% earnings increase and a $15 billion buyback plan, indicating a move above the 200-day line but still below the 50-day line. Cisco’s results come on the heels of strong earnings from the fastest-growing competitor Arista Networks (Network) on Monday.
ALB stock fell on disappointing earnings guidance.
Dash stock rose 25% in expanded trade in its profits. If this continues during regular trading, the app-based delivery company will test its deteriorating streak for 50 days. This is still more than 50% below DoorDash’s peak in November at 257.25.
See below for more on Nvidia, Albemarle, AMAT earnings and stock movement.
Palantir investors were hoping for a sudden rise in PLTR . stock cocky (UPST) and stock dash. But a lot of battered growth stocks have been dragging down lately due to earnings.
In other news, the National Highway Traffic Safety Administration has launched another investigation into Tesla, this time investigating “phantom braking” in Model 3 and Model Y cars. The complaints, which have escalated in recent months, are said to involve frequent random braking in many Sometimes at highway speeds. 416,000 vehicles are likely to be at risk. Tesla stock lost a fraction.
Federal Reserve Minutes
The minutes of the Federal Reserve’s January 25-26 meeting showed that policy makers are ready to start raising interest rates and reining in a massive balance sheet soon, to tackle inflation. But this was largely known before.
Perhaps there was some relief that there were no new hawkish surprises, as many policymakers favored turbocharging until last month. Remember, the January Fed meeting came before the January CPI report, which sent the 10-year yield above 2% and raised expectations for a Fed rate hike.
The 10-year Treasury yield closed flat at 2.05%. But the two-year Treasury yield, more closely related to the Fed’s policy moves, fell 5 basis points to 1.52%. The US dollar fell and gold rose. All of these moves at least point to a sense that the Fed minutes were not more hawkish than expected.
Dow jones futures contracts today
Nvidia stock is a significant weight in the S&P 500 and especially Nasdaq futures. The CSCO stock is a component of the Dow Jones, the S&P 500, and the Nasdaq.
The 10-year Treasury yield fell 4 basis points to 2%. Crude oil futures fell slightly, but pared losses due to fears of a Russian invasion. It is well above levels in early electronic trading on Wednesday afternoon while stock markets were still open.
stock market rise
The stock market rallied strongly on the day, but pulled back from its lows in the release of the Fed’s meeting minutes, and closed narrowly mixed.
The Dow Jones Industrial Average fell 0.2% on Wednesday stock market trading. The S&P 500 rose 0.1%. The Nasdaq Composite Index was down 0.1%. Small cap Russell 2000 rose 0.2%.
Crude oil futures rose 1.7% to $93.66 a barrel, near their highest levels since 2014. But crude oil prices fell in electronic trading, more than erasing regular session gains while US stock markets were still open, an Iranian nuclear negotiator said. “We are closer than ever” to a deal with the Biden administration.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) and the creator of the IBD Breakout Opportunities ETF (fit) both rose 0.4%. iShares Expanded Technology and Software Fund (ETF)IGV) down 0.8%. VanEck Vectors Semiconductor Corporation (SMH) closed below the break-even point. Nvidia and AMAT stocks are notable holdings.
SPDR S&P Metals & Mining ETF (XME(Advanced 0.5% and Global X US Infrastructure Development ETF)cradle) gain 0.75%. US Global Gates Foundation (ETF)Planes) was just above the break-even point. SPDR S&P Homebuilders ETF (XHB) rose 0.4%. SPDR Specific Energy Fund (SPDR ETF)XLE0.8% advance and the Financial Select SPDR ETF)XLF) rose 0.1%. SPDR Healthcare Sector Selection Fund (XLV) rose 0.15%
Nvidia Earnings It jumped 69%, coming above the fourth-quarter financial views on strong sales of data center segments. The chip giant also gave a bullish direction. But there were some concerns about the margins.
Nvidia stock lost less than 2% early Thursday. Shares were up 16 cents at 265.11 Wednesday after rising 9.2% on Tuesday.
A move above the rapidly falling 50 day line would also remove last week’s high and break the trend line, providing a solid entry in NVDA stock.
Nvidia’s earnings are especially important for the rising stock market and especially the growth names. Nvidia stock is one of the big companies that has had a lot of success in recent years, and it’s close to a solid buying point. The reaction to Nvidia’s earnings could be a catalyst for chip and tech stocks broadly, up or down. And while NVDA’s P/E ratio is 68, it’s not a triple digit.
Profits of applied materials
Profits of applied materials Sales narrowly topped views in the first quarter of the fiscal year.
AMAT stock is up 2% in extended trading, approaching the 50-day line. Shares rose 0.8% to 140.96 on Wednesday, above the 200-day line.
Applied Materials stock may make a new consolidation after the failed breakout, but it needs more time and work. Getting the 50-day streak back would be a good move.
Albemarle earnings It’s down a little from the previous year, but it beat estimates. Revenue rose slightly, surpassing some views while others missed it. The lithium producer gave mixed guidance for 2022.
ALB stock was down 11% before the opening. The arrows indicate that it has fallen below the 50-day moving average and is approaching the 200-day line. Shares rose 1.9 percent to 246 on Wednesday. Albemarle stock is up 6% on Tuesday, moving back above the 50-day line. The January 12 high could offer 248 an early entry, but that doesn’t seem right at the moment. traditional buy point is 291.58 according to MarketSmith Analysis.
Albemarle’s earnings call won’t be made until 9AM ET on Thursday, so ALB stock could also move at the open.
Another lithium product, Levent (LTHM), reports Thursday night. LTHM stock rose 2.9% to 25.08 Wednesday, also close to an early entry. But stocks fell slightly overnight in sympathy with ALB stock.
Market Rise Analysis
The stock market rally gave up a good slice of Tuesday’s strong recovery. The S&P 500 fell again below its 200-day moving average.
Major indices remain within a range from their early February highs to Monday’s lows, but are below their 21-day moving averages. If the major indicators break above their recent highs, this could signal renewed strength. But if the market rises – already under pressure – and breaks below Monday’s lows, that would be a very bearish signal.
The Russell 2000 has fared slightly better than the other indexes over the past several sessions, reflecting the market’s breadth a little better at the time. But the small cap index is still below the major moving averages and not far from 52-week lows.
In the market in general, new lows continue to exceed new highs.
There are a number of headwinds facing the stock market rally. The situation between Russia and Ukraine could go in any number of ways over the next several weeks, making it very difficult for the broader market to set prices going forward. Investors are also dealing with the Federal Reserve, which is facing its worst inflation in 39 years. The Federal Reserve’s meeting minutes may not bear any shells, but policy makers will start raising rates in mid-March.
What are you doing now
With the stock market’s bullish range rising, and moving in the ever-changing headlines, there’s no real direction to follow at the moment. If a stock explodes or shows an early buy signal, how much confidence can you have that it won’t fade quickly? There is no advantage to be invested heavily at the moment.
If the market bounces from here and continues on an extended trajectory for weeks or months, you will have plenty of opportunities to take advantage of it.
Focus on building watchlists and reviewing past trades. Stay engaged with the market, but you also don’t have to stare at screens incessantly. Make sure you’re mentally fresh for the next big breakthrough.
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