The stock market rally showed its strength on Thursday, ignoring the post-Fed Fed pullback and weak earnings to move modestly higher.
Major profits overnight
Apple stock rose modestly in overnight trading on a better-than-expected basis Q3 financial earnings and optimistic comments.
Amazon stock jumped in extended trading. The e-commerce and cloud computing giant topped the revenue views.
FSLR stock rose 4% early Friday after First Solar easily beat EPS offerings and also topped sales. Stocks rose 15% Thursday as Congress made progress on legislation that includes incentives for solar and green energy.
Intel shares fell 11 percent in the range of extended actions after the faltering chip giant Q2 bad views missed Full year estimates were lowered.
Roku’s stock collapsed more than 20% after the streaming platform reported a larger-than-expected loss and shortfall in revenue, citing a “significant slowdown” in advertising. Broadcast hours watched fell versus the first quarter. It also drove Roku down sharply in the third quarter. Roku stock is set to drop to its worst level since its March 2020 low due to the coronavirus.
Early Friday, giant Dow Jones chevron (CVX) easily outperforms opinions, while ExxonMobil (XOM) also topped expectations. Chevron is up 3% as it moves back toward the 50-day streak. XOM stock is up nearly 3% after reclaiming the 50-day streak earlier this week.
AstraZeneca (AZN) topped expectations and led to increased revenue targets for the full year. Abvi (ABBV) topped EPS views but did not meet sales targets. AstraZeneca and ABBV are down, both of which are close to buying points.
Dow jones futures contracts today
Dow futures rose 0.2% against fair value. S&P 500 futures rose 0.6%. Nasdaq 100 futures rose 1%. Apple and Intel stocks are components of the Dow Jones, S&P 500, and Nasdaq. CVX stock is a champion of the Dow Jones and S&P 500.
Crude oil futures are up more than 2%.
The 10-year Treasury yield rose 3 basis points to 2.71%.
stock market rise
The stock market rally declined shortly after the opening, but quickly consolidated, with major indexes rising strongly.
US GDP fell at an annualized rate of 0.9%, the second consecutive quarter that saw a slight dip in economic activity. However, consumer spending remained positive. The data softens expectations for a Fed rate hike without indicating a significant drop.
The new push for a tax and spending bill that includes green allotments has raised solar stocks and other green energy plays.
The Dow Jones Industrial Average rose 1% on Thursday stock market trading. The S&P 500 rose 1.2%. The Nasdaq Composite Index is up 1.1%. Small cap Russell 2000 rose 1.4%.
US crude oil prices reversed lower, falling 0.9% to $96.42 a barrel.
The 10-year Treasury yield fell 5 basis points to 2.68%, hitting its lowest level since April.
The odds of a 50 basis point rate hike on September 21 rose to 76% from 60.5% on Wednesday and 40% on Tuesday. Markets are betting on a quarter point move in November and perhaps a quarter point in December.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 1.8%, while the Innovator IBD Breakout Opportunities ETF (fit) rebounded 1.75%. iShares Expanded Technology and Software Fund (ETF)IGV) gained 1.9%. VanEck Vectors Semiconductor Corporation (SMH) advanced 1.2%, with Intel shares holding significantly.
SPDR S&P Metals & Mining ETF (XME) advanced by 0.75% and the Global Infrastructure Development Fund (ETF) in the USA (cradle) jumped 2.7%. US Global Gates Foundation (ETF)Planes) rose 0.5%. SPDR S&P Homebuilders ETF (XHB) popped 2.1%. SPDR Specific Energy Fund (SPDR ETF)XLE) gained 0.6%, with both Exxon and CVX stocks being huge components. SPDR Financial Choice Fund (SPDR)XLF) rose 0.7%. SPDR Healthcare Sector Selection Fund (XLV) rose 0.6%. ABBV stock is a large XLV property.
Apple’s earnings fell 8%, but it only modestly exceeded the number of views. Sales increased 2% to $82.96 billion, slightly outstripping financial views for the third quarter. The iPhone giant expects revenue growth at an accelerated pace despite “pockets of resilience”.
Apple stock rose 2.5% early Friday, indicating a potential move above the 200-day line.
Shares rose 0.4 percent to 157.35 on Thursday. AAPL stock has made solid progress since hitting a 52-week low on June 16 line relative force Right to new heights. The RS line, the blue line in the provided charts, tracks the stock’s performance against the S&P 500 Index.
amazon earnings It was a bit confusing, with a $2 billion net loss clouded by various proprietary factors. But revenue jumped 7% to $121.2 billion, outpacing views as Amazon Web Services revenue growth accelerated to 33%.
Amazon also gave bullish revenue for the third quarter.
AMZN stock is up 11% in an extended move, indicating a move towards the 200-day line. Shares rose 1.1 percent to 122.28 on Thursday. Amazon stock recently regained its 50-day streak.
Market Rise Analysis
The stock market rally eased Thursday morning, with the Nasdaq down more than 1% on the day. But the major indicators quickly gave up on that and moved higher. The Nasdaq moved above last week’s highs, after the Dow and Standard & Poor’s did so on Wednesday.
The pullback was not surprising in reaction to the second day of the Fed meeting after Wednesday’s big rally, and with leading indicators at some key technical levels. Double earnings or guidance from meta pads (dead), Qualcomm (QCOM) and others also provided a reason to hold back.
So Thursday’s market action certainly showed strength.
The highs in early June are the next hurdle in the market. A market pause for a few days or even weeks wouldn’t be a bad thing. This would allow some stocks to form handles and allow the moving averages to catch up.
Hershey (HSY) Flirt with an early buy point on profits while Rollins (roll) broke out strongly in the second day’s reaction to earnings. Carlisle (CSL) Exit base on profits during Quanta Services (PWR) as part of the green energy boost, but both have somewhat extended their 50-day streaks.
What are you doing now
It is clear that the stock market rally is showing more strength, while a huge week of news is about to come to an end. Investors should benefit by adding exposure. But do it wisely. There is still the risk of individual vibrations or the market hitting resistance.
Market and sector ETFs remain an attractive way to increase exposure with a limited number of high-quality stocks in the position.
Work on those watchlists.
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