Dow Jones futures fell early Thursday, along with S&P 500 futures and especially Nasdaq futures. Microsoft (MSFT) and Meta Platforms (META) beat Q3 views, but shares declined on guidance.
Robinhood Markets (HOOD), Coinbase (COIN), MicroStrategy (MSTR), DoorDash (DASH), GoDaddy (GDDY), Uber, Twilio and SharkNinja were among the other notable overnight earnings.
Investors will get key economic data before the open, including the Fed’s favorite inflation gauge. Apple (AAPL) and Amazon.com (AMZN) earnings are due after the close.
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Nasdaq Leads Sell-Off; Meta Platforms, GoDaddy, Netflix In Focus
The stock market rally fell modestly Wednesday, with the Nasdaq reversing from a record high even as Google-parent Alphabet (GOOGL) led big earnings movers.
Nvidia, Meta and DoorDash stock are on IBD Leaderboard. Nvidia stock is on SwingTrader. Microsoft stock is on the IBD Long-Term Leaders list. Nvidia, Meta and Ryan stock are on the IBD 50. Meta stock and Robinhood are on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures declined 0.35% vs. fair value, with Microsoft a Dow component. S&P 500 futures retreated 0.5% and Nasdaq 100 futures fell 0.65%. Microsoft and Meta are major S&P 500 and Nasdaq holdings.
The 10-year Treasury yield rose slightly to 4.28%.
At 8:30 a.m. ET, investors will get the September core PCE price index, the Fed’s favorite inflation measure, along with weekly jobless claims.
The official China manufacturing index edged up 0.3 point in October to 50.1, above the break-even 50 level for the first time since April. The forecast was for 49.9.
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 faded into the close, with the Nasdaq leading the declines after hitting a fresh all-time high intraday.
The Dow Jones Industrial Average dipped 0.2% in Wednesday’s stock market trading, again hitting resistance at the 21-day line. The S&P 500 index sank 0.3%. The Nasdaq composite gave up 0.6%. The small-cap Russell 2000 edged down 0.1%, still above its 21-day line.
Reddit (RDDT) skyrocketed 42%, while Garmin (GRMN) gapped up 23%, among the many leading stocks soaring on earnings. But there were plenty of losers, with Eli Lilly (LLY) plunging 13%. Nvidia rival Advanced Micro Devices (AMD) dived nearly 11%.
U.S. crude oil prices rose 2.1% to $68.61 a barrel.
The 10-year Treasury yield fell one basis point to 4.26%.
ETFs
The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.2%, with Microsoft stock a major IGV holding. The VanEck Vectors Semiconductor ETF (SMH) slumped 2.4%, with AMD leading the retreat. ARK Innovation ETF (ARKK) fell 0.4%.
SPDR S&P Metals & Mining ETF (XME) slid 1.7%. SPDR S&P Homebuilders ETF (XHB), the Health Care Select Sector SPDR Fund (XLV) and the Industrial Select Sector SPDR Fund (XLI) declined 0.2%.
The Financial Select SPDR ETF (XLF) advanced 0.45%.
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Microsoft, Meta Earnings
Microsoft earnings and revenue beat fiscal Q1 views, as its Azure cloud-computing revenue growth came in at 33%, above expectations.
The Dow tech titan guided slightly below views for fiscal Q2 revenue overall and for Azure. Microsoft said it plans capital spending of $80 billion in the current fiscal 2025, which started in July. That’s up from $49 billion in fiscal 2024. That could weigh on Microsoft earnings, but is good news for AI hardware plays.
Microsoft stock fell more than 3% in extended trade. Shares edged up 0.1% to 433.53 in Wednesday’s regular session, in Google’s cloud-led earnings beat. MSFT stock has been moving off its 21-day, 50-day and 200-day lines. The traditional consolidation buy point is 468.35, with 441.85 offering an early entry.
But Microsoft has been a laggard for much of 2024.
Meta earnings easily beat while revenue slightly topped. Daily active users came in slightly below views. The Facebook and Instagram parent guided Q4 revenue slightly higher at the midpoint. Meta guided full-year expenses slightly lower but guided up a fraction on capital spending and forecast “significant capital expenditures growth in 2025.”
Meta stock fell modestly before Thursday’s open. Shares dipped 0.25% to 591.80 on Wednesday, just below the top of a short consolidation.
Microsoft and Meta earnings and guidance are key for Nvidia (NVDA) and other AI hardware plays.
Nvidia stock lost a fraction overnight. Shares fell 1.4% to 139.34 on Wednesday, just below a 140.76 buy point, following weak AMD sales…
Read More: Dow Jones Futures Fall As Microsoft, Meta Slide, Robinhood Dives; Inflation Data