Dow Jones Futures: Dow Breaks Support But These Stocks Strong; Amazon Ally

Dow Jones futures were little changed Thursday night, along with S&P 500 futures and Nasdaq futures, with AFRM stock signaling “buy now” on earnings. The stock market rally lost more ground on the major indexes Thursday, with the Dow Jones undercutting its 50-day line. But there was positive action beneath the surface.

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American Airlines (AAL) and other carriers jumped Thursday as several issued warnings but also offered hints that the worst is over as Covid cases level off. AAL stock flashed a buy signal. Other travel-related stocks, from hotels to casinos to Airbnb (ABNB), have trended higher over the last several days.

Lululemon Athletica (LULU) gapped out of a long consolidation on earnings. RH (RH) flashed at least early buy signals on its results. TopBuild (BLD) and HCA Healthcare (HCA) also broke out past buy points, at least intraday.

Cybersecurity firm Zscaler (ZS), fintech Affirm (AFRM) and wood pellet grill IPO Traeger (COOK) reported earnings after the close. Zscaler and Traeger beat views and guided higher. But AFRM stock was the big overnight winner, flashing an aggressive entry

TopBuild stock is on IBD Leaderboard. BLD stock also was Thursday’s IBD Stock Of The Day. AAL stock is on SwingTrader.

The video embedded in the article analyzed LULU stock, RH and Macy’s (M).

Dow Jones Futures Today

Dow Jones futures were just above fair value. S&P 500 futures were flat and Nasdaq 100 futures rose a fraction.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Coronavirus News

Coronavirus cases worldwide reached 223.97 million. Covid-19 deaths topped 4.61 million.

Coronavirus cases in the U.S. have hit 41.55 million, with deaths above 673,000. The seven-day moving average of new Covid cases is now falling.

Late Thursday, President Biden said he would impose a vaccination mandate on most federal workers, but on the U.S. Postal Service employees. Employees of most large businesses also face a vaccine mandate. The Los Angeles Unified School District will require all students 12 and up to be vaccinated.

Stock Market Rally

The stock market rally closed Thursday at session lows, though the declines were modest.

The Dow Jones Industrial Average fell 0.4% in Thursday’s stock market trading. The S&P 500 index lost 0.5%. The Nasdaq composite gave up 0.25%. The small-cap Russell 2000, up solidly intraday, closed flat.

Airline stocks were big winners. American Airlines, Delta Air Lines (DAL) and United Airlines (UAL) all cut third-quarter forecasts amid the recent rise in Covid cases. But they signaled the weakness would be short-lived or starting to fade. AAL stock jumped 5.6% to 20.20, reclaiming its 200-day line but finishing just under its falling 50-day average. DAL stock climbed 3.6% and UAL stock 2.3%.

LULU stock gapped up 10.5% on Lululemon’s beat-and-raise report, clearing a yearlong consolidation. But shares closed almost at session lows.

RH stock popped 7.8% to 725 on the furniture retailer’s beat-and-raise results, despite some supply…