Dow Jones Futures: Stock Market Selling Resumes As This Bull Case Turns Bearish;

Dow Jones futures fell overnight, along with S&P 500 futures and Nasdaq futures, with FedEx (FDX) plunging overnight on weak earnings and guidance. The stock market rally continued to weaken, with the major indexes wiping out Wednesday’s slim-to-modest bounce, while Treasury yields are near long-term highs.

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The market is still coming to grips with Tuesday’s hot CPI inflation report, which upended the bull case of the Federal Reserve slowing rate hikes soon.

Adobe (ADBE) crashed on mixed results and a $20 billion acquisition. Oil and natural gas stocks fell with energy prices, but solar and lithium stocks also took hefty losses.

Neurocrine Biosciences (NBIX) and Vertex Pharmaceuticals (VRTX) continue to act well, though they haven’t been easy to trade either.

Meanwhile, megacap techs continue to weaken. Apple (AAPL), which on Monday flashed an early buy signal, undercut short-term lows Thursday. Microsoft (MSFT) is nearing its June lows while Google parent Alphabet (GOOGL) set a 19-month closing low.

NBIX stock is on IBD Leaderboard. Microsoft and Google stock are on IBD Long-Term Leaders. VRTX stock is on the IBD Big Cap 20.

FedEx Earnings

After the close, FedEx reported fiscal first-quarter earnings fell 21% vs. a year earlier vs. views for an 18% gain. Revenue rose modestly but slightly missed forecasts. The shipping giant also pulled fiscal 2023 guidance and announced sweeping cost-cutting measures as it faces declining shipping volumes. FedEx had been scheduled to release Q1 results on Sept. 22.

FDX stock plunged 17% in overnight trading. Archrival UPS (UPS) sank 6%. Amazon.com (AMZN) fell 2%. Amazon has reduced its ties with FedEx, but the warning may be bad news for e-commerce overall.

Separately, General Electric (GE) said continued supply-chain issues are pressuring cash flow. GE stock fell 4% overnight.

Dow Jones Futures Today

Dow Jones futures dropped 0.5% vs. fair value. S&P 500 futures fell 0.6%. Nasdaq 100 futures declined 0.8%.

The 10-year Treasury yield fell 2 basis points to 3.44%.

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 opened higher Thursday but that didn’t last, as selling soon took hold.

Jobless claims fell yet again to a three-month low, but other data, including August retail sales, generally pointed to a weaker economy than expected, but with easing price pressures. The Atlanta Fed’s GDPNow tool estimates Q3 GDP growth of just 0.5% vs. its outlook for 2.5% back in August.

The Dow Jones Industrial Average fell 0.6% in Thursday’s stock market trading. The S&P 500 index lost 1.1%. The Nasdaq composite gave up 1.4%. The small-cap Russell 2000 lost 0.7%.

Apple stock sank 1.9% to 152.37, undercutting the low of its already hefty handle. After gapping up above its 50-day and 200-day lines Monday, shares plunged back below those key levels in Tuesday’s market meltdown.

Microsoft stock sank 2.7% to 245.38 Thursday, the lowest point since its mid-June bottom. Google stock…