Dow Jones Futures: Market Rally Rebounds From Key Levels; Four Earnings Winners

Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. The stock market rally fell Thursday morning on hawkish Fed statements, extending Wednesday’s losses. But the major indexes rebounded from some key levels to close slightly lower.

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Treasury yields rebounded while crude oil prices tumbled.

Apple (AAPL), Microsoft (MSFT) and Google parent Alphabet (GOOGL), the only three trillion-dollar stocks on U.S. exchanges, rallied after testing support at their 50-day moving averages. Meanwhile, Tesla (TSLA) retreated toward its bear-market lows.

Investors should be cautious in the current market, adding exposure slowly and ready to take profits and cut losses quickly.

Earnings

Applied Materials (AMAT), Palo Alto Networks (PANW), Clearfield (CLFD) and Ross Stores (ROST) all topped EPS and sales views late Thursday, with guidance also generally strong.

AMAT stock rose modestly overnight, poised to move back above its 200-day line. PANW stock popped, signaling a move above its 50-day. CLFD stock surged in extended trade, looking to bounce above the 50-day line as it tries to build the right side of a double-bottom base. ROST stock blasted toward 2022 highs after closing in range from a bottoming base.

JD.com (JD) and Atkore (ATKR) are on tap early Friday.

JD stock jumped 7.5% on Thursday, right up to its 200-day line, following Alibaba (BABA) earnings early Thursday. ATKR stock fell 3.5% on Thursday, but was comfortably above its 200-day line as it works on the right side of a deep cup base.

Dow Jones Futures Today

Dow Jones futures fell 0.1% vs. fair value. S&P 500 futures were flat. Nasdaq 100 futures rose 0.15%, with AMAT and PANW stock lifting techs.

Crude oil futures rose 1%.

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 fell solidly at the open as St. Louis Fed President James Bullard and Kansas City Fed President Esther George made hawkish statements. The major indexes rebounded to close flat to slightly lower.

The Dow Jones Industrial Average was just below break-even in Thursday’s stock market trading. The S&P 500 index declined 0.3%. The Nasdaq composite fell 0.35%. The small-cap Russell 2000 gave up 0.9%.

Apple stock rose 1.3%. Microsoft stock gave back two cents, Google stock dipped 0.5%. All tested their 50-day lines intraday. All are below their 200-day lines with no clear buy points. Tesla stock sank 2%, moving closer to its Nov. 9 bear market low.

U.S. crude oil prices tumbled 4.6% to $81.64 a barrel. In addition to hawkish Fed comments, blame Beijing’s renewed emphasis on “zero-Covid” policies. China’s State Council reportedly warned cities to avoid “irresponsible loosening” of Covid-19 measures, just a week after that high-level body backed easing rules. On Wednesday, Peking University locked down over a single case. Covid infections have surged over the past two weeks in China.

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