Dow Jones Futures: After Bear Market Day, Bulls Try To Take Back The Night; Nike, Apple, Amazon Up

Dow Jones futures rose Thursday night, along with S&P 500 futures and Nasdaq futures. Bulls are trying to take back the night, for reasons that are not entirely clear, and gains were already cooling off. Nike (NKE) stock popped as the Dow Jones component delivered a surprise earnings gain. But Apple (AAPL) stock, Microsoft (MSFT) stock, Intel (INTC) stock, Amazon.com (AMZN) stock and several software names were all higher, with Microsoft, Amazon and Intel rising close to 1%. Still, bears ruled the stock market during the day once again. The Nasdaq correction hit bear market levels, while the S&P 500 index and Dow Jones extended their stock market corrections. Investors fear a government shutdown that could begin as soon as Friday night.




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Nike Earnings

Nike earnings rose 13% for the first Q2, defying views for a 2% drop. Nike brand revenue grew 14% to $8.9 billion, while key North America sales climbed for a third straight quarter. Nike management also was bullish going forward. Nike stock rose 7.9% in late trade. Shares closed down 2.2% to a seven-month low.

Dow Jones Futures Today

Dow Jones futures climbed 0.6% vs. fair value, after rising 1% at one point. S&P 500 futures advanced 0.5%. Nasdaq 100 futures rose 0.7%. Nike stock gave a lift to the Dow Jones and S&P 500 index, while Apple, Microsoft and Intel also provided modest lifts to Nasdaq futures.

Keep in mind that Dow futures and other overnight action don’t necessarily translate in actual trading in the next regular session.

Even if the stock market rallies modestly Friday, or even strongly, a single day wouldn’t mean much by itself.

Bear Market

The Nasdaq composite fell more than 20% from its all-time highs intraday Thursday, crossing the threshold for a bear market. The S&P 500 index and Dow Jones are down more than 15% from their highs. Crude oil prices plunged yet again, as that energy bear market deepens. Medical, retail and energy groups were among the biggest losers in a broad-based stock market sell-off.

More Top Stocks Crumble

Restaurant stocks, which had been relatively resilient, crumbled Thursday. McDonald’s (MCD) and Starbucks (SBUX) knifed through their 50-day moving averages.

Tech Titans Keep Falling

Microsoft stock, Apple and Amazon, the three most valuable companies, all fell more than 2% Thursday. Microsoft closed significantly below its 200-day line for the first time since mid-2016. Apple stock hit a 10-month low. Amazon had its worst close since April 25.

Of course, a few quality stocks held up well. Collaborative software maker Atlassian (TEAM) managed to rise 1.5% as it consolidates bullishly. But plenty of stocks have looked bullish at various times during the bear market, including Apple stock.

What You Should Do Now

Investors should not be looking to buy and should consider being entirely in cash, if they aren’t already. But they should be building and updating their watch lists with names like Atlassian stock. Wait for the stock market to rally over several days, confirming that new uptrend with a follow-through day. Even then, be cautious. The whipsaw stock market correction has already seen two confirmed rallies fail almost immediately.

If you find it boring to be in cash in a bear market, resist the temptation to get back in. If you find it hard to resist, go outside your house at midnight in summer wear — T-shirt, shorts and sandals. There’s a time and place for summer clothes, and a time and place to be bullish.

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