Dow Jones Futures: S&P 500 hits new low as Apple, Tesla, CarMax Dive, Nike tumble overnight

Dow Jones futures, S&P 500 futures and Nasdaq futures edged higher overnight, nike (OF) and Micron Technology (MU) earnings and the Fed’s favorite inflation gauge are on deck.


Stocks tumbled on Thursday, erasing Wednesday’s gains. The S&P 500 hit a new bear market low.The Nasdaq Composite didn’t quite break its June lows, but the Nasdaq 100 broader market fell below Apple stock and Tesla (Tesla).

U.S. Treasury yields rebounded on Thursday, while initial jobless claims fell to a five-month low, something the Fed did not want. apple (AAPL) and car max (KMX) fell sharply on Thursday. Apple shares tumbled on Thursday after a report on Wednesday that sluggish demand led to shrinking iPhone production slashed losses, in part due to an analyst downgrade and the iPhone chip maker struggling.

car max (KMX) badly missed the earnings view Thursday morning, warning of “affordability challenges.” For similar reasons, Moody’s downgraded the outlook for the global auto industry to negative from stable. KMX stock tumbled, sending other auto dealers down.but General Motors (General Motors), Ford (F), star (STLA) and Tesla shares also sold off.

Tesla has a lot of news to release. Tesla will hold its annual Artificial Intelligence Day on Friday night. Over the weekend, Tesla is likely to release third-quarter delivery figures. But TSLA stock investors won’t have a chance to respond to those events until Monday morning.

Tesla late Thursday denied local media reports that the electric car giant would slash prices for the Model 3 and Y in China. Speculation has grown that Tesla will cut some Chinese prices in early October.

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Nike’s earnings and sales were slightly above the fiscal first-quarter consensus. But gross margins fell sharply from a year ago, mainly due to the realization of excess inventory in North America. North American inventories surged 65% from a year earlier. The Dow Jones sportswear giant said it would take “decisive action” to get rid of the wanted item.

NKE stock fell 9% in extended action. Nike shares fell 3.2 percent to 95.52 on Thursday, hitting a two-year low during the session.

Micron’s earnings are slightly higher, while revenue is underwhelming. The memory chip giant’s guidance for the first quarter of the current fiscal year was significantly lower. It also plans to cut fab equipment spending by as much as 50% this fiscal year compared to fiscal 2022.

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MU stock was little changed in overnight trading. Micron shares were down 1.9 percent at 50.01 in Thursday’s trade after hitting a 23-month low last week.

Micron’s capex cut is bad news for memory-exposed chip equipment giants such as Applied Materials (real), KLA Corporation (KLAC) and forest research (LRCX). All three stocks retreated slightly amid extended gains.

In other news, IBM (IBM) slashed its quarterly dividend by 78% to 37 cents a share. IBM stock edged higher in overnight action.

Dow Jones Futures Today

Dow Jones futures rose 0.1% to fair value. NKE stock and IBM are Dow Jones constituents. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.2%.

The 10-year Treasury yield rose 4 basis points to 3.79%.

China’s central bank will allow cities to lower the floor on mortgage rates if house prices in these areas fall recently.

At 8:30 a.m. ET, the Commerce Department will release its August personal income and consumer spending report. Investors will be watching the PCE price index, the Fed’s favorite inflation gauge. Compared to a year ago, the overall PCE index should have declined slightly by 6.1%. But core PCE inflation is expected to rise to 4.8% from 4.6%.

Keep in mind that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading on the next regular stock market day.

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stock market thursday

Stocks opened sharply lower and in deep losses throughout the day, closing just above their session lows.

The Dow Jones Industrial Average fell 1.5% in stock market trading on Thursday. The S&P 500 fell 2.1%. The Nasdaq Composite fell 2.8%. The small-cap Russell 2000 fell 2.2 percent.

Apple shares fell 4.9 percent to 142.48, hitting their lowest level since early July, but still some way from a June low. Bank of America downgraded Apple stock to Neutral with a price target of 160.

CarMax’s earnings fell 54% from a year earlier, well below market expectations. Used car pricing is starting to come under pressure, with car dealers citing affordability issues. KMX shares fell nearly 25%. Kavanagh (CNVA) plunged 20%.

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CarMax’s failure and Moody’s industry downgrade hit automakers. General Motors shares fell 5.65%, Ford fell 5.8% and Chrysler parent Stellantis fell 4.8%. Tesla shares fell 6.8%, plunging from near the 50-day and 200-day antenna, but remained above short-term lows.

The 10-year U.S. Treasury yield rose 4 basis points to 3.75% after hitting 3.81% in the session. This comes after a 26 basis point decline on Wednesday. Even so, benchmark U.S. Treasury yields were on track to rise for a ninth straight week.

U.S. crude fell 1.1 percent to $81.23 a barrel.


Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.2%. The iShares Expanded Tech-Software Sector ETF (IGV) fell 1.7%. The VanEck Vectors Semiconductor ETF (SMH) fell 3.15%. MU stock is a well-known SMH holding along with AMAT, LRCX and KLAC.

The SPDR S&P Metals & Mining ETF (XME) fell 1.8%. The Energy Select SPDR ETF (XLE) and the Financials Select SPDR ETF (XLF) fell 1.3%. The Healthcare Select Sector SPDR Fund (XLV) fell 0.8%.

Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) fell 5.5% and the ARK Genomics ETF (ARKG) fell 4% after sharp gains on Wednesday. Tesla stock is a major holding of the Ark Invest ETF.

The five best Chinese stocks to watch right now

stock market analysis

So much for the stock market rally Wednesday. On Thursday, it took just minutes for the major indexes to erase all one-day rallies.

The S&P 500 fell below Tuesday’s levels, setting a fresh bear market low. The Nasdaq 100 just fell below its June low, with Apple and Tesla the biggest losers.

The Nasdaq Composite itself hasn’t broken below its June low, but it did break below its Sept. 23 intraday low.

The S&P 500 and Nasdaq rose day counts have reached zero. The Dow didn’t quite break below Tuesday’s bear market session low, so Thursday was technically the second day of its rally attempt.

U.S. Treasury yields rose on Thursday, but recovered only a fraction of Wednesday’s losses. The dollar fell for a second straight session. Still, 10-year Treasury yields and the dollar have risen sharply over the past few weeks.

Apple, CarMax and Nike raise fresh concerns about consumer spending. Apple stock and iPhone chip names, along with General Motors, Tesla and the auto industry, have a sizable share of the market. Nike alone is a $150 billion blue-chip stock.

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One meta platform (META) A hiring freeze and possible layoffs, along with Micron’s weak outlook, added to the broader corporate woes.

But you don’t have to look for a reason for Thursday’s sell-off. This is a bear market. The Federal Reserve is aggressively raising interest rates, even as the U.S. economy risks slipping into a clear recession.

Wednesday’s rally was long overdue, but it also did not signal that the severe downtrend was over.

The CBOE Volatility Index (VIX) rose on Thursday. But it was an insider day for the market’s fear gauge after Wednesday’s downside reversal. This suggests the major indexes may need to break decisively below their June lows before the bear market bottoms out.

Use IBD’s ETF Market Strategy to Time the Market

what to do now

Investors need patience. At some point, the bear market will end and a new sustained uptrend will develop. But don’t jump on the first rise. A follow-up day is a great way to quickly jump into a new market rally, but there are at least some signs that it may have staying power.

If you do buy stocks on Wednesday’s rally, you have to be prepared to get out quickly.some such as Apex Pharma (VRTX) and two-factor authentication (DV) had a good run on Thursday. But many interesting names wiped out those gains Wednesday.

Now, focus on updating your watchlist. Look for stocks with relative strength.If they hold key moving averages, that’s fine, but at this point, many relative “winners” such as World Wrestling Entertainment (WWE), below their 50 days and 200 antennas.

Read the big picture every day to stay abreast of market direction and leading stocks and sectors.

Follow Ed Carson on Twitter @IBD_ECarson Stock market updates, etc.

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