Dow Jones Futures, S&P 500 Futures, and Nasdaq Futures to Open Sunday Evening
Dow Jones futures, as well as S&P 500 futures and Nasdaq futures, are set to open on Sunday evening. This upcoming week marks a significant period for earnings reports, with major companies such as Microsoft, Meta Platforms, and Google parent Alphabet (GOOGL) releasing their financial results. The stock market experienced considerable losses recently due to rising Treasury yields and underwhelming reactions to earnings. While the Nasdaq narrowly avoided reaching its September 27 low, small-cap stocks reached a new 52-week low. Several leading stocks also displayed weakness, with additional companies buckling under pressure on Friday. While it is advisable for investors to maintain a significant portion of their assets in cash, it’s crucial to stay informed and engaged.
Key Players
Seven major stocks, namely Microsoft (MSFT), Google, Amazon.com (AMZN), and Meta Platforms (META), will headline the week’s earnings reports. Additionally, ServiceNow (NOW), Vertiv (VRT), Cadence Design Systems (CDNS), CME Group (CME), and Weatherford (WFRD) are among other notable companies releasing their financial results. Microsoft stock, Meta Platforms, ServiceNow, Vertiv, and Cadence Design Systems are all at or near buy points, making them worth monitoring closely. Google stock also presents potential entry points. Although Amazon stock has lagged behind, a positive earnings reaction could create actionable opportunities. The outcomes of these earnings reports will profoundly impact key sectors and the overall market. Microsoft, Google, and Amazon are significant players in cloud computing, while Microsoft, Google, Meta, and Amazon have a strong presence in the field of artificial intelligence. ServiceNow also emphasizes its AI efforts, and Vertiv is viewed as a substantial AI-related investment. Microsoft and ServiceNow will provide insights into the business software industry, and Cadence Design Systems’ results will have implications for rival company Synopsys (SNPS). It is worth noting that Meta Platforms is on IBD Leaderboard, while NOW stock is on the Leaderboard watchlist. Meta stock and Cadence Design are on the IBD 50, Google stock and ServiceNow are on the IBD BigCap 20, and Microsoft and CDNS stock can be found on the IBD Long-Term Leaders list. For more details, check out the embedded video in this article that discusses the weekly stock market action and provides analyses of Microsoft, Meta, and Google stock.
Dow Jones Futures Today
Dow Jones futures will open at 6 p.m. ET on Sunday, alongside S&P 500 futures and Nasdaq 100 futures. It’s important to note that overnight movements in Dow futures and other futures markets do not necessarily translate into actual stock market trading during regular trading sessions. To gain valuable insights into leading stocks and the overall market, join IBD experts as they analyze market trends on IBD Live Stock Market.
Recent Stock Market Performance
The stock market initially attempted to hold steady or trend upwards earlier in the week but faced resistance and subsequently experienced significant declines over the last three sessions. Friday’s stock and bond market movements likely reflected investor caution amidst ongoing conflicts between Israel and Hamas. In the previous week’s stock market trading, the Dow Jones Industrial Average fell 1.6%, the S&P 500 index tumbled 2.4%, and the Nasdaq composite sold off 3.2%. On Monday, the Nasdaq nearly reached its September 27 low, and the tech-heavy index finished the week at a four-month low, dropping below the lows seen on its October 6 follow-through day, a highly bearish signal. The S&P 500 also came close to breaching its 200-day line and recent lows, while the Dow Jones dipped below its 200-day line once again. Market breadth remains unimpressive, with more losers than winners and new lows surpassing new highs. The small-cap Russell 2000 index plummeted 2.3%, reaching a 52-week low. The Invesco S&P 500 Equal Weight ETF (RSP) and the First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) also faced declines, sinking 2.3% and 3% respectively. Leading stocks suffered heavy losses, with even some of the most resilient stocks beginning to crack by the end of the week. While the past few days may have represented a shakeout before a year-end rally, it remains uncertain if the market will experience a sustained run as long as the 10-year Treasury yield continues to rise. Despite Friday’s market retreat, the 10-year bond yield has not indicated any potential leveling off or meaningful pullback, skyrocketing nearly 30 basis points to 4.93% for the week. Additionally, the 10-year bond yield reached an intraday high of 4.996% on Thursday, the highest it has been since 2007. Another notable market development is the rise in US crude oil futures by 1.2% to $88.75 a barrel last week, driven by concerns surrounding tensions in the Middle East and potential supply disruptions. On the other hand, copper prices dropped 1.1% to their lowest level in nearly a year.
Performance of ETFs
In terms of growth ETFs, the Innovator IBD 50 ETF (FFTY) faced a 4% decline last week. The iShares Expanded Tech-Software Sector ETF (IGV) experienced a 3% loss, but its performance seemed favorable until a 2.5% decline on Friday. Microsoft stock and ServiceNow play significant roles within these ETFs. The VanEck Vectors Semiconductor ETF (SMH) dropped by 4.2%, and CDNS stock is also part of IGV and SMH. The SPDR S&P Metals & Mining ETF (XME) suffered a 3.1% decrease, while the SPDR S&P Homebuilders ETF (XHB) plunged 4.5%. However, the Energy Select SPDR ETF (XLE) managed to edge up 0.75%, but the Health Care Select Sector SPDR Fund (XLV) fell 1.6%. The Industrial Select Sector SPDR Fund (XLI) also experienced a decline of 3%. The Financial Select SPDR ETF (XLF) sank 3%, with CME stock being a constituent of this ETF. Among the more speculative story stocks, the ARK Innovation ETF (ARKK) dropped 4.6%, and the ARK Genomics ETF (ARKG) experienced a 5.45% decline.
Major Companies to Watch
Microsoft earnings are scheduled for Tuesday night and are expected to see a 13% rise in earnings per share to $2.65 in fiscal Q1. Revenue is predicted to climb 9% to $54.5 billion. Azure cloud-computing growth will be a key focus, and investors are also interested in any indication of when AI will drive revenue growth. Microsoft stock ended the week at 326.67, falling slightly above its 50-day line. It currently has a buy point of 366.78, but entry points of 336.88 or 340.86 could be considered early opportunities. Google earnings are also due on Tuesday and are anticipated to rebound due to easier comparisons. The focus will also be on AI developments. Google stock remained relatively resilient last week, ending at 135.60. It currently has a three-weeks-tight pattern and possible support at the 50-day/10-week marks. However, these potential entry points should be approached cautiously given the current weak market conditions. Meta earnings are set to be released after the market closes on Wednesday. Cost controls and a revived advertising sector have propelled the company forward. META stock ended the week at 308.65, pulling back from its 362.20 buy point and moving closer to the 50-day line. Amazon earnings will be announced on Thursday night, with significant growth expected following a challenging year. AMZN stock dropped to 125.17 last week, retreating from the 50-day line. The company has a buy point of 145.86, but investors may consider entering if the stock makes a decisive move above the 50-day line. These earnings reports will significantly impact the fields of AI, cloud-computing, software, e-commerce, and more.
Other Key Earnings to Monitor
Other notable earnings reports include Cadence Design on Monday night. CDNS stock ended the week at 238.64, falling below the 247.50 buy point for a cup-with-handle pattern. ServiceNow earnings are scheduled for Tuesday night, with NOW stock closing at 542.51. The stock briefly rose above the 50-day line on Tuesday but later slipped by 3.1% on Friday. ServiceNow stock currently has a 607.90 buy point based on a double-bottom base, and an early entry could be considered with a move above Tuesday’s high of 574.25. Vertiv earnings are set for early Wednesday, and VRT stock saw a 6% decline last week, reaching 36.74. It fell well below the 40.41 flat-base buy point and undercut the 50-day line. CME earnings are scheduled for Wednesday
