Dow Jones futures fell modestly early Thursday, along with S&P 500 futures and Nasdaq futures. Stocks rallied slightly on Wednesday amid rising Treasury yields and a stronger dollar. Meta launched its Twitter competitor on Wednesday evening, with a rush for sign-ups to begin.
X
Major indices eased slightly. It was another quiet session in the major indices, with Fed minutes making little impact. META Role, Google Parent letters (Google) and Salesforce.com (CRM) to compensate for the generally weak width.
Meta platforms (Meta) launched Instagram’s Twitter competitor Wednesday evening and is quickly gaining more than 10 million followers, according to Meta CEO Mark Zuckerberg. The Instagram Threads app debuts amid problems now owned by Twitter Tesla (D.S.L.A) CEO Elon Musk. Meta stocks rose in extended trade.
GOOGL stock and Salesforce flashed buy signals on Wednesday. Meanwhile, Free market (Meli) is at the peak of the initial entry.
META share is active IBD Leaderboard. Google stock is on SwingTrader. Google is Wednesday’s IBD Stock of the Day.
A video embedded in this article discusses Wednesday’s market action and analyzes Google, Monday.com (MNDY) and Flowserve (FLS)
Dow Jones Futures Today
Dow Jones futures were 0.4% below fair value. S&P 500 futures fell 0.45% and Nasdaq 100 futures fell 0.5%.
The 10-year Treasury yield rose to 3.98%.
Hong Kong’s Hang Seng fell 3% amid real estate developer woes.
At 8:15 am ET, investors will get the ADP employment report for June. The Labor Department will release weekly jobless claims at 8:30 a.m. ET and the May JOLTS survey, including job openings, at 10 a.m. The June ISM services index will be released at 10 a.m. Friday, when the Labor Department will release its June jobs release. Report.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they examine stocks that could be in for a stock market rally on IBD Live
What are Meta’s Instagram Threads?
Meta’s new text-based threads are touted to “follow and connect directly with your favorite creators and others who like the same things,” according to the App Store description. Threads app shares many features with Twitter. It allows users to “like”, reply or retweet a post. Search capabilities are limited.
MetaPlatforms launched its text-based Threads app Wednesday at 7 p.m. PT, 12 hours ahead of its planned 7 a.m. PT Thursday launch.
Meta CEO Mark Zuckerberg launched Instagram Stories in 2016 and is owned by Snapchat. Snap (SNAP) Instagram Reels, released in 2020, takes aim after TikTok.
Other Twitter competitors like Mastodon and Bluesky have gained users but haven’t yet become major threats. Threads App, launched with many celebrities and other high profile users, can quickly attract mass users. Zuckerberg said Thursday that after seven hours, the thread had received more than 10 million hits.
It will join an ecosystem of more than three billion daily users of at least one of Meta’s apps — Facebook, Instagram and WhatsApp.
Since Musk’s $44 billion acquisition of Twitter last year, the social platform has alienated advertisers and many users due to various problems. In the past week, Twitter has imposed limits on how many tweets users can read. This “rate cap” is said to crack down on unauthorized data scraping and bots, which affect unverified users the most.
Meta share
META stock rose 2.9% to 294.37 on Wednesday, hitting a 17-month high. It is well extended from any possible purchase point. MetaPlatforms rose more than 1% early Thursday.
Stock market rally on Wednesday
The stock market rally saw a slim decline in the major indices, while small caps lost a bit more. The Fed minutes of the June 13-14 meeting yielded some surprises. While suspending rate hikes at that meeting, central bank officials wanted more tightening. Fed Chairman Jerome Powell and other policymakers have since insisted.
The Dow Jones Industrial Average fell 0.4% in stock market trading on Wednesday. The S&P 500 index and the Nasdaq composite lost 0.2%. The small-cap Russell 2000 fell 1.3%, ending a six-session winning streak.
US crude oil prices rose 2.9% to $71.79 a barrel. Saudi Arabia has signaled it will do whatever it takes to raise prices. This comes after it announced on Monday that it would extend voluntary output cuts until August.
The 10-year Treasury yield rose 9 basis points to 3.94%, a four-month high.
The US dollar rose modestly around key levels amid rising US Treasury yields and weak economic data in Europe and Asia.
ETFs
Among growth ETFs, the innovator IBD 50 ETF (FFTYfell 0.8%. iShares Expanded Technology-Software Sector ETF (IGV) CRM stock closed partially higher with a major component. VanEck Vectors Semiconductor ETF (SMHfell 1.9%.
Reflecting the more speculative story stocks, the ARK Innovation ETF (ARKKSlipped 0.35% and ARK Genomics ETF (ARKGDecreased by 0.65%. TSLA stock is the No. 1 holding in Arc Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XMEfell 1.8%. US Global Jets ETF (JETSUp 0.3%. SPDR S&P Homebuilders ETF (XHB) decreased by almost 1%. Energy Select SPDR ETF (XLE) fell 0.55% and the Health Care Sector SPDR Fund (XLV) closed below the break-even point.
Industrial Select Sector SPDR Fund (XLIfell 0.5%.
Fund Selection SPDR ETF (450.2% lost. SPDR S&P Regional Bank ETF (CreateIt gave up to 1.3%.
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Google Stock
Google shares rose 1.5% to 121.75, rebounding from the 10-week moving average and breaking the decline in a short consolidation. The stock also cleared the 21-day line. Investors can use the 21-day line or the June 30 high of 121.08 as a specific entry point. GOOGL stock is on track to make a new low later this week.
Salesforce stock
CRM stock rose 1% to 213.82. Like Google, Salesforce rose from its 10-week line and broke a short downtrend. Amid several weeks of tight weekly closes, the stock has a 225 buy point from a flat base, according to MarketSmith analysis.
MercadoLibre stock
MELI shares rose 4.5% to 1,247.36. Volume was above average as shares of MercadoLibre rose. Shares of the Latin American e-commerce and payments company sharply corrected its 21-day moving average for the first time in a month, breaking a short-term decline. But MELI stock closed below the 50-day line. A clear move in 50 days will provide initial entry. MercadoLibre stock is working on a buy point of 1,365.64.
Note that MELI stock has seen more than average declines over the past several weeks.
Market rally analysis
Major indices fell slightly on Wednesday after slim gains on Monday. MetaPlatforms, Salesforce, Google Stock and some megacaps pared wider losses elsewhere.
Decliners significantly outperformed advancers on Wednesday, but several losers showed little damage. Generic (GNRC) and AHER test systems (ahr) were the exceptions, falling heavily by 8% and 11%.
Invesco S&P 500 Equal Weight ETF (RSP) fell 0.4%, retreating from its best levels in more than four months.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEWA flat Nasdaq 100 fell 0.3%.
Steelmakers, base metal miners and casinos had a tough day. Some software leaders lost ground, but many hit intraday lows. Medical product companies had another rough session.
Travel dramas were generally good, or at least held up. So did the industry.
After last week’s market rally, stocks are hesitant to pull ahead. A long pause or slight decline over several days or weeks can be constructive for a stock market rally. The Nasdaq composite closed 7% above its 50-day moving average, while the Nasdaq 100 was 7.9% above that key level. They are not extreme conditions, but they are not far from being so.
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What to do now
A market rally is going to do what it’s going to do. But investors may want to be wary of adding too much exposure in the short term, given the maximum odds of a sideways move or renewed pullback.
However, not many stocks flashed buy signals on Wednesday except Google and CRM shares.
While many stocks pulled back on Wednesday, many sectors are hovering around buy zones.
Work on those watch lists.
Read the big picture every day to stay in tune with market direction and leading stocks and sectors.
Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.
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