Dow Jones futures fell on Thursday, along with S&P 500 and Nasdaq futures, as Walt Disney (DIS), Datadog (DDOG), Cloudflare (NET) main earnings.
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The stock market rebound had a mixed session on Thursday, but the Nasdaq compound and the S&P 500 index hit a record high. Tilray (TLRY) and other marijuana stocks plummeted on Thursday after being as high as a kite in the past few days.
The shares traded up and down on Thursday, with a strong close pushing the Nasdaq back above the 14,000 level, fueling earlier warning signs. Bitcoin has risen to record levels amid the latest signs of institutional support.
Screen of the day: preparing your own list of main actions
Apple’s megacap techs, Microsoft (MSFT), Amazon.com (AMZN) and father of Google Alphabet (GOOGL) were meh. But big chip names like Taiwan Semiconductor (TSM), Nvidia (NVDA), Lam Research (LRCX) and Applied Materials (AMAT) had strong sessions.
Disney shares, Datadog, Cloudflare and recent IPO Claim (AFRM) reported gains after all four closed the buying range.
Disney shares rose modestly with good results. The DDOG stock retreated modestly in the mixed orientation. NET’s shares fell solidly according to the online guidance. Affirm’s shares were sold despite defeated opinions in its first report since the IPO.
Marijuana stock
Aurora Cannabis (ACB) also reported earnings on Thursday. The Canadian marijuana producer has surpassed revenue forecasts. Aurora shares rose 2% in expanded trade, reducing initial gains. ACB shares fell 23.5% on Thursday, but are still up 13% for the week.
Marijuana stocks plummeted on Thursday after huge gains. Tilray’s shares plunged 50% to 32.16 on Thursday, after rising sharply before opening. It is still above its 10-day line after closing 117% above the short-term level on Wednesday.
Aphria (APHA), which is merging with Tilray, slipped 36% on Thursday. Canopy growth (CGC) and Cronos (CRON) lost 22%.
TLRY’s shares fell modestly overnight, but most other marijuana stocks rose slightly in extended trade after Aurora’s earnings report.
Justice Probes GME Stock Frenzy
Reddit investors rushed to cannabis stocks after the rapid rise and fall of GameStop (GME) and AMC Entertainment (AMC). The Justice Department issued subpoenas to Robinhood and several brokerages and social media companies regarding the huge restrictions on GME and other actions. The Commodity Futures Trading Commission is investigating Reddit investors talking about silver futures and related ETFs.
In addition, the Chamber’s Financial Services Committee plans a hearing on February 18 on the GameStop stock frenzy. Reddit CEO Steve Huffman will testify.
GME shares fell 0.2% to 51.10 on Thursday, the fourth consecutive day of below-average volume. GME’s shares are 89% below the January 28, 483 peak. AMC shares lost 3.3% on Thursday, 73% below the January 27, 20.66 peak.
Apple (AAPL), shares of Microsoft, Nvidia and TSM are on the IBD Leaderboard. The shares of Nvidia and Taiwan Semi are on SwingTrader. Microsoft’s shares are in the IBD Long-Term Leaders. The shares of TSM, Nvidia and AMAT are on the IBD 50 list.
Dow Jones Futures Today
Dow Jones futures plunged 0.1% below fair value, with Disney shares offering a small increase. S&P 500 futures were down 0.15%. Nasdaq 100 futures fell 0.1%.
Remember that overnight action on Dow futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks at the stock market’s high on IBD Live.
Coronavirus News
Coronavirus cases worldwide reached 108.23 million. Deaths from Covid-19 reached 2.37 million.
Coronavirus cases in the US reached 27.98 million, with deaths over 486,000.
Stock market rally
The stock market recovery continued to hover at record highs, trading up and down on Thursday, but in a relatively narrow range.
The Dow Jones Industrial Average closed just below breakeven in Thursday’s stock market trading. The S&P 500 index rose 0.2% and the Nasdaq composed 0.4%.
Bitcoin’s price jumped to a record high above $ 48,400 on Thursday, dropping to just over $ 47,000. MasterCard (MA) said it facilitates Bitcoin and some other cryptocurrency transactions, while Bank of New York Mellon (BK) said it would be a custodian of cryptocurrency assets. On Monday, Tesla said it bought $ 1.5 billion in Bitcoin, which sparked the digital currency.
Megacap Stocks
Apple shares fell 0.2% to 135.13. The shares are consolidating just below a 138.89 cup purchase point with cable. AAPL stock is finding support around its 21-day exponential moving average and just above its 50-day / 10-week lines.
The shares of MSFT, a Dow Jones, S&P 500 and Nasdaq component like Apple, were up 0.7%. It is still in a shopping zone.
The two trillion dollar FANG shares, Amazon and Google, lost 0.7% and gained 0.1%, respectively. AMZN’s inventory is building up as it returns to its 50-day line. GOOGL’s shares are being traded steadily after reaching record highs last week.
Chip stock
TSM shares, without falling with a market capitalization of $ 722 billion, were up 4.1%, clearing a small consolidation to a new high. Nvidia’s shares rose 3.3% to 610.03, still in the range of Wednesday’s breakout above 587.76 buy point. The graphics chip leader surpassed an early entry of $ 560.07 billion on Monday.
LRCX shares jumped 7.5%, just below a new high. AMAT shares jumped 6.7% to the best ever. Several other chip equipment manufacturers have made huge gains.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) was up 1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) advanced 1.2. The iShares Expanded Tech-Software Sector (IGV) ETF rose 0.7%, with Microsoft shares as a major component. VanEck Vectors Semiconductor ETF (SMH) jumped 3.7%, with TSM stock being the largest component of SMH. Nvidia, AMAT and LRCX stock are also major components.
Earnings
Disney’s earnings and sales have surpassed, while Disney + subscribers now reach 94.9 million. Disney shares were up 2% overnight. DIS shares were up 0.75% to 191.05 on Thursday. On Monday, Disney opened an 183.50 flat-base purchase point after recently recovering from its 50-day line. Disney’s stock purchase zone reaches 192.68.
Datadog’s earnings outperformed views, but its profit orientation was below some estimates. Datadog’s shares fell 2% in expanded trade. DDOG’s shares rose 1.7% to 117.60 on Thursday. The Datadog can test a 111.59 cup entry with handle, according to MarketSmith. The DDOG stock purchase zone ends at 121.37.
Cloudflare’s earnings barely surpassed while the guidelines were aligned. Cloudflare’s shares plunged 7% overnight, below recent purchase points. NET’s shares rose 0.4% to 91.24 on Thursday. The shares offset a consolidation buying point of 88.87 on Monday, with 87.25 as a slightly earlier entry. The official purchase range ends at 93.31 for NET’s inventory.
Affirm that earnings and revenue exceeded the second quarter’s fiscal views, with the third quarter’s revenue guidance aligned. Affirm’s shares fell 9% in expanded trade. AFRM shares advanced 2.8% to 139.99 on Thursday. This cleared the IPO base after trying to close above the 138.08 buy point in the previous two sessions. An early entry of 123.55 released on Tuesday was a better entry.
Bullish stock market analysis
Bulls and bears have been fighting for the 14,000 Nasdaq in recent days, with the bulls gaining an advantage at the close of Thursday. It would be healthy if the compound could stay around those levels for several days or a few weeks. Nasdaq is now 7.5% above its 50-day moving average, still extended and at risk of some kind of retraction. But the 50-day line could catch up quickly if the Nasdaq stayed around or slightly below 14,000.
Investors can thank Apple’s shares and other megacaps. By not going anywhere, they are helping to prevent the stock market boom from overheating. This provides a little space for other leaders, such as chip names and IPOs, to continue to function. Of course, if Apple and the tech titans started to rise, as they did in late January, the Nasdaq could quickly become very extensive.
The main indices have risen and fallen in the last two sessions, but the daily fluctuations have been relatively modest, with minor changes in the closing bell. However, many important stocks have had big gains or losses – not just GME or Tilray shares. Investors should keep this in mind when developing the game plan.
If the stock market boom sold, with Nasdaq retreating to the 21 or even 50-day line, many highfliers, especially IPOs, could fall 10%, 20% or more. What is your strategy for your holdings?
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