Dow Jones futures fell slightly Thursday night, along with S&P 500 futures and Nasdaq futures. The stock market rally was mixed Thursday, as tech giants Apple stock, Microsoft (MSFT), Amazon.com (AMZN) and Google parent Alphabet (GOOGL) all fell slightly, no longer covering up deteriorating conditions among many leaders.
In addition to the trillion-dollar quartet, Facebook (FB) also dipped while big caps Nvidia (NVDA) and ASML (ASML) — and many other chip stocks — fell solidly in the wake of so-so earnings from Taiwan Semiconductor (TSM). Software slumped, while former leaders that had rebounded for several weeks continued their July retreats. Apparel retailers suffered some chart damage, though Lululemon (LULU) looks strong.
Tesla stock edged lower Thursday but rallied off its 200-day line. Tesla CEO Elon Musk tweeted that there is “some chance that Cybertruck will flop.”
UnitedHealth stock, Morgan Stanley (MS), Marvell Technology (MRVL), United Parcel Service (UPS) and CarMax (KMX) are all setting up near buy points. Dow Jones giant UnitedHealth (UNH) and Morgan Stanley just reported earnings Thursday, while Marvell and CarMax are several weeks from their next quarterly results. UPS stock is on tap in less than two weeks, though. With the exception of chipmaker Marvell, these names are outside of the tech space.
In overnight trade, Moderna (MRNA) jumped 8% on news that the coronavirus vaccine maker will join the S&P 500 index.
Intel (INTC) is in talks to buy GlobalFoundries for about $30 billion, the Wall Street Journal reported on Thursday, citing sources. That would speed up Intel’s ambitions to be a major chipmaker for others, taking on Taiwan Semiconductor. GlobalFoundries, owned by Abu Dhabi’s investment arm, is based in New York but moving its headquarters to Silicon Valley.
The stock market rally came off Thursday’s lows, but still seems troubled. The major indexes are just below record highs, while small caps continue to retreat. Market breadth has narrowed. Most of all for active investors, recent breakouts and other buying opportunities have struggled or failed.
Tesla (TSLA), Microsoft, Nvidia, ASML and Google stock are on IBD Leaderboard. Microsoft stock and Google also are on IBD Long-Term Leaders. Nvidia stock and Google are on the IBD 50. MRVL stock was Thursday’s IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures lost 0.2% vs. fair value. S&P 500 futures sank 0.2% and Nasdaq 100 futures fell 0.3%.
Coronavirus cases worldwide reached 189.70 million. Covid-19 deaths topped 4.08 million.
Coronavirus cases in the U.S. have hit 34.88 million, with deaths above 624,000.
New Covid cases are picking up in the U.S. and worldwide as the more-infectious Delta variant becomes dominant. Hospitalizations are starting to increase in the U.S., but almost all are unvaccinated. People who are fully vaccinated are at risk of getting the Delta variant, but are strongly protected against serious illness or death.
Nevertheless, Los Angeles County said it would reimpose a mask mandate for indoor gatherings as of the end of Saturday, July 17.
Moderna stock popped overnight after S&P Dow Jones Indices said it would add it to the S&P 500 before the open on July 21. MRNA stock will replace Alexion Pharmaceuticals (ALXN), which is being acquired by AstraZeneca (AZN).
Stock Market Rally
The stock market rally came off intraday lows but techs continued to retreat.
The Dow Jones Industrial Average rose 0.15% in Thursday’s stock market trading. The S&P 500 index dipped 0.3%. The Nasdaq composite fell 0.7%, but came off lows. The big-cap Nasdaq 100 also lost 0.7%. The small-cap Russell 2000 retreated 0.6%.
The 10-year Treasury yield fell 6 basis points to 1.3%, back near five-month lows.
Apple stock and Microsoft lost about 0.5%. Google stock and Amazon stock shed about 1%. All of these stock charts still look healthy. Facebook and Nvidia stock undercut their 21-day lines, losing 0.9% and 4.4%, respectively. ASML stock slid 1.75%, back below a buy point after hitting a record high Wednesday.
Growth, Sector ETFs
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) lost just over 1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 0.8%. The iShares Expanded Tech-Software Sector ETF (IGV) sank 1.2%, with MSFT stock a major holding. The VanEck Vectors Semiconductor ETF (SMH) slumped 2.7%. Taiwan Semi, NVDA stock and ASML are the top three SMH holdings, but MRVL stock also is a notable component.
SPDR S&P Metals & Mining ETF (XME) dipped 0.2% and Global X U.S. Infrastructure Development ETF (PAVE) edged down 0.1%. U.S. Global Jets ETF (JETS) gave up 0.65%. SPDR S&P Homebuilders ETF (XHB) lost 0.1%. The Energy Select SPDR…