Dow Jones futures fell slightly early on Thursday, but S&P 500 futures, especially Nasdaq futures, rose along with Facebook’s parent company. meta platform (META) is soaring in earnings reports. It was a big day for the stock market rally as investors welcomed Federal Reserve Commissioner Jerome Powell’s comments.
Parent company of Apple, Amazon and Google alphabet (GOOGL) is tapped.
The major indexes rallied on Wednesday, turning higher after the long-awaited Fed meeting, especially Fed Chair Jerome Powell. The Federal Reserve has raised interest rates by a quarter of a percentage point and said it expects “continued increases” going forward. Powell supported that, but said it was “good” and “nice to see” that inflation was falling even though the labor market hadn’t weakened.
Wednesday’s gains cleared more important levels, while a number of stocks, including the Chinese search and AI giant, broke out or sent other buy signals. Baidu (BIDU), chip gear manufacturer Ram Research (LRCX), Network Monitoring Software Manufacturer dyna trace (DT), delta airlines (DAL), etc.
Meta Platforms underperformed, but revenue, sales guidance, and Facebook users outperformed views. It also announced a $40 billion share buyback. The company, the parent company of Facebook and Instagram, has sharply lowered its forecasts for expenses, including capital expenditures. META shares surged 19% after hours he had. The stock rose 2.8% to 153.12 in Wednesday’s session, putting him back above the 200-day line for the first time in over a year and wiping out weak earnings guidance from the market. snap (snap).
Corvo (QRVO) outperformed earnings in the third quarter. But like many other chip stocks, Qorvo plummeted this quarter. QRVO shares fell 3% in long-term trading. Shares of the 5G and Apple iPhone chip maker rose 4.5% to 113.53 on Wednesday.
elf beauty (ELF) shattered earnings prospects and successfully outperformed earnings. EPS doubled, accelerating growth for the third straight quarter. Sales he increased 49%, marking his fourth consecutive quarter of pace. Cosmetic manufacturers also showed us around. ELF stock surged his 16% to a record high in overnight action. The stock rose 1.8% to 58.58 on Wednesday, just below its Jan. 6 high.
early thursday, Merck (MRK) was slightly above the Q4 view, but 2023 EPS was guided lower. Eli Lilly (LLY) outperformed earnings guidance but missed sales, but slightly higher 2023 EPS. Bristol Myers Squibb (BMY) Beat. MRK and LLY stocks decreased slightly. BMY is high.
After doing well in the 2022 bear market, big pharma has lagged so far in the growth-driven 2023 market rally. LLY stocks, Merck, and Bristol-Myers are all trading below their 50-day moving averages.
late thursday apple (AAPL), Amazon.co.jp (AMZN) and Google reports. Both recover in 2023, but remain below the 200-day line. GOOGL stock and Amazon jumped more than 4% overnight in line with Meta.
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dow jones futures today
Dow Jones futures fell 0.4% to fair value, with MRK stocks Honeywell (HON) Works as a drag. S&P 500 futures were up 0.35%. Nasdaq 100 futures jumped 1.25%, with META shares leading alongside Google and AMZN shares. Tesla (TSLA) also backed and rose after Blackstone disclosed a large stake in TSLA.
Meanwhile, the Bank of England raised interest rates by 50 basis points on Thursday morning. The European Central Bank is also expected to do so before US markets open.
Note that overnight trading on Dow futures or elsewhere does not necessarily lead to actual trading at the next regular stock market session.
Federal Reserve rate hike ‘in progress’
As expected, the Fed raised rates by a quarter of a percentage point on Wednesday, raising the fed funds rate to 4.5% to 4.75%. This comes after the Fed hiked his 0.5 percentage points in December, before he raised rates by 75 basis points for the fourth time in a row.
The Federal Reserve’s policy statement still says policymakers expect a “continued rise” in federal funds rates, a clear sign that Fed rate hikes aren’t over. I’m here.
Powell’s ‘Good Thing’
Fed Chairman Jerome Powell endorsed this, saying “there is still work to be done” and later said “we are talking about a few more rate hikes”. He added that the labor market was still “very tight”.
But Powell also said that “a disinflationary process has begun.” He pointed out that inflation was falling even without a significant reduction in employment conditions, which he said was a “good thing” and “satisfying.” said it has “no incentive and wants to tighten too much.”
The statement appeared to provoke an afternoon rally.
On Wednesday morning, the Labor Department reported that job openings had hit 11.01 million, well above expectations. On Friday, the January job postings will be published. But Powell’s comments suggest the market doesn’t need to be as fixated on labor statistics as it has been in the past.
The market is overwhelmingly expecting another 0.5 percentage point Fed rate hike in late March, with the odds rising slightly to 86% on Wednesday.
But despite Powell’s backing for “a few more” rate hikes, investors are still leaning towards the climax of the Federal Reserve rate hike in March. That puts the Federal Funds rate range at 4.75% to 5% for him, below the Fed’s forecast of 5% to 5.25% for him.
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stock market rally on wednesday
Stock market gains were slightly lower before the Fed news, but rose after Fed Chairman Jerome Powell spoke out.
The Dow Jones Industrial Average rose slightly in stock market trading on Wednesday, but fell more than 1% during the day before the Fed’s announcement. The S&P 500 Index is up just over 1%. The Nasdaq Composite rose 2%. Small-cap Russell 2000 is up 1.5% on him.
US oil prices fell 3.1% to $76.41 a barrel as domestic oil inventories rose for a sixth consecutive week. Natural Gas Prices Plunge His 8%, Epic Collapse Continues. Copper futures fell his 2.8%, settling prices ahead of the Fed’s rate hike announcement.
The 10-year Treasury yield fell 13 basis points to 3.4%. Yields on two-year US Treasuries, which are more closely tied to Federal Reserve (Fed) policy, fell 10 basis points to 4.11%. This is well below the current Federal Funds rate range.
The US dollar fell to an eight-month low.
Among the growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.5%. The iShares Expanded Tech-Software Sector ETF (IGV) surged his 2.85%. Van Eck Vector’s Semiconductor ETF (SMH) rose 4.7%. The Lam Research and AMAT shares are SMH’s big holdings, which also includes the QRVO shares.
ARK Innovation ETF (ARKK) jumped 4.4% and ARK Genomics ETF (ARKG) jumped 2.4%, reflecting more speculative story stocks.
SPDR S&P Metals & Mining ETF (XME) 1.8%, Global X US Infrastructure Development ETF (PAVE) 1.5%. The US Global Jets ETF (JETS) rose 1% for him, with DAL stock topping the list. The SPDR S&P Homebuilders ETF (XHB) rose 2%. The Energy Select SPDR ETF (XLE) was down 2% while the Financial Select SPDR ETF (XLF) was flat. The Healthcare Select Sector SPDR Fund (XLV) was up 0.5%.
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Market rally analysis
The major indices continued to gain momentum, with significant improvement after Fed Chairman Jerome Powell took action.
The Nasdaq appears to be definitively above its 200-day moving average and late 2022 highs. The Russell 2000 clearly passes that level.
The S&P 500 also appears to be off the 200-day line. The benchmark index also moved to December highs.
The Dow Jones, currently a lagging index, has moved up slightly after testing the 200-day line.
Note that markets often have a second-day reaction to Fed meetings.
Meanwhile, the rest of the week remains jam-packed with news. Thursday night’s huge earnings are Apple, Amazon, Google, Qualcomm (QCOM), ford motor (F) and other January job reports will be released on Friday.
The S&P 500’s biggest daily winners and losers over the past two weeks have been dominated by profit movers.
DT Stock, Oi Glass (Hi), striker (SYK) and Ah this (ATKR) exited the base on Wednesday’s results.
But there have been many good moves without Wednesday’s earnings, especially after Fed Chairman Powell’s statement.
LRCX Stocks and Fellow Equipment Giants Applied Materials (AMAT) tops bottoming base, DAL shares JB Hunt Transport Service (JBHT) and performance food group (PFGC) cleared the traditional purchase points. BIDU shares also split.
Arista Networks (ANET), pure storage (PSTG) and global foundry (GFS) All cleared early entries on Wednesday. However, a reduction in Meta Platforms’ capex plans could hurt Arista and Pure Storage. ANET’s stock fell slightly after hours.
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what to do now
The stock market rally continues to gain momentum, led by the Nasdaq, Russell 2000 and major stocks. The Federal Reserve Board meeting is over, but the central bank’s late-game moves are becoming increasingly clear.
There is growing evidence that the current market rally will be a sustained uptrend.
Therefore, investors could have taken advantage of the new buying opportunity to add new positions on Wednesday. It’s wise to make gradual purchases without procrastinating or over-focusing. If you have a foot in this market uptrend, you can immediately invest fully or more by steadily increasing your exposure. Even if this market rally stumbles, even if it’s only for a short time, you won’t be left behind. With Apple and Google’s earnings looming and his Nasdaq rising so quickly in 2023, the setback is no surprise.
You should find them and research them before buying stocks. Prepare your watchlist, prepare your game plan.
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