Dow Jones futures were slightly higher overnight, along with S&P 500 futures and Nasdaq futures. Micron technology (IN) key report for semiconductors, including chip-equipment makers, on Wednesday night Utility items (Big)
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The stock market rallied as modest gains turned into solid losses in major indices, with several leaders slipping lower.
Google Parents letters (Google) bounced higher Wednesday on reports of a possible ad sales rebound, but later pared gains with the market. Trucking companies Skirt (Skirt) and Old Dominion Freight Line (ODFL) buy signals also flashed intraday.
In the Oil Machinery sector, WFRD stock continued its strong move on Tuesday, giving additional early entry.
Meanwhile, Tesla (D.S.L.A) Amid a Reuters report, the EV company blamed drivers for failing parts it knew were defective for years.
MetaPlatforms and Amazon shares are on the move IBD Leaderboard. Meta and Amazon are on SwingTrader with AMAT shares. Meta and CCL stocks are available IBD 50. There is a meta role IBD Big Cap 20.
Weatherford International (WFRD) is Wednesday’s IBD Stock of the Day.
A video embedded in the article reviews Wednesday’s market action by Google, ODFL stock and analysis MongoDB (MTP)
Dow Jones Futures Today
Dow Jones futures rose 0.2% versus fair value. S&P 500 futures advanced 0.2%. Nasdaq 100 futures rose 0.3%, helped by MU stock.
The 10-year Treasury yield fell to 3.86%.
Crude oil futures fell slightly.
At 8:30 a.m. ET, investors will get weekly jobless claims data, the Philly Fed manufacturing index and a final reading for third-quarter gross domestic product.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Micron Revenue
MU shares rose in overnight trade. Micron reported a smaller-than-expected fiscal Q1 loss, while sales rose 16%, snapping five quarters of big year-over-year declines. The memory-chip company also guided higher in the current Q2. Micron shares fell 4.2% to 78.69 in Wednesday’s regular session, but are still near a 52-week high.
Chip equipment manufacturers Utility items (Big), KLA Corporation (Clutch) and Lam Research (LRCX) rose in late trade. All three fell about 3% on Wednesday, but are trading at 52-week highs.
Several other chip plays also rose fractionally.
Festival (CCL) and Carmax (KMX) pre-opening statement. Carnival and KMX stocks both move up the right side of the platforms, but CCL stocks are closer to the top.
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Stock market rally
The stock market’s rally was slightly higher for most of Wednesday, but began to pull back by midday and picked up momentum, ending the session lower.
The Dow Jones industrial average fell 1.3% in stock market trading on Wednesday. The S&P 500 index and Nasdaq composite fell 1.5%. The small-cap Russell 2000 fell 1.9%.
The Dow and Nasdaq snapped nine-session winning streaks, with the latter falling below 15,000.
There doesn’t seem to be a specific catalyst, but the reversal isn’t really surprising either. The Nasdaq was 8.5% above its 50-day range on Wednesday, so the odds of a pullback are increasing. The CBOE Volatility Index, or VIX, hovered around a four-year low, indicating excessive bullishness. A gauge of market sentiment rose 9.1% on Wednesday.
It’s unclear whether Wednesday’s market selloff was just a blip, the start of a modest pullback, or the first step into something more serious.
Unsurprisingly, growth stocks took the brunt of the indexes on Wednesday.
U.S. crude oil prices are up 3.9% so far this week, up 0.4% at $74.22 a barrel.
The 10-year Treasury yield fell 4.5 basis points to 3.88%, its lowest level since late July.
ETFs
Among growth ETFs, the iShares Expanded Technology-Software Sector ETF (VATfell 1.4%. VanEck Vectors Semiconductor ETF (SMHfell 2.8%. MU stock is a major SMH holding along with AMAT, KLAC and LRCX stocks.
Reflecting the more speculative story stocks, the ARK Innovation ETF (ARKKfell 4.1% and the ARK Genomics ETF (ARKG) 4.9% Tesla stock is still the dominant holding across Arc Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) fell 1.8% and the Global X US Infrastructure Development ETF (sidewalk) 1.6% US Global Jets ETF (JETS) decreased by 1.6%. SPDR S&P Homebuilders ETF (XHBdecreased by 1.1%. Energy Select SPDR ETF (XLE) fell 0.9% and the Health Care Sector SPDR Fund (XLVIt gave up to 1.45%.
Industrial Select Sector SPDR Fund (XLIretreated 1.6%. Fund Selection SPDR ETF (45) down 1.8%.
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Google Stock
Google shares closed up 1.2% at 138.34. It was one of the better performers on the S&P 500 on Wednesday, and was the only Magnificent Seven stock to finish higher.
In the morning, shares rose to 141.70, breaking above the 139.42 cup-with-handle buy point at the high. Shares retook a 50-day line on Monday.
Shares of GOOGL rose early Wednesday after The Information reported that it could restructure its 30,000-person ad sales team by relying on machine learning to help customers buy ads on Google, YouTube and more.
Trucking shares
Saia shares rose 2% to 436.54, a trend and an early entry of 428.79 and later breached a buy point of 443.85.
ODFL stock rose 0.2% to 402.03. Intraday, Old Dominion reached 415.95, decisively clearing the 50-day line and breaking the downward sloping trendline.
Both Saia and Old Dominion are less than a truck-load away. Trucking profits came despite being weak FedEx (FDX) results and guidance later Tuesday.
Weatherford stock
WFRD shares rose 0.3% to 96.01. Intraday, the stock rose as high as 98.69, bucking the downward trend. Tuesday’s strong move above the 50-day line provided an initial entry into a cup base. According to MarketSmith analysis the official buy point is 100.93.
Tesla stock
Tesla shares fell 3.9% to 247.14 on Wednesday, below an early entry of 252.75. Shares are working on a double-bottom buy point of 278.98.
On Wednesday, Reuters reported that tens of thousands of drivers have experienced failed suspension or steering components over the years. The report, based on a Reuters review of documents, reveals the EV company knew several parts were defective.
Reporting and underlying documentation can increase the risks of costly recalls, lawsuits, and possible criminal liability.
The news comes as Tesla issues an over-the-air “recall” to improve driver monitoring while using Autopilot.
However, the slide in TSLA shares was tied to Wednesday’s broader market reversal, not the Reuters report.
What to do now
Stock market rally continued in both major indices and leading stocks. A pause and modest pull are healthy; Now there are no strong reasons to add expression.
As a practical matter, there aren’t many buying opportunities right now, though Google Stock, Saia and Weatherford are the exceptions.
Investors may choose to take some profits and reduce exposure, especially if they haven’t done so in recent days. Remember, if you’re not selling on the way up, you’re selling on the way down.
Keep your watch list up to date.
Read the big picture every day to stay in tune with market direction and leading stocks and sectors.
Follow Ed Carson on X/Twitter @IBD_ECarsonAt threads @edcarson1971 And at Bluesky @edcarson.bsky.social For stock market updates and more.
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