On Friday morning, Dow Jones futures, S&P 500 futures, and Nasdaq futures all dropped following the release of key economic data. The Empire State index from the New York Fed rose to 1.9, significantly higher than the expected -10.0 reading. Additionally, the University of Michigan’s consumer sentiment index is set to be released at 10 a.m. and is expected to slightly decrease from the previous month. It is also a triple witching day, which means multiple options and futures contracts expire, potentially leading to higher trading volumes. Key earnings movers for the day include Adobe, Copart, and Lennar.
Adobe, a software giant, saw its stock dive nearly 4% after releasing mixed earnings for the fiscal third quarter. While the company beat Wall Street’s targets, its outlook for the current period called for earnings slightly higher than expected but in-line sales. Copart shares climbed 1% in premarket trade, while Lennar dropped 0.6% in early trading.
In other news, the non-unionized Tesla saw its stock trade up 0.8% as the UAW strike started. Ford dropped around 1%, while General Motors lost 0.5%. Stellantis was off 0.7%. Approximately 13,000 workers began targeted strikes at one facility each at Ford, GM, and Stellantis Jeep. Furthermore, Nvidia dipped 0.1%. Dow Jones tech icons Apple and Microsoft traded fractionally higher.
As for the broader market, Dow Jones futures fell 0.1%, S&P 500 futures were down 0.2%, and Nasdaq 100 futures lost 0.3% in morning trade. Chip equipment makers ASML Holding and KLA were under pressure on the Nasdaq 100 following Taiwan Semiconductor’s decision to halt orders for high-end chipmaking equipment.
Despite the overall market struggles, Thursday saw the Dow Jones Industrial Average rise 1%, while the S&P 500 and Nasdaq composite both increased by 0.8%. All three major indexes managed to regain their key 50-day moving averages, indicating a potential recovery for the troubled uptrend.
In terms of individual stocks, Caterpillar and Intel were highlighted as Dow Jones leaders. Caterpillar is building a new flat base with a buy point of 293.88, while Intel is at the top of its 5% buy range past a 37.19 flat-base entry.
Other stocks to watch include Airbnb, Adobe, Amazon, and Shopify. Airbnb is tracing a cup base with a buy point of 154.95, Adobe is in a short consolidation below a 552.94 buy point, Amazon is breaking out past a 143.63 buy point, and Shopify is adding a handle to a cup base with a buy point of 67.60.
Overall, the stock market is looking to rebound from recent losses, and investors should pay attention to key indicators and developments to make informed decisions.