Thursday started with little change in Dow Jones futures, S&P 500 futures, and Nasdaq futures. The focus was on key earnings from companies like Robinhood Markets and HubSpot. Of particular importance was the upcoming jobless claims data, which carried more weight than usual in determining market direction.
The market opened strong on Wednesday but quickly lost steam, with stocks like Nvidia leading the downside. Many well-known companies, including Meta Platforms, Apple, Microsoft, Tesla, and Amazon.com, faced resistance at key levels as the rally attempt persisted.
Although Dow Jones futures were slightly down, S&P 500 futures and Nasdaq 100 were slightly up. The jobless claims data release was expected to shed light on the impact of the weak July jobs report. The market’s reaction to overnight futures does not always translate into actual trading during regular market hours.
Earnings reports from companies like McKesson, AppLovin, HubSpot, Dutch Bros, and Robinhood were in focus. While some stocks like HubSpot and SharkNinja saw gains, others like Dutch Bros saw declines. The stock market rally attempt faced headwinds as several major indexes, including the Dow Jones and Russell 2000, hit resistance at key levels.
Wednesday marked the second day of the rally attempt, with some stocks like Fortinet, Shopify, Axon Enterprise, and Exelixis posting gains, while others like Super Micro and Airbnb faced losses. Oil prices surged, while Treasury yields also rose significantly.
Growth ETFs like ARK Innovation and ARK Genomics saw declines, while sector-specific ETFs like XLE and XLV posted mixed movements. Stocks like Nvidia, Meta Platforms, and Tesla faced challenges despite initial gains in the morning.
Investors were reminded not to rush back into the market after a rally attempt, as Wednesday’s losses showed the unpredictability of market movements. The focus should be on building watchlists with strong and talented companies, rather than on short-term market fluctuations. Keeping an eye on leading stocks and sectors through platforms like The Big Picture is crucial to stay in sync with the market.
