Market rally extends its momentum while Apple Pops and Amazon rise

Dow futures rose overnight, along with S&P 500 futures and especially Nasdaq futures apple (AAPL) and Amazon.com (AMZN) is leading another wave of overnight earnings.




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The stock market rally showed its strength on Thursday, ignoring the post-Fed Fed pullback and weak earnings to move modestly higher.

Major profits overnight

In addition to Apple and Amazon, First Solar (FSLR), Intel Corporation (INTC) and year (ROKU) were notable reports.

Apple shares rose slightly in overnight actions due to better-than-expected fiscal third-quarter earnings and upbeat comments.

Amazon stock jumped in extended trading. The e-commerce and cloud computing giant topped the revenue views.

FSLR stock rose slightly overnight after First Solar easily beat EPS offerings and also topped sales. Stocks rose 15% Thursday as Congress made progress on legislation that includes incentives for solar and green energy.

Intel stock fell in extended measures after the struggling chip giant missed poorly views for its second quarter and cut its full-year estimates.

Roku’s stock collapsed late after the streaming platform reported a bigger-than-expected loss and a dip in revenue, citing a “significant slowdown” in advertising. Broadcast hours watched fell versus the first quarter. It also drove Roku down sharply in the third quarter. Roku stock is set to drop to its worst level since its March 2020 low due to the coronavirus.

early friday, ExxonMobil (XOM), chevron (CVX), AstraZeneca (AZN) and Abvi (ABBV) on tap. AZN and AbbVie stock are not far from highs. Shares of XOM and Dow Jones giant Chevron have started to rebound after the decline.

Dow jones futures contracts today

Dow futures rose 0.1% against fair value. S&P 500 futures rose 0.6%. Nasdaq 100 futures jumped 1.1%. Apple and Intel stocks are components of the Dow Jones, S&P 500, and Nasdaq.

Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.


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stock market rise

The stock market rally declined shortly after the opening, but quickly consolidated, with major indexes rising strongly.

US GDP fell at an annualized rate of 0.9%, the second consecutive quarter that saw a slight dip in economic activity. However, consumer spending remained positive. The data softens expectations for a Fed rate hike without indicating a significant drop.

The new push for a tax and spending bill that includes green allotments has raised solar stocks and other green energy games.

The Dow Jones Industrial Average rose 1% in stock market trading Thursday. The S&P 500 rose 1.2%. The Nasdaq Composite Index is up 1.1%. Small cap Russell 2000 rose 1.4%.

US crude oil prices reversed lower, falling 0.9% to $96.42 a barrel.

The 10-year Treasury yield fell 5 basis points to 2.68%, hitting its lowest level since April.

The odds of a 50 basis point rate hike on September 21 rose to 76% from 60.5% on Wednesday and 40% on Tuesday. Markets are betting on a quarter point move in November and perhaps a quarter point in December.

ETFs

Among the top ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.8%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rebounded 1.75%. The iShares Expanded Tech-Software Sector (IGV) fund earned 1.9%. The VanEck Vectors Semiconductor ETF (SMH) advanced 1.2%, with Intel shares holding a significant lead.

SPDR S&P Metals & Mining ETF (XME) advanced 0.75% and US X Global Infrastructure Development Fund (PAVE) jumped 2.7%. The US Global Jets ETF (JETS) was up 0.5%. The SPDR S&P Homebuilders ETF (XHB) stood out by 2.1%. The Energy Select SPDR ETF (XLE) is up 0.6%, with Exxon and CVX stocks both huge components. The Financial Select SPDR ETF (XLF) is up 0.7%. The SPDR Healthcare Sector Choice Fund (XLV) rose 0.6%.

Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) is down 0.4% and the ARK Genomics ETF (ARKG) is down 1.3%. Roku’s stock is one of ARKK’s notable holdings.


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apple earnings

Apple’s earnings fell 8%, but it only modestly exceeded the number of views. Sales increased 2% to $82.96 billion, slightly outstripping financial views for the third quarter. The iPhone giant expects revenue growth at an accelerated pace despite “pockets of resilience”.

Apple stock is up 3% overnight, indicating a potential move above the 200-day line.

Shares rose 0.4% to 157.35 in regular Wednesday trading. AAPL stock has made solid progress since hitting a 52-week low on June 16. The RSI line is correct at new highs. The RS line, the blue line in the provided charts, tracks the stock’s performance against the S&P 500 Index.

amazon earnings

Amazon’s earnings were a bit disorienting, with a $2 billion net loss clouded by various special factors. But revenue jumped 7% to $121.2 billion, outpacing views as Amazon Web Services revenue growth accelerated to 33%.

Amazon also gave bullish earnings for the third quarter.

AMZN stock is up 14% in an extended move, indicating a move towards the 200-day line. Shares rose 1.1 percent to 122.28 on Thursday. Amazon stock recently regained its 50-day streak.

Market Rise Analysis

The stock market rally eased Thursday morning, with the Nasdaq down more than 1% on the day. But the major indicators quickly gave up on that and moved higher. The Nasdaq moved above last week’s highs, after the Dow and Standard & Poor’s did so on Wednesday.

The pullback was not surprising in reaction to the second day of the Fed meeting after Wednesday’s big rally, and with leading indicators at some key technical levels. Double earnings or guidance from meta pads (dead), Qualcomm (QCOM) and others also provided a reason for the regression.

So Thursday’s market action certainly showed strength.

The highs in early June are the next hurdle in the market. A market pause for a few days or even weeks wouldn’t be a bad thing. This would allow some stocks to form handles and allow the moving averages to catch up.

Hershey (HSY) Flirt with an early buy point on profits while Rollins (ROL) broke out strongly in a second day reaction to earnings. Carlisle (CSL) outside earnings base during Quanta Services (PWR) broke out as part of the green energy surge, but both have somewhat extended their 50-day streaks.

Pfizer (PFE) fell after earnings but bounced off its lows, not far from the trend line. Vertex Pharmaceuticals (VRTX), inside a buy zone, rebounded from the 50-day line.


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What are you doing now

It is clear that the stock market rally is showing more strength, while a huge week of news is about to come to an end. Investors should benefit by adding exposure. But do it wisely. There is still the risk of individual vibrations or the market hitting resistance.

Market and sector ETFs remain an attractive way to increase exposure with a limited number of high-quality stocks in the position.

Work on those watchlists.

Read the big picture every day to stay in sync with market trend, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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