Finance

Market breakthrough?These giants are leading the profit wave


Dow Jones futures will open Sunday night, along with S&P 500 futures and Nasdaq futures. This week brings earnings reports from Microsoft, Meta Platforms and the parent company of Google. letter (Google).




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Stocks have been hammered over the past week as Treasury yields soared and corporate earnings generally reacted poorly. The Nasdaq just avoided falling below its Sept. 27 low, while small-cap stocks hit new 52-week lows. Leading stocks are showing more weakness, with more Friday bends ahead.

Investors should hold mostly cash but still stay involved.

Seven major stocks Microsoft (Microsoft Corporation), Google, amazon.com (Amazon) and meta platform (Mehta) headlined the week’s earnings report.

Immediate service (Now), Vitti Technology (Virtual reality testing), rhythm design system (CDNS), CME Group (continuing medical education), weatherford (world food research foundation) is one of the other noteworthy reports.

Microsoft Stock, Meta Platforms, ServiceNow, Vertiv and Cadence Design Systems are around the corner Buy pointsGoogle stock is controversial and close to all kinds of stocks. Amazon stock lags, but a strong earnings reaction could be on the cards.

These gains are not only important, but will have a huge impact on key areas and the market as a whole. Amazon, Google and Microsoft are cloud computing giants. Microsoft, Google, Meta and Amazon are artificial intelligence giants, ServiceNow is also vigorously promoting its artificial intelligence work and Vertiv is an important artificial intelligence-related business. Microsoft and ServiceNow will provide insights into business software. Cadence Design will have a major impact on competitors’ electronic design software businesses Synopsys (SNPS).

Meta platform has been opened IBD rankingsNOW stock appears on the leaderboard watch list. Meta Stock, Cadence Design Appear on Ranking List IBD50Google stock and ServiceNow are both on IBD Large Cap 20.Microsoft and CDNS stocks in IBD Long-Term Leader list.

The video embedded in the article discusses weekly stock market moves, with analysis of Microsoft, Meta, and Google stocks.

Dow Jones Futures Today

Dow Jones futures, S&P 500 futures and Nasdaq 100 futures open at 6 p.m. ET on Sunday.

Remember what you did that night Dow Jones Futures and other places that won’t necessarily translate into actual transactions on the next regular basis stock market Meeting.


Join IBD experts as they analyze leading stocks and markets on IBD Live


stock market

Earlier this week, stocks tried to hold on or move higher, but have run into resistance and fallen sharply over the past three sessions. Some of the moves in stocks and bonds on Friday may reflect investor caution heading into another weekend of Israel’s battle with Hamas.

The Dow Jones Industrial Average fell 1.6% last week stock market tradingThe S&P 500 fell 2.4% and the Nasdaq fell 3.2%.

On Monday, the Nasdaq was just a few points away from its September 27 low.The tech-heavy index hit a four-month closing low on Friday, closing below its Oct. 6 low Follow-up daya highly bearish signal.

The S&P 500 fell below its 200-day moving average and is also very close to its recent lows. The Dow Jones also fell below its 200-day moving average.

Market breadth remains weak, with losers outnumbering winners and new lows breaking new highs.

The small-cap Russell 2000 index fell 2.3%, hitting a 52-week low. Invesco S&P 500 Equal Weight ETF (RSP) fell 2.3%, hitting a seven-month low. First Trust Nasdaq 100 Equal Weight Index ETF (QQ) retreated 3% to a four-month low, falling below the 200-day line.

Leading stocks are under intense pressure, with some of the most resilient stocks starting to collapse on Friday.

Perhaps the past few days have been a shakeout before a year-end rally, but the real shakeout may come after a break below the recent lows — and probably not right away.

As long as the 10-year Treasury yield is higher, it will be difficult for the market to continue rising. Despite Friday’s pullback, the 10-year yield hasn’t given any real signs that it’s ready to level off or pull back meaningfully.

The 10-year government bond yield surged nearly 30 basis points this week to 4.93%, with the 10-year government bond yield rising to 4.996% on Thursday, the highest level since 2007. Meanwhile, two-year Treasury yields also rose.

U.S. crude futures rose 1.2% last week to $88.75 a barrel as tensions in the Middle East stoked supply concerns. Crude oil prices gave back Friday morning’s move above $90. Copper prices fell 1.1% to their lowest closing price in nearly a year.

ETF

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 4% last week. iShares Expanded Tech-Software Sector ETF (IGV) was down 3% but was looking good before Friday’s 2.5% drop. Microsoft stock and ServiceNow are major members. VanEck Vectors Semiconductor ETF (SMH) fell 4.2%. CDNS stock is part of IGV and SMH.

SPDR S&P Metals & Mining ETF (XME) fell 3.1% last week. SPDR S&P Homebuilders ETF (Xin Hong) plunged 4.5%. Energy Select SPDR ETF (XLE) rose slightly by 0.75%. Healthcare Select Sector SPDR Fund (XLV) fell 1.6%. Industrial Select Sector SPDR Fund (XLI) Slip 3%.

Financial Select SPDR ETF (XLF) fell 3%, of which CME stock is part of the ETF.

The ARK Innovation ETF reflects the more speculative story stocks (alke) plunged 4.6% last week, with the ARK Genomics ETF (arkg) plummeted 5.45%.


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Mega Stocks to Watch

Microsoft earnings report The release is expected Tuesday evening. Analysts expect Microsoft’s first-quarter earnings per share to grow 13% to $2.65. Revenue is expected to grow 9% to $54.5 billion. The growth of Azure cloud computing will be key. Investors are also hoping for some indication of when artificial intelligence will emerge. Stimulate revenue growth. MSFT shares fell 0.3% this week to 326.67, falling back above their 50-day moving average on Friday. Microsoft’s buy point is 366.78, but investors can use 336.88 or 340.86 as early entry points.

Later Tuesday, Google’s earnings were also released. Earnings are rebounding due to easier comparisons. Artificial intelligence will also take center stage. Google stock had a good week last week, rising 1.3% to 135.60. GOOGL stock now has a tight three-week pattern, and 50-day/10-week support is likely. But in a weak market, these will be aggressive entry opportunities.

Meta earnings are due after the close on Wednesday. Cost constraints and a resurgence in the advertising business are driving this trend. META shares fell 1.9% to 308.65, retreating from a 362.20 buy point and back to its 50-day moving average.

Amazon’s earnings will be released Thursday night. Earnings should soar as Amazon rebounds from last year’s tough times. Amazon shares fell 3.6% last week to 125.17, far away from the 50-day line. Amazon has a 145.86 buy point, but a decisive break above the 50-day line would provide an early entry opportunity.

These earnings reports will have a huge impact on artificial intelligence, cloud computing, software, e-commerce and more.

Other major income

Cadence Design’s earnings are due Monday evening.As of this week, CDNS shares are down 4.6% to 238.64, back below 247.50 Cup with handle Buy some.

ServiceNow is expected to report earnings Tuesday night. NOW shares fell 1.3% to 542.51. Shares rose above the 50-day moving average on Tuesday, but not for long, falling 3.1% on Friday. ServiceNow stock buy point is 607.90 double bottom base.A breakout of Tuesday’s high of 574.25 would suggest early entry.

Vertiv will report earnings on Wednesday morning. VRT shares fell 6% last week to 36.74 points, well below 40.41 points flat The buy point is below the 50-day line, based on Market Smith Analysis.

CME reports earnings Wednesday morning. CME shares fell 3% to 212.81, but remain in flat buy territory, basic pattern.

WFRD reports earnings on Wednesday morning. WFRD shares fell 2.7% to 92.97, moving back towards its 50-day moving average. The stock price is undergoing a short consolidation. A break above 97.88 will serve as an early entry opportunity.

Weatherford is just one of a number of oil-related companies to report next week, including Oceaneering Internationaloil well), Baker Hughes (Bakri), halliburton (Hal) click, and Exxon Mobil (XOM) and Chevron (CVX) on Friday.


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what to do now

The S&P 500 and Nasdaq are teetering on the edge of recent lows, with major stocks underperforming. Yes, some stocks performed quite well, such as Meta and Google, but even those stocks lost ground amid the massive sell-off.

Investors should pay close attention to relatively strong stocks, but now is not the time to buy, but it is already a week to reduce positions.

Remember, in market downturns, relative winners are often absolute losers.

Earnings could be a catalyst for Microsoft, Vertiv and the market as a whole, but in which direction? So far, stocks have generally sold off on earnings or guidance.

If the market rebounds early next week, don’t get too excited. Major stock indexes need to rise strongly to signal the end of the recent downturn, with a wave of earnings reports adding to uncertainty.

read overall view Stay up to date with market direction and leading stocks and industries every day.

Follow Ed Carson on X/Twitter: @IBD_ECarsonThe thread is located at @edcarson1971 With the blue sky @edcarson.bsky.social Get stock market updates and more.

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