Dow Jones futures rose lower on Thursday, along with S&P 500 futures and Nasdaq futures Walt Disney (DIS), Datadog (DDOG), Cloudflare (NET) headline earnings.
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The stock market rally had a mixed session, but the Nasdaq index and the S&P 500 index passed. Tilray (TLRY) and other marijuana stocks plunged Thursday after being high in the kite in recent days.
Stocks traded up and down on Thursday, with a strong finish pushing the Nasdaq above the 14,000 level, drifting past warning signs. Bitcoin has reached the highest record, amid the latest signs of institutional support.
Screen of the day: cook your own list of supplies
Apple’s megacap technology, Microsoft (MSFT), Amazon.com (AMZN) and Google parent Alphabet (GOOGL) was meh. But big chip names like Taiwan Semiconductor (TSM), Nvidia (NVDA), Lamb research (LRCX) and Applied materials (AMAT) had strong sessions.
Disney stocks, Datadog, Cloudflare and recent IPO Confirm (AFRM) reported earnings after all four closed within the buying range.
Disney shares rose modestly with strong results. DDOG stock modestly retreated on mixed lead. NET stocks fell sharply on the guidelines. Confirmed shares were sold despite the bad views in his first report since the exchange.
Marijuana Stocks
Aurora Cannabis (ACB) also reported its earnings late Thursday. The Canadian pot producer predicted the best income. Aurora shares rose 2% with expanded trading, lowering initial gains. The ACB share tumbled 23.5% on Thursday but is still 13% higher for the week.
Marijuana shares fell Thursday after huge gains. Tilray shares fell 50% to 32.16 on Thursday, after rising sharply ahead of the open. It is still above its 10-day line after closing 117% above the short-term level on Wednesday.
Africa (APHA), which merges with Tilray, slipped 36% on Thursday. Roof growth (CGC) and Cronos (CRON) lost 22%.
TLRY shares fell moderately overnight, but most other marijuana shares rose slightly in the long trade following the Aurora earnings report.
Justice Probes GME Stock Frenzy
Reddit investors rushed marijuana shares after the rapid rise and fall of GameStop (GME) and AMC Entertainment (AMC). The Department of Justice has issued subpoenas to Robinhood and various brokers and social media companies about the huge short pressures in GME shares and others. The Commodity Futures Trading Commission is investigating Reddit investors’ silver futures and related ETFs.
The House Financial Services Committee is also planning a hearing on February 18 on the GameStop stock market. Reddit CEO Steve Huffman will testify.
GME shares fell 0.2% on Thursday to 51.10, the fourth consecutive day of below-average volume. The GME share is 89% lower than the high of 483 on January 28th. The AMC stock lost 3.3% on Thursday, 73% lower than the top 20.66 on January 27th.
appeal (AAPL), Microsoft, Nvidia and TSM are on IBD Leaderboard. Nvidia shares and Taiwan Semi are on SwingTrader. Microsoft shares are on IBD Long-Leaders. TSM, Nvidia and AMAT are on the IBD 50 list.
Dow Jones Futures Today
Dow Jones futures fell 0.1% below fair value, with Disney shares offering a meager boost. S&P 500 futures fell 0.15%. Nasdaq 100 futures fell 0.1%.
Remember that overnight actions in Dow futures and elsewhere do not necessarily translate into stocks in the next regular session.
Join IBD experts while analyzing stocks in the stock market on IBD Live.
Coronavirus News
Coronavirus cases worldwide reached 108.23 million. The deaths from Covid-19 were 2.37 million.
Coronavirus cases in the US hit 27.98 million, with deaths above 486,000.
Stock market rally
The rise in the stock market continued to soar to record highs, trading up and down on Thursday, but in a relatively narrow range.
The Dow Jones industrial average closed just below the break-even point in stock market trading. The S&P 500 Index rose 0.2% and the Nasdaq Composition 0.4%.
The Bitcoin price rose to a record high of more than $ 48,400 on Thursday and to just over $ 47,000. Mastercard (MA) said it facilitates Bitcoin and some other cryptocurrency transactions, while Bank of New York Mellon (CC) said it would be a custodian for assets in the cryptocurrency. Tesla said on Monday that it had bought $ 1.5 billion in Bitcoin, causing the digital currency to skyrocket.
Megacap Stocks
Apple share decreased by 0.2% to 135.13. Shares are consolidating just below a buy price of 138.89 cups with handles. AAPL stock finds support around its exponential moving average of 21 days and just above its 50/10 weeklys.
MSFT shares, a Dow Jones, S&P 500 and Nasdaq component such as Apple, rose 0.7%. It’s still in a buying zone.
The two FANG trillion-dollar stocks, Amazon and Google, lost 0.7% and rose 0.1%, respectively. AMZN shares form a handle as it drifts back to its 50-day line. GOOGL shares are trading tight after rising to a record high of earnings last week.
Chip Stocks
The TSM share, which did not have a market capitalization of $ 722 billion, rose by 4.1% and reached a brief consolidation to a new high. Nvidia shares rose 3.3% to 610.03, still ranging from Wednesday’s break above a 587.76 buying point. The graphics disk driver chased an early entry of $ 560.07 billion on Monday.
LRCX share rose 7.5%, just below a new high. AMAT share rose 6.7% to an all-time high. Several other chip makers have made huge profits.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) advanced 1.2. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.7%, with Microsoft shares as the best component. The VanEck Vectors Semiconductor ETF (SMH) increased by 3.7%, with TSM share the largest SMH component. Nvidia, AMAT and LRCX shares are also important components.
Earnings
Disney’s earnings and sales were beating, while Disney + subscribers now reached 94.9 million. Disney shares rose 2% overnight. DIS share rose 0.75% to 191.05 on Thursday. Disney cost a buying base of 183.50 on Monday after bouncing back strongly from its 50-day line recently. The buyout zone for Disney shares lasts up to 192.68.
Datadog’s earnings beat the views, but profit guidance was below some estimates. Datadog share fell 2% in expanded trading. DDOG share rose 1.7% to 117.60 on Thursday. According to MarketSmith, Datadog can test an entry of 111.59 cups with handles. The DDOG stock buying zone ends at 121.37.
Cloudflare’s earnings were tight, while the lead was in line. Cloudflare stock fell 7% overnight, below recent buying points. NET shares rose 0.4% to 91.24 on Thursday. Shares cleared a consolidation buying point of 88.87 on Monday, with 87.25 as a slightly earlier entry. The official buy range ends at 93.31 for NET shares.
Confirm earnings and revenue above the fiscal Q2 views, with Q3 revenue guidelines in line. Confirmed stock fell 9% in expanded trading. AFRM shares rose 2.8% to 139.99 on Thursday. It cleared the IPO base after trying to close above the 138.08 buying point in the previous two sessions. An early entry of 123.55 cleared on Tuesday was a better entry.
Analysis of stock market marches
Bulls and bears have battled 14,000 across the Nasdaq over the past few days, with bulls gaining the upper hand by the end of Thursday. It would be healthy if the composition could hold around these levels for a few days or a few weeks. The Nasdaq is now 7.5% above its 50-day moving average, still extended and in danger of falling backwards. But the 50-day line could catch up quickly if the Nasdaq holds about 14,000.
Investors can resign Apple shares and the other mega cards. By going nowhere, they help prevent the stock market from overheating. This provides some space for other leaders, such as slides and IPO names, to keep working. Of course, if Apple and tech titans start pushing higher, like in late January, the Nasdaq could obviously expand a lot.
The major indices have moved up and down over the past two sessions, but the daily swing has been relatively modest with sluggish changes to the lock clock. However, many leading stocks have experienced large gains or losses – not just GME stocks or Tilray. Investors should keep this in mind when developing a game plan.
If the stock market sells, and Nasdaq retreats to the 21-day line or even the 50-day, very high providers, especially IPOs, could fall by 10%, 20% or more. What is your strategy for your possession?
Read the big picture every day to keep up with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter @IBD_ECarson for stock market updates and more.
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