Meta Continues Tech Titan Meltdown; Apple On Deck, according to Dow Jones Futures


Overnight, the Dow Jones futures, S&P 500 futures, and Nasdaq futures all moderately increased. Although Meta Platforms (METAspending )'s binge helped many major tech suppliers, its profitability fell.

On the agenda for Thursday night is Apple stock and Amazon.com.

The stock market surge on Wednesday had significant intraday fluctuations, but the major indices finally finished close to session lows. Microsoft (MSFT) and Google earnings caused the Nasdaq to drop significantly.

Additional equities, such as Enphase Energy (ENPH), Wingstop (WING), and Rollins, flashed buy signals (ROL).

Separately, a criminal investigation into Tesla (TSLA) claims is apparently underway.

After the bell, the parent company of Facebook, Meta Platforms, released earnings together with Ford Motor (F), Wolfspeed (WOLF), Impinj (PI), Molina Health (MOH), Aspen Technology (AZPN), and ServiceNow (NOW).

Due to disappointing earnings and forecast, Meta stock fell. But numerous semiconductor and networking companies, like Nvidia (NVDA) and Arista Networks, benefited from Meta's large expenditure plans (ANET).

On its guidance, WOLF stock fell. Molina Health had an increase in earnings, as did Aspen Technology, ServiceNow, and PI stock. Ford decreased a little. The AZPN stock had not yet traded.

Early on Thursday, reports are due from Merck (MRK), Shopify (SHOP), Mastercard (MA), McDonald's (MCD), and Caterpillar (CAT).

The focus will then shift to Thursday night, when Apple (AAPL), Amazon.com (AMZN), and biotech firm Vertex Pharmaceuticals are all scheduled to make announcements (VRTX).

Amazon and Apple stock both declined Wednesday from close to their 50-day lines. The stock of VRTX is in a purchase area.

On the IBD Leaderboard are Wingstop and Vertex stock. On the Leaderboard watchlist is the stock WOLF. On the IBD 50 is the MUSA stock. The IBD Big Cap 20 includes the stocks of Vertex, Molina Health, and ENPH. The IBD Stock Of The Day on Wednesday was Enphase Energy.

The video included in this post examined WING stock, Enphase, and Clearfield as well as the market's erratic behavior (CLFD).

Criminal Investigation of Tesla

According to Reuters, Tesla's self-driving promises are the subject of a criminal investigation. According to the article, the Justice Department investigation began last year and has not yet produced any findings. The criminal investigation coincides with the National Highway Traffic Safety Administration's current and growing Autopilot investigation.

The TSLA stock didn't appear to be impacted by the recent criminal investigation. As the market slowed from late-morning peaks, shares ended the day up 1% at 224.64, below session highs.

Elon Musk, the CEO of Tesla, visited the offices of Twitter (TWTR), where he updated his Twitter bio to "Chief Twit," as all indications were that his $44 billion acquisition will be finalized by Friday evening. The price of TWTR stock increased on Wednesday by 1.2% to $53.42, up 7% for the week.

As the NYSE announced that TWTR will be delisted at Friday's closing, Twitter shares increased 1% overnight to 53.90.

It's unclear whether Musk needs to sell additional Tesla stock to pay for the acquisition of Twitter.

Today's Dow Jones Futures

Compared to fair value, Dow Jones futures increased by 0.5%. Futures for the S&P 500 rose 0.45%. Nasdaq 100 futures increased by 0.5% while Meta fell and NOW rose.

Keep in mind that overnight trade in Dow futures and other markets may not always reflect real trading during the next normal stock market session.

Bullish Stock Market

Big fluctuations in the stock market surge on Wednesday led to a mixed closing.

Despite MSFT shares falling 7% and Boeing (BA) falling 9% during Wednesday's stock market trade, the Dow Jones Industrial Average ended up 2 points. S&P 500 index decreased by 0.7%. 2% of the Nasdaq composite fell. The Russell 2000 small-cap index grew 0.5%.

The 10-year Treasury yield continued its dramatic decline from its intraday highs on Friday by dropping 10 basis points to 4.01%. The 3-month rate is lower than the 10-year Treasury yield, which dropped to 4.03% on Wednesday. The 2-year/10-year inversion is considered to be a weaker recession indicator than the 3-month/10-year inversion.

As other central banks start to become less aggressive, the Bank of Canada lifted rates by 50 basis points as opposed to the anticipated 75 basis points. For the fourth meeting in a row, the Federal Reserve will almost certainly raise interest rates by 75 basis points next week. However, the markets are pointing at a December move of 50 basis points.

For a second session, the US dollar dropped significantly.

A barrel of American crude oil now costs $87.91, up 3%.

ETFs

The Innovator IBD 50 ETF (FFTY), one of the top ETFs, is up 0.2%. The iShares Expanded Tech-Software Sector ETF (IGV) lost 1.75%, with ServiceNow and Microsoft shares playing significant roles. VanEck Vectors Semiconductor ETF (SMH) lost 1% of its value.

XME, the SPDR S&P Metals & Mining ETF, increased by 1.1%. Energy Select SPDR ETF (XLE) saw a 1.4% increase. 1.1% growth was seen in the Health Care Select Sector SPDR Fund (XLV).

Both ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) increased, reflecting equities with more speculative stories. In all of Ark Invest's ETFs, Tesla stock continues to be a significant investment.

Major Earnings

Although revenue beat expectations, Meta Platforms' profitability was well below Q3 projections. The Facebook corporation also provided poor direction.

Overnight trading saw an almost 20% decline in Meta shares, marking the weakest levels since late 2016. After Google reported weaker-than-expected profits on Wednesday due to lower online ad sales, shares already fell 5.6% to 129.82. This came after earlier this month's disappointing earnings from Snapchat parent company Snap (SNAP).

Positively, Nvidia, Marvell Technology (MRVL), and ANET shares all increased in response to Facebook's massive spending binge.

Wolfspeed announced a quarterly loss along with revenues that just barely beat expectations. Chipmaker with EV exposure provided an unimpressive outlook.

In prolonged trading, the WOLF stock plunged 26%, breaking below previous lows and the 200-day moving average. On Wednesday, shares increased 1.3% to 106.44, running into resistance at the 50-day line. The price of WOLF has come very close to establishing a solid basis.

The PI stock increased 18% overnight, indicating a gap over a purchase price of 99.10 for consolidation. On Wednesday, Impinj stock increased 1.3% to reach 89.23, maintaining above its 50-day line.

Following the automaker's warning about supply-chain issues and prices last month, Ford's profits and sales were basically in line with decreased expectations.

Ford stock saw a sustained 1% decline. On Wednesday, shares decreased 0.1% to 12.82. According to MarketSmith research, Ford stock is approaching a 16.78 purchase target from a bottoming base but is still below the 50-day and 200-day moving averages.

Earnings at Molina Health barely beat out viewership. MOH stock increased 5% overnight. On Wednesday, shares increased 0.8% to reach 369.23, gaining in a buy zone from a flat base. The buy point for the flat base, which is a component of a base-on-base structure, is 361.35. The opening price of Molina stock is expected to be above the 5% purchase zone, which finishes at 379.42.

Views were outperformed by Aspen Technology's sales and profitability. The AZPN stock was not yet engaged in prolonged trade. On Wednesday, shares of the company that develops supply-chain and engineering software decreased 1.7% to 248.40, although they found support at their rising 21-day moving average. After a great surge, the AZPN stock has been stabilizing for a few weeks, but it still needs more time to create a firm basis.

ServiceNow beat expectations in terms of profitability and sales, but the business software giant lowered its projections for Q4 subscription revenue. NOW stock, however, increased 13% after hours, indicating at the very least a challenge of a declining 50-day line. On Wednesday, ServiceNow's shares decreased 2.7% to 366.41 on Microsoft's earnings and outlook.

Analyses of market rallies

The stock market rise on Wednesday seemed odd. As a result of Microsoft and Google's results, the Nasdaq fell at the opening. By late morning, the tech-heavy index had recovered its losses, but equities had then slid back to their session lows. The S&P 500 dropped after intraday movement over its 50-day line.

After retreating from close to its 50-day line, Nasdaq now needs support close to the 21-day line.

Although it finished far below highs, the Russell 2000 did move its 50-day line, demonstrating how the market's weakness was mostly confined to the megacaps. The largest culprits were Microsoft and Google parent Alphabet (GOOGL), although Meta, Amazon, and Apple also suffered significant losses.

Despite ending around session lows, the Invesco S&P 500 Equal Weight ETF (RSP) increased by 0.2%.

On the NYSE and Nasdaq, advancers outperformed decliners. New peaks outnumbered new troughs.

It is hardly shocking that Wednesday's retreat from important technical areas followed negative news. What counts is how the market rally reacts moving forward.

This week still has a ton of earnings due, including Vertex and Apple shares, and the next week will be quite busy. Another Fed meeting and rate rise, the October employment report, and other significant economic data are all scheduled for the following week.

Positively, prominent equities across several industries are flashing buy signs and extending gains, including ENPH stock.

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