Dow Jones futures edged lower before Thursday's open even as jobless claims declined more than expected. But S&P 500 futures and especially Nasdaq futures still lost ground. Tesla stock fell sharply, pressuring techs along with Apple (AAPL), CrowdStrike (CRWD) and several others. The stock market rally is at record highs, but increasingly extended by various measures, especially on the Nasdaq.Tesla stock fell 6% before the open, signaling a third straight decline after its huge stock split run temporarily ended Monday. China electric car rival Nio (NIO) reported August deliveries doubled in August.
Apple retreated 2.6% after reversing from record highs Wednesday to close down 2%. A four-for-one Apple stock split also kicked in early Monday.
Furthermore, Advanced Micro Devices (AMD), Nvidia (NVDA), Microsoft (MSFT), Facebook (FB), Zoom Video (ZM) and DocuSign (DOCU) retreated, all of which had strong or explosive moves in recent days.
CrowdStrike, Rocket Reverse
CrowdStrike stock sold off despite better-than-expected earnings and guidance for the 2019 cybersecurity IPO. CRWD is still up for the week. Recent IPO Rocket Companies (RKT) tumbled despite strong quarterly results. Optical gear maker Ciena (CIEN) crashed after beating views but warned that the coronavirus impacts "have resulted in an orders slowdown and are likely to adversely impact our revenue for a few quarters." Shares are set to fall back below their 50-day line.
On the upside, database software maker MongoDB (MDB) rose and teen-focused discounter Five Below (FIVE) jumped before the open on their earnings reports. MongoDB stock, though off premarket highs, is set to move back to an official buy point. Five Below broke out Wednesday.
Costco Wholesale reported August sales rose 15% to $13.56 billion, with growth picking up for a third month in a row. Shares edged higher in the premarket.
Apple and Tesla are on IBD Leaderboard, as well as Nvidia stock and Microsoft. Costco stock and Facebook are on SwingTrader. Microsoft stock is on IBD Long-Term Leaders. AMD stock, Nvidia and Microsoft are on the IBD 50.
Dow Jones Futures Today
Dow Jones futures fell a fraction vs. fair value. S&P 500 futures retreated 0.5%. Nasdaq 100 futures skidded 1.4%, hit by Tesla, Apple, Microsoft, Nvidia, Zoom Video and more.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
France and Germany announced big stimulus plans to bolster their economies. European stock markets rallied Thursday, though much of that reflected rebounds from Wednesday's close when U.S. markets were near intraday lows.
Dow Jones futures briefly moved slightly higher on weekly jobless claims data, released at 8:30 a.m. ET. Initial jobless claims fell to 881,000 for the week ended Aug. 29 vs. just over 1 million in the prior week.. Economists expected initial jobless claims of 958,000.
Continuing claims came in at 13.254 million vs. views for 14 million.
On Friday, the Labor Department will release its August jobs report. The consensus is for 1.4 million jobs added to nonfarm payrolls. On Wednesday, the ADP employment survey estimated private employers added 428,000 jobs last month, less than half of what economists expected.Coronavirus Stock Market Rally
The coronavirus stock market rally has continued to shrug off warning signs that it's getting extended. On Wednesday morning, the Nasdaq briefly reversed lower, but the major indexes rebounded strongly from late morning.
The Dow Jones Industrial Average rose 1.6% in Wednesday's stock market trading. Another day like that will push the DJIA to record levels. The S&P 500 index climbed 1.5% and the Nasdaq composite 1%, both hitting new highs.
The Nasdaq is now 6% above its 21-day line, the biggest closing gap in months. It's 11.6% above its 50-day moving average.
Nio Deliveries Double
Nio reported August deliveries at 3,965, up 104% vs. a year earlier and increasing from 3,533 in July. The Chinese luxury electric SUV maker is boosting production to 5,000 a month as it prepares to launch its third model at the end of this month. Nio had previously forecast Q3 deliveries at 11,000-11,500. On Wednesday, Li Auto (LI) reported a jump in August deliveries.
Nio stock fell modestly early Thursday, near record highs. Li Auto also retreated after spiking to record highs last month.
Tesla Stock
Tesla stock fell 9% before the open in active trade. The luxury electric car leader has been a big Nasdaq driver during the current stock market rally, especially since announcing a five-for-1 Tesla stock split that took effect before Monday's open. After spiking to a post-split 500 level on Monday, shares retreated on Tuesday and Wednesday, but closed above the fast-rising 10-day moving average.
It's going to be a busy month for Tesla and electric car rivals. Among the highlights, Tesla has its long-awaited Battery Day on Sept. 22, with Model Y production starting soon at the Shanghai plant. Meanwhile, Volkswagen (VWAGY) launches its ID.3 electric car in Europe in a few days. The ID.4 crossover, also on the MEB platform is due out in Europe in October, in the U.S. by year end, and in China by start of 2021. Several other automakers are rolling out or expanding production of electric cars in the next few months.
But for Tesla stock, the near-term question is whether it'll join the S&P 500 index. A decision could come within a few days. Getting added to the S&P 500 index could spur a new leg higher or an opportunity to sell — or both. It's unclear to what extent mutual fund families have bought up Tesla shares to prepare for S&P 500 tracking fund needs.
Not being added to the S&P 500 could be a trigger for more losses, though Tesla stock could join the benchmark index in the coming months.
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DocuSign, Broadcom Earnings Tonight
After Thursday's close, DocuSign and Broadcom (AVGO) release earnings results.
An e-signature software specialist, DocuSign is among the big winners from the coronavirus work-at-home trend, with shares skyrocketing Tuesday on the blowout Zoom Video (ZM) earnings report. DocuSign stock reversed lower on Wednesday, and were down sharply early Thursday.
Broadcom whose reach spans from Apple chip supplier to notable software player, has cleared a buy zone, trying to decisively break out after three years of consolidation. AVGO stock fell modestly early Thursday.
Reprinted from yahoofinance, the copyright all reserved by the original author.
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