In the latest developments on Wall Street:
Dow Jones Futures and Late Earnings Moves:
- Dow Jones futures, S&P 500 futures, and Nasdaq futures experienced minimal changes after hours. Late movers, Applied Materials (AMAT) and Ross Stores (ROST), played key roles following their earnings reports.
Mixed Day in the Market:
- Despite a mixed Thursday, Nasdaq and S&P 500 managed slight gains, counteracting sell-offs from Cisco Systems (CSCO), Palo Alto Networks (PANW), and Alibaba (BABA). Notably, small caps faced challenges, while leading stocks maintained resilience. Treasury yields retreated, and crude oil futures saw a significant drop.
Earnings Highlights and Market Indices:
- Applied Materials (AMAT) faced a late sell-off, influenced by a U.S. criminal investigation for alleged evasion of China export curbs. Ross Stores (ROST) rose after-hours, reflecting optimism from strong earnings and robust Q4 guidance. Meanwhile, Gap (GPS) surged post-Q3 earnings. Market indices closed narrowly mixed, with the Dow Jones falling 0.1%, and the S&P 500 and Nasdaq rising 0.1%.
ETF Trends and Market Breadth:
- Growth ETFs, including iShares Expanded Tech-Software Sector ETF (IGV) and VanEck Vectors Semiconductor ETF (SMH), showed varied movements. ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) experienced declines. The Energy Select SPDR ETF (XLE) fell nearly 2%, reflecting market breadth favoring losers over winners.
Elon Musk’s Controversial Statements:
- Elon Musk’s comments on social platform X drew criticism for being perceived as anti-Semitic. Musk’s endorsement of a post led to concerns about potential repercussions on Tesla’s brand, demand, and stock prices. IBM suspended advertising on X due to the platform running ads next to pro-Nazi posts.
Tesla and China EV Rivals:
- Tesla stock fell 3.8% after Musk’s comments, dipping below the 50-day line. China EV stocks, including Li Auto, BYD, and XPeng, faced fluctuations. Li Auto’s presales of the MEGA minivan began, while BYD approached an aggressive entry. XPeng, despite unveiling the X9 EV minivan, experienced a decline.
Investment Strategies and Market Outlook:
- As the market pauses, leading stocks hold well, with potential opportunities during a modest pullback. Investors are advised to monitor watchlists, seek emerging leadership, and consider diverse investment strategies. Market dynamics, including sliding Treasury yields and weak market breadth, contribute to the evolving financial landscape.
