Dow Jones futures experienced a decline early Thursday, alongside drops in S&P 500 and Nasdaq futures. Although Microsoft (MSFT) and Meta Platforms (META) reported third-quarter earnings that surpassed expectations, both stocks fell due to cautious guidance.
Other companies that reported earnings after the market close included Robinhood Markets (HOOD), Coinbase (COIN), MicroStrategy (MSTR), DoorDash (DASH), GoDaddy (GDDY), and Ryan Specialty Holdings (RYAN).
On Wednesday, the stock market rally faced a modest setback, with the Nasdaq reversing from a record high despite strong earnings from Alphabet, Google’s parent company.
Notably, Nvidia, Meta, and DoorDash are featured on the IBD Leaderboard. Nvidia is highlighted on SwingTrader, while Microsoft is recognized on the IBD Long-Term Leaders list. Additionally, Nvidia, Meta, and Ryan are part of the IBD 50, and both Meta and Robinhood are included in the IBD Big Cap 20.
Market Performance
Dow Jones futures fell 0.3% against fair value, impacted by Microsoft’s performance as a Dow component. S&P 500 futures retreated by 0.6%, and Nasdaq 100 futures declined 0.8%, reflecting the challenges faced by major holdings like Microsoft and Meta.
In bond markets, the 10-year Treasury yield saw a slight increase to 4.27%.
Meanwhile, China’s official manufacturing index rose by 0.3 points in October to reach 50.1, surpassing the neutral level of 50 for the first time since April, beating expectations of 49.9.
It’s important to note that movements in Dow futures overnight do not always predict actual trading outcomes in the subsequent regular stock market session.
Stock Market Overview
The previous day’s trading concluded with a fading stock market rally, as the Nasdaq led the declines following its intraday peak at a new all-time high.
On Wednesday, the Dow Jones Industrial Average fell 0.2%, encountering resistance at the 21-day moving average. The S&P 500 index dropped 0.3%, while the Nasdaq composite declined by 0.6%. The small-cap Russell 2000 slipped 0.1% but remained above its 21-day line.
