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Futures on the Dow Jones fell slightly on Wednesday, as well as futures on the S & P 500 and Nasdaq. The current stock market recovery suffered a setback on Wednesday as major indices and major stocks posted negative signs. Despite a sharp increase in Apple stocks in the Dow Jones, S & P 500 and Nasdaq indices. Meanwhile, Square (QS), Qualcomm (QCOM), Ceridian HCM (CDAY) and Shout (CREE) fell late after the publication of the results.
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Qualcomm shares have an IBD composite rating of 91, while Square has a 92 rating. Cree shares have a composite rating of 94. The stock of Ceridian is 89.
Dow Jones Futures Today
Dow Jones futures contracts fell 0.2% from their fair value. The futures on the S & P 500 index lost 0.2%. Futures on the Nasdaq 100 slid 0.25%. Do not forget that day-to-day futures trading on Dow and elsewhere do not necessarily translate into actual trading at the next regular trading session.
Current stock market rally
The current stock market rally opened on the Apple (AAPL), which closed up 4.9%. The US Federal Reserve has made a technical adjustment to reduce the Fed's effective rate. Shares initially contributed to modest gains and then turned downward, Fed Chairman Jerome Powell said the recent low inflation is likely "transitory". This suggests that the Fed will not reduce rates anytime soon.
The Dow Jones and Nasdaq closed down 0.6% and the S & P 500 lost 0.75%. It was the second consecutive day of distribution for the Nasdaq.
Growth stocks had a difficult day AMD (AMD) and several software such as Twilio (TWLO) fell sharply after recent profits. Many other first-rate titles have modestly lost sympathy.
Among the best ETFs, the Innovator IBD 50 (FFTY) lost 1.6%. The iShares Expanded Tech Sector Software (IGV) ETF also declined 1.6%. The VanEck Vectors Semiconductor (SMH) ETF lost 0.8%.
The S & P 500 index and the Nasdaq closed below their 10-day moving average for the first time since March 28. Along with negative reversals and unsuccessful avoidance in some of the major stocks, this could point to further losses for the current stock market rally. Just like the Dow Jones.
More generally, the current stock market recovery may be at the beginning of a multi-year bull market. However, investors can not expect the stock market gains to be as large as they were in the early months of the recovery.
Conclusion: investors must be vigilant and a little more cautious now.
Qualcomm Earnings
Qualcomm's profits plunged 1% to 77 cents a share in the second quarter of the fiscal year, while revenues fell 5% to $ 5 billion. Analysts, however, broke Qualcomm's earnings record of 71 cents per share for a turnover of 4.8 billion dollars.
Qualcomm has been trending down for the third quarter of the current fiscal year, excluding a major Apple payment related to a major regulation related to patent licensing terms and conditions. royalties.
The Qualcomm stock fell 3.45% late. Shares rose 0.3% on Wednesday. Qualcomm's stock has climbed 51 percent since last month's settlement by Apple's wireless chip giant.
Square Earnings
Square earnings came out at 6 cents per adjusted share, stable compared to a year earlier. Revenues increased 59% to $ 489 million. Analysts were banking on Square earnings of 8 cents on a $ 478.3 million business figure.
Square also guided lower for the current Q2.
Square stocks fell 6.1% late, indicating a sharp decline on the 200-day line. Shares of the leader in mobile payments closed up 1.1% to 73.62.
Square's shares recovered in the first few weeks of the current stock market rally, but have since moved sideways. The relative strength line, which tracks the stock's performance against the S & P 500 index, is down slightly since the end of January.
Cree Gains
Cree revenues reached 20 cents per share for the third quarter of the year. Analysts were expecting Cree earnings per share of 16 cents. But sales rose 22 percent to $ 274.05 million, just below estimates. The LED chip maker also guided lower for the current Q4.
Cree shares fell 9.1% overnight. Shares closed down 2% to 64.78. The Cree stock reached 69.21 last week, its best level since the end of 2013.
Ceridian results
Ceridian's profit was 8 cents per share, the missing views of 4 cents. Revenues increased 8% to $ 203.7 million, just below expectations.
Ceridian shares slipped 7.3% behind. Shares of the human capital management software maker closed down 2.6% at 51.76 after a reversal of a record.
Ceridian shares announced its IPO at 22 in April 2018.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock updates and more.
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