Dow futures rise on Google, Microsoft earnings; Looming a Fed Rate Increase, But Watch Out For This

Dow futures rose Wednesday morning, along with S&P 500 futures and especially Nasdaq futures. Google and Microsoft topped the overnight earnings, with the Federal Reserve meeting announcing in a big way on Wednesday. The stock market rally continued to decline on Tuesday Walmart (WMT) fell on earnings warning during Shopify (a store) announced massive layoffs with growth disappointment.

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Google Parent the alphabet (The Google) missed the second quarter earnings while giant Dow Jones Microsoft (MSFTIt didn’t hit the upper and lower bounds but did give solid guidelines, kicking off a big week for the tech giants. meta pads (dead) Wednesday evening and apple (AAPL) And the Amazon.com (AMZN) Thursday.

Shares of Google and Microsoft rose modestly, after both slipped into earnings.

Energy Enphase (ENPH), meanwhile, reported stronger-than-expected results for the second quarter. ENPH jumped in extended trading, indicating a move beyond the main resistance.

Chipotle Mexican Grill (CMG) And the Texas Instruments (TXN) rose overnight on earnings back, but both were higher.

early wednesday, Boeing (BA) reported a larger-than-expected loss while second-quarter revenue also missed, but BA stock rose slightly as giant Dow Jones said it still expects cash flow to be positive in 2022. Bristol-Myers Squibb (BMY) And the humana (hmmm) topped views before the opening, although Bristol lowered its full-year goals. BMY and Humana stock fell modestly ahead of the opening.

Shopify reported a small, unexpectedly adjusted loss of revenue, a day after it abruptly cut 10% of its staff. SHOP stock is down sharply after dropping 14% on Tuesday.

In other news, activist investor Elliott Management has acquired an unknown stake in PayPal (PYPL), Dow Jones reported late Tuesday. PYPL stock is up more than 6% early Wednesday.

The video included in this article highlights and analyzes Tuesday’s market action BJ’s sentence (BJ), Cheniere Energy (liquefied natural gas) And the fortinet (FTNT). The video also took a quick look at Google, Microsoft and Enphase Energy stocks.

Fed meeting

All eyes turn to the Federal Reserve on Wednesday afternoon as it concludes the two-day Fed meeting with a 2pm ET policy announcement. Markets are anticipating a further 75 basis point hike in the Federal Reserve. The big question is what Federal Reserve Chairman Jerome Powell refers to the Fed’s September meeting and beyond. Markets are somewhat divided between a half-point move in September or 75 basis points. In November, investors bet another 25-50 basis points, but that’s it.

General inflation is almost certain to have peaked, given the drop in gasoline prices, but price pressures remain high. However, investors expect the Fed to finish raising interest rates within a few months, in large part because they see A recession that may already be underway.

On Wednesday, the Commerce Department said new home sales in June fell from downwardly revised May, the latest bleak economic report. On Thursday morning, trade is likely to report a second consecutive quarter of lower GDP. Although it is not an official recession, there is a strong possibility that the NBER will eventually declare a recession in the United States.

Ahead of the Federal Reserve’s September meeting, investors and policymakers will get CPI readings for July and August and jobs reports.

Dow jones futures contracts today

Dow futures are up 0.45% against fair value. S&P 500 futures rose 0.8%. Nasdaq 100 futures jumped 1.4%. Microsoft is a component of the Dow Jones, S&P 500 and Nasdaq 100, Boeing is the Dow Jones and S&P 500, while Google and ENPH shares are the S&P 500 and Nasdaq 100 shares.

Crude oil futures are up 1%.

Remember to work overnight in Dow Jones futures contracts and anywhere else that does not necessarily translate into actual circulation in the next regular session Stock market session.

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stock market rise

The stock market rally took further losses, especially among technology companies.

The Dow Jones Industrial Average lost 0.7% on Tuesday stock market trading. The S&P 500 fell 1.15%, with Fortinet and WMT being the biggest losers. The Nasdaq Composite Index fell 1.9%. Small cap Russell 2000 lost only 0.6%.

US crude oil prices fell 1.8% to $94.98 a barrel, as recession fears over demand intensified. President Biden plans to release another 20 million barrels from the Strategic Petroleum Reserves. This was also negative for crude oil prices.

Natural gas prices rose 3.1%. Russia’s curbing of natural gas flows to Europe has pushed up prices there, boosting demand for US LNG.

The 10-year Treasury yield fell 3 basis points to 2.79% after falling to 2.71% on the day, matching its lowest level in May. The two-year yield rose slightly to 3.06%, with a widening yield curve inversion highlighting inflation risks.

ETFs

between the Best ETFsThe Innovator IBD 50 ETF (fifty) and creator of the IBD Breakout Opportunities ETF (fit) up 0.2%, with medical help. iShares Expanded Technology and Software Fund (ETF)IGV) fell 3.1%, with Fortinet and other security stocks falling. MSFT stock is a major component of the IGV. VanEck Vectors Semiconductor Corporation (SMH) down 1.5%.

SPDR S&P Metals & Mining ETF (XME) is down 0.15% and the Global Infrastructure Development Fund (ETF) of the US company Global X (cradle) advance by 0.35%. US Global Gates Foundation (ETF)Planes2% went down. SPDR S&P Homebuilders ETF (XHB) give up 1%. SPDR Specific Energy Fund (SPDR ETF)XLE) Sinking 0.9% and Financial Select SPDR ETF (XLF) 1.4%. SPDR Healthcare Sector Selection Fund (XLV) rose 0.5%.

Shares reflect more speculative stories, the ARK Innovation ETF (see you) The ARK Genomics ETF slipped 4.8% and the ARK Genomics ETF (ARKG) drop 1%.

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Microsoft earnings

Microsoft earnings Revenue came in below lower views in the fiscal fourth quarter, with earnings per share increasing 3% and revenue up 12%.

The Dow tech giant was guided by Q1 2023 revenue growth, but cloud revenue should be strong, with Azure sales up 43%. Microsoft sees double-digit sales growth in the new fiscal year 2023.

Microsoft stock jumped 3% in overnight trading after initially slipping slightly ahead of upbeat guidance. Shares fell 2.7% Tuesday to 251.90, retreating significantly from the 50-day streak on a rough day for software.

google earnings

Google’s profits fell 11%, missing a bit, while total revenue was up 16%, topping only. Digital advertising has fared well, even with the loss of cloud computing and YouTube revenue.

Google stock is up nearly 4% in overnight trading. Shares fell 2.3 percent on Tuesday to 105.02. That didn’t cut an intraday low on May 24 but was the worst close since April 2021. GOOGL stock fell 8.2% over three days in the aftermath. Explode, Explode (Explode, Explode) And the Twitter (TWTR) Earnings reports that highlight online advertising problems.

Enphase earnings

Enphase earnings It doubled as revenue jumped 68%, and both easily outnumbered views. The solar inverter maker was guided by third-quarter revenue.

ENPH stock jumped nearly 10% in pre-market trading. Shares fell 1.1 percent to 216.10 in Tuesday’s session. Enphase stock is set to break the early April high of 220.99. This could be a strong entry or an additional buying point. But ENPH stock actually closed 13% above the 50-day line.

Market Rise Analysis

The stock market rally eased on Tuesday, as earnings warnings fueled the sell-off again, especially with big earnings, economic data and the Fed meeting decision on tap.

The S&P 500 fell back to its 50-day moving average, with the Dow Jones and Nasdaq moving towards that level.

Perhaps the latest move is just a short-term constructive pullback, paving the way for bullish gains. But the major indices may be sold off more after the Fed and Apple earnings meeting.

The blue chip’s work hasn’t been inspiring. There weren’t many blinking buy signals when the market was moving higher. Those who did were often prone to tremors or blackmail. Now there is a return towards energy names, especially natural gas and liquefied natural gas. But this can change quickly.

Health insurance companies and some doctors are still showing their strength.

Time to Market with IBD’s ETF Market Strategy

What are you doing now

Except for the possibility of biting into the energy game, there is little reason to make new purchases until after the Fed meeting and other important news over the next couple of days. Investors should cut back on modest exposure, taking at least partial profits and minimizing losses.

But stay connected. The market could improve rapidly in the next few days, providing many buying opportunities. So work on those watchlists.

Read The Big Picture Every day to stay in sync with the trend of the market, stocks and leading sectors.

Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.

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