Futures Rise After Nasdaq Equis Out Gains; 6 legendary leads

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Dow Jones futures rose modestly overnight, along with S&P 500 futures and Nasdaq futures, as Credit Suisse borrowed about $54 billion from the Swiss National Bank, easing contagion fears.


The stock market had another wild session on Wednesday in an attempt to rally, with major indexes initially falling but recovering well, with gains in the Nasdaq. Fears about the Swiss Giant credit Suisse ,C) triggered another wave of selling in bank stocks including well-capitalised global giants JPMorgan Chase ,jpm,

Treasury yields fell, especially the two-year yield, but they also came down. Unfortunately, trading in Treasuries, one of the world’s deepest and safest markets, is witnessing a drop in liquidity.

Crude oil fell to a 15-month low and copper also tumbled as investors fear the bank and financial market crisis will spill over into the wider economy.

Microsoft ,msft, Apple ,AAPL, Advanced Micro Devices ,amd, meta platform ,meta, salesforce.com ,crm) And NVIDIA ,NVDA) showing strength or even increasing profits. AMD, Meta and CRM stocks are hovering above the buy points. With Microsoft and Apple stocks moving toward official buy points, MSFT is arguably worth the action. Nvidia stock, among the strongest performers in 2023, is currently extended.

nvidia stock and meta platform on ibd leaderboard, Meta Stock is on SwingTrader. MSFT stock is on the IBD Long-Term Leaders List. crm stock current IBD 50Tapped to see Wednesday’s IBD 50 stocks with Salesforce.

The video embedded in the article discusses Wednesday’s market action and analyzes AMD stock, Salesforce and Duolingo ,duol,

prime income

software giant adobe ,adbe) and teen-centric encounters down ,five) reported after closure.

ADBE stock rose 5% in late trade as Adobe topped fiscal Q1 views and increased full-year guidance. The stock closed up 0.1% at 333.61 on Wednesday, trading below the 50-day and 200-day lines.

The stock fell 3% overnight as Five below hit the earnings line but guidance was light. Shares gained 0.2% at 198.17, taking support at the 50-day line after an orderly pullback.

dow jones futures today

Dow Jones futures rose 0.3% versus fair value, turning higher on Credit Suisse tapping SNB funds. S&P 500 futures climbed 0.4%. Nasdaq 100 futures rose 0.5%.

The 10-year Treasury was flat at 3.49%, with Credit Suisse trimming losses on the lending news.

Crude oil futures rose marginally.

Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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stock market rally attempt wednesday

The stock market rally to start the session saw sharp losses, but closed barely, mixed.

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The Dow Jones Industrial Average retreated 0.9% in Wednesday’s stock market trading. The S&P 500 index dropped 0.7%. The Nasdaq Composite rose less than 0.1%. The small-cap Russell 2000 declined 1.7%.

bank stocks

Credit Suisse sold off on Wednesday as its top shareholder, the Saudi National Bank, declined to invest money in the ailing Swiss giant. This quickly sent banks down in Europe and around the world.

CS stock, which has been ailing for years, hit a record low of 1.75 in a day. The stock closed down 14% at 2.16.

The Swiss National Bank said shortly before the close of US markets that it would provide liquidity to Credit Suisse. On Wednesday night, Credit Suisse borrowed up to 50 billion Swiss francs ($53.7 billion) from the SNB.

In the US, JPM Stock, Wells Fargo ,WFC, Bank of America ,BAC) And City Group ,C) all cut slightly lower than last week’s lows. JPM stock fell 4.7%, close to its 200-day line, along with Citigroup’s 2023 low. WFC stock hit an eight-month low, while BofA hit its worst level since late 2020.

Regional banks were amalgamated. First Republic Bank ,FRC) fell 21% as S&P Global downgraded its credit rating four notches to junk status. But some regional and super-regional banks advanced, including Western Alliance Bancorp ,wall,

Financial Select SPDR ETF (xlf) JPMorgan, Citigroup, Wells Fargo and BAC stock all fell 2.7%, with large holdings. SPDR S&P Regional Banking ETF (kre) fell 1.6%. FRC Stock and Western Alliance are among the many constituents.

Citing sources, Bloomberg reported Wednesday night that First Republic is exploring options, including a possible sale. FRC stock jumped than 8%.


US crude futures fell 5.2% to $67.61 a barrel, the lowest price in 15 months. Copper prices fell 3.8% to its worst level since January 5.


The 10-year Treasury declined 14 basis points to 3.49%. Intraday, the yield touched 3.39%, not too far from its February 2 low of 3.33%. The 2-year Treasury yield fell 25 basis points to 3.97% after crashing to 3.72% intraday. A week ago, just before the SVB financial crisis, the 10-year yield stood at 3.97% while the 2-year yield stood at 5.06%.

Banking fears and Fed rate shifts are pushing Treasury yields lower. Weak economic data on retail sales, producer prices and the New York Fed’s Empire State Manufacturing index added to the cooling.

Despite falling Treasury yields, the dollar jumped amid a global safe-haven rush on concerns over Credit Suisse. The greenback is near recent highs.

Fed rate hike odds

A week ago, markets were betting on a 50-basis point rate hike on March 22, followed by at least two more quarter-point rate hikes.

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But after Wednesday, investors see a 50-50 chance the Fed will pause next week. They see a quarter point increase by the end of the May meeting. But the market then expects several rate cuts, including a move of 50 basis points in June.


Among growth ETFs, the Innovator IBD 50 ETF (ffty) retreated 1.8%. iShares Extended Tech-Software Sector ETF (IGV) Microsoft along with Adobe and CRM stock major IGV Holdings dipped 0.2%. VanEck Vectors Semiconductor ETF (SMH) dropped 1.1%. NVDA Stock and AMD are major SMH holdings.

SPDR S&P Metals & Mining ETF (XME) gained 5.9% and the Global X US Infrastructure Development ETF (pave) fell 4%. US Global Jets ETF (jet) dropped 4.3%. SPDR S&P Homebuilders ETF (xhb) fell 2.2%. Energy Select SPDR ETF (XLE) fell 5.4%. Health Care Select Sector SPDR Fund (xlv) slipped 0.1%

Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) 0.8% and the ARK Genomics ETF (arkg) climbed 0.1%.

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Tech titans show their strength

Apple stock closed up 0.3% at 152.99. The iPhone giant has a 157.48 buy point from a flat base formed above the 200-day line. The relative strength line is at a four-month high, reflecting AAPL stock’s outperformance compared to the S&P 500 index.

MSFT stock rose 1.8% to 265.44. The Dow Jones giant is forming the right side of the short consolidation that formed just above the 50-day and 200-day lines. Microsoft stock is on track to hold a flat base with a 276.86 buy point after Friday’s close. In a better market, MSFT stock would already be actionable as an early entry or long-term leader.

CRM stock is in range from a 178.94 cup-with-handle buy point, up 1 percent at 182.91.

AMD stock rose 2.55% to 89.68 after jumping 6.6% on Tuesday. Shares are down from the 89.04 flat-basis buy point, according to MarketSmith analysis.

Meta stock climbed 1.9% to 197.75. The Facebook parent approved a 197.26 flat-basis buy point, after topping some early entries with Tuesday’s 7.25% spike.

Nvidia stock rose 0.7% to 242.28. The chip giant is at its best level in 11 months but has been boosted by recent buy points. Ideally, NVDA stock would consolidate for a few more weeks, forming a new base and allowing the bullish 50-day to take hold.

Market Rally

The stock market had another roller-coaster session in an attempt to rally, but ended near session highs.

The Nasdaq, down as much as 1.7% intraday, managed to edge higher, holding the 50-day and 200-day lines. The Nasdaq 100, which includes the 100 largest non-financial Nasdaq constituents such as Microsoft, Apple, Nvidia, Meta and AMD, rose 0.5%.

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The S&P 500 fell below Wednesday’s rally low but remained above Tuesday’s intraday low, so its rally effort remains intact.

The Dow Jones eased off Monday’s low, wiping out its rally effort and hitting its worst level since October. Russell, loaded with small bank stocks, fell to its worst level since late 2000, 2022.

Technically, investors can start looking for a follow-through day on the Nasdaq to confirm a new rally. An FTD would almost certainly push the Nasdaq 100 and perhaps the Nasdaq Composite above a trendline from early February highs.

But other indexes have a lot more to do. How sustainable is the tech-led rally if banks, commodity plays and industrials are selling?

A possible global financial crisis is, to put it mildly, far more important than whether, say, the jobs report is very strong or weak. Hence even a minor change in sentiment, positive or negative, can lead to massive market volatility. And huge fluctuations in a market, such as Treasuries, stocks, commodities and currencies, will ripple through.

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What do we do now

Investing in an outright bull market is challenging enough. Trying to play a volatile market correction in the midst of a looming financial crisis escalates the risk exponentially.

Yes, Meta Stock, Salesforce, AMD, and Microsoft are technically comparable to Apple. Several other technologies are increasingly showing action. But if this market breaks down, it will take everything down.

At least wait for the next day. This would potentially trigger multiple buy signals. But investors should be cautious even in that situation. The risks are high that another big banking or market headline will trigger a sudden selloff.

In the meantime, build your watchlist. Look for stocks with strong relative strength, especially those near buy points, but also leaders like Nvidia stock.

Read The Big Picture every day to keep up with market direction and the leading stocks and sectors.

Please follow Ed Carson on Twitter @IBD_ECarson For stock market updates and much more.

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