Dow Jones Futures Rally as Market Bounces Back; Tesla Drops on Warning

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In overnight trading, Dow Jones futures, S&P 500 futures, and Nasdaq futures all saw slight gains. The stock market faced challenges on Wednesday as Treasury yields reached new long-term highs, causing the Nasdaq to briefly fall below the 13,000 level. However, the major indexes managed to reverse their losses and close mixed. Meta Platforms played a role in the market’s turnaround, as its stock initially fell but later recovered. Meanwhile, Tesla stock fell due to a Deutsche Bank warning about the company’s deliveries, while Peloton Interactive experienced a surge in stock price after forming a partnership with Lululemon Athletica.

Although Wednesday marked the first day of a rally attempt, the market remains in a state of correction, making buying opportunities risky. However, one exception may be energy stocks, which have seen an increase in line with rising crude oil prices. Several energy companies, including Nov, SLB, Chevron, and Exxon Mobil, showed bullish action on Wednesday. Dow Jones futures were slightly above fair value, with S&P 500 futures and Nasdaq 100 futures also experiencing gains. The 10-year Treasury yield dipped slightly to 4.61%, while crude oil prices rose slightly.

Micron Technology reported after the market closed, resulting in a decline in its stock price. Despite this, the company beat fiscal Q4 views, reporting a large loss and a 40% decline in revenue. Micron’s Q1 revenue guidance was slightly higher, but its expected loss was wider than anticipated. The stock, which closed at 68.21 on Wednesday, fell below its 50-day line. Micron’s earnings and capital spending plans will be important for memory-exposed chip-equipment makers such as Applied Materials and Lam Research.

Following a pattern from the previous day, the major indexes opened higher but soon reversed their gains, ultimately closing narrowly mixed. The Dow Jones Industrial Average fell 0.2%, while the S&P 500 index closed up 1 point, and the Nasdaq composite climbed 0.2% after briefly dropping below 13,000. This small increase marked day 1 of a market rally attempt, with the hope that more strength will signal a follow-through day next week to confirm a new uptrend. Market breadth was modestly positive, with the small-cap Russell 2000 jumping 1%. Energy stocks, in particular, saw gains as U.S. crude oil prices reached their highest close in 13 months.

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