From Investor's Business Daily, July 17:
Dow Jones futures declined slightly early Wednesday, while S&P 500 futures and especially Nasdaq futures fell solidly as semiconductor-equipment giant ASML (ASML) tumbled on guidance. Nvidia (NVDA) and several other chip plays also retreated on reports of even-tougher U.S. export curbs to China and former President Donald Trump's comments on Taiwan.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value, with Johnson & Johnson a Dow component. S&P 500 futures declined 0.8% and Nasdaq 100 futures tumbled 1.3%.The 10-year Treasury yield ticked up to 4.18%. Crude oil futures rose slightly.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
The stock market rally had another positive session Tuesday, led by small caps, the Dow and many non-tech sectors. Toast (TOST), Uber (UBER), UnitedHealth (UNH), Woodward (WWD) and Flowserve (FLS) flashed buy signals.
The video embedded in the article discussed Tuesday's market action and analyzed Toast, Woodward and Uber stock.
ASML Earnings, Other Chip Headwinds
ASML earnings and revenue topped second-quarter EPS and sales estimates, while surging bookings bodes well for long-term growth. But Q3 revenue guidance was light.Also, the Biden administration is mulling its toughest-possible trade restrictions if Dutch-based ASML and others continue to sell advanced chip technology to China, Bloomberg reported. The administration has told allies it may impose controls on foreign products that use the tiniest amount of U.S. technology.
ASML stock slumped 7% in premarket trade, signaling a sharp drop below a 1,056.34 buy point.
Nvidia stock sank more than 3%, signaling a clear move below its 21-day line. Taiwan Semiconductor (TSM), which makes chips for Nvidia and many others, lost 4%.
In addition to ASML and tougher export curbs, Trump said Taiwan should pay the U.S. for defense, claiming it "doesn't give us anything." That raises concerns about whether Trump would defend Taiwan from a China attack if he became president again.
TSMC earnings are due early Thursday.
ASML peer Applied Materials (AMAT) and U.K. chip design giant Arm Holdings (ARM) lost 4%....
....MUCH MORE
If interested see also Tuesday evening's "The Winners From U.S.-China Decoupling",
Nvidia was recently changing hands at $121.34 down $5.02 (-3.97%) premarket.
