From Investor's Business Daily, November 5:
Dow Jones futures fell overnight, while S&P 500 futures were little changed and Nasdaq futures rose. Atlassian, Cloudflare, Guardant Health and 10X Genomics were among many big earnings moves overnight. The October jobs report is on tap.
The stock market saw sharp, broad losses in a Day 2 election reaction. The Nasdaq plunged below its 200-day line, the S&P 500 tumbled from key resistance, and the Dow Jones index broke below key levels. A chip and AI meltdown hit Sandisk (SNDK), CoreWeave (CRWV), Nvidia (NVDA) and SpaceX (SPCX), but even stronger areas of the market stumbled.
The market's fear gauge surged, which could be a positive signal but doesn't have to be.
Veeva stock is on the IBD 50. Palomar was Thursday's IBD Stock Of The Day. The video embedded in the article reviews Thursday's ugly market action and analyzes CSX, Veeva Software and ELF stock.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures were little changed, Nasdaq-100 futures rose 0.4%. Futures are moving quickly, continuing the regular session's volatility.Crude oil prices rose slightly.
The Labor Department will release the October jobs report at 8:30 a.m. ET, with economists expecting nonfarm payrolls to rise by just 62,000 after September's 29,000. That should be enough to keep the jobless rate at 4.2%. Markets still see a December rate hike as likely.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Earnings
FIGS (FIGS), Cloudflare (NET), Airbnb (ABNB), Atlassian (TEAM) and Affirm (AFRM) reported late Thursday, along with Guardant Health (GH), Natera (NTRA), JFrog (FROG), Halozyme Therapeutics (HALO), Five9 (FIVN), 10X Genomics (TXG) and Dropbox (DBX).
Cloudflare and Airbnb jumped, with the latter signaling a move back above a buy point. Dropbox rose modestly within a base.
But Atlassian, Affirm, Guardant Health, Natera, Five9 and 10X Genomics sold off late. Most were already heavily damaged, but FIVN had been holding up. Halozyme and FIGS tumbled after pulling back solidly from near highs in Thursday's session.
Stock Market Action
The stock market had a broad sell-off that spread well beyond the AI epicenter.The Dow Jones Industrial Average sold off 3.5% in Thursday's stock market trading, knifing back below the 50-day after Wednesday's 3% surge. The S&P 500 index plunged 4.35% to a three-month low, retreating from the 50-day line to near the 200-day. The Nasdaq composite dived 5.5%, decisively breaking the 200-day line and almost undercutting its late-July lows. The small-cap Russell 2000 plummeted 4.45%, putting it back below its 50-day and 200-day lines.
The Invesco S&P 500 Equal Weight ETF (RSP) tumbled 2.9% to its 21-day line after hitting a record high soon after the open.
The chip and AI sell-off turned into a full-blown meltdown Thursday as fears mounted that Democrats' sweeping election wins will end up delaying or blocking many more data centers. Sandisk stock dived 22.3%, Bloom Energy (BE) shed 16.4%, CoreWeave lost 9.8% and Nvidia dropped 9.3%. SpaceX tumbled 9.05% to 123.62, below its $135 IPO price for the first time in months. Taiwan Semiconductor (TSM), with a modest 21-day average true range of 3.3%, plunged 10.8% on Thursday.
Meanwhile, software names sold off. But so did retail, housing, financial and travel stocks. Even superdefensive insurance and staples reversed lower....
....MUCH MORE
Other than that Mrs. Lincoln....
