Dow Jones Futures: Market Rebounds, But For How Long? Apple, Amazon Hit Techs

Dow Jones futures edged lower overnight, while S&P 500 futures fell modestly and Nasdaq futures declined sharply, as Apple (AAPL) and Amazon stock led key earnings late Thursday, with Exxon Mobil (XOM) and Chevron (CVX) due early Friday.

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The stock market rally attempt gained steam as Facebook parent Meta Platforms (FB) surged and a number of other beaten-down former tech leaders rebounded. Dow giant Merck (MRK) and Eli Lilly (LLY) rallied on earnings, both flashing buy signals.

Tesla stock edged lower Thursday, but after slashing big intraday losses.

Apple stock and Amazon.com (AMZN) reported earnings after the close, along with Intel (INTC) and Atlassian (TEAM). But aside from Apple, all of these stocks are well off highs.

Along with oil majors Exxon and Chevron, medical giants AbbVie (ABBV) and Bristol Myers Squibb (BMY) report before Friday’s open. XOM stock and Dow giant Chevron are near buy points. ABBV stock is finding support at its 50-day line while Bristol Myers is at its 21-day, both after strong advances.

Tesla (TSLA) and LLY stock are on IBD Leaderboard. MRK stock is on SwingTrader. TEAM stock is on IBD Long-Term Leaders. Exxon Mobil, Chevron and BMY stock are on the IBD Big Cap 20. Merck was the IBD Stock Of The Day.

The video embedded in this article discusses the strong market rebound and analyzes FB stock, Merck and Eli Lilly.

Dow Jones Futures Today

Dow Jones futures fell less than 0.1% vs. fair value, with Apple and Intel stock hit blue chips. S&P 500 futures sank 0.5%. Nasdaq 100 futures tumbled 1.2%, as Apple and AMZN stock and other tech earnings losers were drags. Those are off Thursday night’s worst levels.

The 10-year Treasury yield fell 4 basis points to 2.82%.

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

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Apple Stock

Apple earnings and revenue topped forecasts, amid strong iPhone sales. The Dow Jones tech giant OK’d another $90 billion for AAPL stock buybacks, and upped its dividend by 5% to 23 cents a share. Apple stock initially rose modestly after hours, but then reversed lower after warning of a $4 billion-$8 billion headwind this quarter from the ongoing China shutdowns. AAPL stock is down 2% overnight.

Shares popped 4.5% to 163.64 in Thursday’s regular session, reclaiming the 200-day line. AAPL stock has a 179.71 buy point from a handle that’s very large for a consolidation that’s only 18% deep. Arguably, there’s an early entry from a short trendline slightly above the 50-day moving average. The relative strength line for Apple stock is not far from highs, a reflection of broad market weakness.

Amazon Stock

Amazon reported a big Q1 loss, reflecting the declining value of its Rivian (RIVN) stake. Revenue slightly missed. Amazon Web Services slightly topped revenue targets. But Amazon guided low on Q2.

AMZN stock dived nearly 9% in extended trade. Shares popped 4.65% on Thursday to 2,891.93, but have been trading near their lowest levels since mid-2020.

Intel Stock

Intel earnings narrowly topped views. But the struggling chip giant guided low on Q2 EPS and sales. INTC stock sank 4% in extended action. Shares rose 3.6% on Thursday to 46.84.

TEAM Stock

Atlassian earnings beat consensus. But the collaboration software maker guided low on current-quarter EPS. TEAM stock fell 6% overnight. Atlassian stock jumped 6.7% on Thursday to 259.98.

Merck Stock

Merck stock rose 4.9% to 88.58 following better-than-expected earnings. MRK stock technically is still below an 89.58 cup-with-handle buy point, according to MarketSmith analysis. But shares broke the downtrend of the handle and it turned in its best close since early November. The RS line for MRK stock is the highest since January 2021.

Eli Lilly Stock

Eli Lilly stock popped 4.3% to 297.27 on its Q1 earnings. After round-tripping a cup-base breakout earlier this month, LLY stock headed into earnings just above the 284 buy point. Shares are still in the buy zone, but also broke a short-term downtrend and moved above their 21-day moving average.

Stock Market Thursday

The stock market rally attempt wobbled initially but then picked up momentum.

The Dow Jones Industrial Average ran up 1.85% in Thursday’s stock market trading. The S&P 500 index leapt 2.5%. The Nasdaq composite gained 3.1%. The small-cap Russell 2000 rose 1.8% after hitting a fresh 52-week low intraday.

U.S. crude oil prices popped 3.3% to $105.36 a barrel. The 10-year Treasury yield rose 4 basis points to 2.86%.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 1.1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) advanced 1.4%. The iShares Expanded Tech-Software Sector ETF (IGV) jumped 4%. The VanEck Vectors Semiconductor ETF (SMH) soared 5.7%.

SPDR S&P Metals & Mining ETF (XME) bounced 1.85% and the Global X U.S. Infrastructure…