US Stock Market Outlook: Tech Sector Rebounds as Earnings Season Progresses

Stock futures rise slightly after Nasdaq's worst day since 2022: Live updates

Traders work on the floor at the New York Stock Exchange on June 14, 2024. U.S. stock futures inched higher Wednesday evening after the Nasdaq Composite's worst session since 2022 amid investors' rotation out of big tech high-flyers. Dow Jones Industrial Average futures rose 48 points, or 0.12%. S&P 500 futures and Nasdaq 100 futures climbed 0.15% and 0.27%, respectively. In extended trading, Discover Financial popped more than 4% after its second-quarter results topped expectations. Beyond Meat tumbled 15% after The Wall Street Journal reported, citing people familiar, that the meat substitute company is meeting with bondholders to begin discussions about restructuring its balance sheet. The rotation trade continued Wednesday during the regular trading session. The tech-heavy Nasdaq tumbled 2.8% in its worst day since December 2022, closing below 18,000 for the first time since July 1. The S&P 500 dropped 1.4%. However, the blue-chip Dow, which has less exposure to the tech trade than the other two indexes, outperformed. The 30-stock index gained 243.6 points, or 0.6%, closing above 41,000 for the first time ever. Wall Street has been dumping shares of this year's artificial intelligence beneficiaries as the growing likelihood of a September rate cut bolstered optimism in the broader market. The Russell 2000 declined 1% on Wednesday, but the small-cap index has jumped more than 9% in the last five trading days. Investors have been hoping for a broadening market amid concerns that the tech-driven rally is running out of steam. However, some expect the change in leadership may not be enough to protect stocks from challenges ahead, including the possibility of an economic slowdown. "This is a market -- a Fed pivot market -- two, three months before we expect a cut, exactly as we'd expect to see it. A lot of uplift in areas like small caps, other areas of the risk market where capital is really unlocking," Lauren Goodwin, chief market strategist at New York Life Investments, said Wednesday on CNBC's "Closing Bell." "But the reality for the market is that we've already been in a soft landing for the next nine months. And so as we look to why the Fed is cutting rates, and the market starts to catch up with that reality, might be a couple of months from now, but we expect that the economy is still liable to slow," Goodwin added. On the economic front, jobless claims for the week ending July 13 are due Thursday morning. Economists are expecting to see claims come in at 229,000, per Dow Jones. That's up from 222,000 the week before. On the earnings front, Domino's Pizza and Alaska Air are set to report Thursday before the open. Netflix is expected to report results after the close.

TSMC and Netflix rise premarket; Domino's Pizza, Beyond Meat fall By Investing.com

Investing.com -- U.S. stock futures mostly rose Thursday, with the tech stocks rebounding after the previous season's rout. Taiwan Semiconductor Manufacturing (NYSE:TSM) stock rose 1.1% after the world's largest contract chipmaker posted a hefty 36% rise in second-quarter net profit earlier Thursday, riding the surge in demand for semiconductors used in artificial intelligence applications. Netflix (NASDAQ:NFLX) stock rose 0.3% ahead of the streaming giant's quarterly results after the close. It has already guided for lower net subscriber additions in the second quarter than in the first three months of the year. DR Horton (NYSE:DHI) stock fell 2.1% after the homebuilder trimmed its full-year revenue outlook, even after it beat estimates for quarterly profit, and also approved a new share buyback authorization totaling $4 billion. Domino's Pizza (NYSE:DPZ) stock slumped 12% after the pizza chain missed estimates for quarterly same-store sales, as inflation worries discouraged U.S. consumers. Beyond Meat (NASDAQ:BYND) stock dropped 13% following a report the plant-based meat producer has engaged with bondholders to begin discussions about restructuring its balance sheet. Blackstone (NYSE:BX) stock fell 0.8% after the investment firm posted only a modest rise in its second-quarter distributable earnings, with a jump in asset sales in its private equity and credit divisions offsetting a slump in its real estate arm.

US stock futures rise as chip rout eases; more earnings awaited By Investing.com

Investing.com-- U.S. stock index futures rose in evening deals on Wednesday, steadying after a rout in chipmaking stocks, on concerns over more trade disruptions, sparked steep losses on Wall Street. Growing bets on early interest rate cuts by the Federal Reserve also spurred a broader pivot away from technology stocks and into more growth-sensitive sectors. This saw the Dow Jones Industrial Average surge to record highs even as its Wall Street peers lagged. S&P 500 Futures rose 0.2% to 5,652.75 points, while Nasdaq 100 Futures rose 0.3% to 20,067.0 points by 20:43 ET (00:43 GMT). Dow Jones Futures rose 0.2% to 41,589.0 points. Heavyweight technology and chipmaking stocks rose in aftermarket trade after clocking outsized losses during the session. Heavyweights such as NVIDIA Corporation (NASDAQ:NVDA) rose 1% after a 6.6% slide, while TSMC (NYSE:TSM) rose 2.4% after a nearly 8% tumble. Majors such as Apple Inc (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) also steadied after falling during the session. Reports that the Biden administration was considering more export curbs on China, particularly in chipmaking technology, battered the sector, given that it could herald lower sales in China, which is a major consumer of chips. Concerns over heightened geopolitical tensions between China and Taiwan dented chip stocks, after Republican Presidential candidate Donald Trump said Taiwan should pay the U.S. for defense supplies. Tech stocks were also pressured by a broader shift into more economically sensitive sectors, amid growing bets that the Fed will begin cutting rates from September. This saw the Dow Jones Industrial Average rise 0.6% to a record high of 41,198.08 points. The S&P 500 fell 1.4% to 5,588.27 points, while the NASDAQ Composite finished down 2.8% at 17,997.81 points. Focus remained on the second quarter earnings season, with technology majors Netflix Inc (NASDAQ:NFLX) and TSMC set to report earnings on Thursday. TSMC is considered a bellwether for the chipmaking industry, and is expected to log a bumper second quarter profit on increased demand from the artificial intelligence industry. Lithographic equipment maker ASML Holding NV (AS:ASML) ADR (NASDAQ:ASML), which is also considered a bellwether for the chip industry, clocked stronger than expected second quarter earnings, as it flagged increased demand from the AI industry.

Nasdaq futures climb as TSMC forecast steers chip stocks recovery

Nasdaq futures rose on Thursday, thanks to an upbeat forecast from Taiwan Semiconductor Manufacturing that lifted chip stocks and a rebound in megacaps following a sharp sell-off in the previous session. U.S.-listed shares of TSMC rose 1.5% in premarket trading after the world's largest contract chipmaker raised its full-year revenue forecast on surging demand for AI chips. Apple and Nvidia, both TSMC customers, climbed 0.6% and 2.5%, respectively. Other chipmakers including Advanced Micro Devices, Intel, Marvell Technology and Arm Holdings rose over 1% each. Barring Intel, chip stocks lost over $500 billion in market value in Wednesday's session following a report that the U.S. was mulling tighter curbs on exports of advanced semiconductor technology to China. Comments on Taiwan from Republican presidential candidate Donald Trump also drove losses. The Philadelphia SE Semiconductor index logged its worst day in four years on Wednesday. The rout in chip stocks also pressured megacap shares. The group of so-called "Magnificent 7" stocks rose, with Meta Platforms, Tesla and Amazon.com The quarterly earnings season that is underway will be a significant test for whether expensively valued megacaps can keep investors satisfied with strong results. "While the strong year-to-date performance of the tech sector creates the risk of near-term volatility, we continue to think it is important that investors hold sufficient long-term exposure to the AI trend," said Mark Haefele, chief investment officer, UBS Global Wealth Management. "Beating on profit may no longer be enough to propel strong rallies, given the high bar set for the tech sector, which already has rich valuations." Futures tracking the small-cap Russell 2000 index edged 0.1% lower. The index closed down 1% in the previous session, snapping a five-day winning streak. Dow futures also edged lower after the index notched its third consecutive closing high on Wednesday. The VIX index, Wall Street's "fear gauge", eased slightly but was still at a six-week high. On the earnings front, Domino's Pizza slumped 13.1% after falling short of estimates for quarterly same-store sales, while D.R. Horton dropped 1.7% after the homebuilder tightened its annual forecast for home sales. Netflix is scheduled to report results after the closing bell. The streaming giant's shares were slightly lower. Weekly jobless claims data as well as the Philadelphia Federal Reserve's business index are on also on the radar. Comments from Federal Reserve officials Lorie Logan, Mary Daly and Michelle Bowman are also expected later in the day. Investors are still pricing in a 92% chance of a 25-basis-point interest-rate cut from the Fed by its September meeting, according to CME's FedWatch. At 6:56 a.m. ET, Dow e-minis were down 61 points, or 0.15%, S&P 500 e-minis were up 7.5 points, or 0.13%, and Nasdaq 100 e-minis were up 78.5 points, or 0.39%. Warner Bros Discovery jumped 3% after a report the owner of CNN and HBO had discussed a plan to split its digital streaming and studio businesses from its legacy TV networks. Beyond Meat slumped 12.1% following a report the plant-based meatmaker had engaged with bondholders to begin discussions about restructuring its balance sheet. (Reporting by Lisa Mattackal and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta and Pooja Desai)

Stock futures mixed after Nasdaq logs worst day in two years (SPX)

Stock index futures were mixed on Thursday, a day after Nasdaq notched the worst session since 2022. Wall Street's tech-heavy Nasdaq posted its worst session since September 2022, as chip stocks across the globe took a hit on U.S.-China trade curb worries, while Dow surpassed and closed above the historic 41,000 points level for the first time ever. "After a relentless run of market advances, yesterday finally saw that come to an abrupt halt," Deutsche Bank's Henry Allen said. Semiconductor stocks slumped and lost nearly $500B in collective market cap after it was reported the U.S. government may impose further export curb controls on the industry and former President Donald Trump said Taiwan "should pay us for defense." "But even as tech stocks were struggling, there was a continued rotation theme among equities, which meant that around half of the stocks in the S&P 500 actually ended the day higher," Allen added. Investors will also look forward to streaming firm Netflix's (NFLX) earnings report, which is slated to come postmarket. In other earnings news, Taiwan Semiconductor's (TSM) second-quarter results beat estimates and third-quarter revenue outlook was seen above estimates, amid a surge in demand for chips used for AI products. On the economic front, the initial jobless claims report is expected before the market opens, and is anticipated to rise to 229K. "We look today for a pick-up in initial jobless claims, but the data are prone to unpredictable swings in July," Pantheon Macroeconomics said. The July Philly Fed business outlook will also land at the same time, and is expected to come in at 2.7. "It would be very naïve to assume that political partisanship will not affect today's Philly Fed business sentiment poll, such is the toxic environment of U.S. politics. Initial jobless claims, one of the accurate reports on labor market conditions, are due," UBS' Paul Donovan said. Leading Indicators and the Fed Balance Sheet are slated to come later in the day.