Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. Adobe (ADBE) rose overnight on strong results and earnings guidance.
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After showing resilience after Wednesday’s hawkish Fed rate-hike outlook, the stock market rally flexed on Thursday, with strong, broad-based gains. The Nasdaq and S&P 500 hit fresh 52-week highs while the Dow Jones finally topped 2023 peaks. Microsoft (MSFT) was a big driver for the major indexes, with Apple (AAPL) and Meta Platforms (META) also contributing. But market breadth was strong.
Cava (CAVA) surged 99% in its debut Thursday, after CAVA stock priced its IPO at 22 a share, above the expected range. CAVA stock opened at 42 and closed at 43.78. The Mediterranean fast-casual restaurant is not profitable yet but growing rapidly.
Snowflake (SNOW), Monday.com (MNDY) and Smith & Nephew (SNN) flashed buy signals. But the risks of a market pullback raise the risks of new buys in the short run.
The Nasdaq and Nasdaq 100 look increasingly extended, with the S&P 500 also starting to look stretched.
META stock is on IBD Leaderboard. MSFT stock is on IBD Long-Term Leaders. MNDY stock is on the IBD 50.
Dow Jones Futures Today
Dow Jones futures dipped 0.1% vs. fair value. S&P 500 futures sank 0.25% and Nasdaq 100 futures fell 0.35%. Adobe stock is an S&P 500 and Nasdaq 100 component.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Adobe Earnings
Adobe earnings beat fiscal Q2 views with revenue edging past forecasts, with CEO Shantanu Narayen touting a “new era of generative AI” in the release. The software giant guided EPS forecasts slightly higher and revenue in line.
ADBE stock climbed 3.5% in late trading. Shares rose 2.4% to 490.91 in Thursday’s regular session, hitting a 16-month best. Adobe stock has skyrocketed in the past few weeks as it pushes artificial intelligence efforts and alliances.
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