Dow Jones futures rose modestly overnight, along with S&P 500 futures and Nasdaq futures, with the CPI inflation report on tap before Thursday’s open. Walt Disney (DIS) headlined overnight earnings.
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The stock market rally lost ground Wednesday. As on Tuesday, the indexes came off morning lows, but this time they faded significantly into the close. The Nasdaq composite fell below its 50-day moving average for the first time since early 2023.
Not coincidentally, Nvidia (NVDA) tumbled to undercut its 50-day line for the first time in months.
A slew of other AI plays had notable or fierce losses, including Super Micro Computer (SMCI), Palantir Technologies (PLTR), C3.ai (AI), Upstart Holdings (UPST), Broadcom (AVGO) and Marvell Technology (MRVL).
SMCI stock and Upstart plunged following earnings, while PLTR stock extended its earnings-related sell-off.
For Nvidia, AVGO stock, Marvell and even C3.ai stock, it’s not c+lear why they retreated, other than that the AI-led market rally is struggling and some key companies have had disappointing results or guidance.
Is this a time to sell NVDA stock, or finally a chance to buy?
That’s a question for the broader market rally as well.
Earnings
Walt Disney (DIS), Trade Desk (TTD), Illumina (ILMN) new IPO Oddity Tech (ODD), Fluence Energy (FLNC) and Wynn Resorts (WYNN) reported Wednesday night.
Winners: Disney stock turned modestly higher after announcing Disney+ price hikes after initially dipping on weak revenue and overall subscribers. WYNN stock rose modestly. So did ODD stock after its first earnings report as a public company.
Losers: TTD stock and Illumina were solid losers.
FLNC stock was little changed, wavering between gains and losses.
Novo Nordisk (NVO) and Alibaba (BABA) report early Thursday. NVO stock gapped out of a base Tuesday after the Danish drug giant reported that its weight-loss drug Wegovy cuts heart disease risks by 20%. BABA stock has pulled back in August but the Chinese e-commerce giant has an early entry above its July 31 high.
Nvidia stock is on IBD Leaderboard. Fluence Energy and NVO…
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