Dow Jones futures were little changed, along with S&P 500 futures and Nasdaq futures, with Bitcoin rebounding Thursday night. Micron earnings were after the close while several EV startups and auto giants report sales Friday morning.
The stock market rally, already under pressure, lost further ground in a volatile Thursday session. The S&P 500 capped the worst first half of a year in more than 50 years while the Nasdaq had its worst start ever.
Micron Technology (MU) reported earnings late Thursday, providing an early look at semiconductor trends. The memory chip giant had mixed results and terrible guidance. MU stock fell slightly in active trading, but that could be seen as relatively positive for Micron and the market.
China EV startups Nio (NIO), Xpeng (XPEV) and Li Auto (LI) will report June sales early Friday morning. China EV and battery giant BYD (BYDDF) should follow suit over the weekend, with Tesla (TSLA) likely reporting on Saturday.
Li Auto is on the IBD 50.
The Institute for Supply Management’s U.S. manufacturing index is due at 10 a.m. ET Friday. Regional factory reports showed big slowdowns in growth, with several signaling declining activity.
On Thursday, economic data pointed to slightly cooling inflation, jobless claims trending higher and consumer spending coming in weaker than expected. Last Monday, the Atlanta Fed cut its second-quarter GDP estimate to -1% vs. its earlier outlook for 0.3% growth.
Dow Jones Futures Today
Dow Jones futures were flat vs. fair value, swinging between slim gains and losses. S&P 500 futures and Nasdaq 100 futures edged lower.
Bitcoin raced back above $20,000 after briefly undercutting $19,000.
The 10-year Treasury rebounded back above 3%, rising 5 basis points to 3.02%.
Crude oil prices rose slightly.
Stock Market Rally
The stock market rally tumbled to start Thursday’s trading before rebounding almost back to break-even before fading again for solid losses.
The Dow Jones Industrial Average fell 0.8% in Thursday’s stock market trading. The S&P 500 index lost 0.9%. The Nasdaq composite gave up 1.3%. The small-cap Russell 2000 slipped 0.7%.
That capped the S&P 500’s worst first half of the year since 1970, slumping 20.6%. The Dow Jones, down 15.3%, had its worst first six months since 1962. For the Nasdaq and Russell 2000, down 29.5% and 23.9%, respectively, it was the worst first half ever.
U.S. crude oil prices fell 3.7% to $105.76 a barrel. Near-month oil futures sank 4% in June but soared 46% so far this year.
Gasoline futures dived 6.7% on Thursday, continuing a noticeable retreat. That should mean more relief at the pump, after retail prices peaked at $5.01 a gallon in mid-June.
Natural gas futures plunged 16.5%, their biggest one-day drop in 19 years, on rising natgas inventories and a delayed restart for the fire-damaged Freeport LNG terminal.
The 10-year Treasury yield tumbled 12 basis points to 2.97%, back below the key 3% level. It’s the first close below the 50-day line since early March. The 10-year yield sank 11 basis points on Wednesday.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) and the Innovator IBD Breakout Opportunities ETF (BOUT) dipped 0.2%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 1.65%. The VanEck Vectors Semiconductor ETF (SMH) lost 1.25%. MU stock is an SMH holding.
SPDR S&P Metals & Mining ETF (XME) skidded 3% and the Global X U.S. Infrastructure Development ETF (PAVE) edged up 0.1%. U.S. Global Jets ETF (JETS) descended 1.1%. SPDR S&P Homebuilders ETF (XHB) edged down 0.4%. The Energy Select SPDR ETF (XLE) fell 2.1% and the Financial Select SPDR ETF (XLF) dropped 0.9%. The Health Care Select Sector SPDR Fund (XLV) gave up just 0.2%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) slumped 3.9% and ARK Genomics ETF (ARKG) 2.1%. TSLA stock remains a top holding across Ark Invest’s ETFs. Cathie Wood’s Ark funds also own some BYD, Xpeng and Nio stock.
Micron Earnings Mixed, ‘Good’ Guidance
Micron earnings topped fiscal Q3 views while sales just missed.
The memory chip giant issued fiscal Q4 targets far below consensus.
But MU stock was volatile overnight, recently trading down more than 1%, near a recent 19-month low. But that’s a relatively muted reaction, suggesting that investors had already…