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Good morning. Today opens with Amazon and Intel reacting to weak reports, as Nasdaq futures point to another rough start for tech, while Exxon, Chevron and AbbVie report before the bell.
The Market Gauge
Stocks snapped a three-day winning streak on Thursday. The S&P 500 slipped 0.30% to 7,720.39, the Nasdaq fell 1.38% to 26,184.72, and the Dow lost 132.54 points, or 0.25%, to 52,342.56. Tech did the damage: Alphabet dropped 12.6% after its earnings, wiping out about $500 billion in market value, and software names ServiceNow and Fortinet plunged 27% and 20%. Outside tech, the day was much better. Small caps rose 1%, the equal-weight S&P 500 fund gained 1.2%, and Eli Lilly jumped 6.63% on a strong report. The 10-year Treasury yield fell to about 4.99%, and oil dipped 0.8% to around $102 a barrel.
After the close, Amazon's profit and sales fell short even though its AWS cloud business grew 38%, and the stock fell in extended trading. Intel dropped more than 20% on a weak forecast. Late Thursday, Nasdaq-100 futures were down about 2.4% and S&P 500 futures about 1%, which IBD says points to the S&P 500 dipping below its 50-day line today. IBD's read: the major indexes are hovering around their 50-day lines, a sign of mixed signals. Strength outside tech is where to focus, without loading up on one sector, and this is not a time to step on the gas. Build watchlists and know your exit plan.
Beginner note: Futures trade overnight, before the regular session opens. They show how traders are reacting to late news, but a big move at 9 PM does not always carry into the next day. Watch how stocks act after the 9:30 AM ET open, not just where futures point.
On today's calendar
Employment Cost Index (8:30 AM ET): A quarterly look at how fast wages and benefits are rising. The Fed watches it because faster pay growth can keep inflation high.
Oil giants before the open: Exxon Mobil (call at 9:30 AM ET, per its investor site), Chevron and BP report early, per IBD. With oil above $100 a barrel, their results show how much energy companies are earning from high prices.
AbbVie (call at 9:00 AM ET): The drugmaker reports before the open, per its investor site. Healthcare was one of Thursday's strongest groups.
Amazon and Intel reaction: Both reported weak results last night. Amazon is part of the Dow, S&P 500 and Nasdaq-100, so its opening move can sway all three indexes.
Month-end: Today is the last trading day of October, when some funds rebalance their holdings. That can add extra buying or selling late in the day.
On the radar: Wayfair
$W ( ▼ 1.61% ) Wayfair is one of the largest online sellers of furniture and home goods in the U.S. On Thursday it rose 5.35% to close at 120.12 as retail stocks rallied, on volume of about 3.3 million shares, roughly 54% above its 50-day average. IBD's Live Ready List, which tracks stocks near or just above a buy point, flagged the move past a 118.31 pivot. The close left Wayfair about 1.5% above that buy point, inside the usual 5% buy zone, which runs to about 124.23. Wayfair reports third-quarter results before the open on Wednesday, Nov. 4, per its investor site.
Why it's worth watching: Wayfair shows what a breakout should look like: a close above the buy point on strong volume, on a day the broader market fell. It also shows a risk beginners often miss. Earnings are only a few trading days away, and a report can send a stock well above or below its buy point overnight. Many traders either wait until after the report or keep a new position small, with a clear plan to sell if it falls 7% to 8% below the entry.
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Educational content only. Not financial advice. Past performance does not predict future results. Read the full financial disclosure.
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