Dow Jones futures edged lower Friday morning, along with S&P 500 futures and Nasdaq futures. FedEx is set to break out on earnings, while Tesla Lululemon Athletica and Dow giant Nike retreated.
The major indexes hit record highs on Thursday, but came off highs, especially the Nasdaq. Apple was a drag as the the Justice Department filed an antitrust suit vs. the iPhone giant.
Still, a number of stocks flashed buy signals, including CyberArk Software, Neurocrine Biosciences and On Holding.
On Friday, Tesla stock fell on a report that the EV giant is cutting production at its huge Shanghai plant. Lululemon and Nike skidded on weak outlooks. FedEx stock surged on strong earnings and guidance,
Dow Jones Futures
Dow Jones futures fell 0.1% vs. fair value, with Nike stock a blue-chip drag. S&P 500 futures lost 0.2%. Nasdaq 100 futures fell 0.3%, hurt by Tesla and Lululemon.
The 10-year Treasury yield fell slightly to 4.24% after holding steady on Thursday.
The yuan fell significantly overnight to a multimonth low vs. the dollar as China signaled it would let the currency fall. Other Asian currencies retreated as well.
Bitcoin, gold and copper all fell with the dollar climbing, continuing its 2024 uptrend.
Remember that premarket action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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The Dow Jones Industrial Average climbed 0.7% in Thursday's stock market trading. The S&P 500 index rose 0.3%. The Nasdaq composite ended up just 0.2%.
Stocks In Buy Areas
CyberArk stock gained 1.7% on Thursday to 270.12, breaking a tight trendline. But it did come off highs. Shares have rebounded from the 10-week line this week, but in light volume. CYBR stock is on track to have a new base after Friday with a 283 buy point. The cybersecurity firm rose a fraction before the open.
Neurocrine Bio stock climbed 2.2% to 143.74, enough to clear a 143.35 flat-base buy point, according to MarketSurge. But shares were well off intraday highs of 148.37. NBIX stock rose modestly early Friday.
On Holding rose 2.5% to 35.61 on Thursday, just topping a 35.58 cup-with handle base buy point. However, ONON stock pulled back slightly overnight as Nike skidded on guidance, but may still be above an early entry.
The Swiss-based On Holding had a huge plunge and quick recovery last week after earnings.
Earnings
FedEx earnings topped while guidance was strong, offsetting a narrow miss for revenue. FDX stock leapt more than 10% before the open signaling a move above a 285.53 buy point from a three-month consolidation.
Lululemon earnings topped views but the yoga apparel retailer guided low. LULU stock sold off more than 10% in premarket trade. Shares flashed an aggressive entry on Thursday.
Nike earnings easily beat, but executives gave weak guidance on the analyst call. Shares reversed lower for a solid loss. The Dow Jones giant has been struggling, trading below its 50-day and 200-day lines.
Tesla China
Tesla has reduced production at its Shanghai plant to five days a week from 6.5 days, Bloomberg reported, citing sources. The output cuts started earlier this month and may continue through April, according to the report.
The move comes slowing EV growth in China, the world's largest auto market.
Tesla's Shanghai facility already wasn't working at full capacity. Meanwhile, Shanghai exports have declined over the past several months, with the Tesla Berlin factory running well below capacity.
On Thursday, Li Auto slashed first-quarter delivery forecasts, implying March sales that are roughly half of what the Chinese EV maker predicted as recently as March 1.
There are growing indications that Tesla's first-quarter global deliveries will come in well below Wall Street estimates. Cutting Shanghai production would not only signal weaker China demand, but sluggish sales in Europe and other key markets.
Earlier this week, Tesla announced it would slightly raise China list prices on April 1, following similar plans in the U.S. and Europe. Given significant discounts on existing inventory levels around the world, it's unclear if higher list prices will motivate many buyers.
In China, raising prices on existing models is especially challenging, with rivals adding or upgrading EVs at aggressive prices.
Tesla Stock
Tesla stock fell more than 4% before the open. TSLA stock is down 30.45% through March 21, the S&P 500's biggest loser so far in 2024.
Li Auto stock declined 3% early Friday after tumbling 7.5% on Thursday.
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