Dow Jones futures fell sharply Thursday morning, along with S&P 500 futures and Nasdaq futures, as the 10-year Treasury yield continued to tumble amid concerns about global economic growth. China EV sales showed strong Tesla deliveries in that key market last month.
The stock market rally showed slim gains on Wednesday, with the S&P 500 and Nasdaq composite hitting record highs. Crude oil prices and Treasury yields continued to slide, with the Fed minutes offering few surprises. Apple (AAPL), Microsoft (MSFT) and Amazon.com (AMZN) continued to lead on Wednesday. But those three megacaps fell solidly early Thursday.
PayPal (PYPL) rose 1.5% to 297.13, breaking out of a cup-with-handle base with a 296.11 buy point. PYPL stock had topped a 277.96 early buy point on June 17. Upwork (UPWK) now has a handle on its cup base, along with Apple supplier Qorvo (QRVO).
But PayPal fell back into its handle Thursday morning, while UPWK and QRVO were pointing lower.
Meanwhile, highly valued growth stocks that retreated Wednesday were continuing to slide early Thursday, including EV makers Tesla (TSLA) and Nio (NIO). New data showed strong China sales for Tesla in June.
Finally, the latest red-hot meme stock is Newegg Commerce (NEGG), which shot up 148% to 67.57 on Wednesday. NEGG stock is up 522% just since June 29. But Newegg is 234% above its 10-day moving average, extremely extended even by meme stock measures.
NEGG stock fell 17% in extended action, just a sliver of recent gains.
Meanwhile, “old” meme stocks such as AMC Entertainment (AMC), GameStop (GME) and Clover Health (CLOV) have lost considerable ground over the past few weeks. AMC stock sank 9.8% on Wednesday. GME stock slid 4.5% and CLOV stock 2.8%.
Dozens of states filed an antitrust lawsuit vs. Alphabet (GOOGL) related to its Google Play app store. Two other state lawsuits take aim at Google’s search and ad technology. The Justice Department is targeting Google’s dominant search business. Google stock fell nearly 2% early Thursday, but that seems tied to the big market rout.</…….