Dow Jones Futures Rise Slightly; Costco Earnings Impressive, Meta to Unveil VR Hardware
Dow Jones futures saw a slight increase early on Wednesday, along with S&P 500 futures and Nasdaq futures. The stock market correction reached new lows on the major indexes on Tuesday, eliminating the slim gains from Monday. The 10-year Treasury yield continued to rise to long-term highs.
In other news, the Federal Trade Commission and 17 states filed a broad antitrust lawsuit against Amazon.com (AMZN), a move that had been anticipated for some time. The chair of the FTC, Lina Kahn, who has made several controversial antitrust decisions during her tenure, rose to prominence with her analysis of Amazon. As a result of the news, Amazon’s stock fell, as did the stocks of other major players such as Alphabet (GOOGL), Microsoft (MSFT), and Apple (AAPL).
Despite the market downturn, there are a few stocks that are performing relatively well. One notable example is Costco Wholesale (COST), whose earnings and revenue exceeded expectations on Tuesday night. Although shares fell slightly in overnight trading, the stock has been holding up better than others. However, it is important to note that Costco stock declined by 1% during Tuesday’s regular session and dropped below its 50-day line.
Another significant development in the market is the upcoming Meta Connect conference, hosted by Meta Platforms (META), the parent company of Facebook and Instagram. The conference is expected to unveil the Quest 3 virtual-reality headset and new generative AI tools. Despite a slight decrease in Meta stock on Tuesday, just below its 50-day moving average, the company has a cup-with-handle buy point of 312.87.
Overall, the stock market correction has intensified, with all major indexes erasing Monday’s gains and reaching new lows. The Dow Jones Industrial Average fell by 1.1% during Tuesday’s trading, dropping below its 200-day line after finding support there on Monday. Similarly, the S&P 500 index fell by 1.5% and the Nasdaq composite tumbled by 1.6% to just above the 13,000 level.
In conclusion, while Dow Jones futures are seeing a slight increase, the stock market correction is causing significant fluctuations in the market. The antitrust lawsuit against Amazon, along with the underperformance of major tech stocks, has further exacerbated the situation. Investors should closely monitor the performance of individual stocks and be cautious in their investment decisions.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please conduct thorough research before making any investment decisions.
