Dow Jones Futures Fall After Stocks Rise, Microsoft Tumbles; Beware Doing This

Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. Amazon will cut far more jobs than it previously planned.

Stocks traded up and down Wednesday, amid a Microsoft (MSFT) sell-off, stronger-than-expected economic data and a still-hawkish Federal Reserve, clearly worried about a market rally undermining its inflation fight. The major indexes ultimately closed modestly higher in a largely inside session.

Apple (AAPL) and Tesla (TSLA) bounced, recouping a fraction of Tuesday’s fierce losses.

China internet stocks were hot Wednesday, with BABA stock, JD.com (JD) and Pinduoduo (PDD) surging after solid gains Tuesday. Hopes for a peaking China Covid wave are helping, with China EV makers and Macau-focused casinos also rallying. But a positive regulatory move for Alibaba (BABA) affiliate Ant Group gave a special boost to e-commerce and internet names. But JD stock and peers may already be extended.

Neurocrine Biosciences (NBIX), General Electric (GE), Super Micro Computer (SMCI), Rio Tinto (RIO), Starbucks (SBUX), Halozyme Therapeutics (HALO) and Dexcom (DXCM) all are holding up relatively well.

NBIX stock is on IBD Leaderboard, while HALO stock is on the Leaderboard watchlist. SMCI stock and PDD stock are on the IBD 50. Rio Tinto was Wednesday’s IBD Stock Of The Day.

GE stock and SBUX stock arguably were actionable Wednesday, while RIO stock, Neurocrine Bio, Halozyme and Dexcom are trading near key moving averages. But some of these names came off early highs, even closing slightly slower.

But investors should beware “buying the blip,” when stocks and the broader market show strength intraday or a full session. It’s still time to be cautious about any new buys.

The video embedded in this article discussed Wednesday’s market action and analyzed Alibaba, Rio Tinto and SMCI stock.