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S&P 500, Dow, Nasdaq Futures Point To More Losses; Tesla, Take-Two, Yelp Fall Late | Stock News & Stock Market Analysis

Futures for the S&P 500, Dow Jones industrial average and Nasdaq 100 pointed to more losses early Thursday morning after the major averages reversed to close lower Wednesday. Meanwhile, Tesla (TSLA), Take-Two Interactive Software (TTWO) and Yelp (YELP), fell in after-hours trading on earnings, though Tesla’s loss was marginal. Tesla, Take-Two Interactive and Yelp had closed close to buy points.

X In Wednesday’s stock market trading, the S&P 500 index and Dow Jones industrial average were turned back from trying to retake their 50-day moving average lines as Treasury yields resumed their rise. The Nasdaq composite fell back below the key support level. Apple (AAPL), the largest component on all three indexes, dipped below its 200-day line as chip and oil stocks tumbled.

S&P 500 index futures fell 0.4% vs. fair value. Dow industrials futures lost 0.3%. Nasdaq 100 futures slid 0.2%. Those were off overnight lows, were are more modest than in recent extended trading sessions.

Keep in mind that overnight trading does not always carry over into the next regular session, whether it’s Apple, Tesla or the S&P 500 index.

The market uptrend remains under pressure. Be extremely cautious about buying stocks in the current environment, cut losses short and consider taking profits in stocks. Follow sell rules.


IBD’S TAKE: Don’t try to guess where the market is headed next. Read The Big Picture every day to understand the action of the major averages and leading stocks.


Tesla

Tesla reported an adjusted loss that was slightly better than expected, though still much larger than a year earlier. Revenue jumped to $3.29 billion, also slightly topping views. Tesla stuck to its Model 3 production forecast, still predicting weekly rates of 2,500 by the end of the first quarter and 5,000 by the end of the second quarter. But after pushing back its Model 3 output targets several times, Tesla conceded it was difficult to forecast.

Tesla shares fell a fraction in late trading after rising 3.3% to 345 on Wednesday. Tesla is in a consolidation with a handle buy point of 360.60. The midpoint handle is just above the midpoint of the consolidation, so it’s valid, barely. Meanwhile, Tesla’s relative strength line, which tracks a stock’s performance of the S&P 500 index, is near consolidation lows and generally has been lagging since last June.

Also, this is not a great market to buying stocks.

Take-Two Interactive

The video game publisher reported weaker-than-expected third-quarter revenue late Wednesday and gave mixed guidance. Take-Two plunged 5% to 111.30 in late trading after closing down 0.9% at 117.19.

Take-Two cleared a 120.72 buy point on Jan. 31, following strong guidance from rival Electronic Arts (EA). But Take-Two soon warned that a highly anticipated game, “Red Redemption 2,” would be delayed from the spring to Oct. 26. Shares undercut their buy point on Monday but did rebound from their 50-day moving average on Tuesday.

Yelp

The local search and reviews site beat on the top and bottom line. But there were some concerns about profit after taking into account Yelp’s Eat24 sale. EBITDA guidance was below some analysts forecasts as well.

Yelp  shares crashed nearly 11% in after-hours action to 40.10. That would push the stock back to the bottom of its cup-base consolidation. Shares had closed up 1.5% to 44.94, working their way toward a 48.50 buy point.

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