Dow Jones Futures: Market Rally Retreats, BBBY Stock Falls On This; Time To Bite

Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures, with Cisco earnings and BBBY stock news in focus.

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The stock market rally pulled back Wednesday amid key resistance. The major indexes initially pared losses following the release of Fed minutes from the July 27-28 meeting, but faded again by the close.

Apple (AAPL) cleared a trendline entry, with the megacap stock technically actionable ahead of an official breakout.

Lithium giant Sociedad Quimica y Minera de Chile (SQM), chip design firm Synopsys (SNPS) and lagging Dow Jones tech giant Cisco Systems (CSCO) reported late Wednesday. SNPS stock rose slightly and Cisco stock popped in extended action on strong earnings and guidance. SQM earnings are still on tap.

BJ’s Wholesale (BJ), a rival to Costco Wholesale (COST), reports before Thursday’s open. BJ’s stock is not far from a buy point while Costco is right at a buy point.

BBBY Stock Tumbles Late

Meanwhile, newly revived meme stock Bed Bath & Beyond (BBBY) fell 19% in late trade. BBBY stock rose 12% to 23.08 in Wednesday’s session, but closed near session lows after hitting a five-month high of 30 intraday.

Shares jumped 29% in massive volume on Tuesday as GameStop (GME) Chairman Ryan Cohen disclosed he still owns BBBY stock along with significant out-of-the-money options.

But late Wednesday, Cohen disclosed his intention to completely exit BBBY stock.

GME stock, the original meme stock, retreated overnight after falling 4% Wednesday. AMC Entertainment (AMC), another meme stock, fell 14% in the regular session.

Fed Minutes

Federal Reserve policymakers at the late July meeting agreed that further rate hikes are necessary, according to the newly released Fed minutes.

Declining commodity prices, including energy, aren’t enough, according to the Fed minutes, with policymakers stressing that inflation pressures are broad-based. But they also worried about slowing the economy too much.

They didn’t seem concerned that financial conditions eased since the June meeting, including lower Treasury yields and a stock market rally.

All in all, the Fed minutes held no hawkish surprises, slightly easing rate hike expectations.

Still, markets now see a 64.5% chance of a 50-basis-point Fed rate hike on Sept. 21. Earlier Wednesday, before the Fed minutes release, odds were about evenly divided between a half-point move or a third straight 75-basis-point move.

Costco stock is on IBD Leaderboard and SwingTrader. SNPS stock is on IBD Long-Term Leaders. Synopsys and SQM stock are on the IBD 50.

Dow Jones Futures Today

Dow Jones futures were flat vs. fair value. S&P 500 futures dipped 0.1% and Nasdaq 100 futures fell 0.2%. CSCO stock is a member of the Dow Jones, S&P 500 and Nasdaq composite.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally Wednesday

The stock market rally saw losses across the major indexes after a mixed outing on Tuesday.

Fed minutes ultimately didn’t change the major indexes much.

July retail sales were flat, the Commerce Department reported Before Wednesday’s open. That was slightly below views. But sales excluding autos and gasoline climbed 0.7%, bolstering expectations that the U.S. economy is returning to growth in the third quarter.

The Dow Jones Industrial Average fell 0.5% in Wednesday’s stock market trading. The S&P 500 index lost 0.7%. The Nasdaq composite declined 1.25%. The small-cap Russell 2000 slumped 1.7%.

U.S. crude oil prices rose 1.8% to $88.11 a barrel, ending a three-day losing streak. U.S. crude and gasoline inventories fell sharply in the latest week, far more than expected. Gasoline demand over the past four weeks hit a 2022 high.

The 10-year Treasury yield jumped 10 basis points to 2.89%. That’s a four-week high, but still below its 50-day line.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell just over 1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) shed 0.5%. The iShares Expanded Tech-Software Sector ETF (IGV) slumped 1.7%. The VanEck Vectors Semiconductor ETF (SMH) retreated 2.15%. SNPS stock is in the IGV and SMH ETFs.

SPDR S&P Metals & Mining ETF (XME) declined 2.7% and the Global X U.S. Infrastructure Development ETF (PAVE) sank 1.1%. U.S. Global Jets ETF (JETS) descended 2.5%. SPDR S&P Homebuilders ETF (XHB) shed 1.7%. The Energy Select SPDR ETF (XLE) gained 0.8% and the Financial Select SPDR ETF (XLF) slipped 0.5%. The Health Care Select Sector SPDR Fund (XLV) fell 0.6%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) tumbled 5.3% and ARK Genomics ETF (ARKG) 5.1%.

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Apple Stock

Apple stock, a member of the Dow Jones, S&P 500 and Nasdaq composite, rose 0.9% to 174.55 on Wednesday. AAPL stock moved above a down-sloping…