Dow Jones Futures Rise As China 'Evaluates' U.S. Trade Talks

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Dow Jones NewsMay 2, 12:44 AM UTC
DJ Dow Jones Futures Rise As China 'Evaluates' U.S. Trade Talks. Amazon, Apple Fall On Earnings. -- IBD

By Ed Carson

 

Dow Jones futures rose slightly overnight, along with and S&P 500 and Nasdaq futures, as China said it's evaluating whether to hold trade talks with the U.S.

 

Apple and Amazon.com fell overnight on quarterly earnings, while Duolingo and Reddit rose. The April jobs report is on tap.

 

The stock market rally amped up Thursday morning as Microsoft and Meta Platforms jumped on earnings and lifted broader AI hardware plays. The major indexes faded into the close, but the S&P 500 and Nasdaq finished above a key level.

 

Carpenter Technology, Howmet Aerospace and Stride are in buy areas.

 

Carpenter stock is on IBD Leaderboard. Stride stock is on the IBD 50. Microsoft stock is in the IBD Long-Term Leaders list. Carpenter Technology was Thursday's IBD Stock Of The Day.

 

CHINA 'EVALUATING' U.S. TRADE TALKS

 

China Commerce Ministry said in a statement overnight that it's "currently evaluating" whether to hold trade talks with the U.S. The statement noted that senior U.S. officials have repeatedly stated they want to negotiate with Beijing.

 

But the Commerce Ministry said the U.S. should show it's "sincerity" in talks, saying that it's responsible for initiating the trade war.

 

The U.S. currently has 145% tariffs on most Chinese goods, though the Apple iPhone and most electronics currently only face 20% duties temporarily. China, for its part, has imposed 125% tariffs on U.S. goods, with a few exceptions, along with new restrictions on rare earth exports and more.

 

The upshot is that U.S.-China trade is crashing and is set to have a big impact on the world's two largest economies in the coming weeks.

 

DOW JONES FUTURES TODAY

 

Dow Jones futures rose 0.4% vs. fair value, following the report that China is evaluating trade talks. S&P 500 futures climbed 0.25%. Nasdaq 100 futures edged higher. Apple stock and Amazon are Dow Jones, S&P 500 and Nasdaq giants.

 

The 10-year Treasury yield edged up to 4.24%.

 

The Labor Department will release the April jobs report at 8:30 a.m. ET. Economists expect a rise of 130,000 jobs, down from 228,000 in March. The jobless rate should hold at 4.2%.

 

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 leading stocks and the market on IBD Live

 

APPLE, AMAZON EARNINGS

 

Apple earnings slightly beat fiscal Q2 views, though high-margin services revenue missed. Management estimated that Trump tariffs will hike costs by $900 million in the current quarter. Apple upped its quarterly dividend by 4% and announced a new stock-buyback plan totaling up to $100 billion.

 

Apple stock fell solidly in overnight trade. Shares edged up 0.2% on Thursday, nearing the 50-day line.

 

Amazon earnings beat views, but guidance was mixed. Also, Amazon Web Services revenue came in light, which disappointed investors given Microsoft's strong Azure cloud-computing growth.

 

Amazon stock declined modestly in extended action. Shares rose 3.1% on Thursday, buoyed by Microsoft and Meta. AMZN stock is nearing the 50-day line, with the 200-day line above that.

 

OTHER EARNINGS

 

DUOL stock jumped in late trade, as Duolingo earnings and guidance beat consensus. Shares climbed 2.7% on Thursday to 400.10, moving toward a 441.76 cup-base buy point.

 

RDDT stock rose sharply overnight, after surging initially, as Reddit earnings easily beat and the social media site guided up. Reddit rose 1.8% on Thursday.

 

STOCK MARKET RALLY

 

The stock market rally saw Microsoft and Meta lift AI plays Thursday, though they waned into the close. Gains were muted outside the AI and tech areas.

 

The Dow Jones Industrial Average rose 0.2% in Thursday's stock market trading. The S&P 500 index climbed 0.6%. The Nasdaq composite jumped 1.5%. The small-cap Russell 2000 gained 0.6%.

 

Despite the late fade, the S&P 500 and Nasdaq closed above their 50-day moving averages for the first time since late February. The 200-day line is now the next big test.

 

Microsoft stock gapped up 7.6% and Meta Platforms popped 4.2%. AI data center plays, which sold off on Deepseek-related fears, continue to rebound. Nvidia gained 25%. GE Vernova, an AI-tied energy play, rallied 3.1%.

 

The Invesco S&P 500 Equal Weight ETF ---- with less weight to Microsoft, Meta, Amazon and Nvidia ---- fell 0.1% after hitting resistance just below the 50-day line.

 

Still, plenty of stocks outside of AI are showing strength. Those include aerospace/defense, specialty steel, some financials as well as various biotechs and medical products firms, among others.

 

U.S. crude oil prices rose 1.8% to $59.24 a barrel, reversing higher from four-year lows. President Donald Trump says any country that buys oil from Iran won't be allowed to do business with U.S.

 

The 10-year Treasury yield rose five basis points to 4.23%, reversing higher.

 

ETFS

 

Among growth ETFs, the Innovator IBD 50 ETF lost 0.7%. The iShares Expanded Tech-Software Sector ETF rose 1%, with Microsoft stock a huge component and Atlassian also a member. The VanEck Vectors Semiconductor ETF climbed 0.5%, with Nvidia stock the dominant holding.

 

The ARK Innovation ETF dipped 0.2%, and ARK Genomics fell 1.1%.

 

The SPDR S&P Metals & Mining ETF edged up 0.2%. The Energy Select SPDR ETF advanced 0.4%, and the Health Care Select Sector SPDR Fund slumped 2.8%.

 

The Industrial Select Sector SPDR Fund gained 0.8%.

 

The Financial Select SPDR ETF lost a fraction.

 

Time The Market With IBD's ETF Market Strategy

 

WHAT TO DO NOW

 

The stock market rally keeps intensifying, moving past various resistance areas, though further hurdles remain.

 

Trump tariff news, earnings reports and economic data could spur renewed selling, though that hasn't been the case recently. Remember, it's the market reaction to the news that matters.

 

With the major indexes gaining ground and leading stocks acting well, investors can keep adding exposure. Be careful not to get too exposed to a particular sector or theme, or focusing exclusively on stocks with high average true ranges.

 

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

 

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

 

View this article at Investors.com

 

https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-china-evaluates-us-trade-talks-amazon-apple-earnings/

 

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May 01, 2025 20:44 ET (00:44 GMT)

 
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