Dow Jones futures were little changed Wednesday night, along with S&P 500 futures and Nasdaq futures. The stock market rally closed mixed Wednesday, near session lows, but still near all-time highs. Netflix (NFLX) neared a buy point as fellow streaming players Roku (ROKU) and Disney (DIS) made positive moves.
Okta (OKTA), Veeva Systems (VEEV), Asana (ASAN), Semtech (SMTC) and Five Below (FIVE) reported earnings after the close.
Okta, Veeva and Asana all beat views and generally guided higher. But Okta stock fell 3% and Veeva stock tumbled 8%, below recent buy areas. ASAN stock edged higher. Five Below beat on earnings but missed on sales. FIVE stock dived 9%, below a buy zone and its 50-day line. Semtech earnings and targets topped views. SMTC stock rose 4% overnight after recently reclaiming its 200-day line.
Meanwhile, the Justice Department is getting ready to file a second antitrust suit vs. Alphabet (GOOGL) unit Google over its digital-advertising business, Bloomberg reported late Wednesday. The DOJ and several states filed a Google antitrust suit over its search dominance late last year. Google stock fell a fraction overnight. GOOGL stock rose 0.4% to 2,904.31 on Wednesday, hitting a fresh all-time intraday high.
Netflix Stock, Streaming Plays Rise
Netflix stock climbed 2.3% on Wednesday to 582.07, closing in on a 593.39 buy point. NFLX stock has rallied 11.5% over the past 10 sessions. The web streaming giant has been in multiple consolidations going back a year. Netflix said Wednesday it will begin streaming “Seinfeld” on Oct. 1 after six years on Disney-owned Hulu.
Meanwhile, Roku stock popped 4.5% to 368.10, just reclaiming the 200-day line. Aggressive traders could try to start a Roku stock position off the 200-day line, but perhaps wait for a bit of a bounce. Disney stock climbed 1.2% to 183.48, bouncing from the 50-day line. But investors might want to treat 187.68 as a “proper” early entry, just above the post-earnings pop on Aug. 13, when it stalled out close to a prior short-term peak in July. The official DIS stock buy point is 203.12.
VEEV stock is on IBD Long-Term Leaders. ASAN stock is on the IBD 50.
Dow Jones Futures Today
Dow Jones futures fell 0.1% vs. fair value. S&P 500 futures and Nasdaq 100 futures were little changed.
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
The stock market rally had a disappointing finish Wednesday after Tuesday’s pause.
The Dow Jones Industrial Average fell 0.1% in Wednesday’s stock market trading. The S&P 500 index closed a fraction higher, with AbbVie (ABBV) and Wells Fargo (WFC) weighing on the benchmark index. The Nasdaq composite eked out a 0.3% gain, but showed some stalling action. The small-cap Russell 2000 advanced 0.7%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.7%, while the Innovator IBD Breakout Opportunities ETF (BOUT) climbed 0.4%. The iShares Expanded Tech-Software Sector ETF (IGV) advanced 0.5%. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.2%.
SPDR S&P Metals & Mining ETF (XME) gained 0.3% and Global X U.S. Infrastructure Development ETF (PAVE) fell 0.3%. U.S. Global Jets ETF (JETS) edged down 0.1%. SPDR S&P Homebuilders ETF (XHB) advanced 0.65%. The Energy Select SPDR ETF (XLE) sank 1.5% and the Financial Select SPDR ETF (XLF) gave up 0.6%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 1.4% and ARK Genomics ETF (ARKG) 1.5%. ARKK reclaimed its 50-day and 200-day lines, while ARKG moved above its 50-day.
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Market Rally Analysis
The stock market rally faded to mixed on Wednesday, near session lows, but the bullish trend remains intact. The Nasdaq is at record levels while the S&P 500 index came within less than a point of a fresh high. The Nasdaq composite also isn’t extended, about 4% above the 50-day line.
Meanwhile, the Russell 2000’s revival is a good sign for market breadth, while ARKK and ARKG offer a little encouragement for highly valued growth.
Market leadership looks a little narrower. Apple (AAPL), Facebook (FB) and Google stock. So are cybersecurity and some other software names, as well as a few chip, retail and apparel names — Figs (FIGS) and PVH Corp. (PVH) flashed new buys Wednesday — along with some hot IPOs.
Financials are edging lower, with a few like Wells Fargo and Capital One (COF) struggling. Industrial stocks are fading, but haven’t fallen apart. Housing stocks are close to breakouts, but generally aren’t quite there. Steelmakers found support intraday, though.
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What To Do Now
Not every day is about making big buys or sells. Some days are about watching and sitting. There were only a few new buying opportunities on Wednesday. In fact, the past few days have a relatively small number of breakouts or buys. But investors who took advantage of the stock market rally rebound from Aug. 19 by adding exposure are enjoying strong gains.
If the market rally goes sideways or pulls back over the next few days, you’ve got a cushion to ride that out. If stocks keep marching higher, you’ll reap the rewards.
Use your watchlist to scan for potential new buys, especially in sectors that have lain fallow for the past couple of weeks or months.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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