- Dow Jones Futures: Market Rally Reels As Fed Sees ‘Upside Risks’; 4 Earnings Movers Investor’s Business Daily
- Stocks sink as Fed minutes reveal more hikes still on table: Stock market news today Yahoo Finance
- S&P 500 slips as Treasury yields take flight on fears of further Fed tightening By Investing.com Investing.com
- Dow Jones Reverses Ahead Of Fed Minutes; Tesla Stock Slides On More Price Cuts Investor’s Business Daily
- Major indices are mixed in early US trading. Dow industrial average higher. NASDAQ lower. ForexLive
- View Full Coverage on Google News
Tag Archives: Movers
Stock movers after hours: Micron, Under Armour, MillerKnoll
Micron Technology (MU)
Micron stock fell more than 1% in after hours following the company’s quarterly results. The memory chip maker’s first quarter adjusted earning per share of 4 cents beat analyst estimates for a loss of 1 penny. Quarterly adjusted revenue came in at $4.09 billion, a decline of 47% year-over-year, missing expectations for $4.13 billion.
President and CEO Sanjay Mehrotra said, “we are taking decisive actions to cut our supply and expenses.” The company plans to slash headcount by about 10 percent and suspend bonuses in 2023.
Micron sees second quarter adjusted revenue coming in between $3.6 and $4 billion, versus Street estimates of $3.88 billion.
Year-to-date, the stock is down 45%.
Under Armour (UA)
Under Armour shares were fractionally higher in after hours trade following the announcement of new chief executive officer, Stephanie Linnartz, who will join the company as President, CEO, and member of its board of directors, effective February 27, 2023.
Linnartz has served as president of Marriott International since 2021. She will take over the reins from chief operating officer Colin Browne, who has served as interim CEO since June 2022.
Browne temporarily served in the top role after Patrik Frisk stepped down earlier this year. Under Armour stock is down more than 50% this year.
MillerKnoll (MLKN)
MIllerKnoll shares jumped as much as 5% in after hours trade after the company beat analyst expectations on the top and bottom line.
The furniture and design outfit reported adjusted earnings per share came of 46 cents, beating analyst estimates for 42 cents. Sales of $1.07 billion beat expectations of $1.04 billion. Higher prices offset a drop in orders for the quarter. The company forecasts annual expense reductions of about $30-35 million.
Year-to-date the stock is down 53%
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Dow Jones Futures Fall As U.S. Says Russia Invasion ‘Imminent’; Nvidia, Palantir, DASH Stock Are Earnings Movers
Dow Jones futures fell slightly Thursday morning, along with S&P 500 futures and Nasdaq futures, with the Russia/Ukraine crisis in focus and Nvidia headlining overnight earnings. The stock market rally fell solidly intraday Wednesday, but rallied to close little changed after newly released Fed meeting minutes that held no new, hawkish surprises.
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The U.S. envoy to the U.N. said Russia is moving toward an imminent invasion of Ukraine. Late Wednesday, a senior U.S. official said Russia has added some 7,000 troops near the border, refuting Kremlin claims that it was withdrawing some forces. The Kremlin said overnight that it’s worried about a flare-up of unrest in eastern Ukraine. Both the Ukrainian government and pro-Russia separatists claimed cease-fire breaches
Key Earnings Wednesday Night
Nvidia (NVDA), Albemarle (ALB), Applied Materials (AMAT), Cisco Systems (CSCO) and DoorDash (DASH) were among the many earnings reports Wednesday night.
Nvidia stock fell modestly early Thursday despite strong earnings and guidance. AMAT stock rose modestly on its positive results.
Cisco stock advanced on strong results, a 3% dividend increase and a $15 billion buyback plan, signaling a move above its 200-day line but still below its 50-day line. The Cisco results follow strong earnings from faster-growing rival Arista Networks (ANET) on Monday.
ALB stock plunged on disappointing earnings guidance.
DASH stock shot up 25% in extended trade on its earnings. If that holds during regular trading, the app-based delivery firm would test its tumbling 50-day line. That would still be more than 50% below DoorDash’s November peak of 257.25.
Look below for more on Nvidia, Albemarle and AMAT earnings and stock action.
PLTR Stock
Palantir Technologies (PLTR) missed on earnings and topped on revenue. PLTR stock tumbled 9% before the open.
Palantir investors were hoping for a PLTR stock spike like Upstart (UPST) and DASH stock. But plenty of beaten-down growth stocks have plunged recently on earnings.
In other news, National Highway Traffic Safety Administration initiated yet another Tesla probe, this time investigating “phantom braking” in Model 3 and Model Y vehicles. The complaints, which have mounted in recent months, are said to involve random, often repeated braking at highway speeds. Some 416,000 vehicles are potentially exposed. Tesla stock lost a fraction.
Fed Minutes
Fed minutes from the Jan. 25-26 policy meeting showed policymakers ready to begin interest rate hikes and curb the massive balance sheet soon, to confront inflation. But that was largely known before.
There may have been some relief that were no new hawkish surprises, such as several policymakers favoring turbocharged-tightening even last month. Remember, the January Fed meeting came before the January CPI report, which sent the 10-year yield above 2% and ramped up Fed rate hike forecasts.
The 10-year Treasury yield closed flat at 2.05%. But the two-year Treasury yield, more closely tied to Fed policy moves, sank 5 basis points to 1.52%. The U.S. dollar fell and gold rose. All of these moves indicate at least a sense that the Fed minutes were no-more hawkish than expected.
Nvidia stock is on IBD Leaderboard and the IBD 50.
Dow Jones Futures Today
Dow Jones futures lost 0.4% vs. fair value, getting a lift from Walmart (WMT), which topped views early Thursday. S&P 500 futures gave up 0.5% and Nasdaq 100 futures declined 0.7%.
Nvidia stock is a notable weight in the S&P 500 and especially Nasdaq futures. CSCO stock is a Dow Jones, S&P 500 and Nasdaq component.
The 10-year Treasury yield fell 4 basis points to 2%. Crude oil futures fell slightly, but paring losses on Russia invasion fears. It’s well above levels in early electronic trading Wednesday afternoon while stock markets were still open.
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 fell solidly intraday, but came off lows on the Fed minutes release, closing narrowly mixed.
The Dow Jones Industrial Average dipped 0.2% in Wednesday’s stock market trading. The S&P 500 index rose 0.1%. The Nasdaq composite edged down 0.1%. The small-cap Russell 2000 edged up 0.2%.
Crude oil futures rose 1.7% to $93.66 a barrel, right around their highest levels since 2014. But crude oil prices fell in electronic trading, more than wiping out regular-session gains while U.S. stock markets were still open, as an Iranian nuclear negotiator said “we are closer than ever” to a deal with the Biden administration.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) and Innovator IBD Breakout Opportunities ETF (BOUT) both rose 0.4%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 0.8%. The VanEck Vectors Semiconductor ETF (SMH) closed just below break-even. Nvidia and AMAT stock are notable holdings.
SPDR S&P Metals & Mining ETF (XME) advanced 0.5% and Global X U.S. Infrastructure Development ETF (PAVE) gained 0.75%. U.S. Global Jets ETF (JETS) were just above break-even. SPDR S&P Homebuilders ETF (XHB) picked up 0.4%. The Energy Select SPDR ETF (XLE) advanced 0.8% and the Financial Select SPDR ETF (XLF) inched up 0.1%. The Health Care Select Sector SPDR Fund (XLV) climbed 0.15%
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) sank 3.2% and ARK Genomics ETF (ARKG) 1.3%.
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Nvidia Earnings
Nvidia earnings jumped 69%, coming in above fiscal Q4 views on strong data-center chip sales. The chip giant also gave bullish guidance.
Nvidia stock lost less than 2% early Thursday. Shares edged up 16 cents to 265.11 Wednesday, after surging 9.2% on Tuesday.
A move above the fast-falling 50-day line would also clear last week’s high and break a trend line, offering an aggressive entry in NVDA stock.
Nvidia earnings are especially important for the stock market rally and especially growth names. Nvidia stock is a megacap that has been a huge winner in recent years, and is close to an aggressive buy point. The Nvidia earnings reaction could be a catalyst for chip and tech stocks broadly, up or down. And while NVDA stock has a high price-to-earnings ratio of 68, it isn’t in the triple digits.
Applied Materials Earnings
Applied Materials earnings and sales narrowly topped fiscal Q1 views.
AMAT stock rose 2% in extended trade, getting close to its 50-day line. Shares edged up 0.8% to 140.96 on Wednesday, just above the 200-day line.
Applied Materials stock could be working on a new consolidation after a failed breakout, but needs more time and work. Reclaiming the 50-day line would be a good step.
Albemarle Earnings
Albemarle earnings fell slightly vs. a year earlier, but topped estimates. Revenue rose slightly, beating some views while just missing others. The lithium producer gave mixed guidance for 2022.
ALB stock plunged 11% before the open. Shares are signaling a dive below the 50-day moving average and nearing the 200-day line. Shares climbed 1.9% to 246 Wednesday. Albemarle stock popped 6% on Tuesday, moving back above the 50-day line. The Jan. 12 peak of 248 could offer an early entry, but that doesn’t seem relevant for the moment. The traditional buy point is 291.58, according to MarketSmith analysis.
The Albemarle earnings call isn’t until 9 a.m. ET on Thursday, so that also could move ALB stock right around the open.
Another lithium producer, Livent (LTHM), reports Thursday night. LTHM stock climbed 2.9% to 25.08 on Wednesday, also close to an early entry. But shares fell modestly overnight in sympathy with ALB stock.
Market Rally Analysis
The stock market rally gave up a good slice of Tuesday’s solid rebound. The S&P 500 index fell back below its 200-day moving average.
The major indexes are still within a range from their early February highs to Monday’s lows, but below their 21-day moving averages. If the major indexes break above their recent highs, that would signal renewed strength. But if the market rally — already under pressure — breaks below Monday’s lows, it would be a very bearish signal.
The Russell 2000 has fared a little better than other indexes over the past several sessions, reflecting slightly better market breadth in that time. But the small-cap index remains below key moving averages and not far from 52-week lows.
In the market overall, new lows continue to outpace new highs.
There are a number of headwinds facing the stock market rally. The Russia/Ukraine situation could go any number of ways over the next several weeks, making it very hard for the broader market to price in the future. Investors also are dealing with the Federal Reserve confronting the worst inflation in 39 years. The Fed meeting minutes may not have held any bombshells, but policymakers are going to start raising rates in mid-March.
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What To Do Now
With the stock market rally rangebound, moving on ever-changing headlines, there’s no real trend to follow right now. If a stock breaks out or flashes an early buy signal, how much confidence can you have that it won’t quickly fizzle out? There’s just no edge to be significantly invested right now.
If the market rebounds from here and goes on an extended run for weeks or months, you’ll have plenty of opportunities to take advantage.
Focus on building up watchlists and reviewing past trades. Stay engaged with the market, but you also don’t have to stare at screens nonstop. Make sure you’re mentally fresh for the next big advance.
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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Dow Jones Futures: Hawkish Fed Chief Powell Wipes Out Market Rally; Tesla Leads Earnings Movers
Dow Jones futures rose overnight, along with S&P 500 futures and Nasdaq futures, as Tesla (TSLA) headlined key earnings after the close. The stock market erased sharp intraday gains Wednesday while Treasury yields jumped after the Federal Reserve said it “expects” to raise interest rates soon with Fed chief Jerome Powell signaling that aggressive rate hikes and balance sheet cuts are coming.
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The major indexes closed off the very worst levels and didn’t undercut Monday’s lows, but it was another disappointing session for the unproven stock market rally attempt.
Microsoft (MSFT) had fueled market gains and optimism before the Fed decision. MSFT stock rebounded back above its 200-day moving average, even though it closed near session lows.
Tesla earnings comfortably beat views late Wednesday. Tesla stock was little changed in volatile overnight trade.
Meanwhile, Seagate Technology (STX), Lam Research (LRCX), Teradyne (TER), Intel (INTC), Silicon Motion Technology (SIMO), United Rentals (URI), Ameriprise Financial (AMP), Vertex Pharmaceuticals (VRTX), Edwards Lifesciences (EW) and ServiceNow (NOW) also reported earnings late Wednesday.
STX stock and ServiceNow were notable winners overnight, while Edwards, LRCX stock, Silicon Motion and especially Teradyne were losers.
Tesla stock and Microsoft are on IBD Leaderboard. Microsoft and NOW stock are on IBD Long-Term Leaders.
Fed Meeting
The Fed meeting ended Wednesday afternoon with policymakers signaling a March rate hike, saying “it will be soon be appropriate.” Asset purchases will wind down in early March, as planned, despite some speculation that bond buys could end in February.
Fed chief Jerome Powell followed up in his press conference, saying there’s “quite a bit of room” to raise rates without hurting the job market. He wouldn’t rule out raising rates at every meeting in 2022, starting in March.
Powell once again said the Fed could move soon and faster to cut its huge balance sheet than during the last cycle, saying the economy is stronger now. He stressed that the Fed has not made any decision about speed or timing of any balance sheet cuts, but said they will come after the first rate hike.
Powell didn’t say anything surprising, but he sounded like a Fed chief focused on fighting high inflation, not bending over backward to soothe jittery markets.
The 10-year Treasury yield rose 7 basis points to 1.85, mostly as Powell spoke. That’s slightly below the two-year high of 1.87% set on Jan. 19. The 2-year Treasury yield jumped 13 basis points to 1.15%, as the yield spread continues to narrow.
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Dow Jones Futures Today
Dow Jones futures climbed 0.2% vs. fair value. S&P 500 futures advanced 0.3%. Nasdaq 100 futures rose 0.6%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
That’s especially true during market corrections and new rally attempts. Dow Jones futures have been more volatile, with regular-session action showing wild intraday swings.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market Rally
The stock market rally rose solidly for much of the session, as Microsoft led the way. The major indexes hit session highs shortly after the Fed meeting announcement at 2 p.m. ET, but then soon pulled back, erasing gains and turning negative on Fed chief Powell’s hawkish comments.
The Dow Jones Industrial Average fell 0.5% in Wednesday’s stock market trading. The S&P 500 index retreated 0.15%. The Nasdaq composite closed just above break-even. The small-cap Russell 2000 tumbled 1.5%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) dipped 0.1%, while the Innovator IBD Breakout Opportunities ETF (BOUT) also edged down 0.1%. The iShares Expanded Tech-Software Sector ETF (IGV) fell just over 1%, even with Microsoft stock a major component. NOW stock also is a key holding. The VanEck Vectors Semiconductor ETF (SMH) rose 1.4%. Intel and LRCX stock are notable SMH components.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) retreated 2.5% and ARK Genomics ETF (ARKG) 2.25%. Tesla stock remains the No. 1 holding across ARK Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) slumped 2.6% and Global X U.S. Infrastructure Development ETF (PAVE) fell 0.9%. U.S. Global Jets ETF (JETS) descended 0.7%. SPDR S&P Homebuilders ETF (XHB) gave up 2.4%. The Energy Select SPDR ETF (XLE) dipped 0.2% and the Financial Select SPDR ETF (XLF) edged up 0.3%. The Health Care Select Sector SPDR Fund (XLV) declined 0.5%.
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Tesla Earnings
Tesla earnings and revenue comfortably beat Wall Street views. CEO Elon Musk said supply chain issues were the “main limiting factor” for growth in 2021. Tesla navigated supply chain woes in 2021 better than most automakers, many of which saw noticeable production declines due to chip shortages and more.
Tesla continues to expect 50% deliveries growth annually over the next several years, easily beating that mark in 2021 with an 87% jump.
Musk on the earnings call the Austin and Berlin plants are nearly ready to begin customer deliveries. He said Tesla will pick locations for additional production facilities by year-end.
He also expects Tesla to achieve full self-driving robotaxis this year, a claim he’s made for several years.
Musk said there will be no Cybertruck or any other new models in 2022, confirming widespread reports. He said the Cybertruck “hopefully” will be out in 2023. That means it’ll be roughly three years between new Tesla vehicles, following the Model Y in early 2020.
Musk also said Tesla is not currently working on a $25,000 fully autonomous vehicle.
Musk said Tesla will deliver some vehicles, presumably Model Y crossovers, with 4680 battery packs. But it’s unclear if that means Tesla has solved technical hurdles with mass producing 4680 battery cells, or if it’s just installing a couple of 4680 packs as a quasi-demonstration.
Tesla stock was essentially flat overnight, but after falling and rising solidly at various points. Shares rose 2.1% to 937.41 on Wednesday, after hitting 987.69 intraday. TSLA stock is in a consolidation with a 1,243.49 buy point, but it could offer various earlier entries.
Other Earnings
Lam Research earnings narrowly beat, but the chip-gear giant missed on sales and gave weak guidance. LRCX stock fell solidly.
Teradyne earnings beat views, but the chip-equipment maker guided well below consensus for Q1, citing a “slower technology transition in one of our major end markets.” TER stock crashed.
Intel earnings topped views, but INTC stock fell modestly overnight on weak profit guidance.
Seagate earnings slightly topped views, with the memory play raising 2022 sales guidance. STX stock jumped in extended trade.
ServiceNow earnings exceeded forecasts. NOW stock leapt in late action.
Edwards Lifesciences earnings and revenue missed views, while guidance also was light. EW stock sank.
Ameriprise earnings topped views and the financial firm announced a $3 billion stock buyback. AMP stock was not active.
Vertex earnings easily beat with the biotech guiding higher. VRTX stock climbed slightly overnight.
United Rentals earnings topped consensus. URI stock rose modestly in extended action.
Silicon Motion earnings exceeded estimates, but SIMO stock fell solidly overnight.
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Market Rally Analysis
The stock market fell into a correction in 2022 in no small part due to Fed tightening fears. So it’s not a shock to see the nascent rally attempt erase hefty gains following hawkish Fed comments, but it is disappointing.
The Nasdaq, up more than 3% intraday to just above the 14,000 level, retreated but did eke out a gain thanks to Microsoft and Tesla. The S&P 500 index hit resistance around the 200-day line, moving from a 2.2% intraday gain to a slim loss.
Even at session highs, none of the major indexes has even approached the 10-day moving average.
Investors can still look for a follow-through day to confirm the new stock market rally attempt. A follow-through day, which involves strong price gains on one or more of the major indexes in higher volume than in the prior session, signals big institutions are willing to support the new uptrend.
But while off their Monday lows, the major indexes are all down for the week, hardly the sign of a powerful new rally.
The 200-Day Average: The Last Line Of Support?
What To Do Now
The whipsaw action of the past few days has offered powerful bounces in short periods, but also big sell-offs. Without a crystal ball, it’s hard to pick safe entries for stocks or ETFs.
Microsoft stock arguably offered an entry as a Long-Term Leader from the 200-day line, though the close wasn’t inspiring. Most tech stocks look heavily damaged after near-vertical dives. Highly valued growth stocks are especially weak, though Tesla stock has avoided breaking down.
Energy stocks are clear leaders, despite pullbacks Wednesday. Many are already extended with crude oil prices surging to multiyear highs.
Among shipping stocks, Matson (MATX) broke out of a base while Zim Integrated Shipping (ZIM) reclaimed a prior buy point after triggering the 7%-8% sell rule on Monday. More broadly, a number of shipping stocks on land also look interesting.
Financials have struggled in recent weeks, but haven’t broken down. Still, a flattening yield curve isn’t good for banks’ lending margins.
Definitely work on your watchlists, trying to find stocks that are setting up potential entries. Keep in mind that earnings season remains in full force, with a little fruit peddler by the name of Apple reporting Thursday night.
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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Dow Jones Futures: Market Rally Pauses As Tesla Dives; Upstart Leads 8 IPO Movers Late With Rivian On Tap
Dow Jones futures fell slightly late Tuesday, along with S&P 500 futures and Nasdaq futures, as Upstart Holdings (UPST) and COIN stock headlined key earnings overnight. The stock market rally fell modestly as Tesla (TSLA) fell solidly again with the Rivian IPO on tap.
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UPST stock, Coinbase (COIN), FuboTV (FUBO), DoorDash (DASH), Toast (TOST), Unity Software (U), Doximity (DOCS), Global-e Online (GLBE) and Tesla EV rival Nio (NIO).
UPST stock, DoorDash, FuboTV and Unity Software came public in late 2020, while COIN stock, Doximity, Global-e Online debuted this year.
Nio stock, no longer a “new IPO,” began trading just over three years ago.
Most of these stocks have had been big winners, or at least have had strong runs over the past year. But many were big losers overnight, not a great sign for the market rally. Upstart earnings and guidance were strong, but UPST stock plunged about 20% after trading at key levels in recent days. COIN stock tumbled 10% as Coinbase earnings missed as crypto trading fell more than expected. Unity stock and DOCS also sold off hard following mixed results. TOST stock fell solidly while FUBO stock and Global-e did too.
DASH stock, however, soared about 20%. That signals a move back above its 50-day line and more for DoorDash stock.
Nio stock fell slightly after the China EV startup topped views but gave weak guidance.
Several more 2021 IPOs report on Wednesday, including Olaplex (OLPX), Applovin (APP), Monday.com (MNDY), Taskus (TASK) Dutch Bros (BROS) and Affirm Holdings (AFRM).
Rivian IPO
Capping the big week for new issues, the Rivian IPO will likely price Wednesday night, selling 135 million shares. Late Friday, the Amazon- and Ford-backed EV startup raised its expected RIVN IPO price range to $72-$74 a share from $57-$62. At the high end, RIVN stock would have an initial $65 billion valuation.
Rivian began limited deliveries of its R1T electric pickup in September, beating General Motors (GM), Ford (F) and Tesla to market. It’ll launch the large SUV RS1 by year-end. But much of its production focus will be on Amazon.com (AMZN), which has ordered 100,000 Rivian electric vans.
The Rivian IPO comes with Tesla stock pulling back, but after skyrocketing in recent weeks.
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Tesla Stock
TSLA stock tumbled 12% to 1,023.50 on Tuesday, following Monday’s 4.8% drop as CEO Elon Musk signaled that he would sell 10% of his Tesla stock stake. Late Monday, the company disclosed that Kimball Musk, Elon’s brother, sold $109 million worth of TSLA stock on Nov. 5.
But the EV giant has rallied for 11 straight weeks. Tesla stock is just below its 21-day line. It’s still well above a 900.50 cup-base buy point, according to MarketSmith analysis, but has given up the bulk of those gains.
Investors who bought at the 900.50 buy point have a decision to make on whether to take some TSLA profits — if they haven’t already locked in some gains. Earlier Tesla stock investors have a lot more leeway.
Tesla and OLPX stock are on IBD Leaderboard. Tesla, Affirm, Dutch Bros, Unity and UPST stock are on the IBD 50.
The video embedded in this article analyzed the market rally action as well as Tesla, MP Materials (MP) and Dutch Bros stock.
Dow Jones Futures Today
Dow Jones futures fell 0.1% vs. fair value. S&P 500 futures dipped 0.1% and Nasdaq 100 futures declined 0.1%.
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 finally had a down day but didn’t give up much ground. The Dow Jones Industrial Average fell 0.3% in Tuesday’s stock market trading. The S&P 500 index lost 0.35% and the Nasdaq composite declined 0.6%, with TSLA stock and PayPal (PYPL) weighing on both. The small-cap Russell 2000 dipped 0.6%.
The 10-year Treasury yield fell 6.5 basis points to 1.32%, the lowest in several weeks.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) retreated 0.8%, while the Innovator IBD Breakout Opportunities ETF (BOUT) off 0.2%. The iShares Expanded Tech-Software Sector ETF (IGV) added 0.4%, with many software leaders delivering strong gains Tuesday. The VanEck Vectors Semiconductor ETF (SMH) edged up 0.1%.
SPDR S&P Metals & Mining ETF (XME) gave up 0.75%and Global X U.S. Infrastructure Development ETF (PAVE) dipped 0.3% after Monday’s infrastructure-fueled gains. U.S. Global Jets ETF (JETS) descended 0.5%. SPDR S&P Homebuilders ETF (XHB) popped 1.9%. The Energy Select SPDR ETF (XLE) rose 0.4% and the Financial Select SPDR ETF (XLF) sank 0.55%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) retreated 2.3% and ARK Genomics ETF (ARKG) lost 2.5%. Tesla stock is still the top holding across ARK Invest’s ETFs. Several ARK ETFs own COIN stock.
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Market Rally Analysis
After rising nearly 2,000 points from the early October low, the Nasdaq dipped 95.82 points on Tuesday, ending an 11-day win streak. The action on the stock market rally was perfectly normal and healthy. The Nasdaq is now 5.3% above its 50-day line while the Nasdaq 100 is 5.6% above that level. Both had been above the 6% mark, signaling they are extended.
Yes, a few leaders, notably Tesla stock, pulled back quite a bit. But in the context of huge moves over the past several weeks and months, the charts don’t look seriously damaged.
Ideally, the stock market rally would pause or pull back modestly for a few days or even weeks, letting the moving averages catch up and giving leaders a chance to offer new buying opportunities. If the Nasdaq quickly rebounded, it would be extended almost immediately.
The sell-off in UPST stock, COIN stock and more is worrisome. IPOs have been big winners since the coronavirus crash, putting the “new” in CAN SLIM. If Upstart, Unity stock and more run into trouble, it would be a bad sign for leading stocks and the market rally.
But, it’s just one overnight session for a handful of IPOs. UPST stock, et al. could rebound in Wednesday’s session or in the coming days. Or maybe these specific IPOs are due for a breather, but new issues and growth stocks in general still march higher.
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What To Do Now
The stock market rally is still in good shape. There’s no strong reason to be reducing net exposure right now. But it may not be a great time to be making many new buys. If the market rally pulls back over the next several days, breakouts and early entries will likely struggle. If the market rally perks up over the next few days, how far could it go before flashing serious warning signs.
Tesla stock is a great example of why investors should not buy extended, even with a true market leader. Anyone who bought at one of several proper buy points in the past several weeks is still up solidly or sharply on TSLA stock. But if you bought at Thursday’s top, you’re down 18%.
This is a good time to let your portfolio work for you, while you work on your watchlists.
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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Dow Jones Futures Fall: Trump Social Media Firm To Go Public, Tesla Leads Earnings Movers
Dow Jones futures fell modestly Thursday morning, along with S&P 500 futures and Nasdaq futures, as Treasury yields rose solidly to recent highs. Tesla, Crocs and CSX were among the notable earnings movers. Former President Donald Trump is launching his own social media company, and it’s going public
The stock market rally closed narrowly mixed on Wednesday, with the Dow Jones hitting an all-time high. Bitcoin soared to record levels, though pulled back somewhat early Thursday.
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Former President Trump has formed a social media company, a long-speculated move. Trump Media & Technology Group will go public via a SPAC merger with Digital World Acquisition (DWAC). Trump Media & Technology will have a social media site Truth Social, as well a subscription-based video-on-demand service TMTG+.
DWAV stock soared premarket.
Trump’s access to key social media networks has been restricted since the Jan. 6 assault on the Capitol.
Tesla Leads Key Earnings
Tesla (TSLA), Lam Research (LRCX) and CSX (CSX) reported earnings late Wednesday.
In premarket action, Tesla stock fell slightly despite beating earnings views. LRCX stock fell modestly on mixed results. CSX stock rose on strong earnings, after closing just above a buy point on Wednesday.
IBM (IBM) and Tenet Healthcare (THC) also reported late. IBM stock fell solidly on weak revenue. THC stock rallied on strong results, though Q4 EPS guidance was a little light.
Early Thursday, Crocs (CROX) reported earnings more than doubled in Q3, easily beating. CROX stock jumped 11% in premarket action, signaling a move back above the 50-day line, offering an early entry. Shares fell 4.5% on Wednesday, hitting resistance at the 50-day.
Union Pacific (UNP) topped profit estimates early Thursday. Nucor (NUE) met EPS views while Freeport-McMoRan (FCX) topped on profit but missed on sales.
In premarket trade, UNP stock edged lower after closing Wednesday just below a buy point.
NUE stock fell 2% before the open. FCX stock sank 2%, near a short-term resistance level.
Why This IBD Tool Simplifies The Search For Top Stocks
Democrat Tax Shift?
Democrats reportedly may ditch a plan to raise tax rates on the wealthy, businesses or capital gains. That’s due to the continued opposition on tax-rate hikes from Sen. Krysten Sinema, D-Ariz. That could further complicate how to pay for the reconciliation spending package, which is already getting scaled back. Senate Democrats need all 50 members to agree on the same tax-and-spending plan.
Of course, it’s unclear what the final package will be. Other reports said some tax hikes are still on the table. But investors and analysts at the very least may ratchet down Democrat tax-hike expectations.
Bitcoin Price
The Bitcoin price rose 1% vs. 24 hours earlier to below $65,000 after hitting a record $66,974.77 on Wednesday. The ProShares Bitcoin Strategy ETF (BITO), which tracks Bitcoin futures, rose 3.2% to 43.28 in its second day of trading. BITO options began Wednesday. Bitcoin-related stocks powered higher once again.
Tesla stock is on IBD Leaderboard.
Dow Jones Futures Today
Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures lost 0.3%. Nasdaq 100 futures dipped 0.4%. IBM stock is on the Dow, S&P 500 and Nasdaq. Tesla and LRCX stock are S&P 500 and Nasdaq giants.
The 10-year Treasury yield rose to 1.675%, right at five-month highs. Crude oil prices edged lower. Copper futures fell sharply after big recent gains.
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 closed narrowly mixed after several days of gains.
The Dow Jones Industrial Average rose 0.4% in Wednesday’s stock market trading. The S&P 500 index climbed 0.4%. The Nasdaq composite lost a fraction. The small-cap Russell 2000 advanced 0.7% to its best close since Sept. 3.
Netflix (NFLX) and ASML (ASML) were earnings drags on the Nasdaq on Wednesday. PayPal (PYPL) tumbled on reports that it’s in talks to buy Pinterest (PINS).
The 10-year Treasury yield was essentially flat, ending at about 1.64%. December crude oil futures, now the near-month contract, climbed 1.2% to $83.42 a barrel.
ETFs
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.6%, while the Innovator IBD Breakout Opportunities ETF (BOUT) popped 1.1%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.2%. The VanEck Vectors Semiconductor ETF (SMH) sank 0.4%. LRCX stock is an SMH component.
SPDR S&P Metals & Mining (XME) rose 0.8% and Global X U.S. Infrastructure Development (PAVE) gained 1.2%. The U.S. Global Jets ETF (JETS) sank 0.65%. SPDR S&P Homebuilders (XHB) advanced 1.4%. The Energy Select SPDR ETF (XLE) and the Financial Select SPDR ETF (XLF) both ended 0.8% higher.
Reflecting stocks with more-speculative stories, the ARK Innovation ETF (ARKK) retreated 0.75% and the ARK Genomics ETF (ARKG) declined 0.9%. Tesla stock remains the No. 1 holding across ARK Invest ETFs.
Five Best Chinese Stocks To Buy Or Watch
Tesla Earnings
Tesla earnings beat views comfortably. Revenue rose sharply but slightly missed the FactSet analyst estimate. Sales edged past some other consensus forecasts. Regulatory credits unexpectedly fell for a second straight quarter, to $279 million.
The U.S.-based EV maker announced earlier this month that it delivered a record 241,300 vehicles in Q3, up from 201,250 in the previous quarter and above views of 232,000
The EV giant did not offer new full-year delivery targets in the Tesla earnings release.
On 4680 battery cells, Tesla said it’s continuing to produce test battery packs, but said the 4680 project faces “unknown unknowns.” Mass-producing those batteries, with promised specs and costs, is key to making the Cybertruck, Semi and Roadster viable.
Tesla said it continues to “target” the start of Model Y production at its Austin and Berlin factories. Tesla says it’s “fabricating our first preproduction vehicles” at the Austin site. As for the Berlin plant, Tesla said it hopes to gain final regulatory approval for production by year-end. But on Thursday, a regional environment ministry said it has to repeat a citizen consultation process, which will take up most of November. In any case, it’s still unclear if the plant will be fully ready for production before 2022.
Tesla has started to roll out FSD Beta to more FSD owners but so far has decided not to recognize more FSD revenue. The Level 2 driver-assist system remains error prone.
On Friday, Tesla faces a deadline to provide wide-ranging data regarding its driver-assist systems to the National Highway Traffic Safety Administration, as part of an NHTSA probe in Autopilot crashes. The NHTSA this week has tapped Missy Cummins, an autonomous-driving expert, as a top adviser. Cummings, a former fighter pilot, has been a harsh critic of Autopilot of Full Self-Driving.
Tesla executives said they welcome NHTSA scrutiny on the earnings call. CEO Elon Musk has criticized recent regulatory appointments as biased against Tesla.
Tesla Stock
Tesla stock lost nearly 2% in premarket action. Shares rose 0.2% to 865.80 on Wednesday. TSLA stock is approaching a 900.50 buy point from a deep cup base, according to MarketSmith analysis. But with Tesla stock on track for a ninth straight weekly gain, it has the look of being extended. That doesn’t mean shares can’t continue to run higher though.
The Tesla stock rally comes as China EV rivals such as BYD Co. (BYDDF) and Xpeng (XPEV) break out or flash other buy signals.
Lam Research Earnings
Lam Research earnings topped views, but revenue missed.
LRCX stock fell 3% in extended trade. Shares dipped 0.9% to 565.50 on Tuesday. Lam Research stock is stuck below its 50-day and 200-day lines, trending lower since the start of June.
CSX Earnings
CSX earnings steamed past estimates. Revenue also topped forecasts.
CSX stock climbed 4% overnight. Shares rose 1% to 34.46 on Wednesday, closing just above a 34.43 double-bottom base buy point.
Kansas City Southern (KSU), Canadian Pacific (CP) and Canadian National Railway (CNI) have already reported. CNI stock broke out Wednesday.
Market Rally Analysis
The stock market rally closed narrowly mixed, off session highs. But the Dow Jones is at record levels, while the S&P 500 is on the cusp of joining the blue-chip index.
The Nasdaq composite had rallied for five straight sessions, so a fractional loss is no big deal.
Taking a pause isn’t a surprise and may be healthy. Some stocks that had run up to traditional buy points looked extended. But if they could take a break, the likes of Tesla stock, ServiceNow (NOW) and Generac (GNRC) might appear more attractive.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
The stock market rally remains in good shape. There are plenty of quality stocks in buy range or setting up from a variety of groups. So you can continue to build up your portfolio, so long as you’re not overexposed.
But don’t just buy anything that’s moving. Keep building your watchlists so you can spot the most-promising setups across an array of sectors. Growth looks strong, but so do financial, energy and fertilizer stocks, with steel and medical services firms coming on.
And don’t forget about earnings season. It’s highly risky to buy a stock just before earnings, and investors may want to take whole or partial profits on holdings with tiny gains.
Next week, Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN), Facebook (FB) and Google parent Alphabet (GOOGL) are all on tap, headlining an enormous wave of earnings reports. Earnings and guidance will move stocks, sectors and the broader market rally.
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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Dow Jones Futures: Dow Hits New High Amid Democrat Tax-Hike Shift; Tesla Leads Earnings Movers
Dow Jones futures fell slightly Wednesday night, along with S&P 500 futures and Nasdaq futures, with Tesla earnings in focus. The stock market rally closed narrowly mixed on Wednesday, with the Dow Jones and Bitcoin soaring to record highs.
X
Democrats reportedly may ditch a plan to raise tax rates on the wealthy, businesses or capital gains. That’s due to the continued opposition on tax-rate hikes from Sen. Krysten Sinema, D-Ariz. That could further complicate how to pay for the reconciliation spending package, which is already getting scaled back. Senate Democrats need all 50 members to agree on the same tax-and-spending plan.
Of course, it’s unclear what the final package will be. Other reports said some tax hikes are still on the table. But investors and analysts at the very least may ratchet down Democrat tax-hike expectations.
Tesla (TSLA), Lam Research (LRCX) and CSX (CSX) reported earnings late Wednesday.
Tesla stock edged lower in extended trade despite beating earnings views. LRCX stock fell modestly on mixed results. CSX stock rose on strong earnings, after closing just above a buy point on Wednesday.
IBM (IBM) and Tenet Healthcare (THC) also reported late. IBM stock fell solidly on weak revenue. THC stock initially jumped on strong results, though Q4 EPS guidance was a little light.
Crocs (CROX), Nucor (NUE), Union Pacific (UNP) and Freeport-McMoRan (FCX) report early Thursday.
On Wednesday, UNP stock advanced 1%, approaching a buy point. Union Pacific edged lower in extended trade on CSX earnings.
CROX stock fell 4.5% on Wednesday, hitting resistance at the 50-day line. A move above that level on strong Crocs earnings could offer an early entry. NUE stock climbed 1.8%, nearing its 50-day line. FCX stock edged up 0.2%, pausing around a short-term resistance level.
Why This IBD Tool Simplifies The Search For Top Stocks
Bitcoin Price
The Bitcoin price rose 3% vs. 24 hours earlier to just below $66,000 after hitting a record $66,974.77 intraday. The ProShares Bitcoin Strategy ETF (BITO), which tracks Bitcoin futures, rose 3.2% to 43.28 in its second day of trading. BITO options began Wednesday. Bitcoin-related stocks powered higher once again.
Tesla stock is on IBD Leaderboard.
Dow Jones Futures Today
Dow Jones futures dipped 0.1% vs. fair value. S&P 500 futures lost 0.1%. Nasdaq 100 futures fell 0.2%. IBM stock is on the Dow, S&P 500 and Nasdaq. Tesla and LRCX stock are S&P 500 and Nasdaq giants.
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 closed narrowly mixed after several days of gains.
The Dow Jones Industrial Average rose 0.4% in Wednesday’s stock market trading. The S&P 500 index climbed 0.4%. The Nasdaq composite lost a fraction. The small-cap Russell 2000 advanced 0.7% to its best close since Sept. 3.
Netflix (NFLX) and ASML (ASML) were earnings drags on the Nasdaq on Wednesday. PayPal (PYPL) tumbled on reports that it’s in talks to buy Pinterest (PINS).
The 10-year Treasury yield was essentially flat, ending at about 1.64%. December crude oil futures, now the near-month contract, climbed 1.2% to $83.42 a barrel.
ETFs
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.6%, while the Innovator IBD Breakout Opportunities ETF (BOUT) popped 1.1%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.2%. The VanEck Vectors Semiconductor ETF (SMH) sank 0.4%. LRCX stock is an SMH component.
SPDR S&P Metals & Mining (XME) rose 0.8% and Global X U.S. Infrastructure Development (PAVE) gained 1.2%. The U.S. Global Jets ETF (JETS) sank 0.65%. SPDR S&P Homebuilders (XHB) advanced 1.4%. The Energy Select SPDR ETF (XLE) and the Financial Select SPDR ETF (XLF) both ended 0.8% higher.
Reflecting stocks with more-speculative stories, the ARK Innovation ETF (ARKK) retreated 0.75% and the ARK Genomics ETF (ARKG) declined 0.9%. Tesla stock remains the No. 1 holding across ARK Invest ETFs.
Five Best Chinese Stocks To Buy Or Watch
Tesla Earnings
Tesla earnings beat views comfortably. Revenue rose sharply but slightly missed the FactSet analyst estimate. Sales edged past some other consensus forecasts. Regulatory credits unexpectedly fell for a second straight quarter, to $279 million.
The U.S.-based EV maker announced earlier this month that it delivered a record 241,300 vehicles in Q3, up from 201,250 in the previous quarter and above views of 232,000
The EV giant did not offer new full-year delivery targets in the Tesla earnings release.
On 4680 battery cells, Tesla said it’s continuing to produce test battery packs, but said the 4680 project faces “unknown unknowns.” Mass-producing those batteries, with promised specs and costs, is key to making the Cybertruck, Semi and Roadster viable.
Tesla said it continues to “target” the start of Model Y production at its Austin and Berlin factories. Tesla says it’s “fabricating our first preproduction vehicles” at the Austin site. As for the Berlin plant, Tesla said it hopes to gain final regulatory approval for production by year-end, though it’s still unclear if the plant will be fully ready for production before 2022.
Tesla has started to roll out FSD Beta to more FSD owners but so far has decided not to recognize more FSD revenue. The Level 2 driver-assist system remains error prone.
On Friday, Tesla faces a deadline to provide wide-ranging data regarding its driver-assist systems to the National Highway Traffic Safety Administration, as part of an NHTSA probe in Autopilot crashes. The NHTSA this week has tapped Missy Cummins, an autonomous-driving expert, as a top adviser. Cummings, a former fighter pilot, has been a harsh critic of Autopilot of Full Self-Driving.
Tesla executives said they welcome NHTSA scrutiny on the earnings call. CEO Elon Musk has criticized recent regulatory appointments as biased against Tesla.
Tesla Stock
Tesla stock lost 1% in overnight action. Shares rose 0.2% to 865.80 on Wednesday. TSLA stock is approaching a 900.50 buy point from a deep cup base, according to MarketSmith analysis. But with Tesla stock on track for a ninth straight weekly gain, it has the look of being extended. That doesn’t mean shares can’t continue to run higher though.
The Tesla stock rally comes as China EV rivals such as BYD Co. (BYDDF) and Xpeng (XPEV) break out or flash other buy signals.
Lam Research Earnings
Lam Research earnings topped views, but revenue missed.
LRCX stock fell 3% in extended trade. Shares dipped 0.9% to 565.50 on Tuesday. Lam Research stock is stuck below its 50-day and 200-day lines, trending lower since the start of June.
CSX Earnings
CSX earnings steamed past estimates. Revenue also topped forecasts.
CSX stock climbed almost 3% overnight. Shares rose 1% to 34.46 on Wednesday, closing just above a 34.43 double-bottom base buy point.
UNP stock lost a fraction 1% late ahead of earnings before Thursday’s open. Shares rose 1% to 228.01 on Wednesday. UNP stock eyes a 228.67 buy point from a cup base.
Kansas City Southern (KSU), Canadian Pacific (CP) and Canadian National Railway (CNI) have already reported. CNI stock broke out Wednesday.
Market Rally Analysis
The stock market rally closed narrowly mixed, off session highs. But the Dow Jones is at record levels, while the S&P 500 is on the cusp of joining the blue-chip index.
The Nasdaq composite had rallied for five straight sessions, so a fractional loss is no big deal.
Taking a pause isn’t a surprise and may be healthy. Some stocks that had run up to traditional buy points looked extended. But if they could take a break, the likes of Tesla stock, ServiceNow (NOW) and Generac (GNRC) might appear more attractive.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
The stock market rally remains in good shape. There are plenty of quality stocks in buy range or setting up from a variety of groups. So you can continue to build up your portfolio, so long as you’re not overexposed.
But don’t just buy anything that’s moving. Keep building your watchlists so you can spot the most-promising setups across an array of sectors. Growth looks strong, but so do financial, energy and fertilizer stocks, with steel and medical services firms coming on.
And don’t forget about earnings season. It’s highly risky to buy a stock just before earnings, and investors may want to take whole or partial profits on holdings with tiny gains.
Next week, Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN), Facebook (FB) and Google parent Alphabet (GOOGL) are all on tap, headlining an enormous wave of earnings reports. Earnings and guidance will move stocks, sectors and the broader market rally.
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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Dow Jones Futures: Stock Market Rally Falls On Fed Comments, Stimulus Fears; Lululemon, RH, GME Stock Are Earnings Movers
Dow Jones futures fell slightly Wednesday night, along with S&P 500 futures and Nasdaq futures, with Lululemon, RH and GME stock among the big overnight movers. The stock market rally retreated Wednesday, with growth names among the hardest hit, but housing, industrial, steel and retail names also retreated.
X
The major indexes fell amid semi-hawkish comments from a Fed official on reining in monetary signs, as well as signs that further fiscal stimulus could be far less than forecast. But IBD Long-Term Leaders such as Microsoft stock and Idexx Labs (IDXX) held up well.
Key Earnings
RH (RH), Lululemon Athletica (LULU), Copart (CPRT) and original meme stock GameStop (GME) reported earnings after the close.
Academy Sports (ASO) reports before Thursday’s open. ASO stock fell 3.85% to 43.40 on Wednesday, but closed above the official 42.85 buy point.
RH and Lululemon beat views and raised guidance. GameStop reported a wider-than-expected loss but beat on sales. Copart earnings and sales topped.
RH stock rose 1% overnight after recently undercutting its 50-day line. RH closed up 1.3% after falling more than 2% intraday.
LULU stock shot up 14% in extended trade, signaling a record high, after closing down for a sixth straight session.
GME stock tumbled 9% in overnight action after edging lower Wednesday. GameStop stock has been consolidating since its early June peak and more broadly since its late January surge to 483. Before the close, AMC Entertainment (AMC), another “traditional” meme stock, said it’s working on a possible partnership with GameStop. AMC stock fell modestly after closing down 1% Wednesday.
CPRT stock edged higher following better-than-expected Copart earnings. Shares rose 1.2% to 144.67 on Wednesday. Copart stock is finding support at its 50-day line. The official buy point is 149.16 from a flat base. But a rebound from the 50-day line, perhaps getting above some short-term resistance, would offer an early entry.
Long-Term Leaders
CPRT stock is on IBD Long-Term Leaders. Buying off the 50-day/10-week line is a good place to start a position in a Long-Term Leader.
Fellow Long-Term Leaders Idexx Labs (IDXX) and Pool Corp. (POOL) rose Wednesday, rebounding from around their 50-day or 10-week lines.
Microsoft (MSFT), another Long-Term Leader, rose 1 cent to 300.21, rebounding from its 21-day line as it drifts off highs. MSFT stock effectively has a three-weeks tight with a 305.94 buy point. Ideally, Microsoft stock would trade tight until the 10-week line catches up, perhaps forming a new flat base.
Domino’s Pizza (DPZ), a former Long-Term Leader that still shares a lot of those traits, rose modestly from its 50-day line Wednesday and broke a short downtrend, offering an early entry. DPZ stock is working on a flat base.
In addition to Long-Term Leaders, Microsoft stock is on IBD Leaderboard. Domino’s was Wednesday’s IBD Stock Of The Day.
The video embedded in this article reviewed Wednesday’s market action and analyzed Crocs (CROX), Shopify (SHOP) and DPZ stock.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures and Nasdaq 100 futures retreated 0.2%.
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 actionable stocks in the stock market rally on IBD Live
Stimulus Concerns
St. Louis Fed President James Bullard told the Financial Times that he still favors beginning a bond taper program this year. Fed chief Jerome Powell, Bullard and several other Fed policymakers in late August backed a tapering program by year-end. But last week’s weak jobs report raised expectations that the Fed would not agree on such a plan at the September policy meeting.
Bullard, one of the more hawkish policymakers recently, is not an FOMC voting member this year. Wednesday’s afternoon lukewarm Beige Book report from the Federal Reserve reinforced views that the economic outlook has downshifted. The IBD/TIPP Economic Optimism Index, released Wednesday morning, tumbled 5.1 points in early September to a 12-month-low 48.5.
Meanwhile, Sen. Joe Manchin, a centrist Democrat from West Virginia, said late Tuesday that he supports only $1.5 trillion in spending out of President Biden’s proposed $3.5 trillion package. Democrats need his vote to pass their latest big tax-and-spending plan. Further, if House progressives aren’t happy, they could try to sink a bipartisan $1 trillion infrastructure bill. So while the odds still favor hefty, if scaled-back, new spending, there’s now a more-than-zero chance that nothing passes by year-end.
Stock Market Rally
The stock market rally fell back amid those monetary and fiscal stimulus concerns, though a mild retreat didn’t need any trigger. The major indexes did close off lows.
The Dow Jones Industrial Average fell 0.2% in Wednesday’s stock market trading. The S&P 500 index dipped 0.1%. The Nasdaq composite dipped 0.6%. The small-cap Russell 2000 slumped 1.1%.
The 10-year Treasury yield fell four basis points to 1.33% after rising eight basis points in the prior two sessions.
A lot of stocks that had been running up fell back, including recent IPOs. But several growth stocks that had struggled to make progress suffered notable losses.
DocuSign (DOCU) fell 3.4%, and is starting to lose sight of its 50-day line. DOCU stock tumbled 6% on Tuesday, more than wiping out Friday’s bullish gain. Meanwhile, SHOP stock sank 3.8% and SQ stock 4.2%, both knifing below their 50-day lines.
Meanwhile, Pulte Group (PHM) cut guidance, citing supply chain woes. PHM stock tumbled 6%, with Lennar (LEN), Toll Bros. (TOL) and others selling off.
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Top ETFs
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.6%, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 1.1%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.6%, with MSFT stock a top holding. The VanEck Vectors Semiconductor ETF (SMH) retreated 1.3%.
SPDR S&P Metals & Mining ETF (XME) skidded 2.3% and Global X U.S. Infrastructure Development ETF (PAVE) lost 0.3%. U.S. Global Jets ETF (JETS) retreated 1.5%. SPDR S&P Homebuilders ETF (XHB) shed 0.9%, with RH stock a major component. The Energy Select SPDR ETF (XLE) fell 1.3% and the Financial Select SPDR ETF (XLF) edged down 0.2%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) declined 2.8% and ARK Genomics ETF (ARKG) 2.4%. ARKK fell back below its 50-day and 200-day lines. ARKG undercut its 50-day line. Square stock is a notable ARK Invest holding.
Five Best Chinese Stocks To Watch Now
Market Rally Analysis
After rebounding over the prior three weeks, the stock market rally had a setback Wednesday. The Dow Jones and small-cap Russell 2000 tested their 50-day lines on Wednesday. The Nasdaq retreated, though from all-time highs. The S&P 500, just above its 21-day line, is not far from record levels either.
There were notable losses among growth, housing and commodity-related stocks.
What exactly is working? Microsoft stock and some Long-Term Leaders such as Copart are acting well. Shipping stocks are looking strong.
Tesla (TSLA) was little changed, holding in a buy zone. Fellow giants Apple (AAPL), Facebook (FB), Google (GOOG) and Nvidia (NVDA) still look solid, despite Wednesday’s slim losses. Hot IPOs had a down day, but generally remain in strong uptrends.
Still, market leadership remains narrow.
What To Do Now
The stock market rally hasn’t set off any alarm bells. But with the major indexes near highs, some leading stocks taking losses and few buying opportunities available, investors may want to be somewhat defensive in the short run. Investors might be cutting exposure automatically by exiting losing trades or taking partial profits in some recent winners, while largely avoiding new buys.
A market pause or pullback could quickly offer new buying opportunities. So keep working on watchlists. Beyond Long-Term Leaders and tech giants, make sure to keep an eye on a variety of sectors. Some areas that are struggling right now could quickly turn into winners, including chips, housing, industrial and financial plays.
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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Dow Jones Futures: Stock Market Rally Fades, But Netflix, Roku Make Bullish Moves; 5 Earnings Movers Late
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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Dow Jones Futures: Market Rally Keeps Rising Before Fed Chief Powell; Salesforce Leads 4 Earnings Movers In Buy Zones
Dow Jones futures fell slightly Wednesday night, along with S&P 500 futures and Nasdaq futures. The stock market rally held near recent highs while small caps reclaimed a key level. Salesforce stock and Snowflake (SNOW) were among the notable earnings reports overnight.
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The major indexes rose slightly but the S&P 500 and Nasdaq hit fresh all-time highs while the Dow Jones nudged closer to record levels. The small-cap Russell 2000 reclaimed its 50-day moving average for the first time on July 12. Infrastructure plays, financials, housing, chips and cybersecurity were solid performers.
The stock market rally is acting well with Fed chief Jerome Powell due to give a big speech. Powell speaks at the (this year) virtual Jackson Hole monetary conference at 10 a.m. ET on Friday. He could drop hints about the Fed scaling back asset purchases, but many analysts expect him to leave most or all of that “taper talk” for the September Fed meeting.
Salesforce.com (CRM), Snowflake, Autodesk (ADSK), Box (BOX), NetApp (NTAP), Zuora (ZUO) and Williams-Sonoma (WSM) reported earnings late Wednesday.
CRM stock rose modestly late after closing in a buy zone. SNOW stock jumped. ADSK stock and Box retreated after closing around buy points. NTAP stock is signaling a breakout. WSM stock and Zuora surged higher, also flirting with buy points.
Early Thursday, Chinese EV maker Xpeng Motors (XPEV) reports, along with Burlington Stores (BURL), Dollar Tree (DLTR), Dollar General (DG) and Abercrombie & Fitch (ANF). XPEV stock and Abercrombie & Fitch are close to possible early entries. BURL stock and Dollar General are in buy zones. Dollar Tree is starting to bounce back.
Late Wednesday, Microsoft (MSFT) and Google parent Alphabet (GOOGL) pledged to spend several billion dollars on cybersecurity, as many other corporate giants committed to major initiatives. That followed a White House cybersecurity summit with President Joe Biden in the wake of several high-profile ransomware attacks this year. Cybersecurity software stocks, already up solidly this week on Palo Alto (PANW) earnings and more, rose slightly overnight.
The video embedded in this article analyzes Quanta Services (PWR), Wells Fargo (WFC) and the Global X U.S. Infrastructure Development ETF (PAVE).
Dow Jones Futures Today
Dow Jones futures were 0.1% below fair value. CRM stock is a Dow Jones component. S&P 500 futures dipped 0.2% and Nasdaq 100 futures fell 0.3%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join David Ryan as he analyzes actionable stocks in the stock market rally on IBD Live Thursday’s morning
Stock Market Rally
The stock market rally had slim gains on the major indexes, extending a winning streak to five days on the S&P 500 and Nasdaq.
The Dow Jones Industrial Average edged up 0.1% in Wednesday’s stock market trading. The S&P 500 index rose 0.2%. The Nasdaq composite climbed 0.15%. The small-cap Russell 2000 rose 0.4%.
The 10-year Treasury yield popped 5 basis points to 1.34%, reclaiming its 200-day and 50-day lines. The 10-year Treasury yield, like the stock market rally, has been making gains in recent days heading into Friday’s Powell speech.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.7%, while the Innovator IBD Breakout Opportunities ETF (BOUT) climbed 0.6%. The iShares Expanded Tech-Software Sector ETF (IGV) edged up 0.2%, with CRM stock and Autodesk top holdings. The VanEck Vectors Semiconductor ETF (SMH) climbed 1.1%.
SPDR S&P Metals & Mining ETF (XME) retreated 0.8% but the PAVE ETF gained 0.6%. U.S. Global Jets ETF (JETS) advanced 0.85%. SPDR S&P Homebuilders ETF (XHB) rose 1.2%. The Energy Select SPDR ETF (XLE) climbed 0.8% and the Financial Select SPDR ETF (XLF) 1.2%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) closed just below break-even. ARK Genomics ETF (ARKG) edged up 0.1%.
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Salesforce Earnings
Salesforce earnings were better than expected. The business software giant also hiked guidance after closing its Slack acquisition.
CRM stock rose 2% to about 266 in extended trade. Salesforce stock edged up 0.5% to 260.85 on Wednesday. Shares are in buy range from a 253.60 saucer-with-handle entry. The buy zone runs to 266.28. Investors also could use 271.02 as an alternate buy point for CRM stock
Snowflake Earnings
Snowflake lost slightly less than expected as revenue more than doubled once again. Management was upbeat on guidance.
SNOW stock popped 4% overnight after initially moving between modest gains and losses. Shares advanced 0.85% to 283.76 on Wednesday. Snowflake stock has rallied from a record low of 184.71 on May 13, but doesn’t currently have a reasonable entry.
Autodesk Earnings
Autodesk earnings topped views while sales were in line. Guidance was roughly in line.
ADSK stock slumped 7% in extended action. Shares nudged up 0.35% to 342.27 on Wednesday. Autodesk stock closed slightly extended from a 321.23 buy point, according to MarketSmith analysis. But it’s in danger of falling below the buy point.
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Box Earnings
Box earnings narrowly topped views. Guidance was in line to slightly above views.
Box stock fell 3% in overnight trade. Shares dipped 0.9% on Wednesday to 25.64. Box stock has a cup-with-handle base with a 26.58 buy point.
NetApp Earnings
NetApp earnings comfortably beat. The data storage giant guided slightly higher on current-quarter EPS.
NetApp stock climbed 3% to 85 in late trade. Shares rose 1.8% on Wednesday to 82.27. NTAP stock has a handle buy point of 83.60 on a double-bottom base.
Williams-Sonoma Earnings
Williams-Sonoma earnings easily beat views and the company guided higher. The upscale housewares and furniture retailer also hiked its dividend 20% and announced a $1.25 billion buyback.
WSM stock vaulted 13% to 193 overnight, briefly topping a 194.79 buy point. Shares rose 0.7% to 170.74 on Wednesday, closing near session lows. But that followed Tuesday’s 4.6% gain for Williams-Sonoma stock.
Zuora Earnings
Zuora reported a slim loss that was in line with views, while revenue topped forecasts.
ZUO stock leapt 14% in extended trade to 18.61. Shares dipped 0.1% on Wednesday to 16.35. ZUO stock has a double-bottom buy point of 18.12, but could have a slightly lower trend-line entry.
Market Rally Analysis
The stock market rally had another positive session, with the S&P 500 and Nasdaq at record highs and the Russell 2000 back above its 50-day line.
While Apple (AAPL) and some tech titans retreated or held steady Wednesday, many growth names continued to advance. With leading stocks from several other sectors making gains while small caps mount a comeback, the depth and breadth of the market rally has improved significantly from Thursday’s lows.
It wouldn’t be surprising for the major indexes to have a down session ahead of or in the wake of Fed chief Powell’s speech Friday morning, even if he ends saying nothing unexpected.
The latest bulls vs. bears reading of newsletter writers showed bulls fell to 50%, while 18.5% are bearish. That’s the lowest bull reading since late May. That certainly indicates the market rally could rise quite a bit on growing enthusiasm before bullish sentiment gets excessive.
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What To Do Now
The market rally continues to offer new buys while rewarding investors holding a wide variety of stocks and sectors.
Use your watchlists to spot early entries and make buys as close as possible to buy points.
If you own a highflying IPO or other leading stock that’s surged in the past week or two, congratulations. Now what? In this choppy market rally, there’s a heightened chance of some sort of pullback. Do you hold for really big gains, take partial profits or cash out? That can depend on your investing style, the size of your position, the character of the stock and your conviction in that holding. There’s not a “right” or “wrong” answer. It’s why selling winning stocks is as much an art as a science.
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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