Dow futures rose overnight, along with S&P 500 and Nasdaq futures, with the July inflation report released ahead of Wednesday’s open.
The stock market rally lost steam, retreating from resistance levels micron technology (MU) caused a sell-off in chip stocks.
On the upside, some natural gas-related stocks showed strength, including… Field Resources (People’s republic of China), EQT Corp. (EQT) and Equinor (EQNR), which all broke the bearish trends in the handles, and flashes potential early entries. However, the PRC stock was the only one to move on a good volume. liquefied natural gas (GLNG) has liquidated some short-term levels, still near the 50-day line, but gains are due on Thursday.
apple (AAPL) and Microsoft shares rose. Tesla (TSLA) continued the recent reversal to the downside while China Lee Otto (LI) sold out hard.
Celsius (CELH) and Exelixis (EXEL) topped the outstanding earnings after the close, along with lower growth rates Queen Piece (Currency), Roblox (RBLX) and trade office (TTD).
CELH stock is up slightly overnight after initially pulling back. Celsius’ triple-digit earnings and sales growth topped second-quarter viewing. But the gross margins came in little light. Celsius stock fell 7.8% Tuesday to 93.38 with its downturn from August 3. 2 is high from 109.74. A massive three-month run was capped off by the early August jump on A PepsiCo (PEP) investment and distribution deals.
EXEL stock rose modestly in extended trading after Exelixis’ earnings beat expectations. Shares fell 2.3 percent to 21.06 on Tuesday. The Exelixis stock operates on a cup base with a messy handle with 22.57 pts. Investors can use a downward sloping trend line to find a slightly lower entry point.
COIN stock fell strongly overnight as Coinbase reported lower revenue than views and a much worse loss than expected. The cryptocurrency exchange slipped nearly 11% to 87.68 on Tuesday. Coinbase stock has doubled since late June, but is well below its April 2021 opening day peak of 429.54.
RBLX stock fell in extended actions as Roblox reported a larger-than-expected loss while revenue fell. Reservations and user growth also missed. Shares fell 3.35 percent to 47.26 on Tuesday. RBLX stock has more than doubled since bottoming out in early May. But the video game platform’s shares are well below their November 2021 peak of 141.60.
TTD stock rose as the Trade Desk met EPS opinions, but it outperformed revenue views and provided bullish guidance. Trade Desk stock fell 0.9% to 54.50 on Tuesday, but rose from a 52-week low of 39 on July 14.
EQNR stock is on the IBD Leaderboard watchlist. PRC stock is on SwingTrader and is in stock today from IBD. Microsoft (MSFT) is a long-term leader of IBD. CELH and Equinor stock is in IBD 50.
The video included in the article discussed the market movement on Tuesday and analyzed the PRC stock, Costco Wholesale (COST) and life (h).
Dow jones futures contracts today
Dow futures tilted higher against stocks. fair value. S&P 500 and Nasdaq 100 futures rose 0.1%.
The Labor Department releases its CPI inflation report for July at 8:30 AM ET. Inflation data will certainly have a significant impact on Dow Jones futures and Treasury yields.
Remember that the overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Economists expect the CPI for July to show an increase of 0.2% versus 0.2%. June, after the previous month’s rise of 1.3%. The CPI inflation rate is expected to decline to 8.7% from a 40-year high in June of 9.1%. This reflects the drop in gasoline prices, which will also provide some relief in August.
But the core CPI, which excludes food and energy, should show a 0.5% gain after June’s 0.7% rise. Core inflation is expected to rise to 6.1% from 5.9%.
Markets are giving a 67.5% chance of a 75 basis point Fed rate hike on September 1st. 21, followed by quarter-point moves in November and December.
stock market rise
A stock market rally off the ground Tuesday, led by chip stocks.
Micron cautioned about revenue and capital spending cuts. It came a day later nvidia (NVDA) lowered sales forecasts. MU stock fell 3.7% while chip stocks were among the big losers on Tuesday, especially memory-focused equipment makers like L research (LRCX).
Apple stock rose 5 cents to 164.92, and continued to trade tightly above the 200-day line. Apple’s relative strength line has already reached a new high. Microsoft stock rose 0.7% to 282.30, still less than 200 days away.
The Dow Jones Industrial Average was down 0.2% in stock market trading on Tuesday. The S&P 500 lost 0.4%. The Nasdaq Composite lost 1.2%. Small cap Russell 2000 fell 1.3%.
US crude oil prices fell, closing down 0.3% to $90.50 a barrel. Natural gas prices rose 3.2%.
The 10-year Treasury yield rose 3 basis points to 2.8%. The two-year Treasury yield rose 5 basis points to 3.27%. The yield curve is inverted from 1 year to 10 years, which is a recession warning.
Among the top ETFs, the Innovator IBD 50 ETF (FFTY) is down 2%, while the Innovator IBD Breakout Opportunities ETF (BOUT) is down 0.4%. Shares of iShares Expanded Tech-Software ETF (IGV) fell 1.5%, and MSFT stock was the number one spot in IGV. The VanEck Vectors Semiconductor Index (SMH) was down 4.2%. MU stock is a prominent SMH property.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) slipped 5.45% and the ARK Genomics ETF (ARKG) slid 5.4%. Tesla stock remains a major ownership across Ark Invest ETFs.
The SPDR S&P Metals & Mining ETF (XME) is up 0.8% and the US ETF Global X Infrastructure Development (PAVE) is down 0.5%. The US Global Gates Index (JETS) fell 1.7%. The SPDR S&P Home Builders Index (XHB) was down 3.3%. The Energy Select SPDR ETF (XLE) is up 1.8% and the Financial Select SPDR ETF (XLF) is up 0.5%. The SPDR Healthcare Sector Selection Fund (XLV) was down 0.3%.
Tesla shares slipped 2.4% to 850. On Friday, shares slipped 6.6% below the 200-day line. On Monday, TSLA stock attempted to regain its 200-day streak but trimmed its big intraday gain to just 0.8%.
Li Auto stock is down 7%, paring its recent consolidation and approaching the 200-day mark. Li Auto earnings in August. 15. Among the competitors of Li’s China EV, New (NIO) is down 5%, below the 50-day streak, while it’s a giant BYD (BYDDF) lost 2.5%, and started living below 50 days high.
Top 5 Chinese stocks to watch right now
Market Rise Analysis
The stock market rally eased on Tuesday, as major indexes pulled back from various resistance levels.
The Nasdaq, which erased its strong morning gains on Monday, led the decline on Tuesday. It has pulled back from a trend line dating back to January, but is still above its early June highs. Russell 2000, which shed its June highs on Monday, is back in that resistance zone. The S&P 500 and Dow Jones, which tested those levels Monday morning, are also retreating.
A pause in market rally around current levels may be positive. Many of the leading stocks that have gone up on the right side of the bases can use tighter handles and movement.
The major indicators could also start to decline more steeply. This does not necessarily mean underestimating bear market lows. It is also possible that the market will pull back, and then slide into a difficult range for a long time.
Selling in the semi-finals is a bad sign. Chip stocks usually play an important role in any meaningful market rally. Recent progress in potato chips has been encouraging.
On the positive side, the aerospace/defense, energy and health insurance companies have held up well or have continued to advance. Biotech companies generally fell modestly after strong gains.
Wednesday’s inflation report will provide a short-term stimulus, but how stocks open won’t necessarily be how they close.
Time to Market with IBD’s ETF Market Strategy
What are you doing now
The rally in the market met with some resistance. This may be temporary or the beginning of a larger decline. Either way, investors may want to cut back on exposure and take some partial profit. If it is just a pause, then new buying opportunities will appear soon.
There are some buying opportunities in natural gas plays such as Range Resources. If you’re feeding, it’s likely in the context of not increasing your net exposure. And be smart. Energy prices and market conditions can change quickly.
Keep working on watch lists. This is a confirmed rally in the market with a number of stocks trying to establish. You want to be ready.
Read the big picture every day to stay in sync with market trend, stocks and leading sectors.
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