Dow Jones futures changed little overnight, along with S&P 500 futures and Nasdaq futures, with Netflix subscribers in focus and Tesla results looming. Major indicators rebounded on Tuesday above some key levels after hitting resistance on Monday.
The gains were broad, but there were few new buying opportunities.
Netflix (NFLX) jumped overnight on better-than-expected earnings and subscriber additions. Trucking giant GB Hunt Transportation Services (JBHT) The Egg Producer Cal Min (CALM) also topped EPS views on Tuesday night.
Chip Equipment Giant ASML (ASML) reports early Wednesday.
Tesla (TSLA) Wednesday night earnings headlines. Tesla profits should show an increase vs. The second quarter of 2021 but significantly lower compared to the second quarter of 2021. Q1, reflects the Covid-related effects on Shanghai production. Tesla stock rose 2.1% on Tuesday to 736.59, above the 50-day line and just below some short-term resistance. But TSLA stock is well below its late 2021 peak at 1,243.49.
The video included in this article analyzed and discussed the market rally movement Lee Otto (LI), Flex LNG (FLNG) and Summary (SNPS).
Dow jones futures contracts today
Dow Jones futures contracts were vs. fair value. S&P 500 futures rose. Nasdaq 100 futures rose 0.2%, with NFLX stock boosting.
Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Elon Musk loses the round to Twitter
Meanwhile, a Delaware Chancery Court judge granted an expedited trial to Twitter (TWTR) Lawsuits Vs. Tesla CEO Elon Musk for his efforts to end the Twitter acquisition. The trial will begin in October. Musk sought a delay until 2023, which would have pressured Twitter to compromise. While the ruling was not based on the facts of the case, it is a positive sign for Twitter. Musk could end up paying a hefty fine — above the $1 billion breakup fee — or possibly have to close a $44 billion deal, worth $54.20 per share. That could force Musk to sell more TSLA shares.
Twitter stock rose 2.8% to 39.49, moving above the 50-day line for the first time in two months.
Join IBD experts as they analyze actionable stock market actionable shares on IBD Live
stock market rise
The stock market rallied strongly at the open and gained momentum, closing with significant gains near session highs.
The Dow Jones Industrial Average rose 2.4% in stock market trading on Tuesday, even with the giants of Dow Jones IBM (IBM) and Johnson & Johnson (JNJ) Decrease in profits. The S&P 500 jumped 2.8%. The Nasdaq Composite Index jumped 3.1%. Small cap Russell 2000 jumped 3.5%.
US crude oil prices rose 1.6% to $104.22 a barrel. Natural gas futures fell 2.9% amid reports that Russia will restart the Nord Stream natural gas pipeline to Europe as scheduled. But Russian President Vladimir Putin hinted at the possibility of new delays late Tuesday.
The 10-year Treasury yield rose 6 basis points to 3.02%. The two-year Treasury yield rose 8 basis points to 3.24%, with the yield curve continuing to invert for the two- and 10-year notes.
Among the top ETFs, the Innovator IBD 50 ETF (FFTY) advanced 1.6%, while the Innovator IBD Breakout Opportunities ETF (BOUT) advanced 1.4%. The iShares Expanded Tech-Software (IGV) Index rose 2.9%. The VanEck Vectors Semiconductor ETF (SMH) was up 4.6%, with ASML holding notable.
SPDR S&P Metals & Mining ETF (XME) is offering 2.7% and the US X Global Infrastructure Development Fund (PAVE) 3.7%. The US Global Jets ETF (JETS) rose 4.1%. SPDR S&P Homebuilders ETF (XHB) rose 3.4%. The Energy Select SPDR ETF (XLE) gained 3.1% and the Financial Select SPDR ETF (XLF) 3%. The SPDR Healthcare Sector Choice Fund (XLV) rose 1.7%.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) jumped 4.2% and the ARK Genomics ETF (ARKG) jumped 5.2%. TSLA stock is a major ownership across Ark Invest’s ETFs.
Top 5 Chinese stocks to watch right now
Netflix earnings topped second-quarter viewers while revenue slipped slightly. Netflix subscribers decreased by 970,000 vs. The company expects a loss of 2 million. The IPTV giant sees a gain of 1 million subscribers in the current quarter, even as its third-quarter earnings plunge. The final season of “Stranger Things” was released at the end of the second quarter and the beginning of the third, which likely helps increase the number of subscribers.
Netflix stock jumped 8% in overnight trading. NFLX stock rose 5.6% to 201.63 Tuesday, rebounding in the past few days but still range bound since its first-quarter earnings report.
Netflix subscriber data is good news for streaming players like Rocco (ROKU) and Disney (DIS).
JB Hunt’s earnings and revenue growth were better than expected, as freight stocks struggle amid weak freight rates and demand while diesel prices hit record levels. JBHT stock is down 1% in extended trade. Shares rose 3.8 percent to 174.46 on Tuesday, after retracing the 50-day streak last week.
Trucking company associate Knight Swift (KNX) and railroad giant CSX (CSX) Wednesday delivery date.
Cal-Maine’s earnings easily exceeded fourth-quarter fiscal targets while revenue rose 69%, in the fourth consecutive quarter of accelerated growth, amid strong egg pricing.
CALM stock is up 1% late. Shares fell 1.7% to 52.33 on Tuesday, but rebounded from the 21-day streak. CALM stock has 60.05 buying points to the base of the cup, according to MarketSmith analysis, but ideally it would form a handle.
ASML earnings are due very early Wednesday morning, and results will kick in for the semiconductor makers. With demand for chips sagging due to slowing computer and smartphone sales, investors are seeing weak demand for chip equipment as well. ASML stock rose 5.25% to 498.36 on Tuesday, extending its two-week rebound from 52-week lows but still below the 50-day line.
Few of the chip-related plays are above the 50 day streaks. But chip design software makers Synopsys and rhythm design systems (CDNS) is above the 50-day and 200-day lines, near the blinking buy signals.
Tesla vs. BYD: Which EV giant is the best one to buy?
Market Rise Analysis
After reversing lower from major resistance on Monday, the market rebounded strongly on Tuesday in higher volume against. Monday. The Nasdaq bounced back above the 50-day line and Monday’s high to its highs in late June and early July. So did small-cap owner Russell 2000.
The Dow and the S&P 500 rose above their 50-day lines and are approaching their highs in late June.
Can the market now rise decisively to remove these resistance levels? Doing so may indicate that the market is at least a tradable rally. Keep in mind that the June highs are the next big hurdle.
The market breadth was strong on Tuesday, but there weren’t many new stocks that exploded or showed strong movement. It was a day of deep sea fishing, hard hit stocks rose but still far from old highs.
However, it was good to see ETFs (SMH) and software (IGV) moving back above the 50-day lines. As with the major indices, chip and software stocks have peaked above the 50-day lines at times briefly this year to decline rapidly.
The medical leaders who reversed on Monday are back at a lower level, rebounding on Tuesday. AstraZeneca (AZN) Moved into buying territory, albeit lightly.
beauty products like elf beauty (dwarf), Ulta Beauty (ULTA) and Olaplex (OLPX) is showing strength, even if their charts aren’t perfect.
Time to Market with IBD’s ETF Market Strategy
What are you doing now
It’s a tough time. The major indicators are starting to break through the resistance. If this continues, investors may feel more confident about gradually increasing exposure. However, earnings season is heating up, with the Federal Reserve meeting next week.
These news events can support the market up or send indicators sharply lower – or flip back and forth. Individual stocks can go down on earnings in any case.
So if you add exposure, prepare to roll back quickly.
Definitely work on your watchlists, and spend extra time on the lead candidates for new entries.
Read the big picture every day to stay in sync with market trend, stocks and leading sectors.
Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.
You may also like:
Why IBD simplifies the search for the best stocks
Do you want to get quick profits and avoid big losses? Try SwingTrader
Best growth stocks to buy and watch
IBD Digital: Unlock IBD Premium Stock Listings, Tools & Analytics Today