As with S&P 500 futures and Nasdaq futures, Dow Jones futures changed little overnight. Advanced Micro Devices ,amd) made noteworthy earnings headlines after the shutdown.
Stock market rally retreated on Tuesday, with the Dow Jones falling amid House Speaker Nancy Pelosi’s visit to Taiwan and comments from the Fed.
amd stock, SolarEdge Technologies ,SEDG), lithium play livant ,LTHM, Occidental Petroleum ,oxy, Pioneer Natural Resources ,pxd), health care cost management firm evolutionary health ,EVH) And paypal ,PYPL) reported late Tuesday night.
Early Wednesday, China e-commerce firm Ali Baba ,Dad) reports quarterly earnings. China EV and Battery Giants BYD ,i will) will likely report July sales, following delivery data From NIO ,NIO, xpeng ,XPEV) And lee auto ,Took) on Monday.
dow jones futures today
Dow Jones futures rose 0.3% versus fair value. S&P 500 futures advanced 0.1%. Nasdaq 100 futures closed lower.
AMD stock fell strongly after AMD’s earnings top-notch But revenue guidance fell short. Shares rose 2.6% to 99.29 in Tuesday’s regular session, going strong from a 52-week low on July 5. AMD stock is still below its 200-day line.
SEDG’s stock fell after earnings just beat and missed revenue slightly. SolarEdge stock rose 1.9% to 365.41 on Tuesday, rising over the past several days on a tax-spend-climate bill boosting other solar income and green energy.
After LTHM stocks were about flat live earning Top view and revenue guidance was strong. Reclaiming its 50-day and 200-day moving averages, Livent stock jumped 6.8% to 25.93 on Tuesday. Rival Albemarle ,album) Wednesday night report. ALB stock remained flat overnight. Shares rose 1.6% on Tuesday, moving toward a buy point.
OXY stock fell slightly despite Occidental earnings outpacing the quarterly target. Warren Buffett’s favorite energy stock fell 0.3% on Tuesday, just above its 50-day line in a one-cup basis.
PXD stock declined after topping earnings and missing revenue, which ended with a . part of a big week for shell result, Pioneer Natural Resources also announced a dividend increase. PXD stock fell 0.1% on Tuesday, down from its 50 days low.
EVH Stock Soared After Evolent Earnings Beat View and the health care management firm provided full-year guidance. Evolent stock climbed 1.2% on Tuesday, falling outside buying limits.
PYPL shares jump paypal income Green and guidance was strong. The digital payments leader also confirmed that active investor Elliott Management has taken a $2 billion stake. Shares rose 1.2% to 89.63 on Tuesday, continuing a rally since late June but well below the 200-day line.
BABA stock rose 2.5% to 92.62 on Tuesday ahead of the results, but remains below the 50-day and 200-day lines.
BYD stock fell 1.5% to 36.75 on Tuesday, marginally below its 50-day line as it works on a new consolidation.
BYD is likely to report another month of record sales with several new growth drivers. This includes the BYD seal, a Tesla ,TSLA) rival Model 3, whose deliveries will start this month. The China EV giant is also expanding into new markets in the coming weeks and months.
Tesla stock, for its part, rose 1.1% to 901.76, extending the winning streak to five sessions. Shares once again found resistance at the 200-day line.
stock market rally
The stock market rally closed at lower levels after trading up and down during the session.
Speaker Pelosi visited Taiwan on Tuesday to discuss travel plans with top officials. Chinese officials threatened that action would be taken if she went on the trip, and carried out or declared various military displays of force. Following Pelosi’s plane landing, key indices rebounded but then mixed and faded.
The Dow Jones Industrial Average fell 1.2% on Tuesday stock market trading, with blue chips not far from the session’s low. The S&P 500 index lost 0.7 percent. The Nasdaq Composite, for much of the day, closed down about 0.2%. Small-cap Russell 2000 down 0.1%
US crude oil prices rose 0.6% to $94.42 a barrel. US natural gas prices are down 7%.
The 10-year Treasury yield jumped 13 basis points to 2.74%, just below 2.58% from its intraday low. Yields picked up as Pelosi-Taiwan fears eased. San Francisco Fed President Mary Daly and Chicago Fed President Charles Evans became the latest policymakers to emphasize that the central bank is no longer close to fighting inflation.
in the middle Best ETFsInnovator IBD 50 ETF (ffty) rose 1%, while the Innovator IBD Breakout Opportunities ETF (boxing) fell 1%. iShares Extended Tech-Software Sector ETF (tub) up 0.2%. VanEck Vector Semiconductor ETF (smh) dropped 0.2%.
SPDR S&P Metals & Mining ETF (XME) retreated 1.3% and the Global X US Infrastructure Development ETF (expansive) lost 1.5%. US Global Jets (jet) fell 1%. SPDR S&P Homebuilders (XHB) fell 3.1%, as higher Treasury yields weighed on the sector. Energy Select SPDR ETF (XLE) 0.2% and the Financial Select SPDR ETF (45) left 1.1%. Health Care Select Sector SPDR Fund (xlv) fell 0.4%.
Reflecting stocks with more speculative stories, the ARK Innovation ETF (arkk) 2.7% and the ARK Genomics ETF (ARKG) tackled at 2.3%. TSLA stock remains a top holding in Arch Invest’s ETF. Ark also has a small stake in BYD stock.
market rally analysis
The stock market rally opened lower, but then bounced back, only to fade again.
Given the geopolitical adversity and Fed comments, minor market volatility was not of much concern, especially given the market’s rally in recent weeks.
The Nasdaq held support near its opening June high.
The Dow Jones, S&P 500 and Russell 2000 are not up to their early June highs. Above all, the major indices are facing several more resistance levels, especially the 200-day line.
Market leadership is improving.
Solar, oil and gas, food, defence, heavy construction and a variety of medical stocks are performing well, although some are just getting established while others are expanding. Even some chip names are showing strength or establishment, though AMD stocks and the overall conglomerate are still on a long road to recovery. Some steel and metal play and possibly even fertilizer stocks are starting to bounce back.
But after a significant uptick over the past several weeks, often in mild amounts, many of these stocks could use a break. Hence the market action could be positive in a few days or weeks.
What should we do now
Investors should maintain modest investments. It is still unclear whether this is a permanent uptrend or another bear rally. Remember: The more aggressive you are to get into the market, the sooner you should exit when things turn bad.
Whether you are 10% invested or 50%, look for early entries, and try to initiate positions closer to the buy points. This can make it easier to cushion because many stocks tend to bounce back after brief runs.
It is definitely time to engage closely with the market.
Reading big picture Every day to keep pace with market direction and major stocks and sectors.
Please follow Ed Carson on Twitter @ibd_ecarson For stock market updates and much more.
You may also like: