Dow Jones futures fell slightly Wednesday morning, while S&P 500 futures and Nasdaq futures modestly, with earnings fueling the moves. Dow giant Caterpillar fell on an earnings miss, while S&P 500 play Eli Lilly tumbled. But techs rose as Google-parent Alphabet jumped more than 5% on its earnings, lifting other titans. That includes Microsoft and Meta Platforms, which report tonight.
AMD, recent IPO Reddit and Visa also were among the deluge of earnings reports.
The Nasdaq hit a fresh high Tuesday as the stock market rally showed mixed action. Treasury yields continued to climb. Bitcoin jumped above $72,000 on hopes for a Trump election victory. There were a lot of big earnings losers, with a few flashing buy signals.
Tesla fell slightly, dropping a little further below its recent breakout entry.
The video embedded in this article discusses Tuesday's market action and analyzes Waste Management, Brown & Brown and Samsara.
Dow Jones Futures Today
Dow Jones futures fell 0.1% vs. fair value, with Caterpillar more than offsetting Visa's slight lift. S&P 500 futures and Nasdaq 100 futures advanced 0.1%. Google stock and AMD are S&P 500 and Nasdaq giants. Caterpillar, Eli Lilly and Visa are among the other S&P 500 names reported.
The 10-year Treasury yield dipped to 4.23%.
Crude oil futures rose 1%.
In addition to the overnight earnings wave, investors also will get their first look at third-quarter GDP before the open. The October jobs report is due Friday morning.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Google Earnings
Google earnings were better than expected, fueled by online advertising and cloud computing.
Additionally, Google stock climbed solidly in extended action. Shares rose 1.8% on Wednesday to 169.68, rebounding for a second day from the 21-day line and clearing a 169.16 short-term entry. GOOGL stock has a traditional consolidation buy point of 191.75.
Meta Platforms rose modestly in extended action, along with Microsoft. Both report Wednesday night. Amazon.com moved higher while Apple dipped, with both due late Thursday. All are actionable or nearly so.
The five tech giants have huge implications for the market rally, as well artificial intelligence, cloud computing, online advertising and more.
Nvidia and Broadcom edged lower early Wednesday following Google and AMD earnings. On Tuesday, Nvidia stock edged up 0.5% to 141.25, back above a 140.76 buy point. Broadcom stock bounced 4.2% from the 10-week line, breaking a short downtrend near the top of the base. Meta, Microsoft and Amazon will be key for AI hardware.
Other Earnings
In addition to Google, Advanced Micro Devices, Visa, Chipotle Mexican Grill, Snap, Chubb, Reddit, First Solar and Modine Manufacturing all reported late.
Reddit stock skyrocketed on earnings, while Snap rose sharply and Visa climbed modestly. Chubb was little changed. AMD tumbled while Chipotle, First Solar and Modine Manufacturing were solid losers.
Early Wednesday, Chili's parent Brinker jumped on strong results while Caterpillar fell modestly and Eli Lilly sold off on top- and bottom-line misses. Tesla rival BYD was not yet trading after reporting mixed results.
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Stock Market Rally
The stock market rally had a mixed session, with techs just ahead. The Nasdaq gained ground after the 10 a.m. JOLTS reported showed September job openings well below views.
The Dow Jones Industrial Average fell 0.4% in Tuesday's stock market trading. The S&P 500 index rose 0.2%. The Nasdaq composite climbed 0.8%. The small-cap Russell 2000 declined 0.3%.
U.S. crude oil prices dipped 0.25% to $67.21 a barrel after diving Monday.
The 10-year Treasury yield lost a fraction to 4.27% after running up to 4.34% intraday, its highest level since early July.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rose 0.5%. The iShares Expanded Tech-Software Sector ETF jumped 1.7%. The VanEck Vectors Semiconductor ETF popped 2.3%. Nvidia stock is the No. 1 SMH holding, with Broadcom and AMD stock also key members.
ARK Innovation ETF climbed 0.8% and ARK Genomics ETF fell 0.5%. Tesla stock is a major holding across Ark Invest's ETFs. Cathie Wood also owns a lot of Nvidia stock. Ark also has a small stake in EV giant BYD.
The SPDR S&P Homebuilders ETF slumped 2.1%. The Energy Select SPDR ETF shed 1.5% and the Health Care Select Sector SPDR Fund dipped 0.3%.
The Industrial Select Sector SPDR Fund edged down 0.1%. The Financial Select SPDR ETF retreated 0.6%.
Time The Market With IBD's ETF Market Strategy
Tesla Stock
Tesla stock fell 1.1% to 259.52 on Tuesday. On Monday, shares hit a 13-month high intraday but reversed for a 2.5% loss to 262.51, back below a 264.86 cup-with-handle buy point, according to MarketSurge. However, TSLA stock has held the bulk of last week's 22% spike on earnings.
Tuesday's drop, beyond the post-spike pullback, reflected so-so China EV registrations as well as Tesla insiders selling more shares.
This EV Giant Overtake Tesla On Another Key Measure
What To Do Now
The stock market rally continues to do well, with growth and risk-on plays leading. But this is now the heart of earnings season, with the presidential election and much more coming over the next week or so.
Investors could take advantage of new buying opportunities, especially if you have conviction, but do so carefully. Concurrently, or conversely, you could cut laggards or take partial profits in stocks with earnings due.
Definitely have your watchlists and game plans ready and stay engaged.
Nvidia and Meta stock are on IBD Leaderboard and the IBD 50. Nvidia stock is on SwingTrader. Microsoft stock is on the IBD Long-Term Leaders list. Meta and Broadcom stock are on the IBD Big Cap 20.
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