Dow Jones futures were little changed early Wednesday, while S&P 500 futures and Nasdaq futures rose slightly. The CPI inflation report is on tap early Wednesday.
The stock market rally saw slim-to-modest losses Tuesday, but was still near record highs. Google-parent Alphabet broke out while Tesla continued to run.
But tech and growth were weak again. Nvidia and big AI chip peers Taiwan Semiconductor and Broadcom stock broke key levels, following Taiwan Semi sales and ahead of Broadcom's earnings. Palantir Technologies and AppLovin, among the hottest stocks, also fell.
But Nvidia and Palantir were bouncing early Wednesday as many, but not all, growth stocks rose.
After the close, GE Vernova reaffirmed its full-year guidance at its investor day. The energy generation products maker raised its 2025 revenue target but it's still below consensus. GEV stock declined more than 2% early Wednesday, but off overnight lows. Shares fell 2.3% on Tuesday, undercutting the 21-day moving average.
The video embedded in this article reviews Tuesday's market action and analyzes Google, AppLovin stock and Insulet.
Nvidia stock, Google and Insulet are on IBD Leaderboard, with Tesla on the Leaderboard watchlist. Google stock and Insulet also are on SwingTrader. Nvidia and Taiwan Semiconductor stock are on the IBD 50. Palantir and AppLovin stock are on the IBD Big Cap 20. Alphabet was Tuesday's IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures were even vs. fair value. S&P 500 futures climbed 0.1% and Nasdaq 100 futures rose 0.2%.
The 10-year Treasury yield climbed to 4.25%, around its 21-day line. Crude oil rose more than 1%.
The Labor Department will release the November consumer price index at 8:30 a.m. ET. The CPI is seen rising 0.3% vs. the prior month and 2.7% vs. a year earlier, both ticking up vs. October. Core CPI should advance 0.3% month to month and 3.3% vs. a year prior, both steady vs. October.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally was narrowly mixed for much of Tuesday's session, fading into the close, led by growth stocks.
The Dow Jones Industrial Average fell 0.35% in Tuesday's stock market trading. The S&P 500 index gave up 0.4%. The Nasdaq composite slipped 0.25%. The small-cap Russell 2000 retreated 0.4%.
The Dow Jones and Russell 2000 are testing their 21-day lines. The Nasdaq, no longer extended, is still above all its moving averages.
The Invesco S&P 500 Equal Weight ETF fell 0.6%, below the 21-day line. RSP has fallen for four straight sessions.
The First Trust Nasdaq 100 Equal Weighted Index ETF lost 0.8%.
U.S. crude oil prices edged up 0.3% to $68.59 a barrel.
The 10-year Treasury yield rose two basis points to 4.22%, continuing Monday's bounce but still down sharply from mid-November.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF tumbled 2.1%. The iShares Expanded Tech-Software Sector ETF fell 1.5%, with Palantir stock and AppLovin now significant holdings. The VanEck Vectors Semiconductor ETF slumped 2.5%. Nvidia stock is the dominant SMH member.
ARK Innovation ETF fell 1.2% and ARK Genomics ETF climbed 0.4%. Tesla stock is a major weight across Ark Invest's ETFs. Cathie Wood also built up a big Nvidia stake.
SPDR S&P Metals & Mining ETF retreated 1.4%. U.S. Global Jets ETF ascended 0.9%. SPDR S&P Homebuilders ETF shed 2%. The Energy Select SPDR ETF slipped 0.6% and the Health Care Select Sector SPDR Fund declined 0.4%.
The Industrial Select Sector SPDR Fund dipped 0.2%. The Financial Select SPDR ETF lost a fraction.
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Google Stock
Alphabet stock jumped 5.6% to 185.17, clearing a 182.49 cup-with-handle buy point. The relative strength line, which tracks a stock's performance vs. the S&P 500 index, topped a short-term high, but is still well off highs.
Shares ran Tuesday as Google touted its new Willow quantum computing chip.
Google stock edged higher early Wednesday, perhaps in reaction to General Motors scrapping Cruise robotaxi plans.
Tesla Stock
Tesla stock rose 2.9% to 400.99, nearing the November 2021 record intraday high of 414.50. Morgan Stanley's Adam Jonas became the latest Wall Street analyst to hike his TSLA stock price target. Also, Tesla EV registrations powered higher again in China, helping to offset weakness in the U.S. and Europe.
Shares rose slightly early Wednesday, with Tesla, or at least TSLA, another possible beneficiary from GM Cruise's robotaxi exit.
Investors are making big bets that Tesla is on the cusp of new transformational growth via self-driving EVs and more, along with favorable policies from President-elect Donald Trump.
Palantir Stock
Palantir stock reversed lower for a second session Tuesday, down 2.2% to 70.89. Shares fell 5.1% Monday after hitting a record 80.91 intraday. PLTR stock remains the No. 1 S&P 500 performer in 2024, up 313%.
Palantir was up more than 2% early Wednesday.
AppLovin Stock
AppLovin stock sank 6.3% to 321.06, moving toward the 21-day moving average for the first time in months. APP stock dived 14.7% on Monday after missing the cut for joining the S&P 500 index. But shares are still up nearly 706% for the year.
APP stock was little changed in premarket trade.
Nvidia Stock
Nvidia stock fell 2.7% to 135.07, closing below the 50-day for the first time since Sept. 20. Shares had briefly topped the 21-day and 140.76 buy point. It's possible that Nvidia stock will forge a new, shallow base next to the prior consolidation. But the AI giant isn't far from flashing sell signals.
Nvidia rose 1% early Wednesday, still below the 50-day line.
Taiwan Semiconductor stock fell 3.6% to 191.94, just holding the 50-day but below the 10-week. Shares could be working on a handle to a shallow cup base. Early Tuesday, the maker of chips for Nvidia, Broadcom and many others reported November revenue jumped 34% in local currency vs. a year earlier.
Broadcom stock retreated 4% to 171.81, back below the 50-day line. AVGO stock has a 185.05 buy point from a double-bottom base next to another consolidation. Investors could use Monday's high of 180.79 as an early entry. Broadcom reports fiscal Q4 earnings on Thursday night.
TSM and Broadcom edged higher early Wednesday.
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What To Do Now
The stock market rally remains near record highs. But, with a few exceptions like Tesla, growth names are struggling in the very short term, including Nvidia, Palantir and AppLovin.
It's a time to be cautious. If you do make new buys, be ready to exit quickly.
But investors should still be heavily invested. Keep looking for setups and potential entries, especially if the market pauses for a time. If the selling in hot stocks continues, or broadens out to the wider market, be ready to curb exposure.
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