Dow Jones futures fell modestly early Wednesday, along with S&P 500 futures and Nasdaq futures, after Google parent Alphabet tumbled on mixed results. Chipotle Mexican Grill and Nvidia rival Advanced Micro Devices also fell on earnings.
Big techs led Tuesday's stock market rally, with Palantir Technologies skyrocketing. Google stock, Amazon.com and beaten-down Nvidia were also strong performers Tuesday.
Snowflake and Tesla archrival BYD flashed buy signals.
Dow Jones Futures Today
Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures declined 0.5% and Nasdaq 100 futures retreated 0.6%, with Google, AMD and Chipotle all contributing to the slide.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Google stock is on IBD Leaderboard. Snowflake is on SwingTrader. Palantir is on the IBD 50. The video embedded in the article reviews Tuesday's market action and analyzes SNOW stock, JD.com and T-Mobile US.
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Google Earnings
Google earnings slightly topped views, but revenue came in a little light due to cloud weakness. The tech giant sees 2025 capital spending far above estimates.
Google stock sold off in overnight action, signaling a test of its 50-day line.
Shares rose 2.6% to 206.38 in Tuesday's regular session, hitting a fresh high intraday.
Other Earnings
CMG stock declined solidly in extended trade after Chipotle earnings met Q4 forecasts. Same-store sales slightly missed while Chipotle's 2025 comps guidance was lackluster. Shares climbed 1.1% to 59.02 on Tuesday, coming up to the 200-day line.
AMD stock sold off overnight, signaling a new 52-week low. The chipmaker reported in-line earnings, but data center revenue slightly missed. AMD stock popped 4.6% to 119.50 Tuesday. Nvidia stock edged higher late.
Stock Market Rally
The stock market rally had a solid, tech-led session Tuesday. President Donald Trump carried out his 10% tariff hike on China, which responded with targeted retaliation for now. That came after Trump delayed 25% tariffs on Canada for 30 days late Monday, hours after doing the same for Mexico. Falling job openings also buoyed stocks.
The Dow Jones Industrial Average advanced 0.3% in Tuesday's stock market trading. The S&P 500 index climbed 0.7%, moving off the 50-day line. The Nasdaq composite jumped 1.35%, regaining the 50-day. The small-cap Russell 2000 gained 1.4%, still below the 50-day.
The Invesco S&P 500 Equal Weight ETF edged up 0.1%, just below the 50-day line, lagging the tech-fueled S&P 500.
The First Trust Nasdaq 100 Equal Weighted Index ETF rose only 0.4%, but that's after falling just 0.2% on Monday.
U.S. crude oil prices fell 0.6% to $72.70 a barrel, but were well off intraday lows.
The 10-year Treasury yield fell three basis points to 4.51%, reversing from 4.6% early as the JOLTS survey showed a surprise drop in earnings.
Palantir Leads Key Movers
Palantir stock surged 24% to 103.83, hitting a record high on blowout results and strong guidance. Many software names did well, buoyed by Palantir, but not all. Snowflake stock rose 3.6% to 189.11, regaining a 186.90 cup-base buy point.
China stocks had a strong performance despite the Trump tariffs. BYD stock jumped 4.8% to 36.80, clearing a couple of early entries within a four-month consolidation. (Tesla stock, for its part, rallied 2.2% on Tuesday, still below the 50-day line after Monday's 5.2% tumble.)
Alternative asset managers and payment stocks fell in the wake of earnings sell-offs from KKR and PayPal.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF popped 2%. The iShares Expanded Tech-Software Sector ETF gained 1.8%, with Palantir stock a notable holding. The VanEck Vectors Semiconductor ETF rose 1.1%. AMD stock is an SMH component but dwarfed by Nvidia.
ARK Innovation ETF popped 2.2% and ARK Genomics ETF rallied 1.1%. Tesla stock is the No. 1 holding across Ark Invest's ETFs. Cathie Wood's Ark also owns a small BYD stake.
SPDR S&P Metals & Mining ETF jumped 2.7%. The Energy Select SPDR ETF gained 2.1%. The Health Care Select Sector SPDR Fund and the Financial Select SPDR ETF fell 0.3%. The Industrial Select Sector SPDR Fund closed fractionally higher.
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What To Do Now
The stock market rally remains in a trading range, with the Nasdaq especially choppy, just above the 50-day line. The market is extremely news driven and Trump tariff headlines are triggering big swings up and down. Earnings remain heavy. And while Palantir and Spotify soared Tuesday, PayPal was the latest big loser. Google stock may be joining PayPal.
Investors should be cautious about new buys in this environment. Early entries are especially useful in choppy markets. Avoid being too concentrated in a particular sector or theme.
Definitely work on your watchlists. More and more stocks have forged bases with the market in an extended trading range.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
