Dow Jones futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures. Arista Networks and Shift4 tumbled on earnings released Tuesday night.
The stock market rally rose slightly Tuesday with the S&P 500 hitting a record high on a last-minute burst at the close.
Meta Platforms, Netflix, Broadcom and Amazon.com retreated Tuesday, with AMZN falling below the 50-day line. Nvidia rose a fraction, but came well off highs after hitting resistance at a trendline entry.
Meanwhile, Axon Enterprise broke out from a classic cup-with-handle base.
Meta Platforms, Netflix and Axon Enterprise are on IBD Leaderboard. AXON stock also is on SwingTrader. Broadcom stock and Shift4 are on the IBD 50. Axon, Meta, Broadcom and Netflix stock are on the IBD Big Cap 20. Axon and Shift4 stock are on IBD Sector Leaders.
The video embedded in the article reviews Tuesday's market action and analyzes Axon, Broadcom stock and Royal Caribbean.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures lost 0.1%. Nasdaq 100 futures were little changed.
The 10-year Treasury yield rose to 4.57%.
Crude oil climbed less than 1%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Key Earnings
ANET stock fell 5% in premarket trade. Arista earnings beat, though revenue guidance just edged past views. Arista stock rose 3.9% on Tuesday, still below the 50-day line. The chart is damaged from the Jan. 26 DeepSeek sell-off in AI hardware plays.
FOUR stock plunged 11% in extended action, signaling a gap below a buy point. Shift4 earnings beat but revenue and guidance fell short. The payments firm also announced a new acquisition. On Tuesday, Shift4 stock popped 4.8% to 127.14, extended from a buy zone but clearing a shelf above a prior base.
Garmin earnings and revenue beat views early Wednesday. Shares rose nearly 4% before the open, signaling a move back above a 220.53 buy point.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally opened higher, faded to narrowly mixed, before rallying for slim-to-modest gains at the close.
The Dow Jones Industrial Average edged higher in Tuesday's stock market trading. The S&P 500 index advanced 0.2%, just closing in new-high ground. The Nasdaq composite edged up less than 0.1%.
Meta stock fell 2.8%, snapping a 20-session win streak. Netflix stock sank 2.15%, but from a record high. Broadcom stock fell 1.9%, but came off lows to hold the 21-day, providing a shakeout to its handle in a messy base. Amazon stock retreated 0.9%, dropping below the 50-day line, but closing off lows.
The small-cap Russell 2000 rose 0.45%, just topping a declining 50-day line.
The Invesco S&P 500 Equal Weight ETF gained 0.8%, still in the middle of a recent range.
The First Trust Nasdaq 100 Equal Weighted Index ETF popped 1%, hitting another all-time high, reflecting broad strength in growth stocks.
Leading stocks were mixed. Several made solid gains while others pulled back. Axon stock popped 3.9% to 710.01, clearing a 689.54 buy point. But earnings are a week away. Aside from Axon, few stocks flashed buy signals.
U.S. crude oil prices rose 1.5% to $71.85 a barrel.
The 10-year Treasury yield seven basis points to 4.54%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF declined 0.4%. The iShares Expanded Tech-Software Sector ETF rose 1%. The VanEck Vectors Semiconductor ETF gained 1.4%. Nvidia stock and Broadcom are two huge holdings for SMH.
ARK Innovation ETF fell 0.8% and ARK Genomics ETF edged up 0.2%.
SPDR S&P Metals & Mining ETF bounced 1.5%. The Energy Select SPDR ETF gained 1.4% and the Health Care Select Sector SPDR Fund dipped 0.2%.
The Industrial Select Sector SPDR Fund advanced 0.8%. The Financial Select SPDR ETF climbed 0.7%.
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Nvidia Stock
Nvidia stock eked out a 0.4% gain to 139.40. Shares rose as high as 143.44 Tuesday morning, testing a downward-sloping trendline early entry.
Shares did jump 6.9% last week, moving back above the 50-day line.
NVDA stock does have a base, with a 153.13 buy point, on a weekly MarketSurge chart, but it's ugly pattern.
Nvidia earnings are due Feb. 26.
What To Do No
The stock market rally is at record highs according to the S&P 500 and some measures such as QQEW. If the S&P 500 can decisively clear this range, joined by the Nasdaq, there could be clear sailing for a new run.
There weren't a lot of reasons or opportunities to add much exposure Tuesday, though investors could have taken a chance on Axon or a few other names.
Waiting for the market to punch higher is a perfectly sound strategy. The key is to prepare for that potential action by keeping your watchlists up to that.
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.
