Dow Jones futures fell slightly early Thursday, along with S&P 500 futures and Nasdaq futures. Arm Holdings, Duolingo, AppLovin and Robinhood Markets headlined key earnings after the close.
The stock market rally had a quiet session for a second straight day. Nvidia fell slightly for a second straight session.
But many growth stocks shined. Arista Networks, Toast and Vertex Pharmaceuticals broke out or flashed buy signals on earnings. Storage plays Nutanix and NetApp also triggered entries.
In addition to Arm, Duolingo, AppLovin and Robinhood, Airbnb, Instacart and Trade Desk reported Wednesday night.
Early Thursday, Constellation Energy and GigaCloud Technology released quarterly results.
Nvidia is on IBD Leaderboard, with Toast stock added Tuesday as an earnings options play. Nvidia stock, NetApp and Toast are on SwingTrader. Nvidia, Toast and GigaCloud stock are on the IBD 50. Trade Desk stock is on the IBD Big Cap 20. Toast was Wednesday's IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures lost 0.2% vs. fair value. S&P 500 futures and Nasdaq 100 futures fell 0.2%.
The 10-year Treasury yield edged up to 4.52%.
Crude oil futures rose slightly.
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 had another quietly mixed session.
The Dow Jones Industrial Average rose 0.4% in Wednesday's stock market trading. The S&P 500 index was flat. The Nasdaq composite fell 0.2%. The small-cap Russell 2000 fell 0.6%, but closed near session highs after finding support near the 50-day line.
U.S. crude oil prices rose 0.8% to $78.99 a barrel.
The 10-year Treasury yield climbed 3 basis points to 4.49%, ending a five-session slide.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF fell 0.4%, with AppLovin and NTNX stock in the ETF. The VanEck Vectors Semiconductor ETF edged up 0.3%. Nvidia is the No. 1 holding in SMH.
Reflecting more-speculative story stocks, ARK Innovation ETF fell 2.5% and ARK Genomics ETF gave up 2.3%. HOOD stock is a notable holding across Ark Invest's ETFs.
SPDR S&P Metals & Mining ETF declined 0.85%. The SPDR S&P Homebuilders ETF slipped 0.35%. The Energy Select SPDR ETF dipped 0.1% and the Health Care Select Sector SPDR Fund retreated 0.3, with VRTX stock a member.
The Industrial Select Sector SPDR Fund closed flat. The Financial Select SPDR ETF climbed 0.4%.
Five Best Chinese Stocks To Watch Now
Key Earnings
Arm earnings beat fiscal Q4 views easily. The AI and wireless chip play guided up slightly on fiscal Q1, but its full-year revenue forecast for a little light. shares plunged in overnight action. The stock fell 1.6% to 106.07 on Wednesday, around its 21-day line. ARM stock has been rebounding since plunging over several sessions in mid-April but is still well below its 50-day line.
Duolingo earnings topped consensus but guidance wasn't great. DUOL stock dived in extended trade. Shares dropped 1.7% to 244.64 on Wednesday, right around a 245.59 cup-base buy point. Duolingo stock is trying to clear a consolidation going back to December.
AppLovin earnings and guidance were strong. APP stock soared overnight. Shares retreated 4% to 74 on Wednesday, ending a four-day win streak. AppLovin stock rebounded from the 50-day line in late April.
Robinhood earnings easily beat views, fueled by crypto trading. HOOD stock rose solidly in premarket action. Shares dipped 0.8% to 17.85 on Wednesday, holding the 50-day line. A decisive move above the 50-day would offer an early entry in an emerging consolidation, using Monday's high of 18.46 as specific trigger. HOOD stock is on track to have a base with a 20.55 buy point after Friday.
Airbnb earnings topped views but the online travel site guided lower for Q2. ABNB stock tumbled in early Thursday. Shares slipped 1.2% on Wednesday to 148.51, dropping a little further below the 50-day line. Airbnb stock has a 170.10 buy point from a flat base, base-on-base formation.
Instacart earnings exceeded estimates. CART stock fell modestly in extended trade. The app-based grocery delivery firm, officially known as Maplebear, edged down 0.1% to 37.48 on Wednesday. Instacart stock has a 39.59 cup-with-handle buy point.
Trade Desk earnings topped views with the online advertising play guiding slightly higher for Q2 revenue. TTD stock rose slightly in overnight action. Shares gave up 4% on Wednesday to 86.02. Trade Desk stock is working on a loose base with a 94 buy point. But shares have been consolidating since last July.
Meanwhile, Constellation Energy and GigaCloud Technology headline early Thursday earnings.
Constellation Energy earnings topped views while revenue missed. The nuclear power giant, benefiting from AI data center power needs, reaffirmed 2024 EPS guidance. Shares fell solidly early Thursday. CEG stock climbed 3.7% to 208 on Wednesday, moving toward the edge of the buy zone from a short flat base.
GigaCloud earnings topped. GCT stock rose slightly before the open. Shares declined 2.4% to 39.14 on Wednesday. GCT stock, which went on a huge run from the end of November to March 15, has a new consolidation with a 45.18 buy point.
Stocks In Buy Zones
Toast soared 13% to 26.82 on Wednesday, blasting above a 25.63 cup-with-handle buy point. The 5% buy zone ends at 26.91. The restaurant software platform reported a wider-than-expected GAAP loss, but revenue topped and Toast guided higher.
Arista stock jumped 6.45% to 291.67 on Wednesday, following strong earnings and guidance, as well as a $1.2 billion buyback. running through the 50-day line and clearing a trendline entry in a new consolidation. ANET stock has a 307.74 consolidation buy point.
Vertex stock climbed 2.1% to 418.82 now decisively clearing the 50-day line and a trendline entry in a day two earnings reaction. On Tuesday, shares peeked above those levels after staging an upside reversal. Late Monday, Vertex earnings and sales topped views, though the biotech giant kept 2024 guidance intact. Keep in mind that Vertex's three-month downtrend came as the major indexes have traded around record highs.
Nutanix stock rose 1.4% on Wednesday to 66.21, briefly topping o a 66.98 double-bottom buy point amid a Raymond James upgrade. NTNX stock hit a record close and is actionable now.
NetApp stock climbed 2% to 109.48 topping a 108.82 buy point from its own double-bottom base. The relative strength line is at a record high.
Nvidia Stock
Nvidia stock edged down 0.2% to 904.12, an inside day as the AI chip leader pauses following an 11% gain in the three sessions ended Monday.
NVDA stock has a 974 consolidation buy point, according to MarketSurge. It's possible that shares are starting to work on a handle. Nvidia earnings are due on May 22.
Market Rally Analysis
The stock market rally is showing constructive action, with the major indexes trading tightly for the past two sessions after solid gains.
There are stocks flashing buy signals. Investors can be adding exposure here.
Earnings season remains treacherous for individual names. Consider that as you mull buys and sells.
Keep your watchlists up to date. A market pause could create a number of handles, while stocks that keep rising will show relative strength quickly
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.
