Dow Jones futures were little changed early Wednesday while S&P 500 futures and Nasdaq futures fell slightly.
Arista Networks, Toast and ACM Research signaled early entries following overnight earnings.
Recent IPO Reddit jumped after its first earnings report as a public company. Shopify, Uber Technologies, Coupang and Astera Labs were notable earnings losers.
The stock market rally had a quietly positive session Tuesday. The major indexes were little changed after three straight strong gains. Nvidia paused after a big move. Growth stocks generally shined.
Nvidia is on IBD Leaderboard, with Toast stock added Tuesday as an earnings options play. Astera stock is on the Leaderboard watchlist. Nvidia stock is on SwingTrader. Nvidia and Toast are on the IBD 50.
Dow Jones Futures Today
Dow Jones futures were roughly even with fair value. S&P 500 futures declined 0.2% and Nasdaq 100 futures fell 0.3%. On Tuesday, the Dow Jones and S&P 500 rose 0.1% while the Nasdaq composite dipped 0.1%.
The 10-year Treasury yield rose slightly to 4.49%. It fell 3 basis points to 4.46% on Tuesday, down 22 basis points in the last five sessions.
Crude oil futures fell 1% after edging down 0.1% to $78.28 on Tuesday.
Remember that premarket action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Key Earnings
Arista Networks earnings and guidance topped views on strong AI demand with the networking firm also setting a $1.2 billion buyback. ANET stock jumped 7% in premarket action, set to gap above the 50-day line and a trendline early entry. Arista stock has a 307.74 consolidation buy point.
Toast reported a wider-than-expected GAAP loss, but revenue topped and the restaurant-focused software platform guided higher. TOST stock leapt nearly 5% before the open, signaling a clear handle break. Toast has a 25.63 cup-with-handle buy point.
ACM Research earnings easily beat while sales edged past views for the chip-equipment maker. ACMR stock rose solidly before the open, signaling at least a 50-day line test. A clear move above the 50-day would offer an early entry. ACM Research stock has a 33.40 consolidation buy point.
Shopify earnings and revenue edged past views, but the outlook disappointed. But SHOP stock dived more than 15% before the open, signaling a sharp drop below the 50-day line.
Uber reported a surprise loss in Q1 due to revalued equity investments. Gross bookings and gross bookings guidance fell short. Uber stock tumbled in premarket trade. Shares of the riding hailing and food delivery giant already were below the 50-day line.
Astera Labs earnings comfortably beat views in the AI chipmaker's first report since coming public in March. Astera also guided higher. But ALAB stock dived early Wednesday. Astera has an 88.59 handle buy point in an IPO base.
Reddit reported strong revenue growth and guidance in its first earnings report. RDDT stock soared 10% in premarket trade. Reddit stock is building the right side of an IPO base with an official buy point of 74.90.
Coupang earnings just missed while revenue topped. CPNG stock declined solidly overnight. Shares rose 1.3% Tuesday to 23.65, a fresh two-year high.
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Nvidia Stock
Nvidia stock fell 1.7% to 905.54 after running up 11% in the prior three sessions. Shares declined over 3% Tuesday morning, after Stanley Druckenmiller said he slashed his stake in the tech titan in late March and said AI may be overhyped in the short run.
NVDA stock has a 974 consolidation buy point, according to MarketSurge. A pause here could be constructive, letting a handle form. Nvidia earnings are due on May 22.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
