Dow futures rose overnight, along with S&P 500 futures and Nasdaq futures. Kupang (CPNG), Arista Networks (ANET) and recent IPOs Reddit (RDDT) and Astera Labs (ALAB) were among the notable earnings reports.
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The stock market rally on Tuesday was a mixed trend. Palantir (PLTR) and Data Dog ( DDOG ) weighed on software plays, but several leaders across sectors showed buy signals.
Nvidia (NVDA) fell on Tuesday, though it closed off its worst ever level. Tesla ( TSLA ) retreated amid negative headlines. But Tesla stock remains above its 50-day line.
After the close, networking firm Arista Networks, AI chip IPO Astera Labs, social site Reddit and South Korean e-commerce company Coupang reported earnings, along with the EV maker. Raven (RIVN) and software developer Toast (TOST). Reddit stock rose, while Toast and Arista jumped overnight. Coupang, Astera Labs and Rivian fell.
Nvidia is on the IBD leaderboard, adding toast stocks as earnings options. Astera is on the stock leaderboard watch list. Nvidia stock is on SwingTrader. Nvidia and Toast are on the IBD 50.
Dow Jones Futures Today
Dow Jones futures rose a share vs. fair value. S&P 500 futures rose and Nasdaq 100 futures climbed 0.1%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market rally
The stock market rally was relatively quiet on Tuesday, with the major indexes holding on to recent gains.
The Dow Jones Industrial Average rose 0.1 percent in Tuesday's stock market trading. The S&P 500 index climbed 0.1%. The Nasdaq Composite fell 0.1 percent.
Market expansion remained positive.
The small-cap Russell 2000 rose 0.2 percent.
The Invesco S&P 500 Equal Weight ETF ( RSP ) climbed 0.3%, hitting a 50-day high. The FirstTrust Nasdaq 100 Equal-Weighted Index ETF (QQEW) is below its 50-day low.
U.S. crude oil prices were down 0.1 percent at $78.38 a barrel.
The 10-year Treasury yield fell three basis points to 4.46, an intraday low. But the 10-year yield is down 22 basis points in a five-session slide.
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ETFs
Among developing ETFs, iShares' Expanded Tech-Software Sector ETF ( IGV ) fell 0.5%. The VanEck Vectors Semiconductor ETF ( SMH ) sank 0.9%, with Nvidia stock the No. 1 holding.
Reflecting more speculative stories, the ARK Innovation ETF ( ARKK ) fell 2% and the ARK Genomics ETF ( ARKG ) fell 1.2%. Tesla stock is a key holding in ArchInvest's ETFs.
The SPDR S&P Metals & Mining ETF ( XME ) rose 0.5% and the SPDR S&P Homebuilders ETF ( XHB ) fell 1%. The Energy Select SPDR ETF ( XLE ) fell 0.1 percent and the Healthcare Select Sector SPDR Fund ( XLV ) rose 0.8 percent. The Industrial Select Sector SPDR Fund ( XLI ) and the Financial Select SPDR ETF ( XLF ) rose 0.3 percent.
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Key income
Arista Networks' earnings edged up slightly amid strong AI demand from the networking firm. Arista also set a $1.2 billion buyback. ANET stock jumped in overnight action, signaling a gap above the 50-day line and above the trendline's initial entry. Shares fell 1.7 percent to 273.99 on Tuesday, hitting resistance below the 50-day. Arista stock has a 307.74 consolidation buy point.
Astera Labs' earnings comfortably beat estimates in the AI ​​chipmaker's first quarterly report since going public in March. Astera also led the way. But ALAB stock fell in wildly extended trading. Shares retreated 2.5 percent to 76.19 on Tuesday. Astera's IPO base has an 88.59 handle buy point.
Reddit reported strong revenue growth and guidance in its first earnings report. RDDT stock rose more than 10% in late trading. Shares rose 2.3 percent to 49.40 on Tuesday. Reddit stock is building to the right of an IPO base with an official buy point of 74.90.
Kupang's revenue just missed while revenue is at the top. CPNG stock fell sharply overnight. Shares rose 1.3 percent to 23.65 on Tuesday, a fresh two-year high.
Toast reported a bigger-than-expected GAAP loss, but revenue topped expectations. The restaurant-focused software platform added strongly to extended action, signaling an early entry into the trendline on Wednesday. TOST stock rose 0.7% to 23.73 on Tuesday, back above the 50-day line. The stock has a handle buy point with 25.63 cups.
Raven reported a bigger-than-expected loss while revenue rose. The EV startup maintained full-year production targets. RIVN stock fell sharply in overnight trade. Shares fell 0.7% to 10.26 on Tuesday morning after jumping to 11.22 on rumors of partnership talks with Raven. apple (AAPL).
Early Wednesday, Shopify (Shop), Uber Technologies (UBER), ACM Research (ACMR), Toyota Motor (TM), Vastra (VST) report. Shopify is just above its 50-day line while Uber, ACM Research and Toyota are below this key level. Utility-turned-AI play Vistara, which is included in the S&P 500 ahead of the open on Wednesday, has been extended.
Nvidia stock
Nvidia stock fell 1.7 percent to 905.54 after rising nearly 11 percent over the previous three sessions. Stanley Durkenmiller cut his stake in the tech titan in late March after he said AI could be overpowered in the short term.
NVDA stock has a 974 consolidation buy point, according to MarketSurge. A break here can be constructive, allowing a handle form.
Tesla stock
Tesla stock fell 3.8 percent to 177.81, but still above its 50-day line.
The National Highway Transportation Safety Administration requested more information from Tesla about its driver assist system in a letter late Monday. NHTSA launched its latest investigation last month in which it indicated the EV giant was partially to blame for the Autopilot crashes. Meanwhile, China sales remain sluggish, signaling little or no improvement from a seasonally weak first quarter.
What should be done now?
The stock market rally looks solid, with the major indexes still holding out amid positive expansion. Investors can have modest exposure, gradually adding to positions if the market continues to perform.
The earnings season remains heavy and the gold mines and mines continue. So keep that in mind.
Prepare that watchlist, including top stocks from various sectors.
Read The Big Picture every day to stay in tune with market direction and leading stocks and sectors.
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