Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. MongoDB (MDB) And Take care of the brothers (Tulle) led earnings after the close, with AMD AI’s event on Wednesday.
The stock market rally had a mixed session even as Treasury yields continued to fall on weaker jobs data. Giant companies outperformed while smaller companies lagged. apple (Camel) broke out, and is back above the $3 trillion valuation. Amazon.com (Amzn) Retrieve a buy point. Nvidia (NVDA) And Tesla (TSLA) rebounded from 50-day lines. Microsoft (MSFT) rose slightly inside the buy zone.
Early on Wednesday, Dealer Ollie (first) Quarterly financial statements will be issued.
Advanced micro devices (AMD) The Advancing AI event will be held on Wednesday morning. It is expected to officially launch the MI300 data center GPU to expand its competition with Nvidia. AMD stock fell 0.2% to 118.38 on Tuesday, below its 21-day line. While the buy point of 122.11 cup with handle is still technically valid, investors will likely use the November 29 high of 129.73 as a new entry for the handle.
Amazon, Microsoft and Nvidia shares are in play IBD Leaderboard. Shares of Apple and Nvidia were added to SwingTrader on Tuesday. MSFT stock is on IBD’s list of long-term leaders. Nvidia, SentinelOne, MongoDB, and Microsoft stock are in the market Bahraini dinar 50. Microsoft and MDB shares are in the market IBD Big Cap 20.
Apple was the IBD stock of the day on Tuesday.
The video embedded in the article reviews Tuesday’s market action and analyzes Apple, Amazon, and Nvidia stocks.
Dow jones futures today
Dow Jones futures were little changed versus fair value. S&P 500 futures rose, and Nasdaq 100 futures rose 0.1%.
Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
MDB stock fell sharply during overnight trading, indicating a move below its recent buy point. MongoDB’s earnings once again crushed views while comfortably outpacing revenue. The database software maker also trended higher in the fourth quarter. But deferred billings and revenues were disappointing. MongoDB stock rose 2.5% to 433.67 on Tuesday, just breaking out of the buy zone of a cup-with-handle base, according to a MarketSmith analysis. Official buy point 412.67.
ASAN stock fell in an extended move, indicating a return below the buy zone although Asana also topped views and headed higher. Shares rose 2.2% to 23.31 on Tuesday. Asana stock surpassed its buy point at 22.13 last Friday.
HQY stock was little changed overnight after HealthEquity earnings beat third-quarter views. Shares of the health savings account manager fell 4 cents to 69.02 on Tuesday, just below the 50-day line. HealthEquity stock is operating at a buy point of 76.62 from a 13-month cup-with-handle base. A decisive move above the 50-day level may provide an early entry.
TOL stock rose modestly in late trading after the luxury homebuilder beat earnings views and gave strong financial guidance for the first quarter and 2024. Toll Brothers shares closed flat at 87.21. This is slightly extended from the cup-with-handle buy point of 82.39 but in range from the shelf entry of 87.12.
SentinelOne stock rose in extended trading, signaling a breakout after the cybersecurity company reported a smaller-than-expected loss and 42% revenue growth. SentinelOne also guided for higher Q4 revenue. Shares fell 1.2% Tuesday to 20 but were rising on the right side of a deep 43% base with a buy point of 21.95. S stock arguably entered early at around 18 last week.
AVAV stock fell during overnight trading after AeroVironment’s strong earnings beat. Shares of the drone maker rose 0.8% to 141.23 after hitting a record intraday high on Monday. AVAV stock is extending from the buy zone.
Stock market pool
The stock market rally was mixed, with larger companies supporting the major indexes while smaller companies retreated.
The Dow Jones Industrial Average fell 0.2% in stock market trading Tuesday. The S&P 500 lost a small portion. The Nasdaq Composite Index rose 0.3.
The Dow Jones is holding at a 52-week high, while the S&P 500 and Nasdaq are trading just below their 52-week highs.
It was not a good day for market breadth, although the overall trend remains positive. Losers outnumbered winners by a ratio of 2 to 1 on the New York Stock Exchange and nearly that on the Nasdaq
The small-cap Russell 2000 index fell 1.4%. That followed a 2.9% jump on Friday and a 1.1% gain on Monday.
Invesco S&P 500 Equal Weight Fund (RSP) fell 0.8%, which is certainly underperforming the S&P 500.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) fell 0.6%, but came off the lows. The Nasdaq 100 rose 0.25%, supported by Apple, Amazon, Nvidia, Tesla and others.
Leading stocks generally look to be doing well, while losing sectors have mostly been pausing within uptrends. The only exception is the oil and gas sector.
US crude oil prices fell 1% to $72.32 per barrel.
The yield on the 10-year Treasury note fell 11.5 basis points to 4.17%, hitting a three-month low. The odds of a Fed rate cut in March now exceed 65% versus about 35% the previous week.
Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) closed just below the breakeven level. Microsoft shares are a huge holding for IGV, with SentinelOne also in the fund. VanEck Vectors Semiconductor ETF (Trait) was flat. NVDA stock is SMH’s largest holding, and AMD is also an important component.
Mirroring stocks with more speculative stories is the ARK Innovation ETF (Ark) decreased by 0.9%, while ARK Genomics shares (Arkj) decreased by 3.25%. Tesla stock is a prime holding across ARK Invest’s ETFs.
SPDR S&P Metals and Mining Fund (XME(down 2.5%, Global X US Infrastructure Development ETF)cradle) gave up 1.1x%. American World Aircraft (Planes) decreased by 1.55%. SPDR S&P Homebuilders ETF (XHB) fell 0.5%, and TOL stock was a member of XHB. Energy Select SPDR ETF (XLE(Down by 1.75%, Healthcare Sector SPDR Fund)Forty-fifth) decreased by 0.1%.
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Mega Cap Stocks
Megacap shares have paused or declined over the past two weeks, but rallied on Tuesday.
Apple stock rose 2.1% to 193.42, surpassing a cup-with-handle buy point of 192.93. AAPL stock closed at a valuation of $3.008 trillion, surpassing the $3 trillion mark. On Tuesday, iPhone maker Foxconn raised its fourth-quarter forecast after reporting strong revenue in November.
Amazon stock rose 1.4% to 146.88, rebounding from a 21-day line and regaining a buy point at 145.86.
Tesla stock rose 1.3% to 238.72, rebounding from a 50-day streak and snapping a four-day losing streak. Shares pulled back from an intraday high of 246.66. The electric car giant has a double-bottom buy point of 278.98, but investors can use the November 29 high of 252.75 as an early entry.
On Tuesday, weekly electric vehicle registration data showed Tesla China sales continuing to rise, likely boosted by the updated Model 3. The electric car giant has recently offered some incentives in China, but they have been relatively modest given the fierce electric car price war there. On the flip side, weak German sales may have cooled Tesla stock enthusiasm on Tuesday afternoon.
Nvidia stock rose 2.3% to 465.66 on Tuesday, breaking away from its 50-day line after a three-day decline. The 476.09 double bottom buy point is still valid, but NVDA stock must clear the 21-day line first. It’s possible that Nvidia could formulate a new merger. Trading volume was slightly below average after several days of significant declines in volume over the past two weeks.
Wednesday’s AMD AI event is important for Nvidia, which has dominated its AI chip business so far.
MSFT shares rose 0.9% to 372.52. On Monday, shares trimmed a key buy point of 366.78 cups, but managed to close above that entry as well as the 21-day line. Microsoft stock is 7.4% above its 50-day line, no longer extended after being 11% above that key level on November 10, when it first broke out.
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What are you doing now
The stock market rally still looks healthy. Market breadth improved, though, on Tuesday.
There are some stocks flashing buy signals, but investors may simply want to hold steady while major indexes and some leading stocks consolidate. If they haven’t already, investors could take some profits in extended stocks after November’s big gains. But it depends on exposure and concentration levels as well as your personal investment style.
Keep working on your watch lists. Be sure to check beyond growth stocks, as many other sectors have rallied.
Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.
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