Dow Jones Futures: Apple, Tesla Lead As Rivian, Lucid Reverse; Nvidia leads revenue movers

Dow Jones futures changed little late Wednesday, along with S&P 500 futures and Nasdaq futures. Nvidia revenues were in focus overnight. The stock market withdrew on Wednesday despite positive moves from Apple shares and Tesla.


Tesla (TSLA) came back even that Rivian Automotive (RIVN) sold out, and fell for the first time since the RIVN IPO last week. Lucid Motors (LCID) withdrew after the LCID stock rose on Tuesday.

apple (AAPL) approved a point of purchase.

Key income

Nvidia (NVDA), Cisco Systems (CSCO), Sonos (I AM), Bath & Body Works (BBWI) and Victoria’s secret (VSCO) reported earnings after closing.

Nvidia shares rose nearly 5% in overnight trading after Nvidia’s earnings and earnings topped the list. NVDA shares fell 3.1% to 292.61 on Wednesday. Advanced micro devices (AMD) climbed 1% late after falling 0.7% on Wednesday. Both Nvidia and AMD shares are consolidating at record high levels after strong movements in recent weeks.

CSCO shares fell 6% overnight. Cisco revenues were reduced to earlier, but revenues and guidance were weak. The CSCO share fell 0.4% to 56.76 on Wednesday, now with a handle on the cup base, giving it a buy point of 58.73. Arista Networks (ANET) has changed little lately as the Cisco network rival is working on a shelf.

The SONO share rose 2% in expanded trading after closing down 3%. The maker of advanced Sonos smart speakers lost revenue and revenue, but offered positive prospects. The SONO stock may regain the 50-day line and may test recent short-term resistance, but investors may want to see a pull above the 200-day line before entering early.

BBWI shares rose 3% overnight after Bath & Body Works earnings topped the list in their first report since L Brands split into BBWI and VSCO. The BBWI stock can handle a mini-consolidation – close to being a tight pattern – just over a double-bottom base. It can offer an additional buying point or aggressive entrance.

The VSCO share rose 12% overnight. Victoria’s Secret’s revenue results were mixed. After first rising in early August on spinoff, the VSCO stock fell sharply. But it could break a trend line Thursday morning and get over the 50-day line, offering an aggressive entry.

Key income Thursday morning

early Thursday, Macy’s (M), Kohls (KSS) and Chinese e-commerce giants Alibaba (BABA) and (JD) report earnings. Macy’s shares fell 4.5% on Wednesday, but are still slightly higher. Kohl’s retreated 3.1%, backing up a buying point. BABA shares and are trying to break a long decline, with JD shares having more luck. But Alibaba fell 4.1% and 3% on Thursday.

Tesla, Nvidia and AMD shares are on IBD Leaderboard and IBD 50. Apple and LLY shares are on SwingTrader. Apple stock was Wednesday’s IBD Stock Of The Day.

The video embedded in this article discussed the market rally action on Wednesday and analyzed the AAPL share, Eli Lilly (LLY) and ZIM integrated shipping (ZIM).

Dow Jones Futures today

Dow Jones futures were flat versus fair value, even with CSCO shares a drag. S&P 500 futures rose 0.1 percent. Nasdaq 100 futures rose 0.2%, helped by the NVDA stock.

Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

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Stock market rally on Wednesday

The stock market rose modestly, but still not far from all-time highs.

The Dow Jones Industrial Average fell 0.6% in Wednesday’s trading session. The S&P 500 index lost 0.3%, with Goal (TGT), Visa (V) and Mastercard (MA) suffers solid losses. The Nasdaq composite retreated 0.3%. The big Nasdaq 100 closed just over break-even, led by Apple stock and Tesla. Small-cap Russell 2000 fell 1.2%.

US crude futures fell 3% to $ 78.36 a barrel.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) retreated 1.25%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 0.1%. iShares Expanded Tech-Software Sector ETF (IGV) fell 0.85%. VanEck Vectors Semiconductor ETF (SMH) gave up 0.6%. The Nvidia share is an important SMH component, along with AMD.

ARK Innovation ETF (ARKK) reflected more speculative history stocks, retreating 1.85% and ARK Genomics ETF (ARKG) 2.1%. The Tesla share is the top holding across ARK Invest’s ETFs.

The SPDR S&P Metals & Mining ETF (XME) fell 1.6% and the Global X US Infrastructure Development ETF (PAVE) fell 0.8%. The US Global Jets ETF (JETS) fell 0.65 percent. SPDR S&P Homebuilders ETF (XHB) fell 0.1%, as home dealers fell while the actual builders performed well. Energy Select SPDR ETF (XLE) fell 1.5% as crude oil futures fell sharply. Financial Select SPDR ETF (XLF) fell 1.15%.

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Apple shares in buy zone

Apple shares rose 1.65% to 153.49, just above a 153.26 cup handle with a handle, according to MarketSmith analysis. The relative strength limit begins to increase, but from a low level of four months. At best, it has been moving sideways since August 2020. This reflects the weak performance of the Apple stock compared to the wider market. The RS line, the blue line in the accompanying charts, tracks the performance of a stock versus the S&P 500 index.

Rivian stock reverses

Rivian shares fell 15% to 146.07, the first decline in the electric pickup manufacturer’s short history. The RIVN share has still almost doubled its listing price of 78 dollars from just over a week earlier.

Lucid shares fell 5.35% to 52.55, after trading more than 10% before Wednesday’s opening. This was followed by a 24% increase in Lucid Motors on Tuesday after reporting a large jump in Lucid Air reservations. The LCID share has continued to double from a buy point of 25.76.

Meanwhile, Tesla shares rose 3.25% to 1,089.01. Maybe investors are moving funds from Rivian shares and Lucid shares and back to Tesla. Maybe investors will take hold of Elon Musk’s ongoing TSLA stock sale. Musk is about halfway through selling 17 million shares in the Tesla stock, which will make up 10% of his holding.

The Rivian stock and Lucid extended the losses overnight, while Tesla was little changed.

Market Rally Analysis

The rise in shares remains just below record highs for the S&P 500 and Nasdaq.

With Apple and Tesla as leading Nasdaq components with large companies, the Nasdaq 100 is 5.7% above its 50-day line. The Nasdaq composite is 5.2% over the 50-day period. It is not at the 6% -7% level that indicates an increasing risk of a new withdrawal, but it is not far off either.

The Dow Jones and Russell 2000 are lagging behind, just above their 21-day moving average. But there is undoubtedly constructive action given the recent run-up. A Nasdaq retreat to the 21-day line could be healthy for the market upturn. Just taking a break around record highs for a couple of weeks would serve that purpose.

Apple and Tesla shares serve to cover some weaknesses in the market, even in growth. The Rivian share and the Lucid share were greatly expanded and are due to a withdrawal, as the electric car sector has become a little frothy. Software and chips also withdrew.

Financials had a bad day, led by Visa and various payment stocks, but also the banks struggled. Energy and other raw materials fell when underlying commodity prices withdrew.

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What to do now

The rise in shares continues to be in good shape. But many stocks are expanding. Some lashing actions can lure investors into rising stocks, only to quickly retire. Airbnb (ABNB) just moved past a new buying point on Wednesday morning, but turned around for a loss of 3.8%.

Investors may only want current positions, apart from trimming some extended winners and cutting out losers.

With so many new listings among executives in recent months, investors have to watch out for major reversals around buying points and large round-trip gains. You need to balance, based on your investment style, letting IPO stocks run and withdraw versus locking in at least partial purchases.

If you are making new purchases, early registration is a good idea, but do not skip. Wait a few minutes to trade regular session, especially after earnings or big news, to see if the euphoria or gloom before the market is temporary.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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