Overnight Dow Jones futures are up slightly, along with S&P 500 futures and Nasdaq futures, with Netflix subscribers in focus and Tesla results looming. Major indicators rebounded on Tuesday above some key levels after hitting resistance on Monday.
The gains were broad, but there were few new buying opportunities.
Netflix (NFLX) Jumped overnight on better than expected earnings and subscriber additions. Trucking giant GB Hunt Transportation Services (JBHT) and egg product Cal Min (calm) also topped EPS views Tuesday night.
Chip Equipment Giant ASML (ASML) reports early Wednesday.
Tesla (TSLAWednesday night earnings headlines. Tesla’s earnings should show an increase compared to the second quarter of 2021 but fall significantly against the first quarter, reflecting the Covid-related effects on Shanghai production. Tesla stock rose 2.1% on Tuesday to 736.59, above the 50-day line and just below some short-term resistance. But TSLA stock is well below its late 2021 peak at 1,243.49.
Dow jones futures contracts today
Dow futures are up 0.45% against fair value. S&P 500 futures rose 0.5%. Nasdaq 100 futures rose 0.55%, with NFLX stock boosting.
Crude oil prices fell slightly. Copper futures are up 2%.
Elon Musk loses the round to Twitter
Meanwhile, a Delaware Chancery Court judge He got a speedy trial subordinate Twitter (TWTR) sued Tesla CEO Elon Musk for his efforts to end the Twitter acquisition. The trial will begin in October. Musk sought a delay until 2023, which would have pressured Twitter to compromise. While the ruling was not based on the facts of the case, it is a positive sign for Twitter. Musk could end up paying a hefty fine — above the $1 billion breakup fee — or possibly have to close a $44 billion deal, worth $54.20 per share. That could force Musk to sell more TSLA shares.
Twitter stock rose 2.8% to 39.49, moving above the 50-day line for the first time in two months.
stock market rise
The stock market rallied strongly at the open and gained momentum, closing with significant gains near session highs.
The Dow Jones Industrial Average rose 2.4% on Tuesday stock market tradingEven with the giants of the Dao IBM (IBM) And the Johnson & Johnson (JNJ) decrease in profits. The S&P 500 rose 2.8%. The Nasdaq Composite Index jumped 3.1%. Small cap Russell 2000 jumped 3.5%.
US crude oil prices rose 1.6% to $104.22 a barrel. Natural gas futures fell 2.9% amid reports that Russia will restart the Nord Stream natural gas pipeline to Europe as scheduled. But Russian President Vladimir Putin hinted at the possibility of new delays late Tuesday.
The 10-year Treasury yield rose 6 basis points to 3.02%. The 2-year Treasury yield rose 8 basis points to 3.24%, with the yield curve continuing to invert for 2-year and 10-year notes.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 1.6%, while the Innovator IBD Breakout Opportunities ETF (fit) made 1.4%. iShares Expanded Technology and Software Fund (ETF)IGV) gained 2.9%. VanEck Vectors Semiconductor Corporation (SMH) rose 4.6%, with ASML stock taking a significant advantage.
SPDR S&P Metals & Mining ETF (XME) advanced by 2.7% and the Global Infrastructure Development Fund (ETF) in the USA (cradle) 3.7%. US Global Gates Foundation (ETF)Planes) rose 4.1%. SPDR S&P Homebuilders ETF (XHB) by 3.4%. SPDR Specific Energy Fund (SPDR ETF)XLE) gained 3.1% and the Financial Select SPDR ETF)XLF) 3%. SPDR Healthcare Sector Selection Fund (XLV) rose by 1.7%.
Netflix earnings topped second-quarter viewers while revenue slipped slightly. Netflix subscribers fell by 970,000 against the company’s forecast of a loss of 2 million. The IPTV giant sees a gain of 1 million subscribers in the current quarter, even as its third-quarter earnings plunge. The final season of “Stranger Things” was released at the end of the second quarter and the beginning of the third, which likely helps increase the number of subscribers.
Netflix stock jumped 8% in overnight trading. NFLX stock rose 5.6% to 201.63 Tuesday, rebounding in the past few days but still range bound since its first-quarter earnings report.
JB Hunt’s earnings and revenue growth were better than expected, as shipping stocks struggle amid weak freight rates and demand while diesel prices hit record levels. JBHT stock is down 1% in extended trade. Shares rose 3.8 percent to 174.46 on Tuesday, after retracing the 50-day streak last week.
Cal-Maine’s earnings easily exceeded fourth-quarter fiscal targets while revenue rose 69%, in the fourth consecutive quarter of accelerated growth, amid strong egg pricing.
CALM stock is up 1% late. Shares fell 1.7% to 52.33 on Tuesday, but rebounded from the 21-day streak. CALM stock contains 60.05 cup base buy pointto me MarketSmith Analysisbut ideally it would form a handle.
ASML earnings are due very early Wednesday morning, and results will kick in for the semiconductor makers. With demand for chips sagging due to slowing computer and smartphone sales, investors are seeing weak demand for chip equipment as well. ASML stock rose 5.25% to 498.36 on Tuesday, extending its two-week rebound from 52-week lows but still below the 50-day line.
Few of the chip-related plays are above the 50 day streaks. But chip design software makers Synopsys and rhythm design systems (CDNS) is above the 50-day and 200-day lines, close to the blinking buy signals.
Market Rise Analysis
After reversing lower from major resistance on Monday, the market rebounded strongly on Tuesday in higher volumes versus Monday. The Nasdaq bounced back above the 50-day line and Monday’s high to its highs in late June and early July. So did small-cap owner Russell 2000.
The Dow and the S&P 500 rose above their 50-day lines and are approaching their highs in late June.
Can the market now rise decisively to remove these resistance levels? Doing so may indicate that the market is at least a tradable rally. Keep in mind that the June highs are the next big hurdle.
The market breadth was strong on Tuesday, but there weren’t many new stocks that exploded or showed strong movement. It was a day of deep sea fishing, hard hit stocks rose but still far from old highs.
However, it was good to see ETFs (SMH) and Software (IGV) moving back above the 50-day lines. As with the major indices, chip and software stocks have peaked above the 50-day lines at times briefly this year to decline rapidly.
The medical leaders who reversed on Monday are back at a lower level, rebounding on Tuesday. AstraZeneca (AZN) moved into a buy zone, albeit a light volume.
What are you doing now
It’s a tough time. The major indicators are starting to break through the resistance. If this continues, investors may feel more confident about gradually increasing exposure. However, earnings season is heating up, with the Federal Reserve meeting next week.
These news events may push the market higher or send indicators sharply lower – or flip back and forth. Individual stocks can go down on earnings in any case.
So if you add exposure, prepare to roll back quickly.
Definitely work on your watchlists, and spend extra time on the lead candidates for new entries.
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