Dow Jones futures rose a few hours later, along with S&P 500 futures and Nasdaq futures. The ongoing talks about the debt ceiling are in focus. Palo Alto Networks (Banu) on Tuesday night’s earnings, with nvidia (NVDADividends due Wed. PTC treatments (PTCT) Dive on disappointing clinical trial data.
X
The stock market rally eased on Tuesday, as a number of stocks from the leading groups suffered heavy losses.
Debt ceiling talks continue with no deal imminent. House Speaker Kevin McCarthy said the two sides “are not close to a debt ceiling agreement. At the same time, President Joe Biden and House Republicans don’t seem to be far apart on provisions for raising the debt limit.” Treasury yields and the US dollar are finally on stocks, along with various hints of weaker consumer spending.
The video included in this article reviews and analyzes the market action on Tuesday Alamos Gold (AGI), Meritage Homes (MTH) And Las Vegas Sands (LVS).
Dow jones futures today
Dow futures rose 0.1% against fair value. S&P 500 futures rose 0.1% and Nasdaq 100 futures rose 0.2%.
Crude oil futures rose 1%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
earnings
Palo Alto Networks, Fresh remains (latest), gut instinct (INTU) And Toll Brothers (TOL) reported overnight.
PANW stock rose strongly in extended trading after Palo Alto earnings beat third-quarter financial views while revenue was on the same line. The cybersecurity company made guidance slightly higher for Q4 EPS. Shares fell 1.2% to 189.74 in the regular Tuesday session, back below the 50-day line. Palo Alto stock is 203.54 buy points from a handle in a long consolidation.
NEWR stock fell overnight, indicating a significant drop below the buy point and testing early entries around 76. New Relic’s earnings are leading strongly while revenue slightly exceeded financial views for the fourth quarter. But the data analytics company led the decline in revenue for the first quarter of fiscal year 2024. Shares fell 1.2% on Tuesday to 82.51, but rose to close above 80.98 buy points. New Relic stock rose on March 17 after a report of an upcoming bid to buy private equity.
INTU stock fell sharply after hours. Intuit’s earnings beat third-quarter expectations while revenue missed. The maker of Turbo Tax software lost 0.95% on Tuesday, to 449.80. Intuit stock has a 462.60 point buy handle of the long consolidation.
TOL stock rose modestly in late trading. Toll Bros. Comfortably on the fiscal consensus for the second quarter, with the luxury homebuilder also ahead in the third quarter. Shares fell 1.5% to 63.75 on Tuesday, falling below the 21-day line but still above 62.71 to buy.
analog devices (ADI) reports early Wednesday. ADI shares fell 1.8% to 187.92 on Tuesday. Action has been stopped at 198.35 pips buy from Fenjan base.
nvidia, Elf Beauty (dwarf) And snowflake (snow) Report late Wed.
Nvidia’s earnings and guidance could have a significant impact on the chip sector and AI-related stocks. On Tuesday, Nvidia and Microsoft (MSFT), the two biggest names in the field of artificial intelligence at the moment, said on Tuesday that they will cooperate in the field of artificial intelligence. Nvidia stock fell 1.6% on Tuesday, down slightly for the third straight session, below 52-week highs.
ELF stock fell 1.1%, just below its 50-day line, after falling 4.3% on Monday. SNOW stock lost 1.85%, and paused near the top of a low or during a longer consolidation period.
NVDA stock is running IBD Leaderboard, while ELF stock is on the leaderboard watchlist. AGI stock is on SwingTrader. ice stocks on defect 50. Alamos Gold was the IBD stock for Tuesday.
PTCT stock dives on beta data
PTC Therapeutics announced late Tuesday that its treatment with vatoquinone did not meet its primary goals in a phase 3 trial of patients with Friedreich ataxia, a genetic disease that affects the body’s nerves. The biotech said vatiquinone has shown significant benefits for some minor measures.
PTCT stock fell more than 20% overnight. Shares traded at two-year highs after the decisive clearing of last week’s rule.
Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live
Stock market rise
The stock market rally started mixed on Tuesday but gradually lost more ground, led by technology.
The Dow Jones Industrial Average lost 0.7% in stock market trading Tuesday. The S&P 500 fell 1.1%. The Nasdaq Composite fell 1.3%. Small cap Russell 2000 fell 0.4%
US crude oil prices rose 1.2 percent to $72.91 a barrel. Copper prices, a good measure of global economic activity, fell 0.9% to their worst close in nearly six months.
The 10-year Treasury yield fell 2 basis points to 3.7%, after rising to 3.76% on the day. This interrupted a series of seven sessions of higher rates.
Exchange Traded Funds
Among the growth ETFs is iShares Expanding Technology and Software Sector Fund (IGV) slipped 1.6%. PANW stock is a top 10 IGV holding. VanEck Vectors Semiconductor Corporation (SMH) gave up 1.4%. Nvidia stock is a major component of SMH, with analog hardware also present.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark) down 2.2% while the ARK Genomics ETF (ARKG) gained 0.2%. Both hit three-month highs on the day.
SPDR S&P Metals & Mining ETFs (XME) fell 0.6%. US Global Gates Foundation ETF (Planes) fell 0.6%. SPDR S&P Homebuilders ETF (XHB) fell 1.6%. TOL stock is a holding of XHB.
Energy Defined Fund SPDR ETF (xle(at 1.1% and the SPDR Health Sector Selection Fund)XLV) decreased by 1.1%
SPDR Financial Selection Fund (45) decreased by 1.2%. SPDR S&P Regional Banking ETF (Creates) rose by 1%, to hit the resistance at the 50-day line.
Top five Chinese stocks to watch now
Market rally analysis
The stock market rally suffered heavy losses on Tuesday, especially for many leading stocks and groups.
The biggest losses came in the Nasdaq, which is looking good after rising significantly in the past few weeks. The S&P 500 may be back in its sideways range after hitting 2023 highs late last week. Or it could just be a pause before it explodes higher.
The Dow Jones fell again below the 50-day line, with the 200-day line not far away.
The small Russell 2000 reversed lower after hitting the resistance at the 200 day line.
The losers outperformed the rising stocks, but not decisively.
First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW) fell 1.4%, although it reached a three-month high on Monday. It is still above the 50-day line.
Invesco S&P 500 Equal Weight Fund (RSP) lost 1.1%, returning below the 200-day line and the 50-day line. RSP needs to show more strength.
The biggest concern on Tuesday was heavy losses in several leading groups, including homebuilders, building materials, casinos, luxury goods, medical products, credit cards and more.
In some cases, losses don’t do much damage to the graph, eg lantheus (LNTH) or FirstSource builders (BLDR).
But LVS stock, Meritage, visa (Fifth) And LVMH (for my mouthAll of them fell below the 50-day lines, which led to a reduction or cancellation of buy points.
Meanwhile, tech giants and chip pioneers, including Nvidia, fell slightly. Some AI stocks fell after huge gains, while… Palantir Technologies (PLTR) keep running.
There was no clear reason for the decline in the market rally on Tuesday. Debt ceiling negotiations are continuing with no signs of a rupture. Of course, a US default looms if there is no deal to raise the debt limit by early June. The rebound in Treasury yields and the dollar may have finally reached the pain threshold for stocks, although speculative stocks did not lead the downside. A huge new wave of the Covid virus may form in China.
In the end, it doesn’t matter why stocks are down.
It’s time to market with IBD’s ETF Market Strategy
What are you doing now
The stock market has been bizarre in recent weeks, with pockets of massive strength amidst lackluster overall market action at best. Tuesday’s declines in several leading groups raise concerns that market leadership may narrow further.
There were not many buying opportunities on Tuesday. Selling in some stocks shows that taking at least a partial profit on winning stocks is still a sound strategy.
This is an uneven market rally. It could turn into a broad and long-term uptrend. Or it could crash or malfunction. But as an investor, you need to pay attention to what the market is doing now.
Keep working on those watchlists.
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
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