Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. smart paper (fat) And Jim Stop (GME) fell late in earnings.
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The stock market rally saw a mixed session. The Nasdaq has retreated from its 2023 high while the Dow Jones has rallied. Meanwhile, small and medium-sized stocks have continued their growth lately.
Software, e-commerce, and technology giants, incl Microsoft (MSFT), a parent from Google the alphabet (Google), Amazon.com (AMZN), service now (now) And Shopify (Shop).
The chips have slumped, but they’ve held up better than many tech segments. nvidia (NVDA) fell modestly but remained at its last range.
Tesla (TSLA) extended its winning streak, though it closed to new highs in 2023.
A variety of housing-related stocks and groups have popped up.
The last action could be a nice correction from what was a narrow rally in the market. However, there were a few buying opportunities on Wednesday and reasons to exit or cut positions in some of the hard-hit names.
floor and decoration (FND) was executable after making an upward move above the 50-day line inside the base. Mobileye (MBLY) flashed a buy signal but closed in the lower half of its range. Biogen (bib), already technically in buy territory, rebounded up from the 50-day line in a hopeful sign of FDA approval for its latest Alzheimer’s drug.
NVDA, Shopify, and Tesla stocks in the running IBD Leaderboard. FND stock is on SwingTrader. MSFT stock is at IBD Long-Term Leaders. Stock now on defect 50 And IBD Big Cap 20.
Dow jones futures today
Dow futures fell against fair value. S&P 500 and Nasdaq 100 futures tilted higher.
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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Main earnings
SMAR stock fell 19% overnight. Smartsheet’s first-quarter earnings topped the earnings and sales offerings. But the bills were short. The workplace management software maker also provided guidance on earnings per share, revenue and cash flow for the full year that points to some performance shortfalls for the rest of the year. Shares fell 5.15% to 49 in the regular Wednesday session. Back to about 48.99 buy points. Smart Sheet stock rose 4.8% on Wednesday.
GME stock is down 19% after hours, indicating a move below its major moving averages. GameStop reported a larger-than-expected loss and decline in revenue. The mall video game retailer and meme stock pioneer also fired CEO Matt Furlong and named mega investor Ryan Cohen as CEO. GameStop stock rose 5.75% to 26.11 on Wednesday. GME stock is 27 pips long from a bottom base.
Biogen Alzheimer’s drug
Analysts said Wednesday that FDA staff documents to an advisory committee Friday regarding Biogen’s Alzheimer Leqembi treatment contained no surprises. This raised hopes that the committee would recommend approval. Biogen stock made a bullish reversal around the 50-day line, up 1.7% to 304.90.
BIIB stock is still within the 296.90 double-bottom buy point range, which was originally crossed on April 28. Wednesday’s renewed strength opened up a fresh buying opportunity near 50 days and a break of a 1-month downtrend.
Stock market rise
The rally in the stock market saw the Nasdaq decline as a slew of tech companies fell strongly, but other sectors held up well or advanced.
The Dow Jones Industrial Average rose 0.3% in the stock trading session on Wednesday. The S&P 500 fell 0.4%. The Nasdaq Composite fell 1.3%, its worst loss since April 25th. The small cap Russell 2000 jumped 1.8%, while the S&P MidCap 400 jumped 1.5%.
US crude oil prices rose 1.10% to $72.53 a barrel.
The 10-year Treasury yield rose 8 basis points, to 3.78%. However, treasury bill prices fell overall. One-month Treasury bills fell below 5% after raising 6% in late May before the debt ceiling deal.
Markets are still betting that the Federal Reserve will pause next week. However, the Bank of Canada unexpectedly raised interest rates on Wednesday, a day after Australia’s central bank also defied expectations.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty(sliding 2%, while IBD Breakout Opportunities ETF)fit) advanced 0.7%. iShares Expanded Technology and Software ETF (IGV) fell 3.1%, with Microsoft and ServiceNow shares in the main stocks and SMAR shares also on IGV. VanEck Vectors Semiconductor Corporation (SMH) decreased by 0.6%. Nvidia stock is major property.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(down 1% and ARK Genomics ETF)ARKG) lost just over 1%. Tesla stock is the number one stock ETF held by Ark Invest. Store stock is also a great asset.
SPDR S&P Metals & Mining ETFs (XME) rose by 1.3% and the Global Infrastructure Development Fund (ETF) of the US company Global X (cradle) ran 2.1%. US Global Gates Foundation ETF (Planes) rose 0.6%. SPDR S&P Homebuilders ETF (XHB) down 1.5%, with FND stock holding a notable gain. Energy Defined Fund SPDR ETF (xle) rebounded 2.7%. SPDR Health Care Sector Selection Fund (XLV) decreased by 0.4%. BIIB stock is in XLV.
SPDR Financial Selection Fund (45) increased by 0.4%. SPDR S&P Regional Banking ETF (Creates) gained 3.3%.
Top five Chinese stocks to watch now
Market rally analysis
The rally in the stock market saw a decline in high-flying areas while other sectors took over.
The Nasdaq held a bearish outside day after hitting a 52-week high shortly after the open. The Composite and the Nasdaq 100 were extending. The Nasdaq Total is now 6.2% above the 50-day line and the Nasdaq 100 is 6.9%, still somewhat up.
The S&P 500 is down, still near its 2023 highs.
The Dow Jones index rose slightly after finding support at the 50-day line on Tuesday.
Meanwhile, the Russell 2000 and S&P MidCap 400 both kept moving forward, helped by surging bank stocks.
First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW) fell just over 1%, but better than the Nasdaq 100’s loss of 1.7%.
Invesco S&P 500 Equal Weight Fund (RSP) gained 0.7%.
Investors advanced on losing stocks by about 2 to 1 on the New York Stock Exchange and by a strong margin on the Nasdaq.
In general, the market’s upward movement could be positive. Yes, we would all like stocks to go up every single day, but that just can’t happen. So it’s healthy for some big winners to pause or decline modestly. Meanwhile, the market continues to expand.
Of course, if the Nasdaq continues to sell off, and the broader market falters as well, Wednesday’s potential “constructive” action could turn out to be the beginning of a “destructive” slide.
Major sectors, stocks
The housing sector, including home builders, building materials and home furnishing retailers, was solid or strong. So were the plays of energy, steel and infrastructure. Some of these names, like FND stock, are flashing buy signals, while others have broken through key levels. However, many need a lot of repair work.
Technology giants, software names, e-commerce and medical products have had a tough day. For some, it was a noticeable but normal dip after a long run. MSFT stock fell 3.1%. Google stock waived 3.8% in a negative reversal. Amazon shares fell 4.25% and shares are now 4.9%.
However, others suffered more technical damage. SHOP shares fell 6.4%, dampening early entry on Tuesday. a work day (day) decreased by 5.4% and Cloud Flair (network) 8.5%, both of which pulled back from buy points. DXCM stock fell 4.5%, reversed back near a traditional buy point and moved back about 50 days.
The chips were generally good. MBLY stock rose 2.8%, but off the early highs, it closed without a breakout to the downside. Nvidia stock is down 3%, below the 10-day line as it has been trading within a range since the post-earnings gap high on May 25.
Tesla stock rose 1.5% to 224.57, off the session high of 280.83. But it was the ninth consecutive advance and eighth consecutive over-average size. TSLA stock extended from buy point 207.79. The relative strength line is at the highest level in seven months. As of Tuesday night, Tesla began discounting long-running Model 3 inventory by 1% in the US, and Tesla has already offered deep inventory discounts on other Model 3 variants.
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What are you doing now
The alternation of the market’s rally appears to be orderly and constructive. But some stocks are falling below key levels, while many bulls are yet to stabilize. Investors do not know if the rotation will continue, or if it will become more volatile.
At the moment, buying opportunities are relatively light, while investors may want or need to reduce or exit some positions.
It is hoped that the market movement will create a plethora of opportunities, from once again setting up big winners and potential leaders spinning off. Find these stocks by running screens and updating 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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