Dow Jones Futures: Market Rally Pulls Back, But AMD Soars, These 5 Stocks Flash

Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures.

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Interactive Brokers (IBKR) reported earnings Tuesday night with Charles Schwab (SCHW) on tap Wednesday morning.

The stock market rally retreated Tuesday after a solid bounce last week. The 10-year Treasury yield rebounded above key levels.

While losers easily trumped winners, Nvidia (NVDA) and Advanced Micro Devices (AMD) rallied on bullish analyst reports, with a number of other leading tech growth stocks also doing well.

Microsoft (MSFT) closed with a higher valuation than Apple (AAPL) for the first time in two years.

Elastic (ESTC), Samsara (IOT), Cadence Design Systems (CDNS), Rambus (RMBS) and MercadoLibre (MELI) flashed buy signals Tuesday.

Overnight, Tesla (TSLA) cut Model Y prices substantially in several European countries. That follows China price cuts on Friday.

Nvidia stock is on IBD Leaderboard. Nvidia and MELI stock are on SwingTrader. Microsoft and CDNS stock are on IBD Long-Term Leaders. Nvidia, Microsoft and IOT are on the IBD 50. Nvidia, MercadoLibre and MSFT stock are on the IBD Big Cap 20.

The video embedded in the article discussed Tuesday’s market action and analyzed RMBS stock, Elastic and Cadence Design Systems.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures declined 0.2% and Nasdaq 100 futures dipped 0.2%.

Crude oil futures fell slightly.

Hong Kong’s Hang Sang fell sharply, continuing a long downtrend, amid mixed China economic data.

China’s Q4 GDP rose 5.2% vs. a year earlier, just below views for 5.3%. Full-year GDP climbed 5.2%. December retail sales grew 7.4% vs. a year prior, missing forecasts for 8%. Industrial production climbed 6.8%, slightly beating targets for 6.6%. Unemployment was 5.1%, with unemployment for those aged 16-24 was 14.9%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Interactive Brokers Earnings

IBKR stock fell modestly overnight as Interactive Brokers earnings missed Q4 views. Shares closed down 1.3% to 87.18 in Tuesday’s regular session. Interactive Brokers stock is near an 89.72 buy point from a cup-with-handle base.

Schwab earnings are due Wednesday morning. SCHW stock fell 1.4% to 64.31 on Tuesday, continuing to pull back from a 68.80 cup-base buy point after briefly breaking out in mid-December. Schwab stock is around the automatic sell rule, but is trying to find support at the 10-week line.

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Stock Market Rally

The stock market rally saw modest losses to start the holiday-shortened week.

The Dow Jones Industrial Average fell 0.6% in Tuesday’s stock market trading, with Boeing (BA) continuing to weigh on blue chips. The S&P 500 index sank 0.4%, with AMD stock the biggest advancer. The Nasdaq composite dipped 0.2%.

Nvidia stock rose 3.1% to a fresh record high. AMD stock leapt 8.3%, closing in on its December 2021 all-time high. Both are well above buy points.

Microsoft stock edged up 0.5% to 390.27, still in range of a 384.30 buy point from a flat base, base-on-base formation. Apple stock fell 1.2% to 183.63, testing its 200-dy line after the Dow tech titan did a rare discount on new iPhones in China. MSFT stock now boasts a $2.9 trillion market cap, above Apple’s $2.856 trillion for the first time since late 2021.

It was a bad day for market breadth, a common theme in 2024 so far.

The small-cap Russell 2000 slumped 1.2%, nearing its 10-week line.

The Invesco S&P 500 Equal Weight ETF (RSP) fell 0.7%, below its 21-day moving average.

The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) declined 0.3% vs. the Nasdaq 100’s near-flat performance. But it’s still holding the 21-day line, as tech growth names still fare well. However, homebuilders, industrials and financials showed some weakness.

The 10-year Treasury yield jumped 11.5 basis points to 4.06%, closing above the 200-day line for the first time in a month.

U.S. crude oil prices dipped 0.4% to $72.40 a barrel. Natural gas futures plunged 12.5%.

ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) closed just below break-even, with Microsoft stock a major holding. ESTC stock and Samsara are also in IGV. The VanEck Vectors Semiconductor ETF (SMH) popped 1.6%. Nvidia stock is the largest SMH component, with AMD also a big holding. CDNS stock is in both IGV and SMH.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) fell 1.3% and ARK Genomics ETF (ARKG) slumped 2.6%.

SPDR S&P Metals & Mining ETF (XME) skidded 2.6%. U.S. Global Jets ETF (JETS) sank 1.4%. SPDR S&P Homebuilders ETF (XHB) slipped 0.75%. The Energy Select SPDR ETF (XLE) retreated 2.4% and the Health Care Select Sector SPDR Fund (XLV) gave up 0.6%.

The Industrial Select Sector SPDR Fund (XLI) fell 1%. The Financial Select SPDR ETF (XLF) declined 0.7%.

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