Dow Jones Futures Fall As Tesla Slides On Downgrade; Palantir Soars On Surging

Dow Jones futures slipped Tuesday morning, as the stock market threatened to fall for a second day. Meanwhile, Palantir Technologies (PLTR) soared as its artificial intelligence business boosted the company’s quarterly results. And Tesla stock slid on an analyst downgrade.

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Before the opening bell, Dow Jones futures dipped less than 0.1%, while S&P futures moved up a fraction. Tech-heavy Nasdaq 100 futures rose 0.2% vs. fair value in morning trading.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) inched up, while the SPDR S&P 500 ETF (SPY) was slightly higher.

The 10-year Treasury yield dipped to 4.14% Tuesday. Further, oil prices looked to rebound for a second straight session, as West Texas Intermediate futures gained 0.7%. WTI futures moved above $73 a barrel.

Key Earnings Reports: Palantir

Palantir soared 18% Tuesday morning, and was set to decisively retake its 50-day moving average. The company reported adjusted earnings of 8 cents a share, in line with estimates, on revenue of $608.4 million. Sales were expected to rise to $602.9 million.

In a letter to shareholders, Palantir Chief Executive Alex Karp said, “Our results reflect both the strength of our software and the surging demand that we are seeing across industries and sectors for artificial intelligence platforms.”

Other key earnings movers Tuesday include Eli Lilly (LLY), KKR (KKR) and NXP Semiconductor (NXPI), along with Spotify (SPOT) and Vertex Pharmaceuticals (VRTX).

Eli Lilly shares rallied 3.7%, while KKR stock moved up 1.2% in premarket action. Apple supplier NXP advanced 3.5%, as Spotify shares shot up 6%. And Vertex stock climbed 1.4% in early trading.

Dow Jones Falls

On Monday, the Dow Jones Industrial Average moved down 0.7% and the S&P 500 slipped 0.3%. The tech-heavy Nasdaq composite dropped 0.2%.

Monday’s Big Picture column commented, “Despite scattered distribution in the major indexes, the stock market remains structurally sound. The number of new 52-week highs continues to trend well above 52-week lows. To wit, IBD’s recommended exposure is holding at 80%-100%.”

Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.

Learn How To Time The Stock Market With IBD’s ETF Market Strategy

Best Stocks To Buy And Watch

Expedia (EXPE), KKR, Lennar (LEN) and MongoDB (MDB) — plus Dow Jones members Disney (DIS) and Walmart (WMT) — are among the best stocks to buy and watch in the current market rally.

KKR and Walmart were featured in this Stocks Near A Buy Zone column. KKR is on IBD Leaderboard.

Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard

Dow Jones: Disney At Buy Point Before Earnings

Media giant leader Disney is in buy range above a flat base’s 96.51 buy point, despite a 0.5% loss Monday, according to IBD MarketSmith pattern recognition. Earnings are due out Wednesday after the market closes. Disney stock dipped 0.3% Tuesday.

Discount retail leader Walmart is in buy range past a 163.57 entry in a cup with handle, even as the stock dropped 0.5% Monday. The stock added 0.2% early Tuesday.

4 Top Growth Stocks To Watch In The Stock Market Rally

Lennar Eyes Buy Point

Travel stock Expedia is tracing a flat base that shows a 155.84 buy point. Shares are finding support around their 50-day line, as they climbed 0.4% Monday. Expedia stock rose 0.3% Tuesday.

With solid gains Tuesday morning, IBD Leaderboard stock KKR is moving further above an 85.66 flat-base entry.

Homebuilder Lennar is within striking distance of a flat base’s 156.01 buy point, with a near-1% fall Monday. Lennar shares moved down 1% early Tuesday.

Software leader MongoDB is breaking out past a 426.51 buy point, with a 6.6% surge Friday, according to IBD MarketSmith. MongoDB shares tacked on 2.1% Tuesday.

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Best Bets In Tuesday’s Action

These are four best stocks to watch in today’s stock market, including a Dow Jones leader.

Source: IBD Data As Of Feb. 5, 2024

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