Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures.
X
Stock market rise initially led to decline Nvidia (NVDA) fell in response to tightened US regulations on AI chip exports to China. However, stocks rebounded from their lows to close mixed, led by small-cap stocks, despite a spike in U.S. Treasury yields.
fair isaac (Fico), super microcomputer (SMCI), woodward (WWD), draft kings (DKNG) and Arista Networks (ANET) is a stock that is attracting attention near the buy point. Arista’s announcement is less than two weeks away, but neither company has any immediate revenue.
JB Hunt Transport Service (JBHT), united airlines (UAL) and interactive broker (IBKR) fell overnight following negative reaction to earnings and guidance.
ASML (ASML) will begin earnings for chip equipment makers early Wednesday morning. ram research (LRCX) A large crowd will continue to arrive on Wednesday night. taiwan semiconductor (TSM) Please submit by Thursday morning.
But all eyes are on me tesla (TSLA) reported on Wednesday night. TSLA stock is holding up not far from a buy point as bulls focus on what could be the engine of future growth.
Tesla stock, Nvidia stock is on IBD Leaderboard, includes DraftKings and WWD stock in the leaderboard watchlist. FICO stock is featured in his IBD Long Term Leaders. Nvdia stock, Tesla, DraftKings, Super Micro, and Arista Networks are rising. IBD50.Tesla, Nvidia, and SMCI stock prices are on the rise IBD big cap 20. Fair Isaac was the IBD Stock Of The Day on Tuesday.
The video embedded in the article discusses Tuesday’s market trends and analyzes FICO stock, SMCI, and DraftKings.
Dow Jones futures today
Dow Jones futures fell 0.1% to fair value. S&P 500 futures fell 0.2%, and Nasdaq 100 futures fell 0.1%. NVDA stock fell 1%.
China’s economic indicators were better than expected. GDP in the third quarter increased by 4.9% year-on-year, down from 6.3% in the second quarter, but above the expected 4.6%. Retail sales rose 5.5% in September, exceeding the 4.6% increase in August and the expected 4.8% increase. Industrial production increased by 4.5%, stable compared to August but slightly above expectations of 4.3%.
The 10-year government bond yield fell to 4.83%.
Crude oil futures rose more than 2%.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
Tuesday’s stock market rally began sharply lower thanks to a rise in U.S. Treasury yields, driven by Nvidia and surprisingly strong retail sales. However, while the major indexes closed narrowly, small-cap stocks rose.
The Israeli military said its next step “may be something different” from the widely anticipated large-scale ground offensive against Hamas.
President Joe Biden will visit Israel on Wednesday, but several Arab leaders canceled meetings scheduled in Jordan.
Congressman Jim Jordan lost the first vote for Speaker of the House by a larger margin than expected. He would need near-unanimous Republican support, but 20 Republicans voted against it. A second vote could be held on Wednesday, but initial results suggest it will be an uphill battle for Jordan at best.
The Dow Jones Industrial Average rose slightly in stock market trading Tuesday, rising above its 200-day line but below its 50-day line. The S&P 500 index ended just below break-even. The Nasdaq Composite fell 0.2%, well below its morning low of 1.5%.
The market was wide and the winners easily defeated the losers. However, new lows continue to exceed new highs.
The small-cap Russell 2000 rose within minutes of opening trading on Tuesday. The stock rose 1.1% on the day, but was unable to regain the 21-day line.
Invesco S&P 500 Equal Weight ETF (RSP) rose 0.5%, outperforming the S&P 500 and regaining its 21-day line.
The First Trust Nasdaq 100 Equal Weight Index ETF (QQEW) ended flat, trading closely between the 50-day and 21-day lines. QQQ ETF fell 0.3% but remained above 50-day levels.
Nothing much has changed so far this week. Both Monday and Tuesday’s trading on the Nasdaq was within the range of Friday’s trading.
Many leading stocks are rising, but the Nasdaq needs to break above last Thursday’s high for a definitive 50-day liquidation.
US crude oil prices ended flat at $86.66 per barrel.
The 10-year Treasury yield rose 14 basis points to 4.85%. This is back to around 4.89%, a 16-year high recorded on October 6th. The two-year bond yield rose 12 basis points to 5.21%, its highest level in 17 years.
ETF
Among growth ETFs, Innovator IBD 50 ETF (FFTY) rose 0.75%. iShares Enhanced Technology Software Sector ETF (IGV) rose 0.5%.
VanEck Vectors Semiconductor ETF (SMH) fell 1.2%, but losses narrowed. Nvidia shares pared back their steep intraday losses, but were still down 4.7%. It is the largest component of SMH. ASML, LRCX stock, and Taiwan Semi stock are also major holdings.
ARK Innovation ETF (Arkku) Advanced 1.7% and ARK Genomics ETF (arcg) increased by 1.1%%. Tesla stock is the No. 1 holding among Ark Invest’s ETFs. DKNG stock is also in the top 10 of Ark Holdings.
SPDR S&P Metals & Mining ETF (XME) rose 2.1%. SPDR S&P Home Builders ETF (XHB) rose 0.2%. Energy Select SPDR ETF (XLE) rose 1%, while the Healthcare Select Sector SPDR Fund (XLV) fell 0.1%.
Industrial Select Sector SPDR Fund (XLI) rose 0.3%.
Financial Select SPDR ETF (XLF) rose 0.5%.
Top 5 Chinese stocks to watch right now
Up-and-coming stocks
Fair Isaac stock jumped 3.6% to 918.29, with volume rebounding from its 50-day line. The stock cleared a flat base buy point at 916.41. FICO stock’s relative strength line is at an all-time high, a bullish sign.
SMCI stock had upside potential off-market, rising 2.35% to 298.54 on above-average volume. The cup-with-handle buy point for Super Micro stock is 317.50. Investors may enter early at around 300.
Woodward stock rose 1.1% to 131.01, not far from a flat buy point of 133.15, according to MarketSmith analysis. Investors could use 131.49 as an early entry, with WWD stock trading above that level during the day on Tuesday.
ANET stock fell 0.7% to 195.41. The stock is working on a cup base with a handle of 198.70. The RS line has made new highs on the weekly chart. Arista’s earnings are scheduled to be announced on his October 30th. Additionally, Arista’s major customers are: meta platform (meta) and microsoft (MSFT), I will report on it next week.
DKNG stock rose 1.5% to 30.25, extending Monday’s rally from 50 days. The buy point for DraftKings stock is 34.49, but investors could use the October 11 high of 31.10 as an early entry, which would coincide with a breakout of the trend line.
DraftKings will announce its third quarter financial results on November 2nd.
tesla revenue
Tesla’s financial results are expected to be released Wednesday night. Analysts have continued to lower their third-quarter forecasts throughout the year due to the EV giant’s weak deliveries in the third quarter. Wall Street expects Tesla’s earnings per share to fall 31% to 72 cents, which would be the lowest EPS in two years. Revenue should increase by 10% year-on-year, but decrease compared to the second quarter. As prices continue to fall, gross profit margins are expected to decline further.
However, the focus will likely be on Tesla’s earnings release. Investors will be hoping for positive signals on gross margins, especially as prices continue to fall in October, including Tuesday’s $3,650 price cut for the base Model 3 in the UK.
You’ll also want to know more about Cybertruck, including its release date. They also want to know hints about other potential growth drivers.
Tesla stock rose 0.4% to 2,454.85 on Tuesday after testing its 50-day line again. Share is 278.98 for cup base with handle. Investors may use the October 10 high of 268.94 as an early entry.
Tesla vs. BYD: Tesla’s earnings loom as its biggest rival sets its sights on the BEV crown
what to do now
Major indexes are still trading within recent ranges. So do many of the major stocks, many of which have recently forged handles.
A decisive rally would bring many buying opportunities, while a decisive decline could raise serious concerns about the rally in an already pressured market. There is a possibility that the market will remain sideways until next week’s big earnings announcement.
Investors should consider these different scenarios, but don’t bet on what will happen. Now is the time for patience and preparation.
Prepare your watchlist. Look for stocks near relatively strong buy points. Be sure to keep future earnings in mind.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
X/ Follow Ed Carson on Twitter. @IBD_ECarsonthread of @edcarson1971 and in the blue sky @edcarson.bsky.social The latest information on the stock market, etc.
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