Dow Jones futures rose early Wednesday morning alongside S&P 500 and Nasdaq futures. microsoft (MSFTMore) on Tuesday, the major indexes rose to a 52-week high. Calvana (CVNA) and ASML (ASML) headlined the earnings call before trading even opened.
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Carvana surged early Wednesday on strong earnings, guidance and a debt restructuring deal. ASML underperformed viewership but raised its outlook. The Dutch semiconductor equipment giant fell slightly as it tried to stay in the buying zone.
Halliburton (Spring) reported mixed results while being the same oil services giant baker fuse (BKRMore) slightly beat.super regional bank US Bancorp (USB) narrowly outperformed expectations, while the Dow goldman sachs (GS) missed revenue.
HAL and Baker Hughes stocks fell slightly. US Bancorp edged higher, while GS shares fell 1%.
all eyes turn to you Tesla (TSLA) and Netflix (NFLX) Earnings after trading closes.
Kathy Wood’s Ark Invest continued to cut its holdings on Tuesday, with Tesla shares rising early Wednesday. NFLX shares rose slightly Both companies announced second quarter results after the close.
ASML and TSLA in stock IBD Leaderboard. Microsoft stock is IBD long term leader ASML stock is IBD50.
dow jones futures today
Dow Jones futures rose less than 0.1% relative to fair value. S&P 500 futures rose about 0.1%. Nasdaq 100 futures rose 0.25%.
Major Telecommunications Problems Led verizon (VZ) and AT&T (Mr. T) rebounded sharply after a three-week selloff linked to lead cladding used in underground cables.
Among the tech giants, apple (AAPL), meta platform (meta), the parent company of Google alphabet (Google) and MSFT shares …
Crude oil futures edged higher.
The 10-year U.S. Treasury yield fell four basis points to 3.75%.
US housing starts fell 8% in June to an annualized rate of 1,434,000 from May’s downwardly revised 1,559,000. Economists had expected 1.48 million. Building permits were also lower than expected.
Overnight, UK inflation fell to a still-high 7.9% in June from 8.7% in May. Analysts had expected a modest decline to 8.2%. Core inflation unexpectedly fell to 6.9% from May’s 31-year high of 7.1%.
Note that pre-market actions on Dow futures and other markets do not necessarily lead to actual trading on the next regular stock market.
IBD experts analyze hot stocks during the stock market rally on IBD Live.
Stock Market Rise Tuesday
The Dow Jones Industrial Average climbed 1.1% in stock market trading on Tuesday, hitting a 52-week high. The S&P 500 Index rose 0.7% and the Nasdaq Composite Index rose 0.8%.
Oil prices rose 2.2% to $75.75 a barrel. The 10-year U.S. Treasury yield fell one basis point to 3.79%.
Earnings for ASML
ASML’s profit increased 48% and revenue increased 35%, both beating analyst expectations. The Dutch high-end chip equipment maker also led to higher sales in the third quarter and raised its 2023 profit target.
ASML shares fell 1% before the opening. The stock rose 0.3% to 757.03 on Tuesday, just above the buy point of 747.13 from a flat base-on-base pattern.
ASML shares are traded in the VanEck Vectors Semiconductor ETF (SMH).
carvana earnings
Carvana reported a 23.5% decline in revenue to $2.97 billion in the second quarter, but was comfortably outpaced by views. Total sales per unit he increased 94% to $6,520. The used-car dealer said late Tuesday that it revised its earnings upward from Aug. 3 and expects to achieve positive EBITDA in the third quarter. Calvana also announced an agreement to reduce its debt by $1.2 billion.
CVNA shares rose more than 30% in volatile pre-market trading.
Carvana stock has surged 740% from 2023 to July 18, and remains heavily short-sold.
Tesla earnings
Tesla shares rose slightly in pre-market trading.
Shares surged 4.25% Monday through Tuesday as the electric-vehicle giant touted its first Austin, Texas-made Cybertruck.
Tesla stock has a buy point of 313.80 from a very deep cup base, but a meaningful handle or pause would help.
Tesla’s earnings are expected to be 80 cents a share, up 4% from a year earlier. Sales are expected to rise 43% to $24.22 billion, with Tesla’s Shanghai factory shut down for several weeks in the second quarter of 2022 due to coronavirus lockdowns.
Continued price reductions and incentives set a new record for second quarter deliveries. However, it is highly likely that this will put further pressure on gross margins. Tesla’s first-quarter gross margin was 19.3%, down from 23.8% in Q4 2022 and 29.1% in Q1.
Investors will be interested in when Cybertruck production and deliveries will ramp up, and when an upgraded Model 3 will hit the streets.
TSLA continues to be the #1 holding in Kathy Wood’s Ark Invest ETF overall. But Ark Invest has cut its stake in recent days and weeks. The company sold $8.4 million worth of Tesla stock on Tuesday after selling $13.1 million worth of Tesla stock on Monday.
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Netflix earnings
NFLX shares were up more than 1% early Wednesday. Netflix’s subscribers likely increased by 1.8 million in the second quarter after ending the first quarter with 232.5 million paying customers worldwide. Analysts expect Netflix’s revenue to fall 12% year-on-year and sales to rise 4% to $8.27 billion.
Netflix stock surged 5.5% on Tuesday to 474.80, its highest since January 2022. Stocks have definitively resolved a turbulent short-term consolidation.
Dow Jones Leaders: Apple, Microsoft
Apple shares were broadly flat early Wednesday morning. The iPhone giant fell 0.1% to 193.73 on Tuesday. That’s just below AAAPL’s June 30 all-time high of 194.48.
Microsoft shares rose 0.4% on Wednesday.
Shares surged 4% to 359.49 on Tuesday, ending a four-week collapse and hitting a new all-time high. On Tuesday morning, the Dow tech giant announced pricing for its AI tools. Microsoft 365 Copilot will cost $30 per month on top of existing subscriptions for enterprise customers. Microsoft will also use Meta’s new AI large language model, Llama 2, through its Azure cloud computing service.
Wednesday with Microsoft Activision (Atvi) agreed to extend the contract deadline to Oct. 18 to give it a little more room to clear final regulatory hurdles.
Microsoft’s third quarter results will be announced on July 25th, and Apple’s second quarter results will be announced on August 3rd.
Internet giant Google, meta
Google shares rose 0.3% early Wednesday. The stock fell 0.7% to 123.76. GOOGL stock is tackling the buy point at 129.04 from short base, but may be tackling handles. On July 13, Google shares broke above the 50-day line and below the trend line. This allows for early entry.
The internet search giant is restricting internet access for some employees to limit cybersecurity risks, CNBC reported Tuesday night.
The meta stock rose 0.5% before the opening. The stock rose 0.5% to 312.05. The social media giant hit a 52-week high of 316.24 last week. Meta stocks rose almost vertically, marking their ninth straight month of gains.
Google’s earnings release is scheduled to start on July 25th and the meta on July 26th.
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