Dow Jones futures fell slightly early Thursday, along with S&P 500 futures and Nasdaq futures. Arm positions (ARM), Duolingo (NEAR), AppLovin (APP) and Robinhood Markets (HOOD) led the major earnings figures after the close.
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The stock market rally had a quiet session for the second day in a row. Nvidia (NVDA) fell slightly for the second straight session.
But many growth stocks shined. Arista Networks (A NET), Toast (To stand Vertex Pharmaceutica (VRTX) broke out or flashed buy signals on earnings. Storage is playing Nutanix (NTNX) and NetApp (NTAP) also enabled entries.
In addition to Arm, Duolingo, AppLovin and Robinhood, Airbnb (ABNB), Instacart (KAR) and Trade Bureau (TTD) reported.
early Thursday, Constellation Energy (CEG) and GigaCloud technology (GCT) are due.
Nvidia is on the IBD Leaderboard, with Toast shares added as earnings options on Tuesday. Nvidia stock, NetApp and Toast are listed on SwingTrader. Nvidia, Toast and GigaCloud stocks are on the IBD 50. Trade Desk stocks are on the IBD Big Cap 20. Toast was the IBD Stock of the Day on Wednesday.
Dow Jones futures today
Dow Jones futures lost 0.1% versus fair value. Futures on the S&P 500 fell 0.15% and futures on the Nasdaq 100 fell 0.2%.
The yield on ten-year government bonds rose to 4.51%.
Remember, overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading during the next regular stock market session.
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Stock market rally
The stock market rally had another quietly mixed session.
The Dow Jones Industrial Average rose 0.4% in stock trading on Wednesday. The S&P 500 index was flat. The Nasdaq index fell 0.2%. The small-cap Russell 2000 fell 0.6% but closed near session highs after finding support around the 50-day line.
US crude oil prices rose 0.8% to $78.99 per barrel.
Ten-year Treasury yields rose 3 basis points to 4.49%, ending a five-session decline.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) fell 0.4%, with AppLovin and NTNX shares in the ETF. The VanEck Vectors Semiconductor ETF (SMH) rose 0.3%. Nvidia is the number 1 holding in SMH.
Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) fell 2.5% and ARK Genomics ETF (ARKG) lost 2.3%. HOOD stock is a notable stock in Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) fell 0.85%. The SPDR S&P Homebuilders ETF (XHB) fell 0.35%. The Energy Select SPDR ETF (XLE) fell 0.1% and the Health Care Select Sector SPDR Fund (XLV) fell 0.3%, with VRTX shares among its members.
The Industrial Select Sector SPDR Fund (XLI) closed flat. The Financial Select SPDR ETF (XLF) rose 0.4%.
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Main income
Arm earnings easily beat fourth-quarter expectations. AI and wireless chip performance rose slightly in the first quarter, but full-year revenue guidance was somewhat light. shares plummeted in overnight action. The stock fell 1.6% to 106.07 on Wednesday, around the 21-day mark. ARM stock has been recovering since dropping during several sessions in mid-April, but is still well below the 50-day line.
Duolingo revenue beat consensus, but guidance wasn’t great. DUOL shares fell in extended trading. Shares fell 1.7% to 244.64 on Wednesday, right around a buy point on a 245.59 basis. Duolingo stock is trying to spark a consolidation dating back to December.
AppLovin’s revenues and expectations were strong. APP shares rose overnight. Shares fell 4% to 74 on Wednesday, ending a four-day winning streak. AppLovin stock recovered from its 50-day line at the end of April.
Robinhood’s gains easily beat opinions fueled by crypto trading. HOOD shares rose modestly in extended action. Shares fell 0.8% to 17.85 on Wednesday, holding the 50-day mark. A decisive move above the 50-day would provide an early start to an emerging consolidation, using Monday’s high at 18.46 as a specific trigger. HOOD stock is on track to have a base with a 20.55 buy point after Friday.
Airbnb’s revenue exceeded views, but the online travel site posted a lower price for the second quarter. ABNB shares tumbled in late trading. Shares fell 1.2% to 148.51 on Wednesday, falling slightly further below the 50-day line. Airbnb stock has a buy point of 170.10 from a flat base-on-base formation.
Instacart revenue exceeded estimates. CART shares fell slightly in extended trading. The app-based grocery delivery company, officially known as Maplebear, fell 0.1% to 37.48 on Wednesday. Instacart stock has a buy point of 39.59 cups with handle.
Trade Desk revenues exceeded views, with online advertising slightly ahead of Q2 revenue. TTD shares rose slightly in overnight action. Shares lost 4% to 86.02 on Wednesday. Trade Desk stock is trading on a loose basis with a buy point of 94. But the stock has been consolidating since July of last year.
Meanwhile, Constellation Energy and GigaCloud Technology were the top numbers on Thursday.
Constellation Energy stock rose 3.7% to 208 on Wednesday, moving from a short, flat base toward the edge of the buy zone.
GigaCloud shares fell 2.4% to 39.14 on Wednesday. GCT stock, which soared from late November to March 15, has undergone another consolidation with a buy point of 45.18.
Stocks in buy zones
Toast rose 13% to 26.82 on Wednesday, shooting above the 25.63 cups with handle buy point. The 5% buy zone ends at 26.91. The restaurant software platform reported a bigger-than-expected GAAP loss, but revenue peaked and Toast moved higher.
Arista shares rose 6.45% to 291.67 on Wednesday, following strong earnings and guidance, as well as a $1.2 billion buyback. traversing the 50-day line and clearing a trendline entry in a new consolidation. ANET stock has a consolidation buy point of 307.74.
Shares of Vertex rose 2.1% to 418.82, now decisively crossing the 50-day mark and a trendline entry in a day two earnings reaction. On Tuesday, shares peeked above these levels after an upward reversal. Late Monday, Vertex’s earnings and sales were at the top, although the biotech giant kept its 2024 guidance intact. Keep in mind that Vertex’s three-month downtrend occurred when the major indexes were trading around record highs.
Shares of Nutanix rose 1.4% to 66.21 on Wednesday, briefly breaching the double-bottom buy point of 66.98 amid an upgrade from Raymond James. NTNX stock hit an all-time high and is now actionable.
NetApp stock rose 2% to 109.48, above a 108.82 buy point from its own double-bottom base. The relative strength line is at an all-time high.
Nvidia stock
Nvidia shares fell 0.2% to 904.12, an inside day that sees the AI chip leader pause after gaining 11% in the three sessions ending Monday.
According to MarketSurge, NVDA stock has a consolidation buy point of 974. It’s possible that shares are starting to work on a handle. Nvidia’s earnings will be released on May 22.
Analysis of the market rally
The stock market rally is seeing constructive action, with the major indices trading tight after solid gains over the past two sessions.
There are stocks that give buy signals. Investors can add exposure here.
Earnings season remains treacherous for individual names. Remember that as you think about buying and selling.
Keep your watchlists up to date. A market pause could provide some leverage, while stocks that continue to rise will quickly show relative strength
Read The Big Picture every day to stay informed about market direction and the most important stocks and sectors.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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