Dow Jones futures changed little Tuesday night, along with S&P 500 futures and Nasdaq futures appeal (AAPL) and Tesla share near significant support.
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SolarEdge Technologies (SEDG), Exact Sciences (EXAM), QuantumScape (QS), Crispr Therapeutics (CRSP), Cornerstone OnDemand (CSOD) and RingCentral (RNG) were significant earnings after the close.
Shopify (SHOP) and lithium miner Albemarle (ALB) are the main results before the opening of Wednesday.
Rising interest rates and economic prospects have fueled financial and cyclical names, with Dow Jones giants JPMorgan Chase (JPM) and Ruspe (CAT) cleaning of points of sale. But rising rates weigh a lot on growth stocks.
Apple shares and Tesla retreat to their ten-week moving averages. A setback from these levels could provide an early entry, although investors may want to wait for a little more power.
IBD stock of the day: Dow Giant breaks out over economic outlook
SolarEdge share rose with strong earnings and guidance. Exact scientific stock has dropped mixed results. QuantumScape stock climbed and Crispr stock tipped lower after development companies reported huge losses. The RingCentral share has fallen despite strong results and targets. The share of the cornerstone has risen, indicating a breakthrough in the results.
Apple and Tesla shares are on IBD Leaderboard. CAT stock is on SwingTrader.
Dow Jones Futures Today
Dow Jones futures were just below fair value. S&P 500 futures have risen lower. Nasdaq 100 futures fell 0.1%.
Remember that overnight actions in Dow futures and elsewhere are not necessarily translated into stocks in the next regular session.
Join IBD experts while analyzing stocks in the stock market on IBD Live.
Coronavirus News
Coronavirus cases worldwide reached 110.03 million. The deaths from Covid-19 were 2.42 million.
Coronavirus cases in the US hit 28.38 million, with deaths above 499,000.
Stock market rally Tuesday
US stock market overview today |
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|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 31520.57 | +62.17 | +0.20 |
| S&P 500 | (0S & P5) | 3932,48 | -2.35 | -0.06 |
| Nasdaq | (0NDQC) | 14047.50 | -47.97 | -0.34 |
| Russell 2000 | (IWM) | 225.86 | -1.40 | -0.62 |
| IBD 50 | (FFTY) | 48.95 | -0.24 | -0.49 |
Last updated: 16:08 ET 16.2.2021 |
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The stock market protest began the shortened week with the major indices reaching a record high, but it quickly became mixed.
The Dow Jones industrial average rose 0.2% on Tuesday. The S&P 500 index lost a fraction. The Nasdaq composite fell 0.3%. The ten-year treasury yield has jumped to its highest level since February 2020.
Dow stocks in focus
JPMorgan stock climbed 2.1% to 114.65, removing a 142.85 buyout from a 13-month-handle-with-handle. With short-term rates still close to record lows, JPMorgan and other banks are taking advantage of the larger yield spreads, which outpace net interest margins.
Caterpillar shares rose 2.2% to 202.38, above a buy point of 200.27 due to a short consolidation or a three-week tight pattern. Investors could have bought CAT shares on February 2 as it fell from its 50-day line, regained its 21-day line and broke a deteriorating trend. Caterpillar stock was the IBD Stock Of The Day on Tuesday.
Apple stock, also a Dow Jones component, fell 1.6% to 133.19, nearly hitting its ten-week moving average. Investors can buy Apple shares if it bounces off that level, especially if they repeat its 21-day high and perhaps last week’s high of 137.88. An entry of 138.89 cups with handles is still valid, while AAPL shares could possibly work on a new consolidation, with the January 25 record high of 145.09.
After closing, Berkshire Hathaway (BRKB) announced that it cut Apple by 6% in the fourth quarter. Apple shares remain the largest individual stake in Berkshire, Warren Buffett. Berkshire also sold out JPM stock.
Tesla Stock
Tesla stock fell 2.4% to 796.22, which was within 1% of the 10-week line. This is probably close enough for investors to take a stand, although they may want to wait until the TSLA share takes its 21-day line again. Shares may be forming a new base. Note that Tesla shares have declined in a heavier volume over the past few weeks than in recent weeks.
Just as the setback of 50 days / 10 weeks line can provide opportunities for buying, a definite interruption of the ten week line can be a strong sell signal.
Some large institutional investors split Tesla shares in the fourth quarter, according to the new 13F filing with the SEC. But Citadel Securities has started a notable investor in TSLA.
Growing vines mixed
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.5%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 0.35%. The iShares Expanded Tech-Software Sector ETF (IGV) fell 0.3%. The VanEck Vectors Semiconductor ETF (SMH) was up 0.6%.
Read the big picture every day to keep up with the market direction and leading stocks and sectors.
Important earnings
SolarEdge’s earnings were better than expected, while solar power also provided strong guidance. SolarEdge share rose 3% in expanded trading. Investors can buy SEDG shares as long as it is within 10% of the 10-week line. There is also a possible outbreak of a consolidation with a 377.10 entry. SEDG shares rose 0.15% to 331.35 on Tuesday.
Exact Sciences reported a larger loss than expected, but had a better revenue. Exact Sciences’ stock sank 4% overnight. The leader for testing cancer diagnosis traded a messy action. EXAS shares fell 0.5% on Tuesday to 154.28.
QuantumScape reported a deep loss of no revenue in its first results since the solid-state battery manufacturer became known. QuantumScape’s share rose 4% overnight. This came after the QS share fell 7.3% on Tuesday and traded well below the 50-day line.
Crispr also suffered a huge loss for the gene editing leader. CRSP share lost a fraction. Crispr shares fell 3.6% on Tuesday, reaching 50-day resistance again.
RingCentral’s earnings beat the view, while communications software maker also led higher. But RNG shares retreated 4% in overnight trading. The RingCentral share fell 1.4% to 437.02 on Tuesday, compared to a recent base.
The cornerstone earnings hurt the views, while sales were also up. CSOD share rose 16% overnight, indicating a gap from a lower base. The cornerstone share fell 2.4% on Tuesday to 46.26, lower than a buy point of 46.92.
Stock market time analysis
The Nasdaq is now 7.1% above its 50-day moving average, still slightly extended, but lower than the 7.7% of Friday or 8.1% for February 8th. The rise in the stock market has been flashing warning signs for several weeks, from the expanded Nasdaq, to investor exposure to the stock’s shares above their 50-day and 200-day moving averages. But so far, the market has shaken off these concerns, with only short-lived withdrawals in recent months.
Investors do not have to be defensive, but they do have to consider how much exposure they have. They need to be prepared for a downturn in the market, with a game plan to downsize their businesses.
Please follow Ed Carson on Twitter @IBD_ECarson for stock market updates and more.
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