Dow Jones Futures: Market Retreat beats leaders, but Apple trades strictly; Netflix dives late on subscriber Miss

Dow Jones futures and S&P 500 futures rose lower late Tuesday. Nasdaq futures fell moderately on Netflix shares, earning earnings after hours. This follows another rough session for the stock market.




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Growth names and small caps were sold on Tuesday with Futu Holdings (FUTU) crashed after a powerful outbreak on Monday. But travel games have also tumbled, with steelmakers, miners, energy companies, industry and finance all pulling back.

Technical titans held up pretty well, with Microsoft (MSFT), Google parent Alphabet (GOOGL) and Facebook (FB) about flat. appeal (AAPL) has retreated slightly after its ‘Spring Loaded’ product event, but has fared better over the past few weeks. But the strong action in Google stocks, Microsoft, and so on has masked the recent weakness.

Netflix earnings

Netflix (NFLX) eventually joined forces with Intuitive surgical (ISRG), Edwards Lifesciences (EW), CSX (CSX) and Tenet Healthcare (THC).

Netflix’s earnings were above expectations, but the 3.98 million subscriber growth came in handy. Netflix is ​​facing a post-pandemic environment amid growing competition from Disney (DIS) and its Disney + streaming service.

NFLX shares fell 8% overnight, indicating a move below the 50 and 200 day lines. Shares reversed lower on Tuesday to 0.9% to 549.57. Netflix stock has a 559.85 buy point from a small handle on a weekly chart, as well as a declining trend line just below the level. But that may not be relevant if NFLX shares fall on Wednesday.

DIS shares lost a fraction overnight. Disney shares fell 2.5% on Tuesday, falling below the 50-day line and close to the bottom of the flat base.

Roku (ROKU) dropped sharply overnight amid concerns that current growth will slow in general. The ROKU share fell 1.7% on Tuesday and continued to retreat after resisting the 50-day range.

Other key earnings

The intuitive surgical merits were above the predictions for the robot leader. The ISRG share rose 4% to about 842 in extended trading after shares closed 8 cents to 811.11. Intuitive surgical stock has a buying point of 812.89 from a double bottom.

On top of that, the earnings of Edwards Lifesciences rose, and the medical device manufacturer led for the second quarter and full year. EW shares rose 4% in overnight trading. Shares rose 1.2% to 89.63 on Tuesday and, according to a MarketSmith analysis, are moving into a buy zone from a double-bottom buy-in of 88.30.

CSX earnings are missing while earnings are higher. CSX stock fell 2% in late trading. Shares fell 0.3% on Tuesday after reaching a record high within the day. CSX shares are expanding from a buy point.

Tenet Healthcare’s earnings have enriched the views for the hospital operator. The THC share rose 3.5% to almost 54 overnight. Tenet stock fell 1% to 52.04 on Tuesday, just below the 50-day line, but within a short consolidation it is almost a good base. The buying point for THC shares is 57.98. But investors could use 54.98, just above Friday’s high, as an early entry, coupled with a ten-week setback.

ASML The earnings (ASML) are payable on Wednesday morning with the co-giant for chips Lamb research (LRCX) on tap after closing Wednesday. Both ASML shares and LRCX fell Tuesday but remain in buying zones.

Apple Product Opportunity

Apple announced some new iPads and Macs with its own chips during its “Spring Loaded” product launch, as well as the launch of Air Tag tracking devices. It is also planning a podcast subscription service. Apple stock fell 1.3% to 133.11. It is possible that AAPL shares will form a handle on a daily or weekly chart this week. It can also form a tight pattern of three weeks. Both offer lower buying points. But for now, the official entry on the cup is 145.19.

LRCX shares and Microsoft is on IBD Leaderboard. MSFT Stocks is an IBD long-term leader. Lamb Research and ASML stock are on the IBD 50.

Dow Jones Futures Today

Dow Jones futures were about flat against fair value. S&P 500 futures fell 0.1%. Nasdaq 100 futures contracted 0.4%. NFLX shares and Roku were a tragedy on Nasdaq futures.

Remember that stocks overnight in Dow futures and elsewhere do not necessarily trade in stocks in the next regular session.


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Coronavirus News

Coronavirus cases worldwide reached 143.50 million. The deaths from Covid-19 were 3.05 million.

Coronavirus cases in the US hit 32.53 million, with deaths above 582,000.

Johnson & Johnson (JNJ) has resumed shipping its one-on-one coronavirus vaccine after European regulators deemed it safe with some new guidelines after reviewing a handful of cases with a very rare but serious blood clotting problem. Vaccinations of J&J vaccines have been discontinued for several days in the US due to the concern that healthcare professionals will not recognize this type of clot, which requires a different treatment than more common blood clots. An FDA panel is expected to recommend Friday that the J&J vaccine be resumed, perhaps with certain restrictions or guidelines.

The JNJ share rose 2.3% to 166.48 on vaccine news and better-than-expected earnings. It broke a trend line and cleared an early entry to 167.13 for the Dow Jones giant. The relative strength line for J&J stocks is weak and has been in a general slump since 2009.

Stock market rally Tuesday

The rise in the stock market suffered a severe blow on Tuesday, with a broad weak point among the leading stocks.

The Dow Jones industrial average traded 0.75% in the stock market. The S&P 500 index lost 0.7%. The Nasdaq Composition fell 0.9%. The Russell 2000 surpassed just over 2%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) tumbled 2.7%, while the Innovator IBD Breakout Opportunities ETF (BOUT) lost 1.9%. The iShares Expanded Tech-Software Sector ETF (IGV) fell 1.1%. Microsoft stocks are the largest IGV stock, while many software stocks have suffered larger losses. The VanEck Vectors Semiconductor ETF (SMH) fell 1.4%. ASML and LRCX inventory are notable SMH components.

SPDR S&P Metals & Mining ETF (XME) fell just over 3%, while the Global X US Infrastructure Development ETF (PAVE) lost 1.1%. US Global Jets ETF (JETS) fell 4.1%. United Airlines (UAL) results and guidance dropped airline shares as well as other travel-related plays.

ARK Innovation ETF (ARKK), which reflects more speculative story stocks, fell 0.9% and ARK Genomics ETF (ARKG) 1.2%, both retreating beyond their 21-day and 50-day lines. Roku share is a top five stake for ARK Investment.

Read the big picture every day to stay in step with the direction of the market and leading stocks and sectors.

Market analysis

Once again, the stock market suffered more damage than the major indices would indicate. The Dow Jones and S&P 500 withdrew for a second consecutive session after appearing almost extended at the end of last week. The Nasdaq lineup lost more ground, but gained support on its 21-day line and above its lows in March.

The small print Russell Russell 2000 has dropped to its lowest level so far this month. That is after the 1.4% decline on Monday to below the 50-day line.

Leading stocks have suffered heavy losses, with much cheaper buying points or significant support. Futu shares fell 23% and crashed below a buy point and its 50-day line after announcing a share offer late Monday. On Monday, the shares rose by 16%.

But it was not just a matter of exchanging growth stocks. Commodity-related cyclists also retreated, along with housing-related retailers, chips, software, banks, travel and more. Some leaders seem relatively healthy, but a portfolio of “healthy” losers and “unhealthy” losers is not a winning strategy.

What to do now

It was already a “hard penny” market, to quote Mark Minervini, even if the major indices were higher. At the moment they are falling.

Investors naturally have to reduce their exposure because they no longer get shares. You may want to cut losses short and consider taking profits from some winners, especially those with fading profits that earn earnings.

Please follow Ed Carson on Twitter @IBD_ECarson for stock market updates and more.

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