Dow Jones futures rose slightly in after-hours trading, while S&P 500 futures and Nasdaq futures also rose. tesla (TSLA) soared despite lackluster earnings as it signaled that affordable EVs remain on top.Elon Musk attends upcoming all-important financial results conference
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The stock market rebounded for the second day in a row on Tuesday, with major indexes and many leading companies showing strength. However, major indexes and many growth tech leaders remain below their 50-day moving averages. Nvidia (NVDA).
This is only the second day of the stock price attempt. Investors should be looking for a follow-through date later this week.
In addition to Tesla’s earnings, the Dow Jones giant visa (V) reported late Tuesday. early Wednesday morning, boeing (BA) and AI play Vertive (VRT) is up and running.
Nvidia stock is listed on the IBD Leaderboard.
Dow Jones futures today
Dow Jones futures rose 0.1% to fair value as Visa shares gained momentum. S&P 500 futures rose 0.2%. Nasdaq 100 futures rose 0.5%. Tesla stock is a major stock on the S&P 500 and Nasdaq.
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.
Attempt to raise the stock market
The stock market’s attempt to rally continued with strong trading on Tuesday, with tech and small-cap stocks once again leading the way. Weaker-than-expected economic data pushed U.S. Treasury yields lower, providing a boost.
The Dow Jones Industrial Average rose 0.7% in stock market trading Tuesday. The S&P 500 index rose 1.2%. The Nasdaq Composite rose 1.6%. The small-cap Russell 2000 rose 1.6%.
After a string of big losses, a solid day or two wouldn’t be too surprising. All major indexes are below their 50-day moving averages.
Many leaders have a lot of repair work to do. Nvidia stock rose 3.65% on Tuesday after rising 4.35% on Monday, but is still trading below its 50-day line and within Friday’s 10% decline.
Some stocks are liquidating entries, but in many cases the long-term relative strength line is weak. However, energy, finance, aerospace, medical, and restaurant names show strength with solid RS.
Investors should keep an eye on follow-through days starting later this week. FTD includes one or more major indexes that show a large increase with greater volume than the previous session. That would indicate that major institutions believe in the initial bull market attempt.
US crude oil prices rose 1.8% to $83.36 per barrel.
The 10-year Treasury yield fell 2.5 basis points to 4.6%, but not far from its five-month high.
ETF
Among growth stock ETFs, the iShares Expanded Technology Software Sector ETF (IGV) rose 1.7%. VanEck Vectors Semiconductor ETF (SMH) surged 2.35%, with Nvidia stock becoming the dominant holding in SMH.
Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) rose 3% and the ARK Genomics ETF (ARKG) rose 1.6%. Tesla stock is a major holding across Ark Invest’s ETFs.
The SPDR S&P Metals Mining ETF (XME) fell 1.4% and the Global XUS Infrastructure Development ETF (PAVE) rose 0.9%. The U.S. Global Jets ETF (JETS) fell 0.7%. The SPDR S&P Home Builders ETF (XHB) rose 2.7%. Energy Select SPDR RETF (XLE) rose 0.55% and Healthcare Select Sector SPDR Fund (XLV) rose 1.3%.
The Industrial Select Sector SPDR Fund (XLI) rebounded 1.4%. The Financial Select SPDR ETF (XLF) rose 0.6%, with Visa stock as its main holding.
Timing the Market with IBD’s ETF Market Strategy
tesla revenue
Tesla’s profits fell 47% from the previous year, marking the third consecutive year of significant year-on-year declines. Sales fell 9% to $21.3 billion, the biggest decline since 2012 due to lower deliveries and prices. Both results were below expectations.
The EV giant also reported a cash burn of $2.53 billion.
However, Tesla also reaffirmed its commitment to “start production in the second half of 2025” for new models, including “more affordable” EVs.
This allays investors’ biggest concerns that the robotaxi push would derail development of the $25,000 next-generation electric vehicle. But his late 2025 date for mass production of the yet-to-be-seen vehicle seems like an ambitious timeline.
Tesla said the new vehicle will “leverage aspects of the current platform, as well as aspects of the next-generation platform.”
Elon Musk said during Tesla’s earnings conference that this means the new car won’t require a new factory and can be built on the same production line as the current car.
Musk has previously said that the next generation of EVs will use “revolutionary” manufacturing techniques to achieve cost savings. Using current production lines and current technology “sides” will make deployment easier, but what does that mean for the promised cost savings?
Musk just said the new model line will arrive in early 2025 “if not later this year.”
Tesla said in its earnings call that it is working on a ride-hailing feature “that will become available in the future,” but provided few other details. Musk reiterated his long-standing claim that vision-only systems are the right path to autonomous driving.
Musk said Optimus robots would provide “useful” work in Tesla’s factories by the end of the year and begin external sales by the end of next year, but he called those “speculations.”
Will the EV majors provide full-year delivery guidance? There is growing evidence that vehicle deliveries will decline year over year.
More broadly, investors and analysts will be looking for some clarity about Tesla’s short- and long-term strategy amid weak sales, massive layoffs and wild price volatility.
Earlier on Tuesday, Tesla launched an improved Model 3 Performance variant in the United States. Unlike his other two variants, the M3 Performance comes with his $7,500 IRA credit.
tesla stock
Tesla stock soared more than 9% in late trading.
The stock rose 1.8% to 144.61 on Tuesday, ending a seven-session losing streak and rebounding from its worst level since January 2023. TSLA stock is down 41.8% in 2024, the worst performer in the S&P 500 as of Tuesday’s close.
visa income
Visa income exceeded expectations.
Visa stock rose slightly overnight. The payments giant Dow Jones rose 0.7% to 274.13 on Tuesday. Visa could find ground soon if it continues to build on the right side with the 50-day line as an important level.
Boeing’s financial results are expected to be released Wednesday morning. BA stock fell 0.8% to 169.08 on Tuesday, its worst intraday level since late 2022.
Vertiv reported early Wednesday morning on the data center cooling system maker’s de facto AI efforts. VRT stock surged 4.05% to 79.15 on Tuesday, with Monday’s rebound pushing it above the 50-day line.
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what to do now
The market recovery efforts have only just begun. It’s still time to watch and wait, especially with so many earnings reports to come in the next few days.
If you want to try swing trading or pilot positions, you can do that, but you have to be just as aggressive to get out of it.
Theoretically, FTD could occur as early as Thursday.
but, microsoft (MSFT) and Google’s parent company alphabetThursday night’s GOOGL results and the Fed’s preferred metric, the Core PCE Price Index, could be important for the direction of the market.
In a montage-like dream scenario, the Nasdaq and S&P 500 will break through their 50-day lines on Friday, along with leaders like Nvidia, confirming their attempt to move higher.
But the rise could take weeks or even months to sustain. The important thing for investors is to prepare for the next market.
Work on those watchlists. Look for stocks that are showing relative strength, holding or recovering key levels, and recouping most of their recent losses. Note that the leaders of the previous market rally may lag in the next uptrend.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
Follow Ed Carson’s thread @edcarson1971 and X/Twitter. @IBD_ECarson The latest information on the stock market, etc.
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