Dow Jones futures were little changed overnight, while S&P 500 futures and Nasdaq futures were down slightly. Amazon.com (AMZN), super microcomputer (SMCI) and Advanced Micro Devices (AMD) made the headlines with its major earnings report, and the Fed meeting announcement is scheduled for Wednesday afternoon.
X
The stock market’s attempts to rally quickly faded as the high employment cost index raised new concerns about inflation. The major indexes are hitting resistance on the upside, awaiting the Fed meeting, big earnings results and economic data.
Eli Lilly (LLY) soared on Tuesday’s earnings and briefly made an early entry. tesla (TSLA) has retreated amid new layoffs but is still surging last week.
After the close, Amazon posted gains and rose slightly despite weak guidance. AI played Super Micro and AMD stock sold off in a volatile move. Super Micro and AMD’s results and guidance are key for AI chip makers including: Nvidia (NVDA).
transmedics (TMDX), Powell Industries (POWL) and pinterest (PINS) also reported late. TransMedix stock soared on the gains, far above its baseline. PINS stock soared, rising above the 50-day line and trend line and near the top of the new benchmark. Another AI stock, Powell Industries, has exploded above its 50-day line.
Nvidia and Eli Lilly stocks are listed on the IBD Leaderboard. Nvidia stock is listed on SwingTrader. Nvidia and TransMedics stocks are included in the IBD 50. Nvidia and SMCI stocks are included in the IBD Big Cap 20. Eli Lilly was the IBD Stock Of The Day on Tuesday.
In the video embedded in the article, we discussed Tuesday’s market trends and reviewed Eli Lilly. modine manufacturing (MOD) and constellation energy (CEG).
Dow Jones futures today
Dow Jones futures were little changed compared to fair value. S&P 500 futures fell 0.1%. Nasdaq 100 futures fell 0.3%.
Crude oil futures fell 1%.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
Fed meeting, economic data
The Fed concludes its two-day meeting on Wednesday, with a policy statement scheduled to be released at 2pm ET. Fed Chairman Jerome Powell will speak at 2:30 p.m. He is expected to suggest that he and the Fed are in no hurry to cut rates, perhaps waiting until next year.
Wednesday is packed with economic indicators. The April ADP employment report is scheduled to be released at 8:30 a.m. ET. At 10 a.m., the ISM manufacturing industry index for April will be announced, as well as the JOLTS report and construction spending for March.
April employment data is due on Friday.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
The stock market was rising, but it fell sharply towards the close as a sense of caution rose ahead of the announcement of overnight earnings results and the Federal Reserve meeting.
The Dow Jones Industrial Average fell 1.5% in stock market trading on Tuesday. The S&P 500 index fell 1.6% and the Nasdaq index fell 2%, falling from around the 50-day line and falling below the 21-day line. The small-cap Russell 2000 fell 2.1%, also below the 21st mark.
Friday contained many of the elements of a Nasdaq follow-through day, but technically did not qualify. In any case, FTD is not foolproof.
The S&P 500 and Nasdaq need to break above their 50-day lines. It can happen at any time, or weeks or months later.
It was a risk-off session. US crude oil prices fell by 0.85% to $81.93 per barrel. Copper futures fell 2%. Bitcoin fell 6% to a two-month low of $59,165.57.
The yield on the 10-year U.S. Treasury rose 7 basis points to 4.68%. The two-year Treasury yield, which is more closely tied to the Fed’s interest rate outlook, is again above 5%.
ETF
Among growth stock ETFs, the iShares Expanded Technology Software Sector ETF (IGV) fell 2.5%. The VanEck Vectors Semiconductor ETF (SMH) fell 2%, with AMD stock being a prominent holding. Nvidia is the biggest player in his SMH components, and AVGO stock is also a member.
The ARK Innovation ETF (ARKK) fell 3.7%, making Tesla stock its No. 1 holding.
SPDR S&P Metals Mining ETF (XME) fell 3.45%. The SPDR S&P Home Builders ETF (XHB) fell 1.8%. Energy Select SPDR ETF (XLE) fell 3%.
Healthcare Select Sector SPDR Fund (XLV) fell 0.1%. Eli Lilly stock is a major XLV component. The Industrial Select Sector SPDR Fund (XLI) fell 1.6% and the Financial Select SPDRETF (XLF) fell 1%.
Timing the Market with IBD’s ETF Market Strategy
amazon revenue
Amazon’s profits and sales exceed first-quarter views. Amazon Web Services’ revenue rose 17% as the tech giant cited its AI-driven gains. However, the sales outlook for the second quarter was modest.
He noted that, like other tech giants, Amazon is making significant capital investments to enhance its AI capabilities.
Amazon shares rose slightly in overnight trading. The stock fell 3.3% to 175 shares in regular trading Tuesday, below its 50-day line.
Super small profit
Super Micro’s revenue easily beat third-quarter estimates, but revenue was slightly below expectations. However, the AI ​​server maker’s results this quarter far beat consensus.
SMCI stock fell sharply in volatile overnight trading. Supermicro shares fell 3.5% on Tuesday to 858.80. The stock is trying to recover after plummeting 23% on April 19, after the AI ​​server maker did not provide advance guidance when announcing its earnings date. It also caused big losses in AI chip businesses such as Nvidia and Broadcom.
AMD’s revenue
AMD’s profits and revenue just beat views, but the revenue outlook is pretty much in line.
AMD stock fell in extended trading. The stock fell 1.1% to 158.38 on Tuesday, a little off its 50-day line.
Nvidia stock held its 50-day line on Tuesday before falling slightly in the after-hours.
eli lilly stock
Eli Lilly shares rose nearly 6% to 781.10 on Tuesday, rebounding for the first time in more than 50 days and hitting 795.50 during the day. Early Tuesday, Eli Lilly’s profits outweighed expectations for strong sales of its weight-loss drug Zepbound. Major pharmaceutical companies raised their full-year forecasts.
The buy point for LLY stock is 800.78 on a flat basis. Investors may use 793.67 as an early entry.
tesla stock
Tesla stock fell 5.55% to 183.28 on Tuesday. This was a 15.3% difference on Monday and a 34% difference in the four sessions following the April 23 earnings report. Investors praised Tesla for clearing a major hurdle to fully autonomous driving in China, while Elon Musk talked about “affordable” EVs and robotaxis.
Musk fired Tesla’s Supercharger team on Tuesday, cutting hundreds of jobs in new layoffs and reportedly likely significantly delaying the Supercharger rollout. He also fired the new car team, further evidence that truly new EVs may be years away. This follows last week’s more than 10% layoffs, with two key executives leaving the company.
Wednesday earnings
neurosecretory biological science (NBIX), Generac Holdings (GNRC) and carpenter technology (CRS) report before the start of trading on Wednesday, wingstop (wing), allstate (all), master Card (MA) etc.
Investors expect deliveries from Chinese EV maker in April lee auto (li), Nioh (NIO) and XPeng (XPEV). EV and battery giant BYD (BYDDF) will report April sales on Wednesday or Thursday.
what to do now
The stock market’s attempt to rally is at a critical juncture. This is not the time to be aggressive. If you want to buy, buy with precision and consider smaller positions. However, it makes a lot of sense to wait for the market to show decisive strength amidst a lot of news.
If the market rises further, you need to be ready. Many stocks are rising. If the market is in retreat and under threat from recent lows, you should scale out.
So keep your watchlist and exit strategy updated.
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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