Dow Jones futures rose early Tuesday, along with S&P 500 futures and Nasdaq futures. General Electric and General Motors Cadence Design Systems (CDNSOvernight profits. The Federal Reserve begins its final policy meeting today with Microsoft and Google post-lockdown.
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The stock market rally enjoyed modest gains on Monday, with Dow Jones extending its winning streak to 11 sessions, the longest in six years.
Tesla (TSLA) bounced back above a key level, shrugging off an analyst downgrade and other reports on a potential Indian plant. Chinese stocks jumped on Tuesday, hoping for fresh stimulus. vape shop (VIP) And Trip.com (TCOM) blinking buy signals, with internet and EV swarming.
Fed meeting
The Fed’s two-day meeting begins on Tuesday, with a policy announcement scheduled for Wednesday at 2 p.m. ET. The Fed’s quarter-point rate hike has closed in on markets, but it sees only a modest chance for another move before the end of the year. How forcefully did Fed Chairman Jerome Powell and policymakers make the case for an additional rate hike?
Dow jones futures today
Dow futures rose less than 0.1% against fair value. S&P 500 futures rose 0.1% and Nasdaq 100 futures rose 0.4%.
The 10-year Treasury yield rose a few basis points to 3.89%.
Crude oil was little changed while copper futures rose more than 1%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Main earnings
That also had implications for the competing chip design software company, Cadence Design reported Monday evening Synopsys (SNPS). Cadence Design stock and SNPS are both close to overbought.
CDNS stock fell strongly after Cadence Design earnings topped revenue roughly matching. Shares fell 0.65% to 214.27 Monday, pulling back below 242.65 buy points from short consolidation just above a flat base. SNPS stock fell slightly early Tuesday. Synopsys stock is running a handle just below Cope’s base of 468.03, according to MarketSmith analysis.
Automotive and mobile chip maker NXP Semiconductor (nxpi) and clinical studies specialist midpiece (MEDP) topped views late Monday after both closed modestly stretched out of overbought territory. NXPI stock rose overnight while MEDP stock fell on weak guidance.
Nucor (nue) have had mixed results. NUE stock is down slightly in late trading, not far from the point of purchase.
F5 (FFIV) reported strong results. FFIV stock jumped early Tuesday, indicating a move over multiple resistance areas to a 10-month high.
On Tuesday, earnings season kicked off into high gear. General Electric (GE), general motors (GM) And RTX (RTX), formerly Raytheon Technologies, all beat their second quarter views and raised guidance. GE stock, already in the buy range, showed up in pre-market trade. General Motors stock rose modestly, moving toward a buy point. RTX stock fell slightly as Pratt & Whitney’s jet engine unit found a manufacturing defect.
Microsoft (MSFT), a parent from Google the alphabet (Google) And visa (Fifth) earnings address late Tuesday. Microsoft is nearing record highs, while Google stock is entering a handle. Visa stock is in a buy range.
Tesla works IBD Leaderboard. Microsoft stock, Cadence Design, and SNPS are listed on the IBD Long-Term Leader list. TSLA stock is located at defect 50. CDNS and Tesla stocks are at IBD Big Cap 20.
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Stock market rise
The stock market rally saw a modestly positive session on Monday.
The Dow Jones Industrial Average rose 0.5% in stock market trading Monday, hitting a 15-month high. The S&P 500 advanced 0.4% while the Nasdaq Composite rose 0.2%, just below its 10-day high line. Small cap Russell 2000 rose 0.3%.
The winners beat the losers on the New York Stock Exchange, while the leading stocks fell slightly on the Nasdaq.
Invesco S&P 500 Equal Weight Fund (RSP) rose 0.3%, just below the S&P 500.
First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW) fell 0.3% against the Nasdaq 100 gaining 0.2%. This reflects how the giants, especially TSLA stock, boosted the Nasdaq on Monday.
Growth stocks could still be in the midst of a pullback, but the overall market is not showing a broad pullback.
US crude oil prices rose 2.2 percent to $78.74 a barrel, the highest level in three months. Copper futures rose 1%. China’s stimulus hopes boosted industrial commodities.
The 10-year Treasury yield rose nearly 2 basis points, to 3.855%.
The US dollar rose for the fifth consecutive session after falling earlier this month.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty(down 1.1%, while the Innovator IBD Breakout Opportunities ETF)fit) increased by 0.1%.
iShares Expanded Technology and Software ETF (IGV) decreased by 0.3%. MSFT stock is one of IGV’s most important holdings. VanEck Vectors Semiconductor Corporation (SMH) increased by 0.1%. Tempo Design and SNSPS shares are in both IGV and SMH ETFs.
Reflecting more speculative stocks, the ARK Innovation ETF (ark(down 1.1% and ARK Genomics ETF)ARKG) slipped 2.2%. TSLA stock is the No. 1 holding ETF by Ark Invest.
SPDR S&P Metals & Mining ETFs (XME) rose 1.2%, with NUE stock holding the key. US Global Gates Foundation ETF (Planes) fell 1.2%. SPDR S&P Homebuilders ETF (XHB) increased by 0.4%. Energy Defined Fund SPDR ETF (xle(Advance 1.6% and SPDR Fund to choose the healthcare sector)XLV) decreased by 0.2%.
SPDR Industry Selection Fund (XLI) increased by 0.2%.
SPDR Financial Selection Fund (XLF) gained nearly 1%, with Visa stock holding the key. SPDR S&P Regional Banking ETF (KRE) figured 2.5%
Top five Chinese stocks to watch now
Tesla stock
Tesla stock fell at the open Monday on UBS’s downgrade, but reversed higher to close 3.5% higher at 269.06, retracement of the 21-day streak. The electric car giant is said to be in further talks with India about setting up a factory there. Stocks may be running a handle after tumbling late last week after earnings sparked investor concerns about profit margins.
What are you doing now
The stock market rally continues to rise, although Monday’s growth runs were mixed. A lot of stocks still look like they are extending, or pulling back, often to key support levels. With the earnings flowing in and the Fed meeting beginning, investors may want to be careful about new purchases.
Many stocks are not far from being actionable from a variety of sectors, so run your screens and prepare your watchlists.
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
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futures rally amid earnings rush; Fed, Microsoft, Google In Focus
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