Dow Jones futures rose overnight, along with S&P 500 futures and Nasdaq futures. MongoDB (MTP) and Dole Brothers (TOL) headline earnings after the close, with the AMD AI event on Wednesday.
X
Stock market gains had a mixed session as Treasury yields continued to slide on weak jobs data. Megacaps outperformed while small caps lagged. Apple (APL) exploded, returning over $3 trillion in value. Amazon.com (AMZN) recovered a buy point. Nvidia (NVDA) and Tesla (D.S.L.A) rebounded from their 50-day lines. Microsoft (MSFT) slightly higher into the buy zone.
MongoDB (MTP), asana (Teacher), Health Equity (remove), Dole Brothers (TOL), SentinelOne (S) and Aeroenvironment (opens) reported Tuesday night.
Wednesday morning, Ollie’s Bargain Outlet (Ollie) will publish quarterly financials.
Advanced Micro Devices (AMD) will host its Advancing AI event on Wednesday morning. It is expected to formally introduce its MI300 data center GPU to widen the competition with Nvidia. AMD shares fell 0.2% to 118.38 on Tuesday, below a 21-day line. While the 122.11 cup-with-handle buy point is technically valid, investors should use the Nov. 29 high of 129.73 as a new handle entry.
Amazon shares, Microsoft and Nvidia run IBD Leaderboard. Apple stock and Nvidia were added to swing traders on Tuesday. MSFT stock is on the IBD Long-Term Leaders list. Nvidia shares, SentinelOne, MongoDB and Microsoft IBD 50. Microsoft and MDB have shares IBD Big Cap 20.
Apple was Tuesday’s IBD Stock of the Day.
A video embedded in the article reviews Tuesday’s market action and analyzes Apple stock, Amazon and Nvidia.
Dow Jones Futures Today
Dow Jones futures 0.1% vs. fair value. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.3%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Main revenue
MDB stock fell sharply in overnight trade, indicating a move below a recent buy point. MongoDB revenue once again crushed views, while revenue remained comfortably at the top. The database software maker also guided Q4 higher. But billing and deferred revenue were disappointing. MongoDB shares rose 2.5% to 433.67 on Tuesday, according to MarketSmith analysis. The official purchase point is 412.67.
ASAN shares fell in extended activity, with ASAN also topping views and signaling a move back below the buy zone, albeit a higher guide. Shares rose 2.2% to 23.31 on Tuesday. Asana stock cleared the 22.13 handle buy point last Friday.
HQY stock was little changed overnight after health equity earnings topped Q3 views. Shares of the health savings account manager fell 4 cents to 69.02 on Tuesday, below the 50-day line. The health equity stock is working from a 13-month cup-with-handle base at a buy point of 76.62. A decisive move beyond 50 days can provide early entry.
TOL shares rose modestly in late trade after the luxury homebuilder topped earnings forecasts and delivered solid fiscal Q1 and 2024 guidance. Dole Brothers stock closed at 87.21. This is a slight extension from the 82.39 cup-with-handle buy point, but the 87.12 shelf entry range.
SentinelOne stock rose in extended trading, marking a breakout after the cybersecurity company reported a smaller-than-expected loss and 42% revenue growth. SentinelOne’s 4th Quarter Earnings Rise Shares fell 1.2% to 20 on Tuesday, but are running just to the right of a 43% deep base with a 21.95 buy point. S stock last week entered the opening around 18.
AVAV stock fell in overnight activity after AeroVironment earnings beat solidly. Shares of the drone maker rose 0.8% to 141.23 after hitting a record high on Monday. AVAV stock has extended from a buy zone.
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Stock market rally
Stock market gains were mixed as small caps pulled back, while mega caps lifted major indices.
The Dow Jones industrial average fell 0.2% in stock market trading on Tuesday. The S&P 500 index lost a fraction. The Nasdaq composite rose 0.3.
The Dow is at a 52-week high while the S&P 500 and Nasdaq are trading below their 52-week highs.
Although the overall trend is positive, it is not a good day for market breadth. Losers outscored winners on the NYSE and Nasdaq by nearly 2-to-1.
The small-cap Russell 2000 fell 1.4%. That followed Friday’s 2.9% jump and Monday’s 1.1% gain.
Invesco S&P 500 Equal Weight ETF (RSP) fell 0.8%, certainly undercutting the S&P 500.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) fell 0.6%, but lower. The Nasdaq 100 rose 0.25%, boosted by shares of Apple, Amazon, Nvidia, Tesla and others.
Leading stocks have generally looked good, while losing sectors have mostly taken pauses within upswings. An exception is the oil and gas sector.
US crude oil prices fell 1% to $72.32 a barrel.
The 10-year Treasury yield fell 11.5 basis points to 4.17%, hitting a three-month low. The odds of a March Fed interest rate cut are now more than 65%, down from 35% a week ago.
ETFs
Among growth ETFs, the iShares Expanded Technology-Software Sector ETF (VAT) closed below the break-even point. Microsoft stock is a large IGV holding, and the fund also owns SentinelOne. VanEck Vectors Semiconductor ETF (SMH) was flat. NVDA is the largest SMH holding, with AMD also a significant component.
Reflecting stocks with more speculative stories, the ARK Innovation ETF (ARKK) fell 0.9% to ARK Genomics (ARKG) retreated 3.25%. Tesla stock is a major holding across ARK Invest’s ETF portfolio.
SPDR S&P Metals & Mining ETF (XME) fell 2.5%, and the Global X US Infrastructure Development ETF (sidewalk) gave 1.1x%. US Global Jets (JETS) decreased by 1.55%. SPDR S&P Homebuilders ETF (XHB) fell 0.5%, TOL stock is a member of XHB. Energy Select SPDR ETF (XLE) reduced by 1.75%, and the Health Care Select Sector SPDR Fund (XLVdecreased by 0.1%.
Industrial Select Sector SPDR Fund (XLIretreated 0.8%. Fund Selection SPDR ETF (45Decreased by 0.5%.
Tesla Vs. BYD: Competing for the crown of EV giants, but which is the best buy?
Megacap shares
Megacap shares have paused or retreated over the past two weeks, but rallied on Tuesday.
Apple shares rose 2.1% to 193.42, clearing a 192.93 cup-with-handle buy point. AAPL stock closed at $3.008 trillion, again above the $3 trillion level. On Tuesday, Apple iPhone maker Foxconn raised its Q4 outlook after reporting strong November earnings.
Amazon shares rose 1.4% to 146.88, bouncing off a 21-day line and retrieving a 145.86 buy point.
Tesla shares rose 1.3% to 238.72, rebounding from a 50-day line and snapping a four-day losing streak. Shares retreated from an intraday high of 246.66. The EV company has a double-bottom buy point of 278.98, but investors can use the Nov. 29 high of 252.75 as an initial entry.
On Tuesday, weekly EV registration data showed Tesla’s China sales continued to rise, likely helped by the updated Model 3. The EV giant has recently made some offers in China, but they are relatively modest considering the intense EV price war there. On the other hand, weak German sales may have cooled interest in Tesla stock Tuesday afternoon.
Nvidia stock rose 2.3% to 465.66 on Tuesday, moving above its 50-day line after a three-day slide. The 476.09 double-bottom buy point is still valid, but NVDA stock must first break above its 21-day line. It is possible that Nvidia will create a new integration. Volume was below average after high volume low days in the past two weeks.
Wednesday’s AMD AI event is important for Nvidia, which has so far dominated the AI chip business.
MSFT shares rose 0.9% to 372.52. On Monday, shares fell short of a 366.78 cup-base buy point, but managed to close above that entry and 21-day line. Microsoft stock is 7.4% below its 50-day line, and has not extended further after being 11% above that key level on Nov. 10, when it first broke out.
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What to do now
The stock market rally still looks healthy. Despite Tuesday, market breadth improved.
Some stocks are flashing buy signals, but investors may want to simply stand by while major indexes and some leading stocks consolidate. If they haven’t already, investors may want to take some profits in extended stocks after big November gains. But that depends on exposure and concentration levels and your personal investment style.
Keep working on watch lists. Be sure to screen well beyond growth stocks as many sectors have advanced.
Read the big picture every day to stay in tune with market direction and leading stocks and sectors.
Follow Ed Carson on X/Twitter @IBD_ECarsonAt threads @edcarson1971 and Bluesky at @edcarson.bsky.social For stock market updates and more.
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