[ad_1]
Dow Jones futures fell slightly on Thursday night, while S&P 500 futures fell slightly and Nasdaq futures fell sharply as Amazon shares and Pinterest (PINS) sold after the S&P 500 and Dow Jones rose on Thursday to record highs in a quietly bullish stock rally.
X
Amazon.com (AMZN), Twilio (TWLO) Pinterest stock, Atlassian (TEAM) and Apple (AAPL) chip maker for iPhone Skyworks Solutions (SWKS) headlined another packed night of earnings.
Amazon stock fell on a missed sale while PINS stock plunged on users. SWKS and Twilio stocks also fell, but TEAM stocks were a big winner.
Market rally gives rise to yield breakouts
The stock rally had a strong session on Thursday. The Nasdaq climbed higher, but overall it’s probably good for the tech index to have a day of doing nothing. Meanwhile, the Dow Jones and S&P 500 edged up to record highs as small caps posted a solid gain and overall breadth improved.
Most breakouts and buying opportunities have multiplied, with more sectors in leading roles. You’re here (TSLA) displayed an aggressive entry while Align technology (ALGN) and chip maker Maxlinear (MXL) broke out on profits, with Tempur Sealy (TPX) and Hilton around the world (HLT). Meanwhile, Steel dynamics (STLD) erupted while Lennar (LEN) cleared an early entry as both rivals reported strong profits.
Meanwhile, steel, mining, chip and hotel groups and other stocks have also made bullish moves – Arcelor Mittal (MT), American steel (X), Teak Resources (TEAK), Qualcomm (QCOM) and Hyatt (H) to name a few – build group strength and enhance leadership diversity.
Tesla and Steel Dynamics shares are on IBD SwingTrader. TEAM action is on IBD Long-Term Leaders. The STLD action was the IBD action of the day on Thursday, while Lennar was the action of the day on Wednesday and Mittal was the action on Tuesday.
Why this IBD tool makes it easier to find the best stocks
Dow Jones Futures Today
Futures contracts on Dow Jones fell 0.1% from fair value. S&P 500 futures slipped 0.5%. Futures on the Nasdaq 100 fell 1.05%. Amazon stocks have been the main drag on tech futures, with Pinterest, Skyworks and others falling in sympathy.
Keep in mind that overnight action on futures contracts on Dow and elsewhere doesn’t necessarily translate into actual trades during the next regular trading session.
Join the IBD experts as they analyze the exploitable stocks in the stock market rally on IBD Live
Thursday stock market rally
The stock market rally had a constructive session. The Dow Jones Industrial Average rose 0.4% in Thursday’s stock trading. The S&P 500 index too. The Nasdaq composite edged up 0.1%. The Russell 2000 jumped 0.8%, but reached resistance at its 50 day line.
The Nasdaq 100 edged up 0.2%, dragged down by post-profit sales of Facebook (FB) and Pay Pal (PYPL).
Tesla shares
Tesla stock was a big winner on the Nasdaq 100, up 4.7% to 677.35. TSLA stock rebounded from its 200-day line and broke a trendline stretching back to the January record. Investors could also use 700.10 as an aggressive entry, with 780.89 as another key technical point.
The move in Tesla shares came days after the second quarter results. The electric vehicle giant has seen strong growth but has also pushed back production of Semi, again, this time until 2022, with the Cybertruck also unlikely until next year. On Thursday evening, CEO Elon Musk confirmed that Tesla will be hosting an “AI Day” on August 19.
Meanwhile, traditional automakers have also rallied, with Ford (F) and General Motors (GM) up more than 3% on Ford’s earnings, close to flashing buy signals. BYD Co. (BYDDF), a Chinese electric vehicle and battery maker, jumped 3.2%, breaking the trendline in a handful in a very deep base.
The 200-day average: the last line of support?
Best ETFs
Among the top ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.4%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 0.5%. The iShares Expanded Tech-Software Sector (IGV) ETF edged up 0.1%. The VanEck Vectors Semiconductor (SMH) ETF jumped 1.9%.
The SPDR S&P Metals & Mining ETF (XME) jumped 4.7% and the Global X US Infrastructure Development ETF (PAVE) rose 1.4%. The US Global Jets ETF (JETS) fell 0.25%. The SPDR S&P Homebuilders ETF (XHB) jumped 2.9%. The Energy Select SPDR ETF (XLE) climbed 1% and the Financial Select SPDR ETF (XLF) rose 1.1%.
Reflecting more speculative historical stocks, ARK Innovation ETF (ARKK) rose 0.2% and ARK Genomics ETF (ARKG) fell 0.3%. Tesla share is the main holding among ARK ETFs.
Five best Chinese stocks to watch amid China’s crackdown
Amazon earnings
Amazon’s profits have exceeded views, but the revenue has come to light. The e-commerce and cloud computing giant also saw lower second-quarter sales.
AMZN stock fell 7.5% in overnight trading, signaling a return to its base. Amazon stock fell 0.8% to 3,559.92 on Thursday. Stocks have remained within a range of a buy point of 3,524.96 cups with a handle, according to MarketSmith analysis.
Amazon’s weak sales are not good news for Etsy (ETSY), which fell after hours.
Amazon caps huge week for mega-cap revenue, after Tesla, Apple, Microsoft (MSFT), Facebook and Google parent Alphabet (GOOGLE).
Twilio Gains
Twilio reported a smaller-than-expected loss on booming revenue growth. But the communications software maker has given mixed advice.
TWLO stock fell 2% on extended action. Shares edged down 0.5% on Thursday to 392.20. Last week, Twilio stock briefly erased early entries of 403.50 or 405.90, with the latter arguably a double bottom buy point.
Earnings on Pinterest
Pinterest profits have exceeded estimates, but user growth has emerged.
PINS stock plunged 19% overnight. Shares have already fallen 6% on Thursday to 72.04, falling in sympathy with FB stock after erupting last week in the eruption Break (SNAP) earnings. Pinterest stock has an early entry of 81.87, although investors may find a slightly lower entry from a trendline starting with the April high. Pinterest stock has an official buy point of 90.
Skyworks Earnings
Skyworks revenue and revenue just exceeded previous views.
SWKS stock fell 5%, slipping back below a buy point. Shares of chipmaker Apple iPhone rose 2.4% to 196.87 on Thursday, perhaps bolstered by fellow 5G and iPhone chipmaker Qualcomm. This pushed SWKS shares above a buy point of 193.74 from a cup base with handle. But with the profits at stake, it would have been a very risky purchase.
Qorvo (QRVO), another 5G and iPhone chipmaker with revenue expected next week, fell overnight.
Apple stock edged up 0.5% to 145.64 on Thursday. Stocks edged down this week after earnings, but are near record highs.
Atlassian Gains
Atlassian earnings fell less than expected as fiscal fourth quarter revenue growth easily exceeded consensus. The collaboration software maker also guided upward for the current first quarter.
The TEAM share increased by 13%. The shares had plunged 0.85% to 266.79 on Thursday. The Atlassian stock had been consolidating for several weeks after breaking a pre-mid-June base. Investors could buy TEAM shares if there is a break or gap in earnings from this tablet-shaped model.
Market rally analysis
The stock rally had a strong session. Amid moderate Nasdaq gains, the Dow Jones and S&P 500 hit record highs while the Russell 2000 and several sector ETFs posted solid gains. All of this indicates an improvement in the scope of the market.
Meanwhile, more top stocks have issued buy signals, with the increased diversity of breakouts also pointing to an improvement in spread. And these buying opportunities often came with peers that were equally exploitable or in the process of being created. Whether it’s Tesla, Steel Dynamics or Hilton stocks, it’s always a good sign to see your peers performing well.
While the Nasdaq 100 is still not far from being extended and the rise / fall remains lackluster at best, the past two days have been positive for active investors.
Time the market with IBD’s ETF market strategy
What to do now
The last two days have offered opportunities for some shopping. It was a good time to add diversity to what could have been a very tech-driven portfolio.
But there are several reasons not to increase exposure quickly. The market rally is in a confirmed uptrend but it is still subject to choppy behavior. Futures on the Nasdaq suggest that growth stocks will start on the decline on Friday.
Make sure you don’t chase extended stocks, which puts you at high risk of a pullback in stocks or the broader market. Sometimes the top stocks don’t give you much time to buy properly, whether it’s Tempur Sealy or ALGN stocks on Thursday or Advanced micro-systems (AMD) Wednesday. So be prepared to jump on stocks as close to the buy signal as possible. This means creating and updating your watchlists, setting alerts, and paying attention to the market.
Read The Big Picture every day to stay in tune with the market direction and major stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
YOU MAY ALSO LIKE:
Today’s IBD stock bursts as rivals earn money
Best growth stocks to buy and watch
IBD Digital: Unlock premium stock listings, tools and analytics from IBD today
Chipotle and Crocs lead 23 actions to grow at least 100%
The IBD ranking celebrates its 10th anniversary! Celebrate with us
[ad_2]
Source link