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Dow Jones futures rose slightly on Tuesday night, as did S&P 500 and Nasdaq futures. The stock market rally came to a halt on Tuesday as Focus on video communications (ZM) dived. CrowdStrike stock grabbed headlines overnight. Nio (NIO) and other Chinese electric vehicle makers are expected to report monthly sales as Tesla’s stock slightly extended its move above an aggressive entry.
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CrowdStrike (CRWD), Anaplan (PLAN) and Ambarella (AMBA) released its results Tuesday evening.
All three have exceeded estimates. CRWD stock fell overnight while PLAN stock jumped and AMBA stock erupted.
Nio Selling Loom
Nio will likely report August deliveries on Wednesday morning, along with other EV startups Xpeng (XPEV) and Li Auto (LI) on sale in the coming days. Chinese electric vehicle giant BYD Co. (BYDDF) will likely follow.
Nio stock rose on Tuesday, but is near its lowest for several months. Xpeng stock recovered the 50-day line on Tuesday and is near an early entry into a base dip. Li Auto’s stock rallied to just below 50 days. BYD stock is in a handful, near a buy point and all-time highs.
Tesla shares
Industry reports are expected to provide Tesla’s sales in China in the coming weeks. Tesla’s local sales in China declined significantly from the first quarter, although it is not clear to what extent this reflects weakening demand or a lack of supply. You’re here (TSLA) now exports much of its Shanghai plant’s output, particularly in the first two months of the quarter, primarily to Europe. Tesla is exporting the Chinese-made Model Y to Europe for the first time. Tesla started delivering a cheaper, lower-end model Y standard-range variant to China in August.
Tesla stock rose 0.7% to 735.72, extending Monday’s move above an aggressive buy point of 730.
Snap Rises, Zoom Stock Dives
Break (SNAP) rose 2.15% to 76.11, clearly breaking a trendline entry after recovering an old buy point of 73.69 on Monday. Snap stock also has a 79.28 entry from a new flat base.
Zoom stock beat second-quarter expectations, but growth is slowing. The leader in videoconferencing fell slightly for the current third quarter and for annual revenue. ZM stock plunged nearly 17% to 289.50, not far from a 2021 low. Prior to earnings, Zoom stock was trading below its 50 and 200 day lines. A huge pandemic winner in 2020, ZM stock offered several important sell signals late last year and early 2021.
Tesla and SNAP shares are listed on the IBD rankings. TSLA action is also on SwingTrader. It was the IBD action of Tuesday. The CRWD stock is on the IBD 50.
The video embedded in this article looked at Tesla, Zoom, and SNAP stocks.
Dow Jones Futures Today
Futures contracts on Dow Jones increased 0.2% from fair value. S&P 500 futures gained 0.2%. Futures on the Nasdaq 100 climbed 0.15%.
Keep in mind that overnight action on futures contracts on Dow and elsewhere doesn’t necessarily translate into actual trades in the next regular trading session.
Join the IBD experts as they analyze the exploitable stocks in the stock market rally on IBD Live
Stock exchange rally
The stock rally had a quiet session with the major indices trading within a narrow range.
The Dow Jones Industrial Average plunged 0.1% in equity trading on Tuesday. The S&P 500 Index also fell 0.1%. The Nasdaq composite lost a fraction. Russell 2000 small cap advanced 0.2%.
Among the top ETFs, the Innovator IBD 50 ETF (FFTY) climbed 0.7%, while the Innovator IBD Breakout Opportunities ETF (BOUT) fell 0.3%. The iShares Expanded Tech-Software Sector (IGV) ETF fell 0.6%. The stock CRWD and Snap are IGV components. The VanEck Vectors Semiconductor (SMH) ETF fell 0.8%.
The SPDR S&P Metals & Mining ETF (XME) lost 0.5% and the Global X US Infrastructure Development ETF (PAVE) lost 1.1%. The US Global Jets ETF (JETS) climbed 1%. The SPDR S&P Homebuilders ETF (XHB) fell 0.8%. The Energy Select SPDR ETF (XLE) fell 0.7% and the Financial Select SPDR ETF (XLF) edged down 0.1%.
Reflecting more speculative stocks, ARK Innovation ETF (ARKK) fell 0.6% and ARK Genomics ETF (ARKG) climbed 0.9%. Tesla shares are the main asset among ARK Invest ETFs. The zoom stock is a notable ARKK component.
Five best Chinese stocks to watch
CrowdStrike Earnings
CrowdStrike’s profits slightly exceeded second-quarter views, as the cybersecurity leader increased revenue and EPS. CRWD stock fell 4% in extended trading. Shares fell 1.9% to 281 on Tuesday, after rising for nine consecutive sessions.
Ambarella profits exceeded views, with EPS up 483% as revenue growth accelerated to 58%. The video processing chip maker has also given bullish revenue forecasts. AMBA stock rose 5% overnight, after initial highs. Ambarella stock fell 1.8% on Tuesday to 103.57, just above its 50 and 200-day lines. The shares could offer early entry on Wednesday.
Anaplan reported a smaller-than-expected loss while still beating revenue and guiding sales up. PLAN action jumped 14% in extended action. Stocks fell 2.3% on Tuesday to 59.98, reaching resistance at their 200-day line.
Market rally analysis
The stock rally came to a halt on Tuesday, but it was normal and healthy action. The Nasdaq and S&P 500 are at record highs while the Dow Jones is just below historical levels. The Russell 2000 is holding modestly above its 50 day line.
The Nasdaq and Nasdaq 100 were not extended at Monday’s close, but after seven of the previous eight sessions, tech stocks could use sideways action.
Few new stocks were exploitable on Tuesday. Tesla and Snap shares rose in buy zones after closing their range on Monday.
On the other hand, there wasn’t much damage either. Wells fargo (WFC) sold off, falling below a buy point and its 50-day line on a report that it could face regulatory action on the pace of restitution. But finances have generally held up after sinking on Monday. Steel stocks have fallen sharply, but are within mini-consolidations.
Time the market with IBD’s ETF market strategy
What to do now
How aggressive should you be in this stock rally? An important factor is how well you are doing. If you own top stocks in major sectors, you might have pressed gas over the past week, but not necessarily on Tuesday. But if you don’t move up, it’s a sign that either major stocks aren’t doing well or you’re out of step with the market rally – that’s not a reason to rise anyway. the exhibition.
Continue to assess your portfolio. Do you have losers weighing on the overall performance? Are you too focused on software, IPOs, or chips? Establish your watchlists to buy top stocks in a variety of industries.
Above all, don’t get locked into a bullish or bearish mindset. When the market rally rebounded from key levels on August 19, many buying opportunities emerged over the next few days. If the market rally worsens and major stocks reduce their gains, investors should start to become more defensive.
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.
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