[ad_1]
Dow Jones futures rose on Tuesday night, as did S&P 500 and Nasdaq futures. The stock rally rebounded on Tuesday with widespread gains, although it came on lighter volume. Treasury yields reversed higher while Bitcoin was below $ 30,000.
X
Netflix (NFLX) headlined the major earnings reports on Tuesday night, as well as Intuitive surgery (ISRG) and Mexican Grill Chipotle (CMG). Netflix’s profits fell short while its subscriber forecasts were slight. NFLX action rose again late. Profits from Intuitive Surgical and Chipotle peaked as both stocks rose overnight.
Dutch giant of smart equipment ASML (ASML) releases its second quarter results very early Wednesday morning after holding above its 50-day line.
The major indices all extended Tuesday’s rebounds from Monday’s intraday lows. The 10-year Treasury yield, which fell to new five-month lows Tuesday morning, rebounded higher. Crude oil prices edged up after plunging on Monday. Copper prices have also increased.
Major stocks performed well on Tuesday.
DocuSign (DOCU) broke as Facebook (FB) rebounded bullish from its 50-day and 10-week lines. Marvell technology (MRVL), Shopify (SHOP), Sea Ltd. (SE) and Pay Pal (PYPL) were among the actions reclaiming official purchase points.
The video embedded in this article analyzes DocuSign, Marvell and FB stocks, as well as the overall market rally.
ASML, PayPal and DocuSign stocks are listed in the IBD ranking. Shopify, DocuSign, PayPal, and Marvell stocks are on SwingTrader. ASML and PYPL stocks are on the long term leaders IBD. ASML and SHOP stocks are on the IBD 50.
Get 3 weeks of ranking for only $ 9.95
Bitcoin price
The price of Bitcoin fell below $ 30,000 on Tuesday, to the low of a two-month range of just over $ 29,000 to around $ 41,000. The cryptocurrency has tended to fall, within this range, since the end of June. Bitcoin peaked at $ 64,829.14 in April.
Bitcoin and other cryptocurrencies have come under pressure amid crackdowns or threats of greater surveillance from China, the United States and many other countries. Bitcoin’s weakness may also reflect a ‘risk rejection’ mentality as highly valued growth stocks fell for much of July.
A break below $ 29,000 could signal further decline for Bitcoin.
Dow Jones Futures Today
Futures contracts on Dow Jones increased 0.1% from fair value. S&P 500 futures edged up 0.1% and Nasdaq 100 futures edged up 0.1%.
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
Coronavirus news
Coronavirus cases around the world have reached 192.15 million. Deaths from Covid-19 have exceeded 4.11 million.
Coronavirus cases in the United States have reached 35.06 million, with deaths exceeding 625,000.
Stock exchange rally
The stock rally benefited from strong price gains on Tuesday, although volume was below average.
The Dow Jones Industrial Average climbed 1.6% in stock trading on Tuesday. The S&P 500 Index rose 1.5%. The Nasdaq composite rose 1.6%. Small cap Russell 200 advanced 3.1%.
The 10-year Treasury yield rose 3 basis points to 1.21% after falling to 1.13% intraday. Crude oil prices rose 1.5% to $ 67.42 a barrel after falling 7.5% on Monday.
Hospital stocks jumped following the eruptions HCA Health (HCA). But the gains have been widespread across various industries.
Why this IBD tool makes it easier to find the best stocks
Best ETFs
Among the top ETFs, the Innovator IBD 50 ETF (FFTY) climbed 2.7%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 2.8%.
The iShares Expanded Tech-Software Sector (IGV) ETF gained 1.9%, passing above a buy point like many of the big names in software. The DOCU share is a notable IGV credit, but not Shopify.
The VanEck Vectors Semiconductor (SMH) ETF rose 1.2%. ASML and Marvell shares are on SMH.
The SPDR S&P Metals & Mining ETF (XME) climbed 3.1% and the Global X US Infrastructure Development ETF (PAVE) rose 2.8%. The U.S. Global Jets ETF (JETS) rebounded 5.05% after falling to its lowest level in nearly eight months on Monday. The SPDR S&P Homebuilders ETF (XHB) rose 2.8%. The Energy Select SPDR ETF (XLE) rebounded 1.3% and the Financial Select SPDR ETF (XLF) rose 2.5%.
Reflecting more speculative historical stocks, ARK Innovation ETF (ARKK) rebounded by 3% and ARK Genomics ETF (ARKG) by 2.8%. ARKK moved back above its 200 day line after finding support at its 50 day line in recent sessions. ARKG has recovered its 50-day line.
Five best Chinese stocks: only one is close to a point of purchase
Netflix Earnings
Netflix profits jumped 87% to $ 2.97 per share as revenue rose 19% to $ 7.34 billion. Analysts expected Netflix to earn $ 3.18 per share on revenue of $ 7.32 billion.
Investors have tended to focus on Netflix subscribers. The streaming TV giant added 1.54 million customers against its own goal of 1 million. Analysts had expected Netflix subscribers to grow by 1.15 million. However, the giant FANG expects a net gain of 3.5 million subscribers in the third quarter against a Wall Street consensus of about 5.5 million.
NFLX stock rose slightly overnight after initially pulling back. Shares fell 0.2% on Tuesday to 531.05.
Netflix stock has an official buy point of 593.39. Investors might view 563.66 as an early entry or as a buying point from a double bottom basis. Last week, NFLX stock approached that entry before retreating.
Intuitive surgical gains
Intuitive Surgical profits jumped 253% to $ 3.92 per share on a 71% increase in sales to $ 1.46 billion, as elective surgeries returned after almost ceasing a year earlier. Analysts had expected earnings of $ 3.07 per share on Intuitive Surgical on revenue of $ 1.27 billion.
ISRG stock climbed 3% in extended trading. Shares rose 2.45% to 955.05, just below recent all-time highs. This ranges from a buy point of 893.89 from a flat basis, being part of a basis on basis consolidation.
Benefits of chipotle
Chipotle’s profits soared 1,765% to $ 7.46, while sales rose 39% to $ 1.89 billion. Wall Street is forecasting earnings of $ 6.53 per share for Chipotle and revenue of $ 1.883 billion.
Same store sales increased 31.2% from views to a peak of 30.1%.
CMG stock jumped 4% overnight, signaling a return to the buy range. On Tuesday, Chipotle stock rose 1.5% to 1,574.35, briefly recovering a buy point of 1,579.62 cups, according to MarketSmith. Investors could also use 1,626.67 as an alternative entry.
ASML earnings
ASML results are expected very early on Wednesday. Analysts expect ASML’s earnings per share to rise 39% to 2.49 euros with revenue up 5% to 4.12 billion euros.
ASML stock rose 5 cents on Tuesday to 684.05, bouncing off its 50-day line for a second straight day. The shares broke through a buy point of 711.09 last week after a tight three-week trend, but quickly reversed lower. Investors could use a post-earnings rebound from the 50-day line as a signal to buy ASML stocks.
Market rally analysis
The stock rally had a much needed rebound. The Nasdaq composite, which fell to its previous consolidation peak, nearly touching its 10-week line on Monday, rebounded well. The S&P 500 extended its rebound from the 50-day line. The Dow Jones recovered its 50 day line while the Russell 2000 rebounded near its 200 day line.
The large-scale gains come after the Nasdaq rise / fall line fell to its lowest level since January. Several key areas of the market rebounded from multi-month lows.
Some psychological indicators, including the put / call ratio and the CBOE volatility index, fell after hitting their highest levels in weeks.
So there were many reasons why the stock market rally was “due” to a rebound, and it did.
Is this the start of another healthy market rally? The low volume after Monday’s massive sell-off was not particularly inspiring. The market needs to show a little more strength, not a return to megacaps raising major indices.
Major stocks definitely showed positive action on Tuesday, with DOCU and PayPal stocks among those leading the way. Healthy and continued action on major stocks is crucial, along with a larger scale of the market.
For now, however, the stock market rally remains under pressure.
Today’s IBD action flashes a possible buy signal
What to do now
Investors could have slightly increased their holdings on new buying opportunities, such as SHOP, DocuSign or Facebook shares. But there is no need to rush into a multitude of new positions. Let the market rally prove itself and attract you.
Covid software and various games are back in favor, so you want to have some exposure to this hot area of the market rally. But be careful not to focus too much on one industry or theme, especially if your overall exposure is high.
Focusing on early entries and withdrawals is always a smart strategy in this choppy market rally. If you are buying from a traditional breakout, at least try to start your position as close to the buy point as possible.
But jumping on various buy signals means doing your homework ahead of time. Build those watchlists and be ready to take action.
The earnings season continues to accelerate. Know the profit dates of your actions and decide whether you will own, sell or take partial profits before the results. Profit season is also a reason to be careful with new short-term buys.
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:
Best growth stocks to buy and watch
IBD Digital: Unlock premium stock listings, tools and analytics from IBD today
Find winning stocks with MarketSmith pattern recognition and custom screens
Time the market with IBD’s ETF market strategy
[ad_2]
Source link