The Dow Jones futures rose higher on Tuesday, with the S&P 500 futures and the Nasdaq futures. The stock market rally was suspended on Tuesday, with key indices declining following a good bounce in the last few sessions.
Turbobox maker Intuition (INTU), The role of cyber security Zscaler (Z.) And Luxury Home Builder Toll Brothers. (TOLL) Close post-revenue title. Dickin Sporting Goods (D.K.S.) Reports early Wednesday.
Induit stock, already in the buying zone, rose slightly overnight on solid earnings and guidance. The INTU stock may exit the 5% chase zone. Zscaler stock rose In an extended trade on a Beat-and-Rise report, it indicates a break above its 50-day line and may rise to a downward-sloping trend line. But ZS stock is still unrecorded. Toll shares rose on Tuesday after rising from a 50-day high.
The stock market rally dropped morning gains, but held above key levels.
Aircraft, shipping and other travel related stocks were early leaders Jet Blue (J.P.L.U.), Festival (C.C.L.) And Boeing (B.A.) When deleting initial entries MGM Resorts (M.G.M.) And Caesars entertainment (CZR) Exploded. But these stocks came in well from several morning gains or closed lower. In the long run, their revenue views raise some concerns.
Meanwhile, chip-gear stocks continued to perform better. Lam Research (LRCX) And Application materials (Amat) Rose again. Both LRCX stock and utility stocks are still recovering from their 10-week highs after breaking trend lines on Monday.
Tesla Vision Quest
A day after that Tesla (DSLA) Tested the lid on some vehicles, EV. Dropping radar from Model 3 and Model Y vehicles For the North American market, starting with May distributions. Some auto-pilot features or other driver-assist systems such as summons may be temporarily restricted. Radar will be added to the updated Model S and X, at least in the short term.
Tesla CEO Elon Musk has pointed to a change in vision only in recent weeks. Most automakers and technology companies that operate in self-driving hotels rely on a variety of sensors.
Tesla shares fell 0.3% to 604.69 on Tuesday, well above its 200-day limit. DSLA shares rose 4.4% on Monday. The Relative strength line Tesla stock is at a six-month low.
The future of Dow Jones is today
Dow Jones futures 0.2% and reasonable value. The S&P 500 futures rose 0.2% and the Nasdaq 100 futures rose 0.3%.
Corona Virus News
Worldwide, corona virus cases reached 168.48 million. Covit-19 deaths are 3.49 million.
Corona virus cases in the United States have reached 33.94 million, with more than 605,000 deaths.
Stock market rally on Tuesday
The stock market rally left morning gains close to close the session, but key indicators did not leave much ground.
The Dow Jones Industrial Average fell 0.2% on Tuesday Stock market trading. The S&P 500 index was down 0.2%. The Nasdaq mixed ended just below the break. Russell 2000 retreated 1%.
The 10-year Treasury yield was down 4 basis points to 1.56%, which fell to a fourth-session session. This is good news for home builders and the most valuable growth stocks and pulling many funds.
In the middle Best ETFs, Inventor IPD 50 ETF (FFTY) 0.5% lower, while inventor IPD Breakout Opportunities ETF (BOUT) Fell 1.1%. Eyeshare Extended Technology-Software Sector ETF (IGV) Has risen to 0.2%. Vanic Vectors Semiconductor ETF (SMH) 0.7% higher, with significant components of AMAT stock and LAM research.
SPDR S&P Metals and Mining ETF (XME) Fell 2.4% and Global X US Infrastructure Development ETF (PAVE) Lost 1%. US Global Jets ETF (Jets) Fell 0.36%, holding JBLU stock a JETS. SPDR S&P Home Builders ETF (XHB) 1%, TOL share with an XHB component. SPDR S&P Regional Bank ETF (KRE) Slipped 2.3%.
Reflecting more monolithic story stocks, ARK Discovery ETF (ARKK) And ARK Genomics ETF (ARKG) Both rose 0.6%. Both ARKK and ARKG are below their 200 day moving average. Tesla’s stock ranks first in ARK investment in its ETFs.
How far can travel stocks travel?
JPLU shares fell 0.85% to 19.86 after reaching an early high of 20.89. CCL shares rose 2.4%, making it one of the best performers on the S&P 500. Boeing shares advanced 1.4%, but failed to close above its 50-day line. MGM shares rose 1.1% to 42.21 after a brief move to 42.84. According to MarketSmith. CZR shares rose 1.9% to 107.06, close to a session high and a Buy point At 106.30 or 106.95.
A big concern is revenue. It is clear that the sector suffered a catastrophe in 2020 during epidemics, and many of these companies are expected to lose money by 2021. Analysts expect slim-to-moderate profits in 2022. But matching or surpassing pre-epidemic revenue will not happen until 2023, if so, Boeing Stock, Carnival and Jet Blue. How much more can these stocks recover in that environment?
MGM stock will return to profit next year, and it will not be far from pre-epidemic earnings. Caesar’s income will reach pre-epidemic levels next year. But neither MGM nor Caesars had the biggest revenue performance before 2020.
Not all economic recovery stocks share this shortcoming. Notice Caterpillar (Kate) And Ford (F). Both industry companies, which were profitable in 2020, are expected to see big EPS gains in 2021, which are in pre-epidemic levels. Revenue should continue to climb in 2022. The caterpillar is in the stock buying zone, while Ford stock is making a handle below the buying point after last week’s high racing.
Market Rally Analysis
The stock market rally outlook has not changed much since Tuesday.
The Dow Jones and S&P 500 are above record levels and above the 21-day moving average. The Nasdaq hybrid is above its 50-day moving average.
Russell 2000 is lagging behind. The small-cap index tried to recover from its 50-day high, but fell as financial and energy stocks retreated.
Although travel stocks returned higher gains on Tuesday, home builders remained strong, while chip-gear makers such as LRCX stock added recent gains.
On the downside, mining and steel stocks continued to retreat after strong runs. Many funds retreated with a 10-year treasury yield decline.
The market rally is under pressure, but is much better than it was a week ago. Setting a new hike for the S&P 500 would be a positive sign as the Nasdaq moves further above its 50-day line. On the downside, a fall in the Nasdaq below its 50-day mark could be a bad sign that the May low is the last line of defense for key indices.
Above all, investors will want to see how leading stocks, especially in recent days, weeks and weeks, are triggering signals to buy.
What to do now
The last few days show the importance of engaging in engagement and being willing to act – prudently. After several weeks of active market activity, key indices are high. Investors should be prepared to buy opportunities for AMAT stock, strike quickly, but not too aggressively.
If the market rally starts with an expansion of sustainable earnings, you will want to be an early leader and modestly add exposure as additional buying opportunities develop over time. But this may be the latest wave in an up-down market. If so, buying quickly will give you the opportunity to exit with a small gain – or hold up until the next wave.
According to The big picture Every day the market direction and leading stocks and sectors must be in sync.
Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.
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