Dow Jones Futures and Other Market Indicators Show Little Change After Hours
After a solid bounce last week, the stock market rally took a step back on Tuesday, resulting in little change in Dow Jones futures, S&P 500 futures, and Nasdaq futures after hours. The 10-year Treasury yield also rebounded above key levels. However, despite the overall market retreat, some leading tech growth stocks such as Nvidia and Advanced Micro Devices (AMD) performed well. In fact, Nvidia stock reached a fresh record high, while AMD stock closed in on its all-time high from December 2021.
Interactive Brokers Reports Earnings, Charles Schwab Up Next
Interactive Brokers (IBKR) reported earnings on Tuesday night, resulting in a modest decline in their stock. The company’s earnings missed expectations for the fourth quarter. Meanwhile, Charles Schwab (SCHW) is set to release earnings on Wednesday morning. SCHW stock fell slightly on Tuesday and is currently trending near its cup-base buy point after briefly breaking out in mid-December.
Stock Market Rally Retreats After Last Week’s Bounce
The stock market rally experienced modest losses on Tuesday to start the holiday-shortened week. The Dow Jones Industrial Average fell 0.6%, with Boeing weighing down the blue-chip index. The S&P 500 index sank 0.4%, while the Nasdaq composite dipped 0.2%. Despite the overall market retreat, Nvidia stock and AMD stock were the standout performers, reaching new highs and approaching all-time highs, respectively. However, market breadth was weak, with small-cap stocks and certain sectors showing weakness.
Tech Growth Stocks Rally; Microsoft Valuation Surpasses Apple
While the stock market rally retreated on Tuesday, many leading tech growth stocks performed well. Microsoft (MSFT) edged up and closed with a higher valuation than Apple (AAPL) for the first time in two years. MSFT stock now boasts a $2.9 trillion market cap, surpassing Apple’s $2.856 trillion valuation. Nvidia, Microsoft, and AMD are all on various IBD stock lists and have been performing strongly in recent months.
Elastic, Samsara, and Other Stocks Flash Buy Signals
Several stocks, including Elastic (ESTC), Samsara (IOT), Cadence Design Systems (CDNS), Rambus (RMBS), and MercadoLibre (MELI), flashed buy signals on Tuesday. Elastic stock popped after bouncing from the 21-day line and breaking a downtrend. ESTC stock has a buy point from its latest flat base. MercadoLibre stock closed above a flat-base buy point, while Samsara stock rebounded from the 21-day line and broke a downtrend within an emerging new base. Rambus stock also leapt after rebounding from the 50-day line and breaking a short downtrend.
Conclusion
Although the stock market rally retreated slightly on Tuesday, the overall market still looks healthy. Tech growth stocks continue to perform well, with some stocks flashing buy signals. Overall market breadth and sector performance should be monitored closely, as any narrowing of market leadership could be a cause for concern. Investors should continue to work on their watchlists and follow their investing rules.
Analyst comment
Positive news:
– Leading tech growth stocks like Nvidia and AMD performed well, reaching new highs and approaching all-time highs.
– Several stocks, including Elastic, Samsara, and MercadoLibre, flashed buy signals.
Negative news:
– The stock market rally experienced modest losses, with the Dow Jones, S&P 500, and Nasdaq all dipping.
– Interactive Brokers reported earnings that missed expectations, resulting in a decline in their stock.
Neutral news:
– Charles Schwab is set to release earnings.
– Microsoft’s valuation surpassed Apple’s.
Market analysis: Despite the slight retreat in the stock market rally, the overall market remains healthy. Tech growth stocks are performing well, and some stocks are showing buy signals. However, market breadth and sector performance should be closely monitored, as any narrowing of market leadership could be a cause for concern. Investors should continue to follow their investing rules and monitor their watchlists.
