Futures: Reddit leads six earnings moves

Dow Jones futures were little changed early Thursday, along with S&P 500 and Nasdaq futures. Coupang (CPNG), Arista Networks (ANET) and recent IPOs Reddit (RDDT) and Astera Laboratories ( ALAB ) were among those reporting notable gains.




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The rally in the stock market was very mixed on Tuesday. palantir (PLTR) and Datadog ( DDOG ) weighed on software plays, but several industry leaders showed buy signals.

Nvidia (NVDA) fell on Tuesday, although it closed off its worst levels.Tesla ( TSLA ) retreated amid negative headlines. But Tesla shares are holding above their 50-day line.

After the close, networking company Arista Networks, AI chip IPO Astera Labs, social site Reddit and South Korean e-commerce giant Coupang reported gains, along with EV maker Rivian (RIVN) and software manufacturer Toasts (TOAST). Reddit shares soared, while Toast and Arista jumped overnight. Coupang, Astera Labs and Rivian fell.

Nvidia is on the IBD Leaderboard, with Toast stock added as an earnings option play. Astera shares are on the ranking watch list. Nvidia shares are on SwingTrader. Nvidia and Toast are in the IBD 50.

Dow Jones futures today

Dow Jones futures rose a fraction from fair value. S&P 500 and Nasdaq 100 futures fell 0.15%.

The 10-year Treasury yield rose to 4.48%.

Crude oil futures fell more than 1%.

Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next normal stock market session.


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Stock Exchange meeting

The stock market recovery was relatively quiet on Tuesday, with the major indexes holding on to recent gains.

The Dow Jones Industrial Average rose 0.1% in Tuesday’s trading. The S&P 500 rose 0.1%. The Nasdaq composite fell 0.1%.

Market breadth remained positive.

The small-cap Russell 2000 advanced 0.2%.

The Invesco S&P 500 Equal Weight ETF (RSP) rose 0.3%, above its 50-day. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) rose, still below its 50-day low.

The price of US crude fell 0.1% to $78.38 a barrel.

The 10-year Treasury yield fell three basis points to 4.46% from intraday lows. But the 10-year yield is down 22 basis points in a five-session slide.


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ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF ( IGV ) fell 0.5%. The VanEck Vectors Semiconductor ETF ( SMH ) sank 0.9%, with Nvidia shares the No. 1 loser.

Reflecting more speculative stocks, the ARK Innovation ETF ( ARKK ) declined 2% and the ARK Genomics ETF ( ARKG ) lost 1.2%. Tesla stock is a major holding in Ark Invest’s ETFs.

The SPDR S&P Metals & Mining ETF (XME) rose 0.5% and the SPDR S&P Homebuilders ETF (XHB) fell 1%. The Energy Select SPDR ETF (XLE) fell 0.1% and the Health Care Select Sector SPDR Fund (XLV) rose 0.8%. The Industrial Select Sector SPDR Fund ( XLI ) and the Financial Select SPDR ETF ( XLF ) advanced 0.3%.


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Key gains

Arista Networks earnings beat with the networking company rising slightly amid strong demand for AI. Arista also set a $1.2 billion buyback. ANET shares jumped in overnight action, signaling a gap above the 50-day line and above an early trendline entry. Shares fell 1.7% on Tuesday to 273.99, hitting resistance below the 50-day. Arista stock has a consolidation buy point of 307.74.

Astera Labs’ earnings comfortably topped views in the AI ​​chipmaker’s first quarterly report since it was released in March. Astera also guided higher. But ALAB shares fell sharply early Wednesday. Shares retreated 2.5% Tuesday to 76.19. Astera has a handle buy point of 88.59 on an IPO basis.

Reddit reported strong revenue growth and guidance in its first earnings report. Shares of RDDT soared more than 10% in premarket trade. Shares rose 2.3% to 49.40 on Tuesday. Reddit stock is building the right side of an IPO base with an official buy point of 74.90.

Coupang’s earnings just missed while revenue beat. CPNG shares were down solidly overnight. Shares rose 1.3% on Tuesday to 23.65, a new two-year high.

Toast reported a wider-than-expected GAAP loss, but revenue beat. The restaurant-focused software platform rose solidly in extended action, indicating a trending entry. Shares of TOST rose 0.7% to 23.73 on Tuesday, above the 50-day line. The stock has a buy point of 25.63 times with handle.

Rivian reported a wider-than-expected loss while revenue beat. The electric vehicle startup maintained production targets throughout the year. RIVN shares fell solidly in overnight trade. Shares fell 0.7% to 10.26 after jumping to 11.22 on Tuesday morning on rumors of partnership talks with Rivian. apple (AAPL).

early Wednesday, Toyota Motor ( TM ) rose on solid fiscal 2024 profit, even as the auto giant sees a 28% drop in fiscal 2025 profit. Chip equipment company ACM Research (ACMR) exceeds views. The stock is poised to test a rising 50-day line, perhaps offering an early entry. Uber Technologies (UBER) fell on weak revenue and gross bookings

Shopify ( SHOP ) sank early Wednesday despite earlier views, indicating a sharp break below the 50-day line.

Nvidia stock

Nvidia shares fell 1.7% to 905.54 after rising nearly 11% in the previous three sessions. Shares fell more than 3% on Tuesday morning, after Stanley Druckenmiller said he cut his stake in the tech titan in late March and said AI could be overdone in the short term.

Shares of NVDA have a consolidation buy point of 974, according to MarketSurge. A pause here could be constructive, letting a handle form.

Tesla stock

Tesla shares sank 3.8% to 177.81, but still above the 50-day line.

The National Highway Transportation Safety Administration, in a letter late Monday, asked Tesla for more information about its driver assistance systems. NHTSA launched its latest probe last month in which it said the electric vehicle giant is partly to blame for Autopilot’s continued crashes. Meanwhile, sales in China remain sluggish, indicating little or no improvement from a seasonally weak first quarter.

what to do now

The stock market rally looks solid, with the major indices stalling amid a still positive range. Investors can have modest exposure, adding to positions gradually if the market continues to perform.

Earnings season remains strong and continues to have gold mines and land mines. So keep that in mind.

Develop these watchlists, including top stocks from various sectors.

Read The Big Picture every day to stay in sync with market direction and leading stocks and sectors.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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