Dow futures fell overnight, along with S&P 500 futures and especially Nasdaq futures Netflix (NFLXThe number of subscribers has suddenly decreased. The stock market rally showed solid gains on Tuesday, while Treasury yields continued to rise and energy prices fell.
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The S&P 500 regained a key level, but a lot of Tuesday’s big winners were trounced. The rising market remains under pressure and divisive. Investors should keep exposure modest and focus on leading sectors.
Netflix subscribers drop
Netflix earnings topped the number of views, while revenue fell. But the real news is that Netflix subscribers decreased by 200,000 in the first quarter, its first decline in more than a decade. Analysts expected a gain of about 2 million. And for the second quarter of the year, Netflix saw its subscriber count drop by another 2 million.
Rising subscription prices and ever-increasing competition from the likes of Walt Disney (dis) and parent HBO Max Discover Warner Bros. (WBD) negatively affect Netflix, which already has a very high penetration among American households.
Netflix has indicated that it will crack down on “password sharing,” in an effort to divert more paying customers. It’s also open to a lower-priced, ad-supported model.
NFLX stock is down 26% in extended trade, indicating a move below the March 2020 coronavirus low and approaching September 2019 lows. The stock peaked in November 2021, gradually at first. Netflix stock collapsed 22% on January 21 due to poor subscriber guidance that turned out to be still very bullish.
DIS stock fell 4% overnight, threatening a new 52-week low. WBD stock is down modestly.
Tesla profits looming
Tesla profits looming Wednesday night. On Tuesday, Tesla Shanghai resumed production after being closed for three weeks. But it will likely take several weeks to return to full production. Tesla stock rose 2.4% to 1,028.15 Tuesday as it works at 1,152.97 cup with handle Point purchase.
Twitter’s latest deal
Meanwhile, TWTR stock fell 4.7% to 46.16 on the day after jumping 7.5%. Tesla CEO Elon Musk is reportedly ‘scrambling’ to find partners to help him with his business Twitter (TWTR) takeover offer. Musk is willing to put up another $10 billion to $15 billion, according to the New York Post, in addition to the money being spent on his existing 9.1% stake in TWTR. Musk offered $43 billion, or $54.20 a share, on Twitter, but there was no official offer. Black stone (BX) And Brookfield Asset Management (bam) are not interested in financing the Twitter deal, the Financial Times reports.
Stocks in nearby buying areas
Meanwhile, travel stocks continued to advance, with the US government and airlines removing mask requirements on flights, giving airlines another boost. Marriott International (March) I just moved out of the buying area. Budget Avis (the cars) approaching a buy point.
Medical product makers Edwards Live Science (EW) And Striker (SYK) flashing early buy signals, approaching official breakouts.
warehouse operator Prologies (PLD) on strong first-quarter results and guidance for 2022, as REITs are doing surprisingly well.
Tesla (TSLA) The EW inventory is running IBD Leaderboard. MAR and Tesla shares are in defect 50.
The video included in this article highlights additional storage, Edwards Lifesciences, and CAR inventory.
Dow jones futures contracts today
Dow futures fell 0.1% against fair value, with Disney shares losing. S&P 500 futures lost 0.4%. Nasdaq 100 futures fell 0.9%, with shares of the leading technology companies in the NFLX lower.
The 10-year Treasury yield rose 6 basis points to 2.97% to close at 3%.
Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.
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stock market rise
The stock market rally saw a strong rebound on Tuesday, closing near session highs. The Dow Jones Industrial Average rose 1.5% on Tuesday stock market trading. The S&P 500 advanced 1.6%. The Nasdaq Composite Index is up 2.15%. Small cap Russell 2000 rose 2%.
US crude oil prices fell 5.2% to $102.56 a barrel. Natural gas futures slipped more than 8%.
The 10-year Treasury yield rose 5 basis points to 2.91%, hitting a three-year high. The two-year yield rose 12 basis points to 2.58%.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 0.8%, while the Innovator IBD Breakout Opportunities ETF (fit) advance by 0.4%. iShares Expanded Technology and Software Fund (ETF)IGV) rose by 2.75%. VanEck Vectors Semiconductor Corporation (SMH) rose 2.1%.
SPDR S&P Metals & Mining ETF (XME) up 0.1% and the Global Infrastructure Development Fund (ETF) in the USA (cradle) gained 2.1%. US Global Gates Foundation (ETF)Planes) climbed 2.8%. SPDR S&P Homebuilders ETF (XHB) jumped 3.8%. SPDR Specific Energy Fund (SPDR ETF)XLE) Sinking 0.8% and Financial Select SPDR ETF (XLF) made 1.4%. SPDR Healthcare Sector Selection Fund (XLV) added nearly 1%.
Shares reflect more speculative stories, the ARK Innovation ETF (see you) up just over 4% and the ARK Genomics ETF (ARKG) rebounded 1.9%. Tesla stock is the number one stock held via ARK Invest’s ETFs.
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travel stock
Travel stocks have jumped in the past four sessions after that Delta Airlines (DA) topped the first quarter viewership and said higher prices did not hurt demand. The end of the mask requirement on flights is another bonus.
MAR stock rose 3.1% to a record 188.78. Marriott’s inventory has now been extended from 179.40 purchase points for a cup with a handle, according to MarketSmith Analysis. Stocks could still fall back into the 5% chase zone. But investors had opportunities in the previous three sessions to buy MAR shares. The line relative force It has been recording new highs for several days.
Hilton Worldwide (HLT) in the buy area only.
CAR stock rose 7.1% to 285.35. On November 2, the car rental giant exploded in meme style following strong earnings. But if one rules out that crazy day, investors can look at the Avis stock chart as a base with a handle at 299.43 buying points. Arguably, Avis stock liquidated an early entry for a short trendline within this handle on Tuesday, although volume was very low. Also, CAR stock is still well above the 10-week streak. Ideally, the CAR stock will pause, with its handle turned to a proper base as the moving averages race to catch up.
medical products
EW stock rose 4.4% to 124.52, moving below the 125.21-cup buy point with a handle. Stocks broke the downtrend of this handle, and made an early entry. EW stock was added to the leaderboard on Tuesday and IBD stock was on Monday.
SYK stock rose 4.9% to 271.66, retracing the 50-day and 200-day lines and closing at the 274.23 handle buy point. But, like Edwards Lifesciences, the orthopedic implantologist has broken the downtrend of the handle, providing an early entry. SYK stock has been consolidating since last September and has been moving sideways over the past year. Stryker’s dividend is due on April 28th.
Shock Wave Medical (SWAV) is also working on the point of purchase of the handle, as makers of devices, systems, and other medical products move aggressively higher on Tuesday.
Rhett stuff
PLD stock rose 4% to 169.56, rebounding from its 21-day moving average after reporting strong results and pre-opening guidance. This is now extended from the point of purchase of 160.95 mugs with a handle. But investors can use the recent pullback as a proxy high coefficient. That would provide 170.96 buying points, or an early entry around 166.48.
REITs usually struggle with high Treasury yields. But real estate REITs offer solid earnings growth in a tough market to go along with decent dividends.
Market Rise Analysis
The stock market rally showed some fighting on Tuesday. The S&P 500 moved again above the 50-day line and the 21-day exponential moving average. Dow Jones rebounded from 50 days towards 200 days.
The Nasdaq rose again near its 50th day. The Nasdaq crossed the 50-day line and the S&P500 above the 200-day line would be key steps. Next, the major indices will need to surpass the highs of late March, which will likely coincide with the Nasdaq’s 200-day recovery.
A tech-led market rally despite another jump in Treasury yields is positive, but that hasn’t been the trend for the past several weeks. How will stocks react to a 3% return on a 10-year return? The October 2018 peak of 3.25%, a 12-year high, is not far off.
Stock futures point to some weakness overnight, although it’s unclear if that will spread beyond shares of Netflix, Disney and the streaming world.
A lot of Tuesday’s big winners were below the 200-day streak. This may explain why there are so few actionable shares.
The broad commodities sector remains a bright spot, with energy stocks holding up well despite a significant drop in oil and natural gas prices on Tuesday.
The drugs are going well and are starting to expand beyond drug makers and health insurers. Travel is an emerging leading group, although the sector has been driven by the headlines for a long time. Real estate investment trusts work well.
Traditional growth stocks continue to struggle, with few exceptions. Tesla’s stock looks good, but its chart is chaotic and it’s heading towards earnings. Cybersecurity names sound interesting.
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What are you doing now
Again, don’t get too excited for a good day in a weak market. The rising market remains under pressure and divisive. Investors should continue to focus on the leading areas of the market. You might consider taking positions in travel or medical products, for example, to diversify holdings.
But exposure should generally remain modest. Until the market rally shows broad and sustained strength, investors should not be aggressive. Keep working on your watchlists, looking for stocks that are setting up or falling higher. This can help you catch up on emerging leadership before you move on.
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