Dow Jones futures fell overnight, along with S&P 500 futures and Nasdaq futures.
X
Ignoring the stock market rise, core inflation reading came in higher than expected on Tuesday, with inspiration (ORCL) The earnings gap and Nvidia (NVDA) Jump. Big Tech companies led the S&P 500 to an all-time closing high, but market breadth was weak.
Service now (now), Medical shock wave (Suave), Archrock (Arok), symbolic (SYM) And Microsoft (MSFT) Buy signals are flashing on Tuesday, at least during the day.
Investors had a chance on Tuesday to make some additional purchases, but that window could quickly close again.
Early on Wednesday, Dollar tree (DLTR) And Williams Sonoma (WSM) Tap tap.
Nvidia and ServiceNow stock is up and running IBD Leaderboard. ServiceNow inventory is on SwingTrader. MSFT stock is on IBD Long-Term Leaders. Nvidia, Symbotic, and Shockwave stock are in the market Bahraini dinar 50. Archrock was IBD's Stock of the Day on Tuesday.
Dow jones futures today
Dow Jones futures lost a fraction versus fair value. S&P 500 futures fell, and Nasdaq 100 futures fell 0.1%.
Remember, an overnight move in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market pool
The stock market rally had a strong session despite generally higher CPI data, perhaps because some details point to a weak reading on the Fed's preferred measure of inflation, the core personal consumption expenditures price index. Nvidia and Oracle stocks led a rebound in big tech companies, along with ServiceNow, Microsoft, and Meta platforms (dead).
The Dow Jones Industrial Average rose 0.6% in stock market trading Tuesday, rising from the 21-day and 10-week moving averages, and reclaiming the 39,000 level. The S&P 500 rose 1.1, off its 10-day line to hit a new closing high. The Nasdaq Composite jumped 1.5%, rebounding near the 21-day line and reaching nearly its closing high.
Despite strong to strong gains in the major indexes, losing stocks narrowly outperformed rising stocks.
The small-cap Russell 2000 index fell a fraction, its third straight decline, though it was far from its session lows.
Invesco S&P 500 Equal Weight Fund (RSP) rose 0.3%, well below the pace of the S&P 500 but also hitting a record closing high. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) rose 0.8%, but lagged the Nasdaq 100's 1.5% jump. On the other hand, RSP and QQEW held up slightly better in the past two sessions.
Nvidia and several AI chip names were at the forefront of the rally, but have expanded more or less significantly.
Some big software names, including AI players like ServiceNow and Microsoft, have been integrating for some time. Oracle, which reached a buy point, gave the sector a boost with its earnings and bullish comments. Medical product names, including Shockwave stock and Discom (DXCM), looks interesting. The same applies to a number of energy services companies, such as Archrock shares. Banks and payment stocks also performed well.
The Nasdaq and S&P 500 did not continue to expand, but after one strong day, they are once again close to doing so. This is the downside of the market refusing to stop or pull back significantly.
US crude prices fell 0.5% to $77.56 per barrel.
The yield on 10-year Treasury bonds rose 5 basis points to 4.15%.
ETFs
Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) rebounded by 2.2%. Microsoft is one of the IGV's major holding companies, along with Oracle and ServiceNow. VanEck Vectors Semiconductor ETF (Trait) rose by 3.2%. Nvidia stock is the #1 stock in SMH.
Reflecting more speculative stocks, the ARK Innovation ETF (Ark(down 0.8% and ARK Genomics ETF)Arkj) and decreased by 1.6%.
SPDR S&P Metals and Mining Fund (XME(down 1.7% and the Global X US Infrastructure Development ETF)cradle) by 0.6%. US Global Jets ETF (Planes) decreased by 2.15%. SPDR S&P Homebuilders ETF (XHB) rose by 1.4%. Energy Select SPDR ETF (XLE(decreased by 0.2% and the Healthcare Sector SPDR Fund)Forty-fifth) Advanced 0.5%.
Selected Industrial Sector SPDR Fund (forty-first) rose by 0.4%.
Financial Select SPDR ETF (XLF) by 0.4%, nearly to all-time highs in early 2022. SPDR S&P Regional Banking Fund (Cree) decreased by 1%.
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Stocks are in buy zones
ServiceNow stock rose 4.3% to 789.56, rebounding from around the 50-day line, back above the 21-day line and breaking the downtrend. This provides an early entry into the emerging flat base that is scheduled to be valid after this week.
Shockwave stock rose 2.7% to 264.70, breaking the short consolidation trend line, a day after bouncing off the 21-day line. This provides early entry. Investors can also use the 270.96 level as an official entry for the latest move, which includes a three-week narrowing pattern. Investors could view the recent action as an indicator of a long and deep SWAV stock consolidation.
The token stock rose 3.15% to 46.43, extending the recent bounce from around the 50-day line and other converging moving averages. Shares reached 47.89 intraday before paring gains. The warehouse automation specialist is looking to enter the trend line, with the March 8 high of 47.05 a definite catalyst. It may be better to buy SYM shares on early entry rather than waiting for an official purchase point. But it is a very volatile stock.
Microsoft stock advanced 2.7% to 415.01, rebounding from the 10-week line and reclaiming the 21-day line. This can provide early or additional entry. But unlike ServiceNow, Microsoft hasn't quite broken the trend line in its emerging flat base. Investors can wait for further advance to the 416-417 level or higher
Archrock stock rose 1.9% to 18.41, extending Tuesday's rebound from the 21-day moving average. This broke above a short trend line, providing AROC stock with an early entry into a bullish base with an official buy point at 19.42, according to the daily chart on Marketsorg. The natural gas services company provides compression services related to natural gas pipelines and transportation, and is better off than faltering natural gas production.
Nvidia stock
Nvidia stock jumped 7.2% to 919.13, rebounding from the 10-day moving average on above-normal trading volume. This followed Monday's 2% drop and Friday's ugly bearish reversal on huge volume. On March 7, the AI chipset leader had its most extended 50-day run since 2023. Going into Tuesday's move, NVDA stock rose 35.6% above its 50-day line, still significantly extended.
What are you doing now
The market rally soon found support again. This flexibility is impressive, but it makes it difficult to form new rules. This is especially true for Nvidia and other AI chip names that have led the market in the past few months.
But a number of other sectors, including software, medical products and energy, have some quality that sets new rules. Some of these stocks have lines of relative strength that have remained lagging as a result, but generally after previous uptrends.
Investors could have benefited from some of these names, depending on their exposure levels. But as the market's rally is about to expand, the buying window can quickly close. If major indexes decline soon, stocks traded on Tuesday could struggle, at least temporarily.
That's why it's important to work on your watchlists, and make sure you're looking beyond the most popular names at the moment. You want to discover new emerging opportunities before you expand.
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