Dow futures rose overnight, along with S&P 500 futures and especially Nasdaq futures, with a focus on Tesla’s earnings. Wednesday’s stock market rally was split, with the Dow Jones breaking above key levels while the Nasdaq Composite hit significant resistance as FANG Netflix and Facebook shares fell.
Netflix (NFLX) by 35% on Wednesday, which weighs heavily on the Nasdaq. The sudden decline of Netflix subscribers and poor expectations shook the streaming sector, from Disney (dis) for Rocco (ROKU). Meanwhile, there is a negative note from Cleveland Research about slowing growth for parents on Facebook ID pads (FB) FB stock blasted with a 7.8% loss, with online plays generally struggling.
Tesla stocks popped up overnight because they run on the base of a cup with a handle. CSX stock is generated again after a few weeks ago. UAL stock jumped on bullish expectations, fueling the travel sector’s recovery.
Will CEO Elon Musk say anything about him Twitter (TWTR) Tender? TWTR stock rose 1.2% to 46.72 on Wednesday, ignoring fears of Facebook ads. Musk acquired a 9.1% stake in Twitter and proposed paying $54.20 per share for the remainder. But he hasn’t made a formal offer and appears to be looking for partners to help fund a deal. Twitter doesn’t seem keen on a Musk acquisition, at least at this price.
Dow jones futures contracts today
Dow futures rose 0.4% against fair value. S&P 500 futures rose 0.5%. Nasdaq 100 futures rose 0.9 percent. Tesla and UAL stock give a boost to Nasdaq futures.
stock market rise
The stock market rally showed strong movement among blue-chip stocks and weakness among technology companies.
The Dow Jones Industrial Average rose 0.7% on Wednesday stock market trading. The S&P 500 lost less than 0.1%, with NFLX stock is easily the worst performer. The Nasdaq Composite Index fell 1.2%. Small cap Russell 2000 rose 0.4%.
US crude oil prices rose 0.1% to $102.19 a barrel.
The 10-year Treasury yield fell 7 basis points to 2.84%, after rising to 2.98% in Tuesday night trading. The benchmark yield is still high this week.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) up 0.2%, while the Innovator IBD Breakout Opportunities ETF (fit) jumped by 1%. iShares Expanded Technology and Software Fund (ETF)IGV) decreased by 1.5%. VanEck Vectors Semiconductor Corporation (SMH) decreased by 0.2%.
SPDR S&P Metals & Mining ETF (XME) was down 0.1%, with Alcoa stock being a key component. Global Infrastructure Development Fund X US (cradle) rose 0.8%. US Global Gates Foundation (ETF)Planes) rose 0.3%. SPDR S&P Homebuilders ETF (XHB) rose 1.1%. SPDR Specific Energy Fund (SPDR ETF)XLE) advanced 0.4% and the Financial Select SPDR ETF (XLF) 0.7%. SPDR Healthcare Sector Selection Fund (XLV) gained 1.3%.
Tesla earnings It rose 246% to $3.22 per share with revenue increasing 81% to $18.76 billion. Both were well above expectations, with growth accelerating for the second consecutive quarter. Revenue from regulatory approvals jumped to a new record high of $679 million, a 31% increase over the prior year, and more than double the fourth quarter’s $314 million.
The Tesla earnings release didn’t offer new guidance on deliveries for 2022 or any other hints about Cybertruck’s timeline. Elon Musk, on the Tesla Austin “Cyber Rodeo” earlier this month, confirmed that the hope is that production will start sometime next year.
Q2 will take a big hit due to Tesla Shanghai’s extended lockdown due to the city’s Covid lockdown. Tesla is restarting production with some employees in a “closed loop,” meaning they live on site. Returning to full production will take weeks, and will depend on how suppliers and logistics operate.
Tesla runs on 4,680 batteries, but it hasn’t indicated any significant progress in mass production. This mass production is essential for cost savings, and may be key to making the Cybertruck, Semi and Roadster viable.
Musk said he “aspires” to make a private robotic taxi by 2024 without a steering wheel or pedals. He also continues to promote a future Tesla robot, dubbed “Optimus,” even though experts say general-purpose robots will likely separate us decades.
Tesla stock jumped nearly 6% in the overnight trade, paring gains somewhat on the earnings call. Shares closed down 5% on Wednesday to 977.20, continuing to trade around the 1,000 level. TSLA stock contains 1,152.97 cup with handle Point purchase, according to MarketSmith Analysisbut the base was chaotic.
The longer handle will allow the moving averages to catch up. Tesla stock closed 4.8% above the 50-day line on Wednesday. On April 5, stocks rose 19.9% above this key level.
Alcoa’s profits topped Views, but missed revenue.
AA stock is down 4%, indicating a drop below the 50-day line. Alcoa stock rose 0.4% to 86.93 on Wednesday after finding support in 50 days. Stocks have tested the 50 day/10 week line several times since the December breakout, so the new bounce was a much riskier place to buy. AA stock is consolidating.
The Relative force line For Alcoa stock near highs.
Steel Dynamics earnings topped expectations.
STLD stock fell overnight. Shares closed down 0.5% at 91.49, retreating from their highest levels.
NUE stock fell 1.5% on Wednesday.
CSX earnings It was better than expected, as unit revenue growth offset a 2% drop in volumes.
UNP stock jumped 0.6% on Wednesday.
United Airlines Profits
United Airlines posted a slightly bigger loss than expected while revenue came into the spotlight. But United expects to return to profitability in Q2.
UAL stock jumped nearly 8% overnight. This is after it closed up 1.2%. Stocks have rebounded along with airline and travel stocks broadly over the past several sessions. last wednesday, Delta Airlines (DA) topped the first quarter viewers and said customers were not bothered by the significant price increases so far.
AAL stock also featured late, having gained 0.6% on Wednesday.
Market Rise Analysis
The stock market rally was clearly divided on Wednesday. The Dow Jones index moved above the 200-day line, approaching its peak in late March. The S&P 500 hit the 200-day resistance. The Nasdaq Composite hit the resistance at the 200-day line and reversed lower.
For its part, the Russell 2000 index moved above the 50-day line after closing just below that key level on Tuesday.
Real estate investment trusts, travel funds, and a growing number of medical stocks led the way on Wednesday. Industrial and infrastructure-related companies saw a strong business session.
Names related to commodities and defense companies remained good. A number of leading energy stocks are standardizing, many of which already have proper bases, after previous runs.
But growth stocks, after rebounding on Tuesday, struggled again, especially ARK-style speculative growth. She wore some chip names ASML (ASML) results, but most of them are off-site.
The collapse of Netflix and mounting concerns about Facebook’s growth is bad news for many major internet companies, and doesn’t bode particularly well for discretionary spending on a large scale.
What are you doing now
It is not easy to deal with a rising stock market, except in the areas of the market that are working. It’s good to see leadership broadening to include REITs, travel and more medical services. However, a large part of the market is still in poor condition.
Exposure should remain modest, and focused on strong sectors. Investors should consider taking at least partial profits quickly on winners to avoid full faltering moves.
With earnings season heating up and another big Federal Reserve meeting approaching in early May, caution and profit taking could be even more important in the next few weeks.
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