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Dow Jones Futures: Stock Market Rallies, Big Tests Loom; Tesla Jumps On


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Dow Jones futures were little changed after hours, while S&P 500 futures and Nasdaq futures rose slightly. Tesla (TSLA) jumped despite bleak earnings as it said an “affordable” EV is coming soon. Elon Musk is on the all-important earnings call.




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The stock market rebounded Tuesday for a second straight session, with the key indexes and many leaders showing strength. But the key indexes and many growth tech leaders are still below their 50-day moving averages, including Nvidia (NVDA).

This is still just day two of a stock market rally attempt. Investors should be looking for a follow-through day later this week.

In addition to Tesla earnings, Dow Jones giant Visa (V) reported late Tuesday. Early Wednesday, Boeing (BA) and AI play Vertiv (VRT) are on tap.

Nvidia stock is on IBD Leaderboard.

Dow Jones Futures Today

Dow Jones futures were flat vs. fair value, even with Visa stock providing a boost. S&P 500 futures climbed 0.1%. Nasdaq 100 futures advanced 0.35%. Tesla stock is a big S&P 500 and Nasdaq holding.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.


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Stock Market Rally Attempt

The stock market rally attempt had another strong session Tuesday, with techs and small caps leading once again. Treasury yields eased on weaker-than-expected economic data, providing a lift.

The Dow Jones Industrial Average gained 0.7% in Tuesday’s stock market trading. The S&P 500 index popped 1.2%. The Nasdaq composite jumped 1.6%. The small-cap Russell 2000 leapt 1.6%.

A solid day or two isn’t a big surprise after a string of heavy losses. The major indexes are all below their 50-day moving averages.

Many leaders have a lot of repair work to do. Nvidia stock bounced 3.65% Tuesday after Monday’s 4.35% gain, but is still trading within Friday’s 10% dive and below the 50-day line.

Some stocks are clearing entries, though often they have weak long-term relative strength lines. But there are energy, financial, aerospace, medical and restaurant names showing strength with solid RS lines.

Investors should look for a follow-through day starting late this week. A FTD involves one or more of the major indexes showing strong gains on higher volume than the prior session. That would indicate big institutions believe in the nascent rally attempt.

U.S. crude oil prices rose 1.8% to $83.36 a barrel.

The 10-year Treasury yield fell 2.5 basis points to 4.6%, but not far from five-month highs.

ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) gained 1.7%. The VanEck Vectors Semiconductor ETF (SMH) popped 2.35%, with Nvidia stock the dominant SMH holding.

Reflecting more-speculative stocks, ARK Innovation ETF (ARKK) bounced 3% and ARK Genomics ETF (ARKG) 1.6%. Tesla stock is a major holding across Ark Invest’s ETFs.

SPDR S&P Metals & Mining ETF (XME) fell 1.4% and the…



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