Dow futures were up slightly overnight, along with S&P 500 and Nasdaq futures, buoyed by comments from the Bank of Japan’s top policymaker. AI stock Super Microcomputer (SMCI) tumbled in the late session after missing earnings expectations and weak guidance.
Bank of Japan Deputy Governor Shinichi Uchida said overnight that the bank will not raise interest rates any further amid market uncertainty, sending the yen down against the dollar and Dow Jones Industrial Average futures up.
Despite a late sell-off, the stock market rebounded on Tuesday after several days of steep losses, with Nvidia (NVDA) and Meta Platforms (META) leading the way among large caps, MercadoLibre (MELI) surging and AI company Palantir Technologies (PLTR) soaring after earnings.
But this is just the first day of the market’s attempt to recover.
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Stocks rise as Palantir, Intuitive Surgical, Tenet Healthcare in focus
Dow Jones Futures Today
Dow Jones futures rose 0.4% relative to fair value, S&P 500 futures rose 0.4% and Nasdaq 100 futures rose 0.4%.
Futures recovered minor losses following Bank of Japan Governor Uchida’s comments.
Crude oil futures were down slightly.
Remember that overnight movements in Dow futures or any other stocks do not necessarily translate into actual trading in the next regular stock market session.
Main Earnings
These include Amgen (AMGN), Nvidia partner Supermicro, Tesla (TSLA) rival Rivian (RIVN), Toast (TOST), Exelixis (EXEL), Halozyme (HALO), Fortinet (FTNT), Airbnb (ABNB) and recent IPO Reddit (RDDT).
Fortinet shares surged, signaling a move above key levels after hitting a 2024 low on Monday. Halozyme is surging and Exelixis is also rising, with both stocks likely to trade on Wednesday.
Meanwhile, Supermicro Inc. shares tumbled after the company reported below-expected fourth-quarter earnings and a mixed outlook, and investors discounted a planned 1-for-10 stock split.
Travel site Airbnb’s shares fell sharply after the company warned of slowing demand. Toast and Reddit shares fell sharply. Rivian shares also fell sharply, while Tesla shares fell slightly in line with its EV rivals. Amgen shares fell slightly towards a buy point.
Novo Nordisk (NVO) reports earnings early Wednesday, while weight-loss drug rival Eli Lilly (LLY) is scheduled to report results before trading opens on Thursday.
Nvidia stock is on the leaderboard. MercadoLibre is on the flagship IBD 50 list. In the video embedded in the article, we review Tuesday’s market action and analyze PLTR stock, Intuitive Surgical (ISRG) and Tenet Healthcare (THC).
IBD experts break down major stocks and markets on IBD Live.
Stock market attempts to rise
Stocks rebounded on Tuesday after falling sharply over the past three sessions, with all major indexes paring gains in the final hour and meeting resistance near Friday’s lows.
The Dow Jones Industrial Average rose 0.8% on Tuesday’s stock market, hitting resistance at its 50-day line. The S&P 500 index rose 1%. The Nasdaq Composite index rose 1%, bouncing off its 200-day line on Monday. The small-cap Russell 2000 rose 1.2% and moved closer to its 50-day line after finding support at its 200-day line on Monday.
A one-day bounce doesn’t mean much. Tuesday was day 1 of an attempt to bounce back in the stock market. The follow-through day starting on Friday will confirm the bounce attempt.
U.S. crude oil prices rose 0.4% to $73.20 a barrel.
As global financial conditions normalized, the 10-year Treasury yield rose 10 basis points to 3.89%.
ETF
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 2.45%. The iShares Expanded Tech-Software Sector ETF (IGV), which includes Palantir shares, rose 1.5%. The VanEck Vectors Semiconductor ETF (SMH) rose 1.95%. Nvidia shares are the No. 1 holding in SMH.
Reflecting stocks with more speculative stories, the ARK Innovation ETF (ARKK) rose 1.5%, and ARK Genomics (ARKG) added 1.55%. Across the ARK Invest ETFs, Tesla stock has been a hot topic.
The SPDR S&P Metals & Mining ETF (XME) rose 1%, while the SPDR S&P Homebuilders ETF (XHB) and Energy Select SPDR ETF (XLE) each gained 0.6%.
The Health Care Select Sector SPDR Fund (XLV) rose 0.5%, the Industrial Select Sector SPDR Fund (XLI) gained 1.2% and the Financial Select SPDR ETF (XLF) rose 1.6%.
Timing the Market with IBD’s ETF Market Strategy
Hot Stocks
Nvidia shares rose 3.8% to $104.25 on Tuesday, continuing their rebound from Monday’s intraday low. The AI chip leader is still trading below its 10-, 21-, and 50-day moving averages, so there’s some repair work to be done. But it’s important to keep an eye on how the market’s most important stocks perform.
NVDA shares fell slightly overnight following Supermicro’s results and guidance.
Meta shares rose 3.9% to 494.10 and just reclaimed their 50-day line, but the tech giant needs more time to build new footing.
MercadoLibre shares rose 1.9% to 1,180.39, closing above the cup-and-handle base buy point of 1,792.05. MELI shares rose above an early entry of 1,764.50 on the back of strong results on Friday. The stock held onto that entry on Monday after briefly dropping back to the 50-day range.
Palantir shares rose 10.4% to $26.59 on Tuesday on strong financial results, accelerating revenue growth and a bullish outlook. The stock is approaching a previous buy point of $27.50 that investors can still exploit. On Monday, Palantir tested its 200-day line before sharply paring its losses.
What to do now
If a market is trending up for weeks or months, you want to capture most of the gains. But trying to predict the exact moment the gain will begin increases the risk of repeated failure.
Waiting a few days for the follow-through reduces the risk of entering too early, but it’s still no guarantee: many confirmed uptrends fail.
At this time, investors need to be disciplined. That means being patient and staying engaged with the market. It also means continuing to work your watchlist and focusing on stocks that are holding key levels and showing relative strength. You don’t want to ignore the market and miss out on another rally while frantically searching for the right stock to buy.
Read The Big Picture every day to stay on top of market direction, leading stocks and key sectors.
For stock market updates and more, follow Ed Carson on Threads at @edcarson1971 and on X/Twitter at @IBD_ECarson.
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