Dow Jones Futures: Stock Market Rally Continues Bearish Trend As

Dow Jones futures rose slightly Tuesday night, along with S&P 500 futures and Nasdaq futures, getting a late boost from a Microsoft stock buyback and dividend hike. The stock market rally on Tuesday once again opened higher but then faded, continuing a recent bearish trend. Apple (AAPL) fell as it unveiled the iPhone 13 and other new products.

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Microsoft (MSFT) late Tuesday announced an 11% quarterly dividend hike to 62 cents a share. The tech giant also announced a $60 billion Microsoft stock buyback program. MSFT stock rose 1% in overnight trade.

Tech giants and chip stocks are holding up reasonably well. MSFT stock, Applied Materials (AMAT), Entegris (ENTG), KLA Corp. (KLAC) and Advanced Micro Devices (AMD) are worth watching. Microsoft, Applied Materials and AMD stock are trying to bounce from their 50-day or 10-week lines. ENTG stock and KLA cleared buy points, at least intraday, after flashing early entries previously.

But investors primarily should be watching, not buying, intriguing stocks as the market rally pulls back.

Microsoft and Apple stock are on IBD Leaderboard. MSFT stock is on IBD Long-Term Leaders. AMAT stock was Tuesday’s IBD Stock Of The Day. ENTG stock was Friday’s Stock Of The Day.

The video embedded in this article analyzed the market action and reviewed Deckers Outdoor (DECK), Microsoft and AMD stock.

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Dow Jones Futures Today

Dow Jones futures were 0.2% above fair value. S&P 500 futures and Nasdaq 100 futures climbed 0.2%. Microsoft is offering a slim lift to the Dow Jones, S&P 500 and Nasdaq composite.

At 10 p.m. ET, China will release August data for retail sales and industrial production. Early Wednesday, U.S. investors will get the September Empire State manufacturing index and the August industrial production report.

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

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally opened higher following cooler-than-expected consumer inflation data. But the early modest gains didn’t last.

The Dow Jones Industrial Average sank 0.8% in Tuesday’s stock market trading. The S&P 500 index retreated 0.6%. The Nasdaq composite declined 0.45%. The small-cap Russell 2000 slumped 1.3%.

The Nasdaq has fallen for five straight sessions. The Dow Jones, S&P 500 and Russell 2000 have declined in six of the last seven.

Macau-focused casinos plunged as China mulls new restrictions for the Asian gaming hub. Comcast (CMCSA) tumbled on weaker broadband growth.

Top ETFs

Growth stocks generally did OK overall Tuesday. Meanwhile, many other sectors lost ground.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.25%, after slumping 2.7% on Monday. The Innovator IBD Breakout Opportunities ETF (BOUT) dipped 0.4%.  The iShares Expanded Tech-Software Sector…