Dow Jones Futures Rise On Evergrande News After Market Rally Fizzles;

Dow Jones futures turned higher Tuesday night, along with S&P 500 futures and Nasdaq futures, as a key unit of China’s Evergrande said it would make a coming interest payment.

Adobe earnings, China markets and a key Fed meeting are also in the spotlight. The stock market rally tried to rebound Tuesday from Monday’s sell-off but faded to close mixed. Growth stocks fared relatively well, with Nvidia (NVDA) and Snap (SNAP) trading around aggressive entries. AutoNation (AN) rose to just below a buy point.

X

Adobe (ADBE), FedEx (FDX) and Stitch Fix (SFIX) headlined key earnings after the close. Adobe earnings modestly beat views, but ADBE stock fell after hours, signaling a move below a key level. FDX stock slumped to fresh lows on an earnings miss due to higher costs amid labor and supply-chain woes. SFIX stock surged on strong results, but shares have been trending lower for months.

Evergrande core unit Hengda Real Estate will make payments on offshore bonds due Sept. 23, easing default fears, at least in the short term. Evergrande default fears rattled financial markets  around the world on Monday. The property-led conglomerate has $300 billion in debt. The Shanghai stock exchange is opening after a long weekend, falling more than 1% but not plunging.

Finally, the Federal Reserve concludes a key two-day policy meeting on Wednesday afternoon. Will policymakers agree to scale back asset purchases, or will they punt to the early November Fed meeting in the wake of sluggish U.S. job growth and Evergrande concerns? Meanwhile, will a majority of Fed policymakers back an interest-rate hike sometime in 2022? After the Fed meeting announcement at 2 p.m. ET, Federal Reserve Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET.

A relatively dovish Fed announcement and Powell comments could buoy the stock market rally. But the statements and the market could go the other way.

Adobe, Nvidia and Snap stock are on IBD Leaderboard. ADBE stock is on IBD Long-Term Leaders. Nvidia stock and AutoNation are on the IBD 50. AN stock was also Tuesday’s IBD Stock Of The Day.

Dow Jones Futures Today

Dow Jones futures rose 0.4% vs. fair value, reversing from modest losses. S&P 500 futures climbed 0.3%. Nasdaq 100 futures advanced 0.25%. Adobe stock is a drag on S&P 500 and Nasdaq futures.

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 with modest gains, with the major indexes generally positive during the session, before fading to mixed into the close.

The Dow Jones Industrial Average fell 0.15% in Tuesday’s stock market trading. The S&P 500 index dipped 0.1%. The Nasdaq composite climbed 0.2%. The small-cap Russell 2000 rose 0.2%.

Among the best ETFs, Innovator IBD 50 (FFTY) rose 1.5%, while the Innovator…