Dow Jones Futures: Market Rally Rises As Tesla Pauses; Avis, BBBY

Dow Jones futures were little changed Tuesday night, along with S&P 500 futures and Nasdaq futures, with the Fed taper on tap Wednesday. The stock market rally showed slim gains Tuesday, with all the major indexes hitting record highs intraday.

Bed Bath & Beyond (BBBY) announced big e-commerce news, fueling a revival not only in BBBY stock but in “traditional” meme stocks AMC Entertainment (AMC) and GameStop (GME).

Digital Turbine (APPS) and Caesars Entertainment (CZR) were notable after-hours earnings.

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Tesla stock retreated modestly after Tesla CEO Elon Musk tweeted that the Hertz order for 100,000 Model 3 EVs is not signed. Meanwhile, Hertz rental car rival Avis (AVIS) skyrocketed Tuesday as strong earnings sent a short squeeze into overdrive. But CAR stock parked well off intraday highs.

Bed Bath & Beyond

BBBY stock skyrocketed as the housewares retailer will truly go “beyond” with an e-commerce pact with grocery giant Kroger (KR). Bed Bath & Beyond said after the close that it’ll launch a digital marketplace that will sell third-party goods, including from Kroger. Bed Bath & Beyond also said its BBBY stock buyback was ahead of schedule.

BBBY stock erupted for a 67% gain in extended trade, fueled by likely heavy short covering. Bed Bath & Beyond was one of the original meme stocks earlier this year and Reddit investors were buzzing about BBBY stock late Tuesday. Kroger stock rose slightly.

Meanwhile, AMC stock and GameStop popped 6% in extended trade, as Bed Bath & Beyond spurred a broader meme stock revival. AMC and GME stock arguably could be flashing aggressive entries from various trend lines.

Key Earnings

APPS stock, Caesars, SolarEdge Technologies (SEDG), Sprout Social (SPT) and new IPO Freshworks (FRSH) reported earnings after the close.

Digital Turbine, CZR stock, Sprout Social and FRSH stock all closed ahead of earnings, near buy areas.

SPT stock leapt 9% overnight, signaling an aggressive entry off a trend line and 50-day. Sprout Social beat views and announced an integration with WhatsApp, the messaging app owned by Meta Platforms (FB).

Caesars fell modestly amid an earnings miss, after initially plunging late. CZR stock is trying to hold its 50-day line and an older buy point.

APPS stock fell solidly after Digital Turbine beat views, but gave only in-line EPS guidance. FRSH stock tumbled despite beating views, as Freshworks pointed to a wider-than-expected Q4 loss. SEDG stock retreated as the solar firm missed on revenue.

Several other stocks sold off on earnings.

Reconciliation Bill

House Speaker Nancy Pelosi said she hoped to have the text of the reconciliation bill done Tuesday night. The latest word is that the package will include a five-year, retroactive hike in SALT deductions, effectively giving a big tax cut to well-off, blue state voters. The legislation also will include prescription drug price controls, a possible blow to pharma and biotech names. The goal is to have at least the House vote on the…