Dow Jones futures tilted lower late Tuesday, along with S&P 500 futures and Nasdaq futures. The stock market rally continued its move away from techs, and toward energy and financials on Tuesday. Tesla stock fell but held key support while other megacaps such as Apple (AAPL) barely budged.
X
In overnight trade, HPQ stock and Pure Storage (PSTG) signaled breakouts on earnings, but there were big earnings losers too.
After several weeks of a broad-based rally, the stock market has returned to sector rotation. It’s a trickier environment for investors, especially for new buys.
Software continues to get hammered. Asana (ASAN) and Digital Ocean (DOCN) extended Monday’s big sell-offs, while Snowflake (SNOW) skidded to its 50-day line.
Tesla (TSLA) fell hard but pared losses. Other megacaps were little changed. Microsoft (MSFT) fell, slightly, for a second straight session. Google parent Alphabet (GOOGL) and Nvidia (NVDA) also edged lower. But Apple stock and Amazon.com (AMZN) edged higher.
On the upside, energy stocks were strong Tuesday as crude oil prices rose despite President Joe Biden releasing strategic oil reserves to the market, with Pioneer Natural Resources (PXD) among the shale names flashing buy signals. Financials rose again as Treasury yields continued to climb.
Key Earnings
In after-hours earnings news, PC maker HP Inc. (HPQ) and PSTG stock surged 7.5 and 16%, respectively, on earnings. HPQ stock and Pure Storage gapped out of bases overnight. But Autodesk (ADSK), Nordstrom (JWN) and Gap (GPS) sold off 15%, 23% and 16% in extended trade.
Retailers were big earnings movers in Tuesday’s session, with Best Buy (BBY) and Dick’s Sporting Goods (DKS) plunging on earnings while Dollar Tree (DLTR) extended its recent run.
Tesla stock, Microsoft, Nvidia, Google and Snowflake are on IBD Leaderboard. Apple stock and Pioneer Natural Resources are on SwingTrader. Microsoft and Google are IBD Long-Term Leaders. Tesla, Google and Nvidia stock are on the IBD 50. Pioneer was IBD Stock Of The Day.
The video embedded in this article analyzes the market action as well as Xpeng (XPEV), PXD stock and SNOW stock.
Dow Jones Futures Today
Dow Jones futures tilted lower vs. fair value. S&P 500 futures fell 0.1% and Nasdaq 100 futures dipped.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session. The past few days have showed relatively quiet action in Dow futures that didn’t foreshadow the regular session divergence.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market Rally
The stock market rally once again started off with modest moves in the major indexes, followed by significant divergence. However, that divergence narrowed a little bit.
The Dow Jones Industrial Average rose 0.55% in Tuesday’s stock market trading. The S&P 500 index climbed 0.2%. The Nasdaq composite fell 0.5%, though that was well…
Read More: Dow Jones Futures: These Sectors Lead Market Rotation; Tesla Falls; 3