Dow Jones futures rose modestly Wednesday morning, along with S&P 500 futures and Nasdaq futures. The stock market rally had a relatively quiet Tuesday, with the Nasdaq leading a fade into the close for slight losses.
Donald Trump's Trump Media & Technology Group soared out of a base Tuesday, as the Truth Social parent began trading under the DJT ticker following the completion of its SPAC merger. The Trump stock closed well off intraday highs, below the buy point, but jumped early Wednesday.
Tesla had a decent gain Tuesday, but came up to key resistance.
Google parent Alphabet and ServiceNow flirted intraday with buy signals. CrowdStrike, CyberArk Software and Cloudflare are setting up. All of these names are AI stocks, or AI-related.
On the downside, Nvidia fell modestly as AI chip stocks took a breather, with Arm Holdings down sharply.
Early Wednesday, Carnival will report earnings, working on a new base. CCL stock dipped 0.5% to 17.03. Cruise leader Royal Caribbean is holding in a buy zone. RCL edged up 0.4% to 136.87.
Nvidia and Arm stock are on IBD Leaderboard, with CyberArk stock on the Leaderboard watchlist. CrowdStrike, Royal Caribbean and Cloudflare stock are on the IBD 50. ServiceNow stock is on the IBD Big Cap 20. ServiceNow was Tuesday's IBD Stock Of The Day.
The video embedded in this article reviews Trump Media stock DJT, ServiceNow and Royal Caribbean.
Dow Jones Futures Today
Dow Jones futures rose 0.4% vs. fair value, with Merck jumping after the FDA OK'd a drug for pulmonary arterial hypertension. Dow S&P 500 futures climbed 0.4%. Nasdaq 100 futures advanced 0.5%.
The 10-year Treasury yield edged down to 4.22%.
Crude oil futures fell slightly.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally was slightly positive until the close, with the key indexes closing with slim-to-modest declines.
The Dow Jones Industrial Average lost about 0.1% in Tuesday's stock market trading and the S&P 500 index fell 0.3%, edging lower for a third straight session. The Nasdaq composite declined 0.4% after dipping Monday. The small-cap Russell 2000 slipped 0.2%.
There weren't a lot of stocks breaking out, with a few exceptions like Trump Media's DJT stock. But plenty of stocks showed constructive action.
Meanwhile, the S&P 500 and Nasdaq aren't extended from their 50-day lines, so there's a little room for leading stocks to run.
U.S. crude oil prices dipped 0.4% to $81.62 a barrel.
The 10-year Treasury yield rose two basis points to 4.23%.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF edged up 0.2%. ServiceNow is a top holding, with CrowdStrike stock also in IGV. The VanEck Vectors Semiconductor ETF fell 0.9%, with Nvidia stock the dominant holding.
Reflecting more-speculative story stocks, ARK Innovation ETF slipped 0.4% and ARK Genomics ETF declined 0.9%. Tesla stock is a major holding across Ark Invest's ETFs.
SPDR S&P Metals & Mining ETF retreated 0.8%. SPDR S&P Homebuilders ETF stepped down 0.2%. The Energy Select SPDR ETF gave up 0.8% and the Health Care Select Sector SPDR Fund gained 0.4%.
The Industrial Select Sector SPDR Fund fell 0.4%. The Financial Select SPDR ETF rose 0.3%.
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Donald Trump Stock Breaks Out
Trump Media stock gapped up as high as 79.38 intraday. But DJT stock closed up 16% to 57.99, below the 58.72 consolidation buy point.
Trump Media, parent of Trump's social network Truth Social began trading on the Nasdaq Tuesday. Digital World Acquisition finally merged with Trump Media & Technology Group on Monday. Before becoming DJT stock, DWAC soared 35%.
There is definitely a meme stock quality to Trump Media, with a heavy partisan aspect. So big volatility is likely to continue for some time.
Trump Media stock rose more than 10% early Wednesday.
Stocks Near Buy Points
Google stock nudged 0.4% higher to 150.67, briefly topping a 152.15 cup-with-handle buy point intraday. Shares gapped up last week on a report that Apple is mulling using Google's Gemini AI tool in the iPhone. The relative strength line is rebounding, but still well off its late January and late October peaks. That reflects GOOGL stock's underperformance vs. the S&P 500 index.
ServiceNow stock edged up 0.5% to 778.57. The software giant has an 815.32 flat-base buy point. Shares have an 807.77 early entry. Aggressive traders could use last week's high of 785.88 to start a position, still close to the 50-day line.
CrowdStrike stock has had a couple of wild sessions along the way, but generally has traded tightly since mid-February, finding support around the 21-day line, with the 10-week line catching up. Investors could use 328.64 as a draw-the-line buy point. CRWD stock climbed 1.6% to 330.01 on Tuesday.
CyberArk stock dipped 0.7% to 263.49. Shares have a 283 consolidation buy point, generally finding support at the 21-day line like fellow cybersecurity leader CrowdStrike. Investors could use last week's high of 277.97 as an early entry. That could become an official handle buy point in a couple days.
Cloudflare stock climbed 3.1% to 99.07, bouncing from the 21-day and 10-week lines, albeit in light volume. The security and traffic optimization software leader is to have a base with a 116 official buy point after this week. But investors could use the March 21 high of 100.90 as an early entry.
Tesla Stock
Tesla stock popped 2.9% to 177.67, retaking the 21-day moving average. Shares reached 184.25 intraday, hitting resistance at the 10-week line. TSLA stock hit resistance at the 10-week line at the start of the month, with that rejection offering a shorting opportunity.
On Tuesday, weekly China registration data pointed to weaker Tesla deliveries in that key market in the first quarter. Demand appears sluggish in the U.S. and Europe as well. Tesla will likely release first-quarter global deliveries on April 2, with indications that they'll come in well below slow-to-adjust consensus forecasts.
Tesla is now offering a free month of its Full Self-Driving software for new buys as well as existing EVs that are capable of using FSD. CEO Elon Musk also is requiring drivers take a test FSD drive before taking delivery of a new Tesla or after taking their Tesla in for service.
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Nvidia Stock, AI Chips
Nvidia stock fell 2.6% to 925.61, snapping a six-session win streak, but still near record highs. Broadcom dipped 1.5%.
However, ARM stock tumbled 7.5% to just below its 21-day line after flirting with an early entry near the open. The highflying 2023 chip IPO now has a consolidation with a 164 buy point. Tuesday's high of 145 or the 150 level may be more attractive entries.
What To Do Now
The stock market rally is acting well.
There aren't a lot of stocks flashing buy signals right now, but a number of leaders are setting up. Investors can be looking to add incrementally, but it's not a time to be ramping up exposure dramatically.
It's definitely a time to be looking for those setups, so you can target the most attractive names as they make their moves. So have your watchlists ready.
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