Dow Jones futures fell early Wednesday, while S&P 500 futures were little changed and Nasdaq futures edged higher. FedEx and Tesla rival Rivian vaulted overnight on news while Nvidia extended Monday's bounce.
The stock market rally was mixed again Tuesday, but this time the Nasdaq led while the Dow Jones and small caps struggled. Nvidia rebounded after a three-session sell-off.
With the market indexes, using weekly charts can filter out the noise of back-and-forth market rotation.
Meta Platforms, Novo Nordisk, MercadoLibre all flashed buy signals in different ways Tuesday.
Looking ahead, Micron Technology earnings loom large for AI hardware and the broader chip sector.
The video embedded in this article analyzes Tuesday's market action and reviews Meta Platforms stock, Novo Nordisk and MercadoLibre.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures were roughly flat. Nasdaq 100 futures climbed 0.1%, with Nvidia providing a boost.
The 10-year Treasury yield rose to 4.29%.
Crude oil futures rose slightly.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Rivian Soars On Volkswagen Deal
German auto giant Volkswagen will invest $5 billion in EV startup Rivian Automotive. It'll buy $3 billion in Rivian stock, including an initial $1 billion. It'll also put $2 billion into a software joint venture, using Rivian's vehicle tech as the foundation for future vehicles.
Rivian stock spiked 43% early Wednesday, on track to gap above the 200-day line for the first time since early January. RIVN stock rose 8.6% to 11.96 on Tuesday.
Tesla stock was steady in premarket trade. Stifel initiated the EV giant with a buy rating and a 265 price target.
Shares rose 2.6% to 187.35 on Tuesday, working on a 191.08 handle buy point. But the TSLA stock base is below the 200-day line.
FedEx Earnings
FedEx earnings and revenue slightly beat fiscal Q4 views while the shipping giant also gave bullish guidance for fiscal 2025.
FDX stock leapt 15% in extended trading after closing just between the 50-day and 200-day lines. FedEx stock is set to test a 291.27 buy point.
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Stock Market Rally
The stock market rally rotated back toward Nvidia and the Nasdaq after a few days of the Dow and non-tech sectors taking the lead.
The Dow Jones Industrial Average sank 0.8% in Tuesday's stock market trading. The S&P 500 index climbed 0.4%. The Nasdaq composite rose 1.3%.
Market breadth, which had perked up on Monday, was narrow on Tuesday.
The small-cap Russell 2000 fell 0.4% after hitting resistance at the 50-day line on Monday. The S&P MidCap 400 slumped 1%, back below the 50-day.
While there have been some big market swings in the past several days, the indexes generally are showing tight weekly closes.
U.S. crude oil prices fell 1% to $80.83 a barrel.
The 10-year Treasury yield fell one basis point to 4.24%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rose 1.6%. The iShares Expanded Tech-Software Sector ETF climbed 0.8%. The VanEck Vectors Semiconductor ETF jumped 2.3%. Nvidia is a key SMH holding.
SPDR S&P Metals & Mining ETF fell 1.6%. The SPDR S&P Homebuilders ETF tumbled 2.8%. The Energy Select SPDR ETF edged up 0.2% and the Health Care Select Sector SPDR Fund dipped 0.3%.
The Industrial Select Sector SPDR Fund retreated 0.85% and the Financial Select SPDR ETF lost 0.75%.
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Stock Market Today: Nvidia Price Target Hike
Nvidia stock rose 2% early Wednesday. Citigroup raised its price target to 150 from 126, citing its next-generation AI chip plans.
Nvidia stock jumped 6.8% to 126.09 on Tuesday, back above its 21-day exponential moving average. Shares had tumbled in the three prior sessions from Thursday's intraday all-time high of 140.76. NVDA stock reclaimed the $3 trillion market cap level, at $3.11 trillion.
Micron Earnings
Micron earnings are due after the close, with analysts expecting a second straight quarter of profits following a string of losses. Revenue growth is seen soaring 78%, accelerating yet again.
Micron's results and guidance will be key for AI plays such as Nvidia, as well as chip-equipment giants such as Applied Materials and fellow memory names like Western Digital.
Micron stock rose 3% early Wednesday after finding support in recent days just above its 21-day line and a prior base.
Stocks In Buy Areas
Novo Nordisk stock popped 3.25% to 146.91, hitting an all-time high. That pushed the Danish drug giant out of range of a 137.22 cup-with-handle buy point. However, NVO stock is actionable from a three-weeks-tight entry of 144.50 that forged within the base's buy zone. On Tuesday, China approved Novo Nordisk weight-loss drug Wegovy for use in that country.
Meta stock rose 1.5% to 141.12, breaking the downtrend of a handle, providing an early entry. The Facebook and Instagram parent has a 514.01 cup-with-handle buy point, according to MarketSurge.
MercadoLibre bounced 3.75% to 1,642.28, rebounding from the 50-day line, retaking the 21-day and breaking the downslope of a long handle. That offered an early entry, or perhaps a place to start a position. MELI stock has a 1,792.05 cup-with-handle buy point. The Latin American e-commerce and payments giant is growing strongly. But while MELI stock has gone on strong runs, it's struggled since mid-February.
What To Do Now
After shifting away from AI plays for a few days, Nvidia led and the Dow lagged on Tuesday.
One problem with stock market rotation in a divided rally is that it's hard to know if the rotation will have staying power or if the prior trend reasserts itself.
Weekly charts cancel a lot of the daily swings, with the underlying power trend evident for the Nasdaq.
Still with the market leadership in flux, exiting or entering positions is tricky. If you make new buys, do so carefully, ready to tap or step on the brakes if the market shifts again.
Nvidia stock and Novo Nordisk are on IBD Leaderboard, with Meta Platforms on Leaderboard watchlist. Novo Nordisk and Meta stock are on SwingTrader. Nvidia and Novo Nordisk stock are on the IBD 50.
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