Dow Jones futures fell modestly Wednesday morning, along with S&P 500 futures and Nasdaq futures. Cava Group and Abercrombie & Fitch headlined overnight earnings.
The stock market rally had another mixed session Tuesday, with Nvidia continuing to run higher, lifting the Nasdaq. But the Dow Jones fell to a key support level amid weak breadth.
AI chipmaker Arm Holdings, wings eatery Wingstop and Brazilian fintech Nu Holdings flashed buy signals Tuesday.
ConocoPhillips will buy Marathon Oil in a $22.5 billion all-stock deal. Conoco shares fell while Marathon jumped.
American Airlines cut its outlook late Tuesday. American Air tumbled while other carriers fell.
Nvidia and Cava stock are on IBD Leaderboard. WING stock is on SwingTrader. Nvidia, Wingstop and ARM stock are on the IBD 50. Nvidia stock is on the IBD Big Cap 20.
The video embedded in the article discusses Tuesday's market action and analyzes Arm Holdings, Wingstop stock and Celsius Holdings.
Dow Jones Futures Today
Dow Jones futures fell 0.5% vs. fair value. S&P 500 futures lost 0.5% and Nasdaq 100 futures declined 0.5%, even Nvidia stock edging higher yet again.
The 10-year Treasury yield edged up to 4.57%.
Crude oil futures rose slightly to above $80 a barrel.
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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Earnings
Cava earnings were better than expected, with same-store sales growth slowing significantly but beating views at 2.3%. Guest traffic fell slightly though. Cava stock fell modestly in premarket action. Shares dipped 0.6% to 82.40 on Tuesday, reversing lower from a fresh all-time high intraday.
Abercrombie & Fitch earnings easily beat fiscal Q1 views, with same-store sales up 21%. ANF stock climbed slightly before the open. Shares rose 1.5% to 152.39 on Tuesday, hitting a record high and modestly extended from a 140.28 consolidation buy point.
Dick's Sporting Goods reported better than expected fiscal Q1 results and guided higher for the full year. Shares jumped, signaling a move above the 50-day line and perhaps flashing a buy signal.
Viking Holdings disclosed a wider-than-expected GAAP loss in the first quarter, the cruise line operator's first earnings report since coming public a month ago. But EBITDA and revenue topped. VIK stock rose slightly before the open. Shares popped 3.1% to 30.60 on Tuesday, hitting a record high amid a flurry of mostly positive analyst initiations on the recent IPO.
Stock Market Rally
The stock market rally had another mixed session Tuesday, with the Nasdaq topping the 17,000 level for the first time while the Dow Jones sank to the 50-day line.
The Dow Jones Industrial Average fell 0.5% in Tuesday's stock market trading, with some financial and health care components weighing on blue chips. The S&P 500 index rose a fraction. The Nasdaq composite climbed 0.6%.
Losers outpaced decliners by a solid margin.
The small-cap Russell 2000 fell 0.1%.
The Invesco S&P 500 Equal Weight ETF sank 0.7%, fractionally below the 50-day. The First Trust Nasdaq 100 Equal Weighted Index ETF slumped 0.8%, badly lagging the Nasdaq 100's 0.4% advance.
On the plus side, energy and commodity stocks bounced back after significant losses last week, buoyed by higher underlying prices.
U.S. crude oil prices rallied 2.7% to $79.83 a barrel. Copper futures bounced 2%.
The 10-year Treasury yield popped 7 basis points to 4.54%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF closed fractionally lower after briefly hitting a fresh 52-week high. The iShares Expanded Tech-Software Sector ETF fell 0.7%. The VanEck Vectors Semiconductor ETF jumped 2.3%, with Nvidia stock the dominant holding.
Reflecting stocks with more speculative stories, the ARK Innovation ETF slid 0.8% and ARK Genomics advanced 0.2%.
The SPDR S&P Metals & Mining ETF tacked on 1.5% while the Energy Select SPDR ETF climbed 1%.
But the SPDR S&P Homebuilders ETF gave up 1.4%. The Health Care Select Sector SPDR Fund and Industrial Select Sector SPDR Fund both sank 1.2%. The Financial Select SPDR ETF retreated 1.1%.
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Nvidia Stock
Nvidia stock jumped 7.1% to 1,140.59, gapping up to yet another record high. Shares soared 15.1% last week on booming earnings and guidance. NVDA stock is now greatly extended. Nvidia's market cap is closing in on $3 trillion, hitting $2.847 trillion on Tuesday.
Shares rose a fraction early Wednesday.
Stocks In Buy Zones
Arm stock spiked 9% to 124,94, clearly moving above the 50-day line, which had served as resistance for the past two weeks. The wireless chip designer, seen as an AI play, also broke a trendline. Those both offered buy signals. Arm stock is starting to building the right side of what would be deep base.
Wingstop stock rose 1.5% to 389.60, bouncing from the 21-day moving average and breaking a short trendline, while not that far from the 50-day line. Shares are still in range of a prior consolidation with a 379 entry.
Nu Holdings stock popped 3.8% to 12.18, bouncing from around the 50-day line and breaking a short trendline. That offers a fresh entry into the Brazilian fintech, which has a 12.38 consolidation buy point.
What To Do Now
There are stocks to buy and some winners are still moving higher, but market leadership has narrowed somewhat. So don't assume that just because an Nvidia-fueled Nasdaq is hitting new highs that your stocks are sure to advance.
Still, a few more stocks flashed buy signals with many others setting up. Investors could choose to take advantage, especially if their exposure remains modest. But continue to do so gradually and be ready to step back if the market falters.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
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