Dow Jones Futures: Microsoft, Google Fall On Earnings; Market Rally Runs Up To Key Test

Dow Jones futures fell slightly overnight, while S&P 500 futures and especially Nasdaq futures lost more ground. Microsoft (MSFT) and parent Google Alphabet (GOOGL) early in the night of earnings.




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The stock market had another strong session, as Treasury yields and the dollar retreated. But the S&P 500 and Nasdaq are approaching key resistance levels. Investors should be participating in the promotion received, but not too quickly to enter.

Intel (INTC) paid the IPO for it Mobileye (MBLY) self-driving car units on Tuesday night, slightly more than expected. Twitter (TWTR) moved close to the retracement price and new mark at Tesla (TSLA) CEO Elon Musk will close the deal on Friday.

Microsoft and Google released megacap tech funds Tuesday night. Apply force (ENPH) and Chipotle Mexican Grill (CMG) also reported.

Microsoft’s earnings and revenue, but MSFT’s stock fell sharply overnight on disappointing cloud revenue and weak guidance. Google products fall to the ground after a lost check. Enphase came together with strong results. CMG stock rose initially, but then turned lower.

Microsoft and Google stocks are on IBD’s long list of leaders. ENPH stock is in the IBD Big Cap 20.

Intel set the price of Mobileye IPO

Intel sold 41 million Mobileye shares at $21 a pop, up from the expected range of $18-$20. That raised $861 million. That valued Mobileye at $16.7 billion, less than the $50 billion expected by Intel. The chipmaker paid $15.3 billion for Mobileye in 2017.


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Latest Musk-Twitter Deal

Equity investors in Tesla CEO Elon Musk’s plan to take over Twitter received documents today, CNBC reported on Tuesday, the latest sign that Musk will close the $44 billion deal by Friday.

Bloomberg reported that Musk told the bank that he plans to close the takeover of Twitter on Friday. Twitter stock added to the intraday value, closing 2.6% to 52.84, not far from the contract price of $ 54.20. Tesla stock rose briefly on Tuesday afternoon but ended 5.3% higher at 222.41.

Concerns that Musk will need to sell more stock to pay for the Twitter deal have weighed on TSLA stock.

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The video attached to this article discusses Tuesday’s market rally and analysis Shockwave Medical (SWAV), The power is awesome (YES) and Dollar General (DG).

Dow Jones Futures Today

Dow Jones futures fell 0.3% vs. useful value. S&P 500 futures fell 1%. Nasdaq 100 futures lost 2.1%. Microsoft’s stock is the Dow Jones, the S&P 500 and the larger Nasdaq. Google and Enphase stocks are S&P 500 and Nasdaq components.

Remember that overnight events in the Dow Futures and elsewhere do not necessarily translate to the actual market in the next stock market session.


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Market Rally

The stock market rally continues on Tuesday, with tech and small caps leading the strong session.

The Dow Jones Industrial Average was up 1.1% in Tuesday’s trading. The S&P 500 index gained 1.6%. The Nasdaq composite rose 2.25%. The small-cap Russell 2000 rose 2.7%.

The 10-year Treasury note fell 13 basis points to 4.11%. Falling currencies are also measured in US dollars. Still, the two-year yield, which is tied to Fed policy, declined just 3 basis points to 4.47%.

US crude oil prices rose 0.9% to $85.32 a barrel. Natural gas futures jumped 8%, continuing to pull back after falling 23% last week.

ETFs

Among the best-performing ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.55%. The highest dividend yield of the iShares Expanded Tech-Software Sector ETF is 2.5%. MSFT’s stock is IGV’s largest holding. The highest price of the VanEck Vectors Semiconductor ETF is 1.6%.

SPDR S&P Metals & Mining (XME) climbed 1.8%. Home Builders SPDR S&P (XHB) rose 4.35%. Shares of the Energy Select SPDR ETF (XLE) changed +0.11%. The Health Care Select Sector SPDR Fund (XLV) added 0.8%.

Reflecting on stocks with more dire news, ARK Innovation ETF ( ARKK ) jumped 6.7% and ARK Genomics ( ARKG ) rose 5.4%. Tesla is the main stock held across Ark Invest’s ETFs.


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Capital gains

Microsoft’s earnings and revenue come in short of Q1 spending. Cloud computing revenue took the lead but at least something was lost. The software giant warned that its revenue in Q2 in media, PC and capital.

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MSFT stock sold off in the overnight market. Shares rose 1.4% to 250.66 on Tuesday, nearing the 50-day line. But Microsoft’s stock is below the 200-day line and not much more than that in bear market declines. Cloud software products have fallen in line with Microsoft’s results.

Google’s income and income are both. YouTube revenue fell, while online advertising rose just 2.5%. Cloud computing costs are up. GOOGL stock has been on a long-term decline. Shares rose 1.9% Tuesday to 104.48, also closing at a 50-day line. But, like Microsoft, Google’s stock is not far from bear market prices, with a distance to 200 days.

Microsoft’s and Google’s cloud computing results could indicate the growth of Amazon’s Web services Amazon.com (AMZN) daily deposit. AMZN’s stock dropped a bit overnight.

Decide that the income is comfortable as the income is perishable. The ENPH application was up in an instant. Enphase stock rose 4.85% to 265.59 on Tuesday, moving back above the 21-day line. Shares may start building the right side of a new base but remain below the 50-day line.

First Solar (FSLR), which reported on Thursday night, changed hands in Enphase shares.

Chipotle’s earnings beat, with store sales and margins impressive. CMG stocks turned slightly lower in extended trading amid concerns about future margins. The stock advanced 2.5% on Tuesday to 1,584.02. Chipotle stock is nearing the 50-day mark as it works to the right of a minor key at 1,754.66 buy points, according to MarketSmith research.

Boeing (BA), General Dynamics (GD), Waste management (WM) and Hilton worldwide (HLT) news early Wednesday.


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Market Rally Analysis

Stock prices continued to increase, with the decline in the US dollar providing tailwinds for equities.

Nasdaq and small caps led gains Tuesday. The Dow Jones ended Tuesday but remains the rally leader, pushing above the 50-day line. The S&P 500 and Russell 2000 are nearing that key level. Nasdaq still has some distance to reach the 50-day mark. But the S&P, Russell and Nasdaq are all above their 10-week lines.

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It remains unclear whether this is another bear market rally. The S&P 500 and Nasdaq are likely to outperform their 50-day moving averages. If so, can the main index clear 200 days?

On the plus side, a number of growing stocks showed impressive behavior, including Shockwave, Double check (DV) and Roblox (RBLX).

Those join healthcare majors, including biotechs, health insurers and drug distributors. Auto dealers are doing well.

Energy resources continue to thrive.

A collection of financial, financial and economic data can ruin the session.

Microsoft and Google reported on Tuesday night, with Meta Platform (META), apple (AAPL) and Amazon’s earnings are due later this week.

It is no coincidence that Microsoft, Google, Amazon and Apple stocks closed Tuesday directly or below their 50-day line. Even the Meta Stock, which was almost at a bear market low Friday, is moving back to its 50-day high.

Microsoft, Google and Amazon have all agreed to back down from that position. Futures showing the S&P 500 and the Nasdaq will also do so at the open on Wednesday.


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What You Should Do Now

The stock market has proven to be profitable, with many leading stocks flashing buy or spread signals, including some high-growth names.

Therefore, investors should carefully participate in this market, taking positions in good stocks or large market ETFs. Go in slowly. If your position in the marketing campaign is working, you can gradually add exposure.

Major indexes facing resistance levels are another reason to enter, not run.

And be prepared to take profits or cut losses quickly.

Continue working on the checklist. Many days of market value bring many stocks into position.

Read The Big Picture every day to stay in touch with the market leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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