Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures ahead of key economic data early Thursday.
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Twilio (TWLO), App Lovin (app), jayfrog (frog), upwork (UPWK), quickly (FSLY) and Cisco Systems (CSCO) saw a big shift in earnings after the close.
Stock markets rebounded on Wednesday after falling sharply on Tuesday's positive inflation data. Small-cap stocks and major growth stocks led the way.
Nvidia (NVDA) continues to climb the ranks of the Magnificent Seven, with a market valuation that exceeds that of Google's parent company alphabet (GOOGL) After traveling through the past Amazon.com (AMZN) Tuesday. Late Wednesday, the AI giant revealed the investment.
meanwhile, apple (AAPL) tested a key level as the Dow giant's underperformance against the S&P 500 hits a one-year low.
Late Tuesday, Warren Buffett's berkshire hathaway (BRKB) has released its 13th SEC filing disclosing its stock holdings. Buffett continued to defend the stock market in the fourth quarter.
The video embedded in the article not only analyzes Wednesday's market trends; Netflix (NFLX), birkenstock (Bark) and Celsius Holdings (CELH).
Nvidia stock is listed on the IBD Leaderboard. Netflix stock and his Nvidia are listed on SwingTrader. Celsius stock, Nvidia, and Netflix are all included in the IBD 50.
Dow Jones futures today
Dow Jones futures traded slightly above fair value. S&P 500 futures and Nasdaq 100 futures were slightly lower. Cisco stock is a component of the Dow Jones, S&P 500, and Nasdaq 100.
The yield on the 10-year Treasury note fell several basis points to 4.23%.
On Thursday at 8:30 a.m. ET, investors will get January retail sales data and weekly unemployment claims numbers. The stakes rose following Tuesday's hot CPI report.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
Performance trends
AppLovin's revenue exceeded its views. APP stock rose 17% in extended trading. Shares rose 2.3% to $46.87 in regular trading Wednesday, falling within the double-bottom buy point of $44.57, according to MarketSmith analysis. AppLovin stock initially soared in late January, then tumbled and rose again before settling down over the past few weeks.
Upwork's earnings and sales were slightly ahead of opinion, with the staffing company providing generally positive guidance. UPWK stock rose 3.6% overnight. On Wednesday, the stock jumped 9.5% to 15.24, breaking not only Monday's high of 15.06 but also the 50-day line. Without the earnings report, investors could have used this as an early entry into a near-term consolidation.
JFrog's earnings beat consensus. FROG stock soared 20% in extended trading. On Wednesday, the stock rose 3.75% to 37.09, reaching the top of the buy zone from a sideways, base-on-base pattern. After a pullback from Monday's two-year high, JFrog stock briefly fell below the buy point of 35.35 on Tuesday.
Twilio easily beat the EPS view, but provided mixed guidance. TWLO stock fell 10% in overnight trading. The stock rose 4.3% to 72.27 on Wednesday, but remains below its 50-day line. Twilio stock tested its previous double-bottom buy point at 67.62 during the day on Tuesday.
Fastly announced a surprise profit in its third quarter results, but sales fell slightly short, and the company also lowered its current outlook for the fourth quarter. FSLY stock plunged 22% in overnight trading. As of Wednesday, the stock was up 2.8% to 23.54.
The networking giant's third-quarter results remained subdued, although Cisco's revenue slightly beat views. Cisco announced that it will cut 5% of its workforce. CSCO stock fell 5% in the closing minutes. The stock rose 1.3% to 50.28 on Wednesday, slightly above its 50-day line but below its 200-day line.
stock market rise
The stock market rebounded after a sharp decline on Tuesday.
In stock market trading Wednesday, the Dow Jones Industrial Average rose 0.4%, up slightly from its 21-day line. During the day on Tuesday, the S&P 500 index rose nearly 1%, while the Nasdaq Composite Index rose 1.3%. Both indexes approached their 21-day lines during the day on Tuesday.
The width was strong after the losers crushed the winners on Tuesday.
The small-cap Russell 2000 rose 2.4%, rebounding from its 50-day line and above its 21-day line.
The Invesco S&P 500 Equal Weight ETF (RSP) rose 0.9%, rebounding above its 21-day line after testing its 10-week line on Tuesday. The First Trust Nasdaq 100 Equal Weight Index ETF (QQEW) rose 1.2%, rebounding from 21 days of gains.
Major stocks, especially those that performed well on Tuesday, rallied.
US crude oil prices fell 1.6% to $76.64 per barrel.
The 10-year U.S. Treasury yield fell 5 basis points to 4.27% after rising sharply on Tuesday.
The index's rebound at or near key levels suggests that Tuesday's decline was temporary, or at least that the pullback was not immediate.
Ideally, this level should be maintained for several days or weeks. That way, the Nasdaq won't expand significantly again anytime soon. Leading stocks could also create new buying opportunities. That's what happened during the pause in late November and early December and the backlash in early January.
A pause could also cool hot bullish sentiment. In the latest Investors Intelligence survey, around 58.8% of investment newsletter authors are bullish, the highest since his summer 2021 and close to the extreme 60% level. Excessive bullishness is often associated with at least short-term market tops.
ETF
Among growth ETFs, the iShares Expanded Technology Software Sector ETF (IGV), which includes AppLovin stock, rose 2%. The VanEck Vectors Semiconductor ETF (SMH) also rose 2%, with Nvidia stock its largest holding to date.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) rose 5.5% and the ARK Genomics ETF (ARKG) rose 4.4%. Ark Invest's stake in Twilio is noteworthy, but Cathie Wood is cutting back on her stake in the communications software maker.
The SPDR S&P Metals Mining ETF (XME) rebounded 1.9%. The SPDR S&P Home Builders ETF (XHB) rebounded 1.8%. Energy Select SPDR ETF (XLE) fell 0.1% and Healthcare Select Sector SPDR Fund (XLV) rose 0.9%. The Industrial Select Sector SPDR Fund (XLI) rebounded 1.7%.
The Financial Select SPDR ETF (XLF) rose nearly 1%. The SPDR S&P Regional Bank ETF (KRE) rose 1.9%.
Timing the Market with IBD's ETF Market Strategy
Nvidia stock price rises
Nvidia stock rose 2.5% to 739 on Wednesday, a new all-time high. The AI chip leader currently has a market capitalization of $1.825 trillion, compared to Google's market capitalization of $1.814 trillion. NVDA stock surpassed Amazon's valuation on Tuesday. Amazon's stock price is currently $1.776 trillion.
Nvidia is currently the third most valuable stock behind Magnificent Seven stock. microsoft (MSFT) ($3,042 billion) and AAPL stock ($2,842 billion).
meta platform (META) ($1.216 trillion) and tesla (TSLA) ($601 billion) rounds out the magnitude 7.
Nvidia's earnings are scheduled to be released on February 21st and will have a huge impact on the chip space, AI trends, and the broader market rally.
Nvidia said late Wednesday that arm holdings (arm), Soundhound AI (SOUN) and nano-x imaging (NNOX).
apple stock slide
Apple shares dragged down the major indexes, dropping 0.5% to 184.15 on Wednesday and falling 2.5% so far this week. The iPhone giant managed to maintain its 200-day line. However, the relative strength line continues to fall to a 52-week low.
AAPL stock fell slightly on Wednesday night after Buffett's Berkshire revealed it cut its stake in Apple slightly in the fourth quarter.
what to do now
The market rebound continues to be positive, with the major indexes not far from their all-time highs.
Aggressive investors may have seized a buying opportunity on Wednesday. These will probably work if the market goes further up, but being proactive means you have to be nimble on the exits as well.
There is nothing wrong with maintaining your current exposure and waiting for new setups and buying opportunities.
So keep working on your watchlist.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
Follow Ed Carson's thread @edcarson1971 and X/Twitter. @IBD_ECarson The latest information on the stock market, etc.
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