Dow futures rise as Netflix jumps late; Here comes Tesla

Dow futures rose slightly after hours, along with S&P 500 futures and Nasdaq futures. Netflix (NFLX) key earnings overnight, with Tesla and ServiceNow benefiting.

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The stock market rally was slightly mixed on Tuesday while Treasury yields continued to rise.

Netflix jumped overnight due to booming subscriber growth. a step (LRN), Surgical intuitive (ISRG), Texas Instruments (Texan) And Steel dynamics (She will give birth) also drives late profits.

Chip equipment manufacturer ASML (ASML) reports early Wednesday, with Tesla (TSLA) And Service now (now) is on tap Wednesday night.

ServiceNow inventory is running IBD Leaderboard. Now stock on Bahraini dinar 50. ASML and ServiceNow repositories are on IBD Big Cap 20.

Dow jones futures today

Dow Jones futures were just above fair value. S&P 500 futures rose 0.2%, and Nasdaq 100 futures rose 0.3%. NFLX stock and Intuitive Surgical are both S&P 500 and Nasdaq 100 components.

Remember, an overnight move in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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Stock market pool

The stock market rally closed mixed in a quiet session, with major indexes reaching record or multi-year highs.

The Dow Jones Industrial Average fell 0.25% in stock market trading Tuesday, with several Dow Jones giants moving on earnings. The S&P 500 rose 0.3% and the Nasdaq Composite rose 0.4%, and both closed near their highs for the day.

The advancers beat the losers after the losers beat the advancers after the winners dominated two sessions. However, the overall trend is one of lackluster breadth so far in 2024.

The small-cap Russell 2000 fell 0.4%, but held the bulk of its three-day advance and closed above its 21-day line.

Home builders and some construction and materials companies were the biggest losers Dr. Horton (DHI) posted weaker-than-expected earnings and orders. Rising Treasury yields are also impacting the sector.

Some stocks that triggered buy signals on Monday morning and pared their gains pulled back on Tuesday, including… Confirm Holding (AFRM). But some held on, including… UiPath (road).

The yield on the 10-year Treasury note rose five basis points to 4.14%, reaching the 50-day line.

US crude oil prices fell 0.5% to $74.37 per barrel.

ETFs

Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) rose by 0.2%. NOW stock is a major component of IGV. VanEck Vectors Semiconductor ETF (Trait) Advanced 0.5%. ASML stock is a notable SMH holding, along with Lam Research and Taiwan Semi.

Reflecting more speculative stocks, the ARK Innovation ETF (Ark(0.1% and ARK Genomics ETF)Arkj) by 0.5%. Tesla stock remains a major holding across Ark Invest's ETFs.

SPDR S&P Metals and Mining Fund (XME) emerged 1.1%. US Global Jets ETF (Planes) rose 2.3%. SPDR S&P Homebuilders ETF (XHB) decreased by 3.1%. Energy Select SPDR ETF (XLE(Up 0.2% and the Healthcare Sector SPDR Fund)Forty-fifth) decreased by 0.1%

Selected Industrial Sector SPDR Fund (forty-first) by 0.2%. Financial Select SPDR ETF (XLF) lost 0.1%.

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Netflix earnings

NFLX stock jumped in overnight trading as investors shrugged off Netflix's earnings decline. That's because the number of Netflix subscribers increased by 13.1 million in the fourth quarter, much higher than the number of views, as the new ad layer and password campaigns pay off.

Shares rose 1.3% in Tuesday's session to 492.19, rising within a buy point range of 482.70.

Early on Tuesday, Netflix and TECO Group (TKOHe said the streaming platform will carry WWE's flagship program Raw starting next year.

Other profits

ISRG stock jumped after hours as Intuitive Surgical's earnings beat recently raised guidance. Intuitive Surgical shares fell 1.2% to 371.41. The robotic surgical systems leader reported strong preliminary growth in revenue and procedures earlier this month. Shares rose on preliminary numbers.

LRN stock emerged in an extended move after Stride's earnings and revenue surpassed fiscal second-quarter estimates. The K-12 online education company closed flat at 62.09 on Tuesday. Stride stock is set to beat a firm buy point at 62.56 on Wednesday

TXN stock is down hard late. Texas Instruments' earnings rose slightly while revenue just missed, with weak guidance for the current quarter. Shares fell 0.3% on Tuesday to 174.34. Texas Instruments is within a cup-with-handle buy point of 172.31, but its relative strength line has been lagging for some time.

STLD stock was down slightly in overnight trading with Steel Dynamics' earnings keeping pace while revenue beat previous views. STLD stock rose 0.6% to 116.14 on Tuesday, breaking away from its 50-day line and testing a downtrend within a new flat base. The official buy point is 128.57, according to MarketSmith analysis.

ASML earnings loom on Wednesday morning. The Dutch chip equipment giant's shares rose 1.5% on Tuesday to 778.39, the highest level in two years. ASML stock is in a range of 765.79 buy points for a cup with handle. Chip equipment makers rose late last week after upside guidance at Taiwan Semiconductor Co., Ltd (TSM)

L Research (LRCX) reports Wednesday night with Kosovo Liberation Army Company (KLAC) scheduled for Thursday night. They both extend from the 50-day line.

Tesla earnings

Tesla's earnings are scheduled for Wednesday evening. Analysts expect earnings per share to decline 39% with revenues to rise about 5% to $25.62 billion. The focus will be on the 2024 outlook for gross margins and deliveries, especially as significant price cuts and incentives continue into early 2024.

Tesla stock rose 0.2% to 209.14 on Tuesday. But stocks fell for several weeks. The RS line fell to an eight-month low, reflecting the deterioration of TSLA stock against the S&P 500.

Service profits now

While Tesla's results will get the most attention Wednesday night, ServiceNow's earnings and guidance may be the most important as the first major software maker to report this quarter.

ServiceNow stock is also a leader in the market rally. NOW stock rose 0.1% to 753.42 on Tuesday. Shares are up 23% from the early November breakout.

What are you doing now

The stock market rally is still working well.

Investors should invest heavily. This may be a good time to let your attitudes work. A number of winners have been extended while some recent buying has declined, so new opportunities are not flowing at the moment.

Earnings season hitting full force is another reason to be cautious. While there were some big earnings winners, there were notable losers as well. Definitely be aware of the profits that can impact your investment portfolio. Follow your own rules about holding or selling stocks for profits.

Keep working on your watch lists.

Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.

Please follow Ed Carson on topics at @edcarson1971 And X/Twitter at @IBD_ECarson For stock market updates and more.

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