Dow Jones futures: Market rises as Tesla’s Autopilot scores big win; Fed looms, AMD battles of late

Dow Jones futures fell slightly after hours, along with S&P 500 futures and Nasdaq futures. Advanced micro devices (AMD) Overnight earnings were topped as the Federal Reserve wrapped up its two-day meeting on Wednesday afternoon.

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The stock market rally attempt saw a quietly encouraging session, with major indices reversing higher from morning declines. Nvidia stock trimmed recent lows Tuesday morning, but pared losses. The breadth of the market was better. But the downtrend has not been broken.

Arista Networks (network) was the biggest gainer on Tuesday, rising toward record highs on earnings after declining last week Meta platforms (dead) Capital spending plans. Pinterest (Pins) And Kamiko (CCJ) also a gap in profits. All buy signals are flashing, although the risks are high now.

Tesla (TSLA) rose modestly as a jury found Autopilot not at fault in a fatal crash.

but Dwarf beauty (dwarf) fell heading into earnings on Wednesday night. Nvidia stock trimmed recent lows Tuesday morning, but pared losses.

Dow jones futures today

Dow Jones futures were down 0.2% versus fair value. S&P 500 futures fell 0.2%. Nasdaq 100 futures fell 0.2%. AMD stock is a Nasdaq 100 stock.

The yield on 10-year Treasury bonds rose several basis points to 4.93%.

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

AMD profits

Nvidia (NVDARival AMD reported better-than-expected third-quarter earnings and sales, but gave weak guidance. AMD stock is down late after initially falling strongly. Shares rose 2.4% to 98.50 in Tuesday’s regular session, but were still below the 50-day and 200-day lines.

Paycom software (Pay for pay) topped EPS views, but revenue and Q4 guidance were lower. PAYC stock is down more than 30%.

FDA panel considering gene editing therapy

Meanwhile, an FDA advisory committee had generally positive comments on the first-ever gene therapy for sickle cell disease, developed by… CRISPR therapeutics (CRSP) And Vertex Pharmaceuticals (Vertex). Unusually, the committee did not vote to recommend treatment. CRSP stock was halted throughout Tuesday’s session and into the overnight session. VRTX stock rose 1.3% Tuesday to 362.11, bouncing off its 50-day line. Vertex stock is back near a 367 buy point, but earnings are due next week.

Tesla Autopilot wins

Tesla stock rose 1.8% to 199.96 on Tuesday, retreating from a five-month low after winning an Autopilot lawsuit involving a fatal 2019 crash in Riverside County, California. It’s the first of a series of lawsuits allegedly related to the electric car giant’s driver-assistance program. . TSLA stock, which has also rebounded with the broader market, remains below its 200-day line.

Electric car sales in China

Early on Wednesday, Tesla (TSLA) China’s competitors Lee Otto (for me), XPeng (XPEV) And New (New) will announce October deliveries, as Li Auto already announced on Tuesday that its deliveries exceeded 40,000 for the first time. EV and giant battery BYD (BDDF) October sales must be reported by Thursday morning, if not before.

All four electric vehicle makers fell 3%-4% on Tuesday, along with several other Chinese stocks, following weak Chinese economic data.

NVDA stock is running IBD Leaderboard. CCJ stock is on SwingTrader. Arista Networks, Nvidia, and LI are in the IBD 50. ANET is in… IBD Big Cap 20. Cameco was IBD Stock of the Day on Tuesday.

The video embedded in the article discusses Tuesday’s market action and analyzes shares of ANET, Cameco, and ELF Beauty.

Fed meeting decision

The central bank will announce its policy meeting at 2 PM ET, and Fed Chair Jerome Powell will speak at 2:30 PM ET. Markets see no chance of a rate hike on Wednesday, and give only modest odds for a rate hike in December. Fed policymakers, including some hawks, have made clear that rising long-term Treasury yields have reduced the need to formally raise interest rates.

We expect Fed Chair Powell’s policy statement to reinforce this message, while leaving the door open for further tightening.

Join IBD experts as they analyze leading stocks and the market on IBD Live

Stock market pool

The stock market’s rally attempt came from morning lows to close higher on Tuesday.

The Dow Jones Industrial Average rose 0.4% in stock market trading Tuesday. The S&P 500 advanced 0.65%, with ANET stock easily the best performer. The Nasdaq Composite rose 0.5%.

Nvidia shares fell 4.7% Tuesday morning after a report that it may have to cancel more than $5 billion worth of artificial intelligence chip orders from Chinese companies due to tougher U.S. restrictions. But the AI ​​chip leader rebounded to close down just 0.9% to 407.80.

Market breadth was better on Tuesday, with winners comfortably outweighing losers. Naturally, new lows kept crushing new highs.

The small-cap Russell 2000 index rose 0.9%. Invesco S&P 500 Equal Weight Fund (RSP(0.8% and the First Trust Nasdaq 100 Equal-Weighted Index ETF)QQEW) by 0.9%.

Tuesday marked the third day of a stock market rally attempt for the Nasdaq, and the second day for the S&P 500 and Dow Jones. A follow-up day could come on the Nasdaq at any time to confirm the new uptrend.

The Composite just reclaimed the 200-day line on Tuesday, but several other resistance levels loom. The other indicators are well below the 200-day line.

Meanwhile, there aren’t a lot of stocks in a good position right now.

US crude oil prices fell 1.6% to $81.02 per barrel, down 10.8% during the month.

The 10-year Treasury yield was essentially flat at 4.87% on Tuesday, but rose 30 basis points for October, the sixth straight monthly gain. With the Fed taking its cue from the 10-year yield and not the other way around, it is unclear whether the Fed-Powell meeting announcement will have the kind of impact it has had over the past two years.

ETFs

iShares Extended Technology Software Fund (ETF)IGV) jumped 1.2%. VanEck Vectors Semiconductor ETF (Trait) advanced by 0.7%. Nvidia stock is the largest holding in SMH, and AMD stock is also a prominent component.

Reflecting more speculative stocks, the ARK Innovation ETF (Ark(ARK Genomics ETF rose 2.3%)Arkj) jumped 2.6%. Tesla stock is a prime holding across Ark Invest’s ETFs.

SPDR S&P Metals and Mining Fund (XME) decreased by 0.6%. SPDR S&P Homebuilders ETF (XHB) rose 1.2%. Energy Select SPDR ETF (XLE(Up 0.3% and the Healthcare Sector SPDR Fund)Forty-fifth) by 0.6%. VRTX stock is ownership of XLV.

Selected Industrial Sector SPDR Fund (forty-first) rose 0.7%. Financial Select SPDR ETF (XLF) emerged 1.1%.

The top five Chinese stocks to watch now

Stocks are rising on earnings

ANET stock rose 14% to 200.37, surpassing the 198.70 buy point of the consolidation. It was actually actionable on Tuesday morning, as it decisively broke through the 50-day line. The relative strength line has reached a new high. Last week, Arista stock fell after major client Meta indicated lower-than-expected capital spending. But late Monday, the networking giant reported better-than-expected third-quarter results and raised its fourth-quarter revenue guidance. Arista’s earnings rose 46% year over year for the second straight quarter, with earnings per share up more than 20% for the 11th straight quarter.

CCJ stock jumped 8.1% to 40.91, moving from around its 50-day line to near the top of a short consolidation. Investors could use the 42.16 level as an official buy point, but it was actionable starting from the October 25 high of 39.77. Uranium producer Cameco reported earnings rose nearly 1,000% from a year earlier, with sales guidance also rising.

PINS stock rose 19% to 29.88, jumping above its 50-day and 200-day lines, and back above key resistance levels around 29. It is doable from there, along with the official buy point of 30.86. Pinterest reported booming earnings and an 11% increase in revenue, both showing accelerating growth for the third straight quarter. User growth also topped the number of views. The social media site also provided some bullish guidance for the fourth quarter.

In all of these cases, investors could have bought these shares on Tuesday. However, buying profit gaps in a market correction carries other risks. At this point, investors may want to wait to see if these stocks are able to form handles or high handles.

Time the market with IBD’s ETF market strategy

What are you doing now

The stock market is trying to reach the bottom, while continuing to try to rise. But now it is a market correction.

If there is a follow-up day in the near future, investors should look for something to buy, whether that’s a stock or a broad ETF. But there’s no reason to rush.

Confirmed market highs don’t actually work. As long as Treasury yields are on an upward trend, it is difficult to see stocks heading in a meaningful direction.

But this is definitely a good time to build watch lists. Look for stocks that are setting up, or at least ready to set up.

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

Please follow Ed Carson on X/Twitter at @IBD_ECarsonTopics in @edcarson1971 And Bluesky V @edcarson.bsky.social For stock market updates and more.

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