[source image]
Dow Jones NewsJan 14, 9:44 PM UTC
DJ Dow Jones Futures: Market Wavers As Nvidia, Tesla Reverse Lower; CPI Inflation, JPMorgan Due -- IBD
By Ed Carson
Dow Jones futures rose slightly after hours, along with S&P 500 futures and Nasdaq futures. The consumer price index is due early Tuesday, along with earnings from JPMorgan Chase, Goldman Sachs, Wells Fargo, Citigroup, Charles Schwab and BlackRock.
The stock market rally closed mixed for a second straight session Tuesday after some up and down moves.
Nvidia fell while Tesla and Palantir Technologies pulled back from very aggressive entries.
On the upside, a relatively large number of stocks flashed buy signals, including Vistra, Howmet Aerospace, Wix, Argan, Planet Fitness, Ubiquiti, Sea and Snowflake.
But with the market struggling, investors should be wary of any new buys, while keeping overall exposure light.
Nvidia stock and Wix are on IBD Leaderboard, with Argan and Tesla stock on the Leaderboard watchlist. Wix stock, Planet Fitness and Vistra are on SwingTrader.
Argan, Howmet Aerospace and Snowflake stock are on the IBD 50. Howmet Aerospace and Palantir stock are on the IBD Big Cap 20.
Howmet Aerospace was Tuesday's IBD Stock Of The Day. Planet Fitness stock was Monday's pick.
The video embedded in the article reviewed the market action and analyzed Sea stock, Howmet Aerospace and Argan.
DOW JONES FUTURES TODAY
Dow Jones futures climbed 0.2% vs. fair value. S&P 500 futures rose 0.2%. Nasdaq 100 futures advanced 0.3%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
BANK EARNINGS
Bank stocks JPMorgan Chase, Goldman Sachs, Citigroup, Wells Fargo, Charles Schwab and BlackRock are all due before Tuesday's open.
Investors are expecting strong earnings in 2025 with an easier regulatory and capital backdrop. A normal yield curve, with long-term yields higher than on the short end, is positive for banks' traditional borrow short, lend long model.
JPMorgan stock flirted with a cup-with-handle breakout Tuesday, with JPM's relative strength line hitting a new high, with a blue dot. Citigroup is at the top of a short consolidation. Goldman and Wells Fargo are in bases, slightly below their 50-day lines. BlackRock and Charles Schwab have tumbled well below their 50-day lines.
Join IBD experts as they analyze leading stocks and the market on IBD Live
STOCK MARKET RALLY
The stock market rally tried to extend Monday's intraday bounce off lows, but that quickly fizzled, though the indexes ultimately closed mixed. The PPI inflation report was tame, with core wholesale prices flat. But higher airfares and other factors didn't bode well for Wednesday's CPI report.
The Dow Jones Industrial Average rose 0.5% in Tuesday's stock market trading. The S&P 500 index edged up 0.1%. The Nasdaq composite fell 0.2%.
All are below their 50-day moving averages, with the Nasdaq hitting resistance near that key level on Tuesday. A fall below Monday's lows would be highly bearish.
The small-cap Russell 2000 jumped 1.1%. It's outperforming so far this week, along with the Invesco S&P 500 Equal Weight ETF and the First Trust Nasdaq 100 Equal Weighted Index ETF, rebounding from their 200-day lines. But they are well their 50-day lines.
Nvidia stock gave up a modest early gain to fall 1.1% to 131.76. Like the Nasdaq, NVDA stock has declined for five straight sessions amid concerns that the AI chip giant's leadership is at risk.
Tesla stock jumped 4.8% Tuesday morning, breaking a steep downtrend and continuing a bounce from the 10-week line, briefly flashing an aggressive entry. But TSLA stock reversed to close down 1.7% to 396.36.
Palantir stock leaped 5% early on, regaining its 50-day line, but faded for a 1.4% to 65.91. PLTR stock is still 8.7% below its 10-week line.
A number of stocks did flash buy signals, with a mix of energy, specialty metals, construction, consumer and even some techs.
U.S. crude oil prices retreated 1.7% to $77.50 a barrel, pulling back from a five-month high.
The 10-year Treasury yield dipped 1 basis point to 4.79%.
ETFS
Among growth ETFs, the Innovator IBD 50 ETF popped 1%. The iShares Expanded Tech-Software Sector ETF gained 1.1%. Palantir stock is a big IGV component. The VanEck Vectors Semiconductor ETF advanced 0.3%. Nvidia stock is a dominant SMH holding.
Reflecting more-speculative story stocks, ARK Innovation ETF fell 0.4% and ARK Genomics ETF slumped 3.5%. Tesla stock is still a major holding across Ark Invest's ETFs. Cathie Wood's Ark also owns a lot of Nvidia.
SPDR S&P Metals & Mining ETF rose 0.7%. The Energy Select SPDR ETF rallied 1.1% and the Health Care Select Sector SPDR Fund fell 1%.
The Industrial Select Sector SPDR Fund and Financial Select SPDR ETF both climbed 1.2%.
Time The Market With IBD's ETF Market Strategy
WHAT TO DO NOW
The stock market rally is hanging by a thread. While a recovery is still possible, the Nasdaq and S&P 500 face multiple resistance levels to the upside and little support below.
Some leaders are doing well, but when the market is sliding the vast majority of stocks will follow. Oil and gas stocks can be an exception, rising and falling on underlying energy prices.
But by and large, if you're betting on an individual stock, you're betting that the market will quickly improve. As an investor, you should be paying attention to what the market is doing, not what you think it will do or hope it will do.
The past two days have been examples of why investors shouldn't get excited at the first glimmer of positive action.
With the market currently sliding, investors should be looking to reduce exposure to modest levels or less.
Keep working on watchlists. With a number of leaders or potential leaders setting up or teasing entries, you want to be tracking them. Many, if not most, are outside of the tech space.
The consumer price index and bank earnings could be market catalysts Wednesday, but which way?
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
View this article at Investors.com
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-market-struggles-nvidia-tesla-palantir-cpi-inflation-jpmorgan/
Investor's Business Daily - Your edge in the stock market
This content was created by Investor's Business Daily, which is operated by Dow Jones & Co. IBD is run independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 14, 2025 16:44 ET (21:44 GMT)
Copyright © 2025 Dow Jones & Company, Inc.
