Dow Jones futures were little changed overnight, while S&P 500 futures and Nasdaq futures were slightly lower. NVIDIA (NVDA).
Cybersecurity Company Sentinel One (S) reported on Tuesday night. Abercrombie & Fitch (National Library of Australia) report. The same goes for profitable Chinese EV makers. BYD (BYDDF) and Lee Auto (Lee), and Tesla (TSLA) Rival BYD is near a buy point.
The stock market rally was relatively quiet on Tuesday, as investors were reluctant to make any big moves ahead of Nvidia's earnings release.
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Stocks Await NVIDIA Earnings; GE Vernova, Ardent Health Issue Buy Signals
The artificial intelligence leader's earnings and guidance on Wednesday night will be crucial for AI stocks like these: Broadcom (AVGO) and Nvidia chipmaker Taiwan Semiconductor Manufacturing (TSMC) and the broader market continues to rise. Nvidia shares are slightly below their early entry, and Broadcom and Taiwan Semiconductor are also poised to enter.
Netflix (NFLX), Costco Wholesale (Fee), GE Vernova (Global EV) and Ardent Health (ARDT) issued a buy signal, at least intraday.
Warren Buffett's Berkshire Hathaway is nearing $1 trillion market cap
Meanwhile, Warren Buffett Berkshire Hathaway (BRKB) continues to rise, with its market capitalization approaching $1 trillion. BRKB shares rose 1.6% to $460.63, a record high and within the realm of a short-term correction. Berkshire's market capitalization is now $994.5 billion.
Nvidia's stock price IBD LeaderboardNetflix and Costco shares are on SwingTrader. Nvidia and Netflix shares are on IBD50Ardent Health was Tuesday's IBD Stock Of The Day.
In the video embedded in the article, we discussed the market movements and reviewed shares of Nvidia, Netflix, and Ardent.
Dow Jones Futures Today
Dow Jones futures were at fair value. S&P 500 futures were down 0.1% and Nasdaq 100 futures were down 0.3%.
The yield on the 10-year Treasury note fell 1 basis point to 3.82%.
Remember that overnight movements in Dow futures or any other stocks do not necessarily translate into actual trading in the next regular stock market session.
Main Earnings
SentinelOne's earnings beat expectations slightly. SentinelOne's shares rose slightly overnight after falling 0.6% to $24.75. The cybersecurity stock's official buy point is $30.76, but $24.80 would be an early entry. The report came a day before its larger rival's announcement. Crowdstrike (CRWD) caused a global IT outage on July 19th, throwing the company into chaos.
Abercrombie & Fitch will report its earnings before the market opens. ANF shares rose 0.9% on Tuesday to 166.61, re-exceeding their 50-day moving average. As of Tuesday's close, Abercrombie has a buy point of 172.90.
BYD and Li Auto are also due to report earnings. BYD shares rose 1.6% to $29.20 on Tuesday and continue to face resistance at their 50-day line and close to a buy point on the 30th. Li Auto rose 2.4% to $21.22 on Tuesday, not far from its 52-week high in late February. Tesla shares fell 1.9% on Tuesday to trade between their 50-day and 200-day lines.
IBD experts break down major stocks and markets on IBD Live.
Stock market rise
Stock market gains were confined to a relatively narrow range on Tuesday.
The Dow Jones Industrial Average closed slightly higher on Tuesday after hitting a record high on Monday. The S&P 500 index rose 0.2%, just off its all-time high. The Nasdaq Composite index rose 0.2% after briefly dropping below its 50-day line. The Russell 2000 small-cap index fell 0.7%.
The S&P 500 and Nasdaq in particular have been stagnant, with the Nasdaq trading between the 18,000 level and the 50-day line.
U.S. crude oil prices fell 2.4% to $75.53 a barrel.
The yield on the 10-year Treasury note rose about 2 basis points to 3.83%.
ETF
Among growth ETFs, the Innovator IBD 50 ETF (50 …) rose 0.2%. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.3%, while SentinelOne shares were held to a small position. The VanEck Vectors Semiconductor ETF (SMH) rose 1%. SMH's holdings are dominated by Nvidia shares, with Taiwan Semiconductor and Broadcom also major holdings.
Reflecting more speculative story stocks, the ARK Innovation ETF (arc) fell 0.7%, while the ARK Genomics ETF (arc), which fell 0.8%. Tesla shares remain the largest holding in Ark Invest's overall ETF, but Nvidia is also in the top 10. Cathie Wood's Ark also holds a small stake in BYD.
SPDR S&P Metals & Mining ETF (XME) rose 0.4%. The SPDR S&P Home Builders ETF (translation) fell 1%.XL) fell 0.9%. The Health Care Select Sector SPDR Fund (Chapter 45) rose 0.15%.
Industrial Select Sector SPDR Fund (Article 41) rose slightly. The Financial Select SPDR ETF (XLF) rose 0.5%, making Berkshire shares the No. 1 holding.
Timing the Market with IBD's ETF Market Strategy
Stocks in the Buy Zone
Netflix shares rose 1.1% to 695.72 on Tuesday, emerging from a shallow cup base toward a buy point at 697.49. Evercore raised its price target on NFLX shares to 750 from 710.
Costco shares rose 1.8% to 908.64, clearing an 896.67 buy point from a 12% cup base. MarketSurge Analysis.
Ardent Health shares rose 6.05% to 18.58, breaking above a buy point of 17.96 on an IPO basis. ARDT shares, which went public in July, are part of a closely watched hospital group.
GE Burnova shares rose 1.9% to 185.65, just above a buy point of 185.50. The former General Electric spinoff stock fell to its 50-day line on Friday morning but cut losses for the day sharply.
Nvidia stock
Nvidia shares rose 1.5% to 128.30 on Tuesday, near the top of a recent range that effectively allows for early entry. The official buy point for NVDA shares is 140.76, with 136.15 also being an early entry point.
Wedbush analyst Dan Ives said Nvidia's earnings are the “most significant” event for the tech industry in years.
Broadcom shares rose 1.1% to 161.39, re-establishing an uptrend and rising above their 50-day moving average. AVGO shares have a consolidation buy point of 185.16 but could open at 172.42 at Wednesday's close. Broadcom is due to report earnings next week.
Taiwan Semiconductor shares rose 0.9% to 170.55. The stock is trading in a 175.45 cup-with-handle base. TSM shares are currently trading just below their 50-day moving average.
Investors will likely need to wait until after Nvidia's earnings release before taking any new positions in NVDA or other AI chip stocks, unless they use an earnings options strategy.
What to do now
Stock market action on Tuesday was nearly ideal. A big rally or sell-off ahead of Nvidia's earnings release would have forced investors to make some tough decisions.
Investors should be prepared when Nvidia reports earnings — if you have a watchlist of stocks to buy, there are plenty of non-tech names on there — but they should also be prepared to trim positions if Nvidia and other major results on Wednesday night disappoint.
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