Dow Jones futures fell slightly early Wednesday, while S&P 500 futures and Nasdaq futures fell slightly.
X
Arista Networks (A NET), toast (Stand ACM Research (ACMR) signaled early entries following overnight gains.
Recent IPO Reddit (RDDT) soared following its first earnings report as a public company. Shopify (BUSINESS), Uber technologies (ABOVE), Coupang (CPNG) and Astera Labs (ALAB) were clear profit losers.
The stock market rally was rather positive on Tuesday. The most important indices hardly changed after three strong increases in a row. Nvidia (NVDA) paused after a big move. Growth stocks generally shined.
Nvidia is on the IBD leaderboard, with Toast stock added to a winning options list on Tuesday. Astera stock is on the leaderboard watch list. Nvidia shares are on SwingTrader. Nvidia and Toast are on the IBD 50.
Dow Jones futures today
Dow Jones futures were just below fair value. S&P 500 futures and Nasdaq 100 futures fell 0.2%. On Tuesday, the Dow Jones and S&P 500 rose 0.1%, while the Nasdaq Composite fell 0.1%.
The 10-year Treasury yield rose slightly to 4.49%. On Tuesday, it fell 3 basis points to 4.46%, down 22 basis points in the last five sessions.
Crude oil futures fell 1%, after falling 0.1% to $78.28 on Tuesday.
Keep in mind that premarket action in Dow futures and elsewhere does not necessarily result in actual trading in the next regular trading session.
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Key Income
Arista Networks’ earnings and forecasts beat expectations on strong AI demand, with the networking company also planning a $1.2 billion buyback. ANET shares rose 7% premarket and are expected to cross the 50-day line and represent an early entry into the trend line. Arista stock has a consolidation buy point of 307.74.
Toast reported a larger-than-expected GAAP loss, but revenue beat expectations and its restaurant-focused software platform trended higher. TOST stock rose nearly 5% before the open, signaling a clear handle break. Toast has a buy point of 25.63 cups with handle.
ACM Research’s earnings beat sharply, while sales beat the chip equipment maker’s forecasts. ACMR stock rose sharply before the open, suggesting at least a 50-day line test. A significant move above the 50-day mark would provide an early entry. ACM Research stock has a consolidation buy point of 33.40.
Shopify’s earnings and revenue fell short of expectations, but its outlook was disappointing. But SHOP stock plunged more than 15% before the open, signaling a sharp decline below the 50-day line.
Uber reported a surprise loss in the first quarter, while gross bookings and gross booking guidance fell short of expectations. Uber shares plunged in premarket trading. Shares of the transportation giant and food delivery company were already below the 50-day mark.
Astera Labs’ earnings comfortably beat expectations in the AI chipmaker’s first report since publication in March. Astera also led higher. But ALAB stock fell sharply early Wednesday. Astera has an 88.59 IPO buy point.
Reddit reported strong revenue growth and guidance in its first earnings report. RDDT shares rose more than 10% in premarket trading. Reddit stock is forming the right side of an IPO base with an official buy point of 74.90.
Coupang earnings fell just short of expectations while sales peaked. CPNG stock fell significantly overnight. Shares rose 1.3% to 23.65 on Tuesday, a new two-year high.
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Nvidia stock
Nvidia shares fell 1.7% to 905.54 after rising 11% in the last three sessions. Shares fell more than 3% on Tuesday morning after Stanley Druckenmiller said he reduced his stake in the tech titan in late March, saying AI may be overvalued in the near term.
According to MarketSurge, NVDA stock has a consolidation buy point of 974. A break here could be constructive and allow a handle to emerge. Nvidia results are due on May 22nd.
Please follow Ed Carson in threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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