Dow Jones futures fell slightly overnight, while S&P 500 futures and Nasdaq futures fell slightly. Nvidia (NVDA) reported earnings and guidance with big implications for the overall market and especially artificial intelligence plays such as Taiwan Semiconductor (TSM), Broadcom (AVGO) and Astera Labs (ALAB).
Palo Alto Networks (PANW) and Snowflake (SNOW) also reported.
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Indexes Show More Strength, Pare Losses: Blue Owl, Chewy, Insulet In Focus
The major indexes closed narrowly mixed Wednesday with a strong finish after testing and holding key levels.
Nvidia stock is on IBD Leaderboard, with Astera Labs on the Leaderboard watchlist. Nvidia is on SwingTrader. Astera Labs stock and Nvidia are on the IBD 50.
Dow Jones futures fell 0.15% vs. fair value, with Nvidia the newest Dow member. S&P 500 futures declined 0.4% and Nasdaq 100 futures retreated 0.5%. Nvidia and Palo Alto are S&P 500 and Nasdaq 100 members.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Nvidia earnings beat views. Fiscal Q3 EPS 102%, a triple-digit year-over-year gain for a sixth straight quarter. Revenue soared 94%. The AI chip giant guided up on revenue for the January-ended quarter, but only slightly.
“The age of AI is in full steam, propelling a global shift to Nvidia computing,” said CEO and founder Jensen Huang. “Demand for Hopper and anticipation for Blackwell — in full production — are incredible.”
Nvidia stock fell modestly in extended trade. Shares pared losses in Wednesday’s session to close down just 0.8% to 145.89. That’s after leaping 4.9% on Tuesday. NVDA stock held above the 140.76 consolidation buy point and the 21-day moving average, according to MarketSurge.
Recent IPO Astera Labs rose modestly in overnight action, signaling a move to around a 100.09 high-handle entry. ALAB stock rose 2.35% to 97.42 Wednesday after the prior session’s 5.3% jump.
Nvidia chipmaker Taiwan Semiconductor, Broadcom, Arm Holdings (ARM) and Advanced Micro Devices (AMD) edged lower. TSM stock closed just above the 50-day line, while the other three are below that key level.
Arista Networks (ANET), a networking play, nudged lower after hours. ANET stock rose 1.1% Wednesday. Shares have fallen below the 50-day line, but have been finding support around the top of a prior base.
Palo Alto earnings beat views, though revenue just topped. PANW stock fell solidly overnight, signaling moves below buy points of 380.84 and 384. Shares climbed 1.2% to 392.61 on Wednesday.
Snowflake earnings comfortably topped consensus. Shares surged in late trade, signaling a move back above the 200-day.
The stock market rally again came well off morning lows. All the key indexes tested and held their 21-day moving averages once again and improved into the close.
The Dow Jones Industrial Average rose 0.3% in Wednesday’s stock market trading. The S&P 500 index finished a fraction higher. The Nasdaq composite dipped 0.1%. The small-cap Russell 2000 edged higher.
Target (TGT) and Powell Industries (POWL) were big earnings losers Wednesday. Wix.com (WIX) and Williams-Sonoma (WSM) soared.
Leading stocks generally held up well, giving up a portion of Tuesday’s gains.
U.S. crude oil prices fell 0.75% to $68.87 a barrel.
The 10-year Treasury yield rose three basis points to 4.41%.
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) dipped 0.2%. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.8%, with Palo Alto stock a significant holding. The VanEck Vectors Semiconductor ETF (SMH) slipped 0.7%. Nvidia stock is the dominant holding in SMH, with Taiwan Semiconductor and Broadcom also key members.
ARK Innovation ETF (ARKK) fell 1.1% and ARK Genomics ETF (ARKG) edged up 0.4%.
SPDR S&P Metals & Mining ETF (XME) 0.2%. The SPDR S&P Homebuilders ETF (XHB) climbed 1%. The Energy Select SPDR ETF (XLE) advanced 1% and the Health Care Select Sector SPDR Fund (XLV) gained 1.2%.
The Industrial Select Sector SPDR Fund (XLI) edged up 0.1%. The Financial Select SPDR ETF (XLF) dipped 0.3%.
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The stock market rally has shown healthy action, with the major indexes holding key levels.
If stocks react well to Nvidia earnings, a number of stocks could flash buy signals. But a negative reaction could signal trouble for the market rally.
So be prepared with up-to-date watchlists and exit strategies.
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.
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