Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. Luxury homebuilder Toll Brothers (TOL) headlines earnings Tuesday night, with Target (TGT) due before the open.
Palo Alto Networks (PANW) and Netflix (NFLX) flashed buy signals. Meta Platforms (META), Arista Networks (ANET) and Shift4 (FOUR) are pausing bullishly.
Nvidia stock is on Leaderboard. Nvidia, Netflix, Arista and Meta stock are on the IBD 50. Arista stock is on the IBD Big Cap 20. Palo Alto Networks was Tuesday’s IBD Stock Of The Day.
The video embedded in the article discussed Tuesday’s market action and analyzed Palo Alto, Meta Platforms and Netflix stock.
Dow Jones Futures Today
Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures and Nasdaq 100 futures edged higher.
The 10-year Treasury yield edged down to 3.81%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Earnings
Toll Brothers earnings beat views late Tuesday, with revenue edging above forecasts. It also raised guidance. TOL stock tilted higher overnight. The luxury builder dipped 0.1% in Tuesday’s regular session to 133.52, hitting resistance at a prior 135.37 buy point.
Early Wednesday, Target, TJX Cos. (TJX) and Analog Devices (ADI) are on tap early Wednesday.
TJX stock is close to being actionable while Analog Devices and especially Target are hitting resistance at key levels.
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Stock Market Rally
The major indexes fell slightly on Tuesday, though small caps had solid losses.
The Dow Jones Industrial Average fell 0.2% in Tuesday’s stock market trading. The S&P 500 index slipped 0.2% and the Nasdaq composite dipped 0.3%, both snapping eight-session win streaks. The small-cap Russell 2000 slumped 1.2%.
The stock market rally taking a breather after a big run is healthy, especially with Fed chief Powell’s big speech Friday and Nvidia earnings on Aug. 28. It would give stocks some time to forge more-attractive bases and perhaps handles.
U.S. crude oil prices dipped 0.4% to $74.04 a barrel, down 5.3% over the last three sessions.
The 10-year Treasury yield fell five basis points to 3.82%.
Federal Reserve minutes from the July 30-31 policy meeting are due at 2 p.m. ET Wednesday. That will provide a little more color on Fed policy, but Powell’s Jackson Hole speech on Friday morning should be the highlight of the week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.65%. The iShares Expanded Tech-Software Sector ETF (IGV) edged up 0.2%, with PANW stock a notable holding. The VanEck Vectors Semiconductor ETF (SMH) fell 1.3%, with Nvidia stock the No. 1 holding.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) sank 1.2% and ARK Genomics ETF (ARKG) retreated 1.8%.
SPDR S&P Metals & Mining ETF (XME) gave up 0.9%. The SPDR S&P Homebuilders ETF (XHB) lost 0.7%, with TOL stock a top-10 holding. The Energy Select SPDR ETF (XLE) tumbled 2.6% and the Health Care Select Sector SPDR Fund (XLV) gained 0.4%.
The Industrial Select Sector SPDR Fund (XLI) and Financial Select SPDR ETF (XLF) declined 0.3%.
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Nvidia Stock
Nvidia stock fell 2.1% to 127.25. That snapped a six-session win streak and was an inside day to Monday’s 4.35% spike. The AI chip giant now has a cup base with a 140.76 buy point, though investors could treat 136.15 as an early entry. Ideally, NVDA stock would forge a handle heading into earnings on Aug. 28.
Palo Alto Stock
Palo Alto stock gapped up 7.2% to 368.01 on Tuesday, racing past a 345.90 early entry within a deep consolidation. Once again, Palo Alto earnings and sales growth slowed, but next-generation annual recurring revenue from cloud-computing products jumped 43%.
Netflix Stock
Netflix stock climbed 1.45% to 698.54, just topping a 697.49 buy point from a shallow cup base. NFLX stock is not extended from the 50-day line, but Tuesday was the 10th up day in 11 sessions. The relative strength line hit a new high on a weekly chart, marked by a blue dot on a MarketSurge chart.
Meta Stock
Meta stock edged down 0.5% to 526.73, continuing to pause just below a 542.81 buy point from a consolidation forged next to a failed breakout.
Arista Stock
Arista stock edged up 0.5% to 353.79, perhaps working on a short handle in a consolidation going back to early…
Read More: Dow Jones Futures: Stock Market Pauses Bullishly Before Powell, Nvidia; Palo