Dow Jones futures edged higher after hours, along with S&P 500 futures and Nasdaq futures. Snowflake (SNOW), Salesforce (CRM) and Five Below (FIVE) reported after the close.
The stock market on Wednesday largely shrugged off early concerns about Microsoft (MSFT) AI software demand. A weak ADP jobs report reinforced Fed rate cut hopes. Transports, retail, metals and housing-related sectors stood out, along with small caps.
Tesla (TSLA) and Robinhood Markets (HOOD) reclaimed their 50-day moving averages.
United Airlines (UAL), Alnylam Pharmaceuticals (ALNY), Jones Lang LaSalle (JLL), Acuity (AYI) and Taiwan Semiconductor Manufacturing (TSM) are all in buy zones.
Robinhood stock is on the Leaderboard watchlist. Taiwan Semiconductor stock, Robinhood and Alnylam are on the IBD 50.
The video embedded in this article reviews Wednesday's market action and analyzes Tesla stock, Robinhood and Jones Lang LaSalle.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value, boosted by Salesforce. S&P 500 futures and Nasdaq 100 futures edged higher.
The 10-year Treasury yield edged up to 4.08%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Key Earnings Overnight
Snowflake stock fell solidly despite beating quarterly views. SNOW stock is set to fall out of the buy zone.
Salesforce rose modestly on results and guidance. CRM stock has been trying to rise off a 17-month low but is below key levels.
Five Below stock climbed modestly overnight as hot same-store sales fueled earnings. Shares of the specialty discounter may test an early entry within a short consolidation.
UiPath (PATH) jumped late on earnings and guidance after closing above its 50-day line in a short, deep base.
Stock Market Rally
The stock market rally saw the S&P 500 and Nasdaq open lower on a report that Microsoft is lowering sales quotas for AI software, hitting AI-related names. The Dow tech titan refuted that report, with the major indexes all moving higher, though the S&P 500 and Nasdaq gains were relatively muted.
The Dow Jones Industrial Average advanced 0.3% in Wednesday's stock market trading. The S&P 500 index climbed 0.3%. The Nasdaq composite rose 0.2%, with Microsoft and some other tech giants falling. The small-cap Russell 2000 jumped 1.9%.
The Invesco S&P 500 Equal Weight ETF (RSP) advanced 0.8%. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) ran up 1.1%.
All of these indexes and ETFs are getting close to record highs.
U.S. crude oil prices rose 0.5% to $58.95 a barrel.
Leading stocks across a wide variety of sectors generally fared well.
The 10-year Treasury yield fell three basis points to 4.06%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) climbed 0.7%. The iShares Expanded Tech-Software Sector ETF (IGV) popped 1.4%. The VanEck Vectors Semiconductor ETF (SMH) advanced 1.4%. Taiwan Semiconductor stock is a huge SMH holding.
ARK Innovation ETF (ARKK) jumped 3.2% and ARK Genomics ETF (ARKG) rallied 3.7%. Tesla stock is easily the No. 1 holding across ARK Invest's ETFs, with Robinhood a top-10 position.
SPDR S&P Metals & Mining ETF (XME) popped 3.2%. U.S. Global Jets ETF (JETS) ascended 1.8% to a four-year high, with United Airlines a key holding. SPDR S&P Homebuilders ETF (XHB) stepped up 1.2%. The Energy Select SPDR ETF (XLE) added 1.9% and the Health Care Select Sector SPDR Fund (XLV) was up 0.5%.
The Industrial Select Sector SPDR Fund (XLI) climbed 0.95%. The Financial Select SPDR ETF (XLF) rose 1.3%.
Tesla Stock, Robinhood
Tesla stock rose 4.1% to 446.74, clearly above the 50-day line after hitting resistance there for a few days. Investors could use that as an early entry in an emerging consolidation, but the recent action has been volatile.
A White House robotics push lifted Tesla, which has big robotics ambitions.
Robinhood stock popped 6.1% to 133.64, rallying off the 21-day line to slightly clear the 50-day. Investors could buy here or perhaps when it rises with a little more strength. HOOD stock has a double-bottom buy point of 150.47.
Stocks In Buy Zones
United Airlines stock gained 3.9% to 108.48 on Wednesday, nearing a 110.66 consolidation buy point. Shares cleared a 106.45 early entry after breaking a downtrend on Tuesday. Investors also could simply buy the JETS ETF for airlines exposure.
Alnylam stock rose 1.8% to 473.29, clearing short-term highs after topping the 50-day line in the prior session. ALNY stock has a 495.55 consolidation buy point after a failed flat-base breakout, according to MarketSurge.
Jones Lang LaSalle climbed 1.65% to 329.80, with the real estate play still in range from a 322.07 double-bottom buy point.
Acuity stock advanced 1.6% to 369.51, briefly peeking above a 375.67 flat-base buy point. Shares did clear a 370 early entry.
Taiwan Semiconductor stock reversed slightly higher Wednesday, up 1.15% to 295.45, holding the 50-day line. TSM stock just cleared some short-term levels, offering an early entry. The chip foundry giant has a 311.37 flat-base buy point.
What To Do Now
The stock market rally showed resilience Wednesday. The market could have sold off as the Microsoft report reignited AI fears. But it quickly bounced back, with many AI names slashing losses or turning higher.
Meanwhile, strength outside of AI and tech overall showed the market breadth. Many recent buying opportunities have come in medical, cyclical or other non-tech names.
This is a good time to build exposure gradually, looking for a diversity of leadership in your portfolio.
So cast a wide net with your watchlists.
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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