The Dow Jones futures as well as the S&P 500 futures and Nasdaq futures were barely changed early Wednesday morning. The stock market rally took a breather on Tuesday and fell after strong gains in the last few sessions.
royal caribbean ((RCL), carnival ((CCL) and Norwegian cruise line ((NCLH) gathered late for a Bloomberg report that the Centers for Disease Control and Prevention had recommended cruises resume this summer with certain restrictions. Reports followed that indicated that cruise lines would not require any vaccinations for travelers.
Carnival, NCLH and RCL stocks rose 2% to 3% overnight, adding to Tuesday and past session gains. All three stocks are approaching possible buy points.
Carnival income is due on Wednesday morning.
Breakouts hold, new buy signals
Tesla ((TSLA) meets resistance after a recent run. But Tesla stocks and other highly respected growth names are showing signs of life.
Microsoft and Google shares are activated IBD ranking. TogetL’s stock is on SwingTrader. Microsoft stock is on IBD long-term guide. Yeti share is on the IBD 50 List. Google and Micron stocks are on the Big Cap 20.
Dow Jones Futures today
The Dow Jones futures were up 0.1% from their fair value. The S&P 500 futures have changed little, and the Nasdaq 100 futures have decreased.
Coronavirus cases reached 133.03 million worldwide. Covid-19 deaths topped 2.88 million.
Coronavirus cases in the US have hit 31.56 million people, with deaths over 570,000.
California plans to lift most of the coronavirus restrictions by June 15, but maintain its mask mandate.
Stock market rally
The stock market rally had a slightly bearish session that didn’t change the uptrend.
The Dow Jones Industrial Average fell 0.3% on Tuesday Stock exchange trading. The S&P 500 index lost 0.1%. The Nasdaq network fell less than 0.1%.
The 10-year government bond yield fell 6 basis points to 1.66%.
Read The big picture every day to stay in sync with market direction and leading stocks and sectors.
Tech Titans hold out
Microsoft stock fell 0.5% to 247.86. On Monday, MSFT shares rose 2.8% to 249.07 and put out loud MarketSmith analysis.
Google stock fell 0.4% to 2,209.26. The togetL share fell 4.2% on Monday to 2218.96 and also solved a flat base, with an entry of 2145.24. Both Microsoft and Google stocks flashed early entries last week.
The Facebook share fell 0.9% to 306.26. FB shares rose 3.4% on Monday to 308.91, above a buy point of 299.81 after a six-month consolidation.
Tesla stock rose 0.1% to 691.92. On Monday, the TSLA share rose 4.4% to 691.05 after record deliveries. But that was near the session lows after hitting 708.16 during the day and hitting resistance at its 10-week moving average. Tesla stock also needs to break its short-term highs in March and its 50-day mark before investors should pay special attention to the huge 2020 winner.
Under the best ETFs, the innovator IBD 50 ETF (FFTY) gained 0.2%, while the innovator IBD Breakout Opportunities ETF (STRUGGLE) immersed by 0.5%. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.6%, with MSFT shares topping the list. The VanEck Vectors Semiconductor ETF (SMH) fell by 1.4% after several strong increases.
The ARK Innovation ETF (ARKK) slammed 1.8% and ARK Genomics ETF (ARKG) was flat. Tesla stock is the largest holding in ARK Investments’ ETFs. While TSLA stock was calm on Tuesday, it has rallied in the past few days, while many other ARK stocks have rallied too, including Roku ((ROKU), Baidu ((BIDU) and Square Stock.
Some of the gains in ARK stock on Tuesday could be due to declining government bond yields. The rising yields on 10-year government bonds have weighed on highly valued growth stocks in recent months.
Shares in the buy range
Yeti shares rose 3% to 75.06 and hit 78.40 during the day. This cleared a buy point of 76.87 handles for a short time. YETI closed right on a declining trendline and offered a more aggressive entry. The maker of premium coolers, drinkware and now luggage reclaimed its 50-day line last week. The Yeti share was on Tuesday IBD share of the day.
Square stock rose 2.85% to 236.50, pulled back its 50-day line and broke a downtrend. This could allow an early entry into the SQ share. The official buy point is 283.29.
Micron stock fell 0.3% to 93.49 after hitting 96.10 during the day, temporarily erasing 95.85 from a brief consolidation. MU stock was actionable from the 10-week line after the memory chip giant made profits and forecasts last week. Micron stock is just 4.7% above its 10-week line.
The SE share fell 5.2% to 247.03, taking over its 50-day line. Depending on where you subscribe to it, the shares of Sea Ltd. also clarified a downward sloping trend line. This can be an early entry into SE shares, which have an official buy point of 285.10.
Chipotle stock rose 2.4% to 1,487.48, bouncing off its 50-day line and breaking a downtrend. That offers an early entry with the official buy point at 1,565.01. CMG stock had its best close since February 12, but needs to move up a bit to break above March highs. Investors should note that Chipotle profits are in two weeks.
Market rally analysis
The stock market rally closed little changed on Tuesday after trading in a narrow range. After two consecutive S&P 500 gains of more than 1% to record highs and the Nasdaq soaring more than 1.5% in three consecutive sessions to hit key levels – with a series of strong breakouts – a quiet session is in Order.
A break from the stock market rally for a few days would allow more handles to form on the base while recent breakouts could consolidate gains. As long as the Nasdaq is above the recent highs and especially the 50-day line, the uptrend will remain intact.
Market leadership in stock market rallies remains fairly broad, with some tech titans, chips, commodities, industrial trips, and some retailers doing well.
Some highly valued growth names like 10X Genomics ((TXG), Sea Ltd. or Square Stock are developing. Others are like Tesla inventory levels, which are still below 50-day limits, but at least repairs are made early on. Of course, there is no guarantee that the next chapter will be a happy one for Story Stocks, just as some home improvement projects are ongoing.
Investors should take part in this market rally. Don’t expect a run again from April through September, but there are reasons to be confident now. As you expand your holdings and revise your watchlists, try to achieve diversity within your leading stocks. This will help you avoid large portfolio movements from group sales while keeping you up to date with the market and the leading stocks.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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