Dow Jones futures were little changed Wednesday morning, along with S&P 500 futures and Nasdaq futures.
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The stock market rally was narrowly mixed on Tuesday, largely holding on to Monday's strong gains. The Nasdaq reversed slightly higher, supported Nvidia (NVDA), which reaffirms its leadership.
NVDA stock has now extended slightly from its buy zone. But Google the parents the alphabet (Google), Palo Alto Networks (Bano), Datadog (Doug), Uber technologies (Uber) and DoorDash (DASH) Move to buy zones.
Tesla TSLA announced Tuesday night that the updated Model 3 is now available in North America. In Tuesday's session, Tesla stock fell below a key support level and approached another support level.
Hewlett-Packard Company (HPE) will buy Juniper Networks (JNPR) for $14 billion, HPE said Tuesday night.
Surgical intuitive (ISRG) reported preliminary fourth-quarter revenues rose 17% to $1.93 billion, slightly above expectations. She credited this to strong demand for procedures using da Vinci robotic surgery systems. ISRG stock jumped late.
Taiwan Semiconductor Co., Ltd TSM reported December revenues decreased by 8.4% compared to the previous year in local currency, or 14.4% versus November. But it was better than expected. Full-year revenues declined 4.5%. A chip foundry manufactures chips apple (AAPL), Nvidia and many others. TSM stock fell 0.3% to 101.89 on Tuesday. Shares are working on a buy point with a handle of 105.52.
Uber, Datadog, and Nvidia stocks are on the IBD Leaderboard. Nvidia stock is on SwingTrader. Nvidia, Datadog and DASH stocks are in the IBD 50. Datadog and PANW stocks are in the IBD Big Cap 20. Palo Alto Networks was the IBD Stock of the Day on Tuesday.
The video embedded in the article discussed Tuesday's market action and analyzed PANW stock, Homet Space (Home) and Kamiko (CCJ).
Dow jones futures today
Dow Jones futures were down 0.1% versus fair value. S&P 500 futures lost a small portion. Nasdaq 100 futures rose 0.15%.
The 10-year Treasury yield fell slightly to 4%.
Remember, an overnight move in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Bitcoin ETFs
Meanwhile, the Securities and Exchange Commission is expected to approve bitcoin ETFs, which are expected to attract more institutional support. But the SEC has not done that yet.
Shortly after the close, the SEC's account on X's social site announced that Bitcoin ETFs had been approved. But the financial watchdog said the account had been hacked.
The deadline for the SEC to take action is said to be Wednesday. Bitcoin price fell 3.25% to $45,558.86 as of 5pm EST, following the SEC approval hoax. That was after it reached its highest levels since March 2021. Bitcoin traded at around $45,500 early Wednesday.
Cryptocurrency exchange Coinbase (COIN) fell 4.7% on Tuesday and the Bitcoin mining company Digital Marathon (MARA) fell to the bottom. Coinbase fell after hours and MARA stock fell modestly.
COIN and Marathon stock jumped on Monday, as both have strengthened since hitting 52-week highs at the end of 2023.
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Stock market pool
The stock market rally has been mixed, despite its bearish bias. However, stocks largely held on to Monday's gains.
The Dow Jones Industrial Average fell 0.4% in stock market trading Tuesday. The S&P 500 index fell 0.15%. The Nasdaq Composite rose 0.1% after briefly testing its 21-day line.
The small-cap Russell 2000 fell 1.05%, but closed just above its 21-day line. Losers easily outpace winners.
Nvidia stock rose 1.7% to 531.40, up 8.2% this week already on strong volume. Shares on Monday managed to clear a 505.48 buy point from a flat base, but have already shaken off several months of sideways movement, fueled by new AI chip announcements. NVDA stock has now crossed the 5% chase zone.
US crude oil prices rose by 2.1% to $72.24 per barrel. The yield on 10-year Treasury bonds rose to 4.02%.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rose 0.4%, with Palo Alto and DDOG stocks holding UGV. The VanEck Vectors Semiconductor ETF (SMH) rose 0.3%. NVDA stock is the #1 stock in SMH.
The SPDR S&P Metals & Mining ETF (XME) fell 1.45% and the SPDR S&P Homebuilders ETF (XHB) closed slightly lower. The Energy Select SPDR ETF (XLE) was down 1.6% and the Healthcare Sector SPDR ETF (XLV) was just below breakeven.
The Industrial Sector SPDR ETF (XLI) was down 0.3% and the Financial Select SPDR ETF (XLF) was down 0.7%.
Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) fell 1.55% while the ARK Genomics ETF (ARKG) rose 0.9%. COIN stock is the #1 stock in Ark Invest's ETFs. TSLA stock remains a major component of Cathie Wood's Ark.
Time the market with IBD's ETF market strategy
New Tesla Model 3
Tesla announced via Elon Musk's X social media on Tuesday evening that the updated Model 3 is now available in North America. The Highlander Model 3, with limited exterior changes and some interior upgrades, has already been manufactured at Tesla's Shanghai factory, with deliveries in the fourth quarter in China and Europe.
The updated Fremont-built Model 3 will start at $38,990 for the base RWD model and $45,990 for the Long Range, unchanged from the older Model 3. RWD and LR models are not eligible for the $7,500 IRA tax credits due to stricter battery sourcing rules.
Tesla, at least for now, doesn't offer a Performance for the Model 3. The old Performance was priced at $50,990, but only $43,490 including tax credits.
Tesla shares
TSLA stock rose early Wednesday. Tesla stock fell 2.3% on Tuesday to 234.96, undermining the 50-day moving average but still holding above the 200-day line. The US electric car giant still has a buy point with the 265.13 handle from a double-bottom base. But the relative strength line is near its October lows, according to MarketSmith.
Stocks are in buy zones
Google stock rose 1.5% to 140.95, returning above a cup-with-handle buy point at 139.42 and extending Monday's rebound from its 10-week line. However, trading volume was light this week. Also, the relative strength line has been lagging since late October, meaning Google stock is lagging the S&P 500. On the upside, earnings and sales growth have accelerated over the past three quarters.
PANW stock rose 3.8% to 300.42, bouncing back above the 21-day line and breaking a brief downtrend. This also extended Monday's bounce from the 10-week line. All of these reasons provide early entry. Palo Alto stock is starting to form a new base.
DDOG stock rose 1.6% to 121.18, back above its 120.26 buy point after reclaiming the 21-day line on Monday and bouncing off the 10-week line. Investors can also use 124.69 as an alternative or additional input.
Uber stock rose 2.2% to 60.31, returning above its 21-day line after Monday's 10-week bounce. This was the first such pullback since the breakout in early November, providing a buying opportunity. Uber is working on a new base.
DASH stock jumped 4.6% to 103.05, breaking the downtrend and providing an early entry. DoorDash moved above the 21-day line on Monday, extending Friday's move from the 50-day line.
Market rise analysis
The stock market rally largely led to Monday's strong gains being maintained on Tuesday, while several leaders continued to advance. Investors can add exposure, and take advantage of buying opportunities. How aggressive you can be depends on your investing style and how much cash you have on the sidelines.
Don't chase expanded stocks. What investors should do is update your watchlists so you can take advantage of stocks like Nvidia as they rise.
Read The Big Picture every day to stay on top of the market trend and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971, and X/Twitter at @IBD_ECarson And Bluesky at @edcarson.bsky.social for stock market updates and more.
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