Dow Jones futures rose modestly early Wednesday, along with S&P 500 futures and Nasdaq futures, as President Donald Trump announced a Japan trade deal.
SAP and Texas Instruments led earnings after the close while GE Vernova and AT&T reported before the open. Tesla and Google-parent Alphabet are due after the close.
The stock market rally had a mixed session Tuesday with growth plays lagging. Circle Internet Group has round-tripped a brief rally.
Circle stock is on the IBD Leaderboard watchlist and IBD 50.
The video embedded in the article discusses Tuesday's market action and analyzes Tesla stock, Booking Holding and Circle Internet.
Dow Jones Futures Today
Dow Jones futures rose 0.5% vs. fair value. S&P 500 futures climbed 0.35%. Nasdaq 100 futures advanced 0.15%.
The 10-year Treasury yield edged up to 4.36%.
Crude oil futures edged lower.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Trump Announces 'Massive' Japan Trade Deal
President Trump announced late Tuesday on Truth Social a "massive" trade deal with Japan. The U.S. will impose a 15% tariff on Japanese goods, though that's less than the 25% tariff he had threatened earlier this month.
The 15% duty also will apply to the auto sector, instead of the 25% global auto tariff, Prime Minister Shigeru Ishiba said. Around 80% of Japan's trade surplus with the U.S. is in autos and parts.
Toyota jumped more 12% early Wednesday.
Japan's Nikkei surged 3.5% Wednesday.
Trump says Japan will take steps to open up its market to U.S. autos, rice and more. Japan also will invest $550 billion in the U.S., Trump said, as well as buy 100 Boeing jets.
Earlier Tuesday, Trump announced trade deals with Indonesia and the Philippines.
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Key Earnings
SAP earnings beat, but the German software giant fell solidly in premarket action. SAP dipped 0.3% to 306.29 Tuesday, holding within several weeks of trading.
Texas Instruments topped earnings views but guided low on Q3 EPS. Additionally, there's weakness with industrial and automotive customers. TXN stock dived overnight. Shares edged up 0.2% on Tuesday to 214.92, holding the 21-day line. Texas Instruments stock has pulled back modestly from a 220.38 buy point.
GE Vernova earnings solidly beat Q2 targets with the power play also guiding higher. GEV stock jumped early Wednesday, signaling possible fresh record highs. GE Vernova stock fell 3% on Tuesday to 548.99, but came off lows near the 21-day line.
AT&T slightly beat on earnings and revenue, while also topping on wireless subscriber growth. But the telecom giant's EPS guidance was slightly below. Shares fell modestly before the open. On Tuesday, AT&T stock edged up 0.15% to 27.42, hitting resistance at the 50-day line after a failed breakout at the start of July.
Stock Market Rally
The stock market rally had a mixed session, but improved from morning lows.
A number of growth stocks, especially AI and speculative plays, struggled on an otherwise OK market session. That's happened many times over the past month. Tuesday's top-performing groups tended to be laggards such as homebuilders.
The Dow Jones Industrial Average rose 0.5% in Tuesday's stock market trading. The S&P 500 index edged higher. The Nasdaq composite declined 0.4%, but pared losses after finding support at the 10-day line. The small-cap Russell 2000 advanced 0.8%
The Invesco S&P 500 Equal Weight ETF jumped 1.3% to a 2025 closing best. The First Trust Nasdaq 100 Equal Weighted Index ETF gained 0.5%, hitting a record high.
Circle stock plunged 8.2% to 198.31, down nearly 25% from Friday's intraday high of 262.97. The stablecoin IPO has round-tripped a big, brief rally from an aggressive entry.
With Tuesday's dip, the Nasdaq is now up 5.8% above its 50 day line, no longer extended but on the edge of being so. A market pause, like the mid-May to late June range, would allow the moving averages to catch up and new buying opportunities form.
U.S. crude oil prices fell 1.5% to $66.21 a barrel.
The 10-year Treasury yield declined three basis points to 4.34%.
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ETFs
Among growth ETFs, the Innovator IBD 50 ETF sank 1.3%. The iShares Expanded Tech-Software Sector ETF dipped 0.3%. The VanEck Vectors Semiconductor ETF, which has a Texas Instruments stake, slumped 1.8%.
Reflecting more-speculative story stocks, ARK Innovation ETF declined 0.55% and ARK Genomics ETF jumped 3.3%. Tesla stock is the No. 1 holding across ARK Invest's ETFs. Cathie Wood's ARK also owns a big stake in Circle Internet Group.
SPDR S&P Metals & Mining ETF popped 2.7%. SPDR S&P Homebuilders ETF soared 5.6%. The Energy Select SPDR ETF and the Health Care Select Sector SPDR Fund rose 0.47% and 1.9%, respectively.
The Industrial Select Sector SPDR Fund inched up 0.2%, with ISRG stock a component.
The Financial Select SPDR ETF climbed 0.55%.
Tesla Near Buy Point With Earnings Due; Rival Makes Bullish Move
Tesla Earnings
Tesla earnings are expected to tumble 24% Wednesday night. But investors will focus on CEO Elon Musk's comments on the earnings call, especially the robotaxi business.
Tesla stock rose 1.1% to 332.11 on Tuesday. Shares have regained the 50-day and 200-day lines and forged a new base within a big, deep consolidation. The buy point is 367.71, according to MarketSurge. A strong post-earnings move above Monday's high of 338 could offer at least an early entry.
Side note: Tesla archrival BYD jumped 5.8% to 17.25 on Tuesday, reclaiming the 50-day moving average and offering an aggressive entry. The China EV giant is working on a new base with a 20.50 buy point.
Best Growth Stocks To Buy And Watch
Google Earnings
Google earnings should climb 15% with revenue up 11%. AI and cloud-computing growth — and costs — will be key. So will advertising revenue growth that still accounts for the vast majority of sales.
Google stock edged up 0.65% Tuesday to 191.34, a 10th straight winning session. Shares are now just out of range of a 181.23 cup-with-handle buy point. The relative strength line is improving, signaling that GOOGL stock is outperforming the S&P 500 index after a long stretch of keeping pace or lagging.
What To Do Now
The stock market rally still looks strong, though a lot of hot growth plays had a rough session.
The next seven sessions are the heart of earnings, especially for tech. That stretch will also include the latest Federal Reserve meeting and end with the Aug. 1 Trump tariff deadline, though that could get pushed back.
So investors should be on high alert. Be cautious about new buys in the near term, especially growth plays with high average true ranges. Consider taking partial profits and cut losers, raising a little cash.
But the broader trend remains positive. Keep working on watchlists. A market pause could offer new buying opportunities.
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