Dow Jones futures edged lower early Wednesday, while S&P 500 futures and Nasdaq futures rose. A federal judge issued his Google antitrust remedies after the close, lifting Google parent Alphabet and partner Apple. Cybersecurity play Zscaler rose on earnings.
The stock market rally saw further losses Tuesday, with the S&P 500 and Nasdaq composite nearing their 50-day moving averages before paring losses. Nvidia and GE Vernova were notable losers, undercutting their 50-day lines. A number of techs did slash losses, including Palantir Technologies.
The video embedded in the article reviews Tuesday's market action and analyzes Boeing, TechnipFMC and GE Vernova stock.
Nvidia, Boeing, Google and GE Vernova stock are on IBD Leaderboard. Nvidia and Palantir stock are on the IBD 50. Nvidia stock is on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures were just below fair value. S&P 500 futures climbed 0.5%. Nasdaq 100 futures advanced 0.7%. Apple stock is a Dow Jones, S&P 500 and Nasdaq 100 giant while Google is an S&P 500 and Nasdaq titan.
The 10-year Treasury yield edged down to 4.27% after gaining five basis points Tuesday to 4.28%.
Crude oil futures fell more than 2% after jumping 2.5% on Tuesday to $65.59 a barrel, the highest close in nearly a month.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Google Antitrust Ruling
Late Tuesday, U.S. District Judge Amit Mehta ruled that Google will be barred from exclusive search deals and must share search data. But the tech titan will not have to divest its Chrome browser or face other, more-serious penalties. Mehta also didn't bar Google from making payments to third parties for default browser placement, meaning a Google-Apple search deal can continue.
The remedies ruling came nearly a year after Mehta said that Google had an illegal monopoly over online search. Google will appeal the ruling.
Google stock jumped in overnight trade, signaling a record high as Mehta's antitrust remedies weren't as harsh as feared.
Apple stock climbed solidly, pointing to a breakout above a 235.12 handle buy point.
Zscaler, TechnipFMC Rise On News
Zscaler stock rose modestly overnight as the cybersecurity play easily beat views and guided higher. Shares have been trading below the 50-day line for weeks.
TechnipFMC stock climbed solidly, signaling a breakout, on news that it will join the S&P MidCap 400 index before the open on Friday.
Dollar Tree and Macy's beat estimates and raised outlooks. But DLTR stock tumbled, set to undercut the long-rising 50-day line. Macy's stock is stock is gapping up from the 200-day line.
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Stock Market Rally
The stock market rally tumbled early, led by techs, with uncertainty over Trump tariffs and AI stocks the apparent catalyst. The indexes did come off their worst levels, running into the close.
The Dow Jones Industrial Average shed 0.55% in Tuesday's stock market trading, but rebounded from its 21-day moving average. The S&P 500 index fell 0.7% and the Nasdaq composite sank 0.8%, both below their 21-day lines but bouncing after approaching their 50-day lines. The small-cap Russell 2000 gave up 0.6%, but only to its 10-day line.
The SPDR Gold ETF jumped 2.4% to a new high, rising in a buy zone, with gold miners already greatly extended. The SPDR S&P Biotech ETF popped 3.4%, breaking out.
In addition to gold and biotechs, aerospace stocks as well as some other medical firms, homebuilders, financials and retailers still look solid. Oil and gas names are coming up.
Some high-octane growth names such as Palantir and AppLovin did turn higher.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF declined 0.3%, well off lows. The iShares Expanded Tech-Software Sector ETF retreated 0.8%, with Palantir the biggest component and Zscaler stock also in the ETF. The VanEck Vectors Semiconductor ETF gave up 1.3%, with Nvidia stock the No. 1 holding.
ARK Innovation ETF declined 0.7% and ARK Genomics ETF climbed 0.3%.
SPDR S&P Metals & Mining ETF and SPDR S&P Homebuilders ETF fell back 0.9%. The Energy Select SPDR ETF and the Health Care Select Sector SPDR Fund edged up 0.1%.
The Industrial Select Sector SPDR Fund declined 0.95%, with Boeing stock a top-five holding. The Financial Select SPDR ETF slipped 0.7%.
Best Growth Stocks To Buy And Watch
Stocks In Focus
Nvidia stock slumped 2% to 170.74, the lowest since late July and closing just below the 50-day line for the first time since May 1. Shares have fallen 6% over the last three sessions since Wednesday night's earnings.
GE Vernova stock tumbled 5.4% to 579.68, also the lowest since late July and below the 50-day for the first time since late April. The energy producer briefly flashed an aggressive entry on Thursday, but fell back.
Palantir stock edged up 0.25% to 157.10, just holding the 50-day line after falling to 150.28 soon after the open. PLTR stock has been finding 50-day support for the past two weeks after tumbling to that key level. A break below the 150 level and the Aug. 20 low of 142.34 would be sell signals.
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What To Do Now
The stock market rally and especially growth names are coming under pressure, but they're generally holding up for now. The Google antitrust ruling could give a lift to the Nasdaq, assuming GOOGL and AAPL overnight gains carry over into Wednesday's trading.
Pay attention to stocks that held up and closed off lows or even turned higher, such as Palantir. Remember, a resilient stock today may not be tomorrow, especially if broader selling continues.
Investors could have cut exposure Tuesday, especially to exit laggards or winners slashing recent gains. There's also a case for taking partial profits in stronger names rather than waiting for them to buckle.
Investors could choose to make buys in stronger areas, but adding new positions in the current climate carries risks.
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