Dow Jones futures rose slightly Wednesday morning, along with S&P 500 futures and Nasdaq futures, paring slim gains after weak jobs data. CrowdStrike and Guidewire Software are big earnings movers.
Dow Jones futures rose 0.1% vs. fair value. S&P 500 and Nasdaq 100 futures advanced 0.1%.
Overnight, President Donald Trump said that China's President Xi Jinping is "hard" to make a deal.
"I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!," Trump wrote on Truth Social.
The Federal Reserve said late Tuesday that Wells Fargo is no longer subject to asset growth restrictions imposed in 2018. Wells stock rose overnight, climbing within a buy zone.
The ADP Employment Report showed private payrolls rose by just 37,000 last month, well below views for 110,000. The May employment report is due Friday.
Stock Market Clears Key Levels Tuesday
The stock market rally rose modestly Tuesday with the gains having outsized importance: The Dow Jones regained its 200-day line while the Nasdaq and S&P 500 peeked above their recent ranges.
The Dow Jones Industrial Average rose 0.5% in Tuesday's stock market trading, back above its 200-day moving average. The S&P 500 index climbed 0.6%. The Nasdaq composite advanced 0.8%. The small-cap Russell 2000 jumped 1.6%.
U.S. crude oil prices rose 1.4% to $63.41 a barrel. The 10-year Treasury yield was flat at 4.46%.
Nvidia regained a buy point. Tesla flirted with aggressive entries but backed off as CEO Elon Musk ripped the Trump budget bill as a "disgusting abomination."
Quanta Services and Jabil broke out, but there were some notable losers too.
The video embedded in this article discusses Tuesday's market action and analyzes Stride, Talen Energy and Quanta Services stock.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Earnings
CRWD stock fell sharply early Wednesday after CrowdStrike earnings beat but revenue guidance came in a little light. The cybersecurity stock rose 2% Tuesday to record highs, extended from various entries.
GWRE stock jumped more than 10% in premarket action, signaling a breakout after strong Guidewire Software earnings. The insurance underwriting software maker rose 1.4% to 218.18 on Tuesday. Guidewire stock is extended from a double-bottom buy point but offers a 218.33 handle entry.
Hewlett Packard Enterprise rose solidly early Wednesday on solid Q2 earnings. Shares are still below their 200-day line.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rose 0.8%. The iShares Expanded Tech-Software Sector ETF climbed 1%, with CrowdStrike and Palo Alto Networks top-10 components. The VanEck Vectors Semiconductor ETF jumped 2.3%, with Nvidia stock the No. 1 holding.
ARK Innovation ETF gained 1.4% and ARK Genomics ETF 2.2%. Tesla stock is the leading holding for ARK Invest, despite some recent Cathie Wood sales.
SPDR S&P Metals & Mining ETF rallied 1.9%. The Global X U.S. Infrastructure Development ETF popped 1.5%, with PWR stock a significant member.
Time The Market With IBD's ETF Market Strategy
Breakouts And Reversals
Leading stocks generally acted well, with several breaking out. Quanta Services and Jabil cleared cup-with-handle buy points Tuesday.
Quanta stock rose 3.2% to 356.49, clearing a 348.90 entry, according to MarketSurge. Jabil stock climbed 3% to 172.99, topping a 170.90 trigger. Both stocks' relative strength lines hit new highs.
On the flip side, Him & Hers Health shot up nearly 19% intraday, topping a buy point on a European push, but shares dived to close down 3.6%. Chefs' Warehouse broke out early but reversed for a 4.1% loss. Stride stock, which flashed a buy signal Monday, dived 10% Tuesday after a New Mexico school district dropped the online education firm.
Nuclear stocks initially jumped on a Meta Platforms power deal with Constellation Energy, but many slashed gains or even reversed lower by the close. However, Talen Energy stock did close well.
Nvidia Stock Reclaims Buy Point
Nvidia stock rose 2.8% to 141.22, moving back above a 137.40 handle buy point. NVDA shares hit the best close since late January.
Shares edged higher early Wednesday.
Tesla CEO Musk Decries 'Disgusting' Trump Budget Bill
Musk ripped the House-passed tax-and-spending package backed by President Donald Trump on his social site. "This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination."
Musk, who served in the Trump administration until Friday, followed up by saying the Trump budget "will massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America citizens with crushingly unsustainable debt."
Musk had voiced concerns about the package in recent days, but this was much-harsher criticism.
Along with various signals within the White House, Musk's posts suggest a widening rift between the billionaire Musk and President Trump. That could have a negative impact on Tesla and SpaceX.
Tesla stock edged up 0.5% on Tuesday to 344.27, backing off from Tuesday highs of 355.40 after Musk comments. Intraday, TSLA stock topped aggressive entries at 351.62 and 354.99.
Tesla China sales, including exports, fell 15% in May vs. a year earlier to 61,662 EVs. Weekly registrations also fell vs. a year earlier.
Shares rose a fraction early Wednesday.
What To Do Now
The stock market rally is now clearing its recent range, giving investors a reason to add some more exposure.
There were some buying opportunities Tuesday, though a few reversals as well.
Investors can be aggressive but not reckless. Don't buy extended and cut your losses quickly. Having your watchlists up to date and staying engaged helps reduce those risks by being ready to act as a stock triggers buy points or early entries.
Tesla and CrowdStrike stock are on IBD Leaderboard. CrowdStrike and Quanta Services are on the IBD 50 list. Nvidia stock is on IBD Sector Leaders. Quanta Services was Tuesday's IBD Stock Of The Day.
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.
