Dow Jones futures fell early Wednesday, along with S&P 500 futures and Nasdaq futures, with a government shutdown underway. Dow giant Nike rose on strong earnings after the close.
The stock market rally finished slightly higher Tuesday, with the Dow Jones setting a record close, to cap another strong month and quarter.
Nvidia broke out of a base while CoreWeave gapped up on news. Palantir Technologies is setting up just below a buy point.
The video embedded in the article reviews Tuesday's market action and analyzes Nvidia, Ralph Lauren and Pagaya stock.
Government Shutdown
The federal government's funding ran out at midnight, triggering a partial government shutdown. Democrats are demanding that President Donald Trump extend expiring ObamaCare subsidies and reverse recent Medicaid cuts. Trump has threatened to fire a slew of federal workers permanently in a shutdown.
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Dow Jones Futures Today
Dow Jones futures lost 0.3% vs. fair value, even with Nike giving blue chips a lift. S&P 500 futures fell 0.4% and Nasdaq 100 futures declined 0.5%. Futures are off overnight lows.
Investors will get the ADP Employment report for September at 8:15 a.m. ET. The September ISM manufacturing index and August construction spending data are due at 10 a.m. ET.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Nike Earnings
Nike earnings topped fiscal Q1 views Tuesday night while sales unexpectedly edged higher, signaling a turnaround is underway.
NKE stock rose solidly overnight, signaling a move above a long-sliding 200-day moving average. Shares edged higher Tuesday.
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Tesla Rivals Report Record Deliveries
Tesla rivals XPeng, Nio and Xiaomi reported record monthly and quarterly deliveries overnight, BYD had lackluster sales at best while Li Auto released weak results.
Tesla reports Q3 deliveries before Thursday's open. The EV giant significantly raised U.S. lease prices on Oct. 1, following the Sept. 30 expiration of the $7,500 EV tax credit.
Stock Market Rally
The stock market rally was slightly lower for much of the session but firmed up late for modest gains.
The Dow Jones Industrial Average rose 0.2% in Tuesday's stock market trading, a new closing high. The S&P 500 index advanced 0.4%. The Nasdaq composite climbed 0.3%. The small-cap Russell 2000 edged up less than 0.1%, rebounding higher from the 21-day line.
For the month, the Dow rose 1.9%, the S&P 500 3.5%, the Nasdaq 5.6% and the Russell 2000 3%.
Leading stocks were mixed Tuesday. Nvidia and CoreWeave were among the winners, but losers predominated Tuesday.
But Spotify fell back from a buy area while payment and lending stocks such as Pagaya Technologies and SoFi Technologies were notable losers.
Sports-betting plays such as DraftKings sold off a day after Robinhood Markets touted significant inroads into prediction markets.
U.S. crude oil prices fell 1.7% to $62.37 a barrel amid reports that OPEC+ is mulling a big November production hike on Sunday.
The 10-year Treasury yield rose 1 basis point to 4.15%. A lengthy government shutdown could unnerve bond markets. The government won't release economic data during a shutdown, including the September jobs report scheduled for Friday.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF dipped 0.3%. The iShares Expanded Tech-Software Sector ETF fell 0.8%, with Palantir stock the biggest component. The VanEck Vectors Semiconductor ETF rallied 1.15%. Nvidia stock is the No. 1 holding in SMH.
ARK Innovation ETF edged up 0.15% and ARK Genomics ETF gained 1.8%. Tesla stock is the No. 1 holding across ARK Invest's ETFs.
SPDR S&P Metals & Mining ETF declined 0.3%. The Energy Select SPDR ETF retreated 1.1% and the Health Care Select Sector SPDR Fund popped 2.4%. The Industrial Select Sector SPDR Fund advanced 0.8%. The Financial Select SPDR ETF shed 0.5%.
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Nvidia Stock
Nvidia stock rallied 2.6% to 186.58, clearing a 184.48 flat-base buy point after finding support at the 50-day line last week.
CoreWeave Stock
CoreWeave stock gapped up 11.7% to 136.85, briefly topping a 138.95 short-term high. The Nvidia-backed IPO jumped on an expanded cloud-computing deal with Meta Platforms.
