Dow Jones futures rose slightly Wednesday morning, along with S&P 500 futures and Nasdaq futures. Nvidia-backed CoreWeave dived on mixed earnings.
The stock market rally had a strong, broad advance Tuesday, with the Nasdaq and S&P 500 hitting fresh highs. The July CPI report showed core inflation picking up, but Fed rate cut odds increased.
Meta Platforms, Lam Research, Goldman Sachs, Capital One Financial, United Airlines, Las Vegas Sands and Sea Ltd. all flashed buy signals Tuesday.
Lam Research stock, Sea and Nvidia are on IBD Leaderboard, with CoreWeave stock on the Leaderboard watchlist. Goldman stock and Las Vegas Sands joined Meta on SwingTrader. Nvidia stock is on the Big Cap 20. Meta was Tuesday's IBD Stock Of The Day.
The video embedded in the article reviews Tuesday's market action and analyzes Meta stock, Goldman Sachs and Sea.
Dow Jones Futures Today
Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures climbed 0.2%. Nasdaq 100 futures advanced 0.3%.
The 10-year Treasury yield declined a few basis points to 4.26%.
Crude oil fell slightly.
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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CoreWeave Earnings
CoreWeave reported a wider-than-expected loss, but booming revenue topped views for the cloud-computing IPO.
In extended trading, CoreWeave stock plunged, signaling a move below the 50-day moving average. Shares jumped 6.4% to 148.75 in Tuesday's session, gaining the 50-day. CRWV stock is building the right side of a deep base after surging to a record high 187 in late June.
CoreWeave's IPO lockup expires Thursday. That could also trigger big moves in CRWV stock.
Nvidia owns 7% of CoreWeave, which in turn is a huge buyer of Nvidia AI chips. Nvidia stock edged lower late.
Cava Crashes, Investors Eat Up Brinker Earnings
Cava Group earnings topped late Tuesday, but revenue, same-store sales and guidance all fall short. Cava stock, already far off highs, dived more than 20% overnight.
Chili's parent Brinker International beat consensus and guided higher on EPS before the open. EAT stock gapped up signaled a move to the 50-day line. Decisively clearing that level would offer an early entry.
Stock Market Rally
The stock market rally rose solidly Tuesday, with the Nasdaq and S&P 500 hitting new highs in a widespread advance.
Core CPI inflation was up 3.1% vs. year earlier, higher than expected. But after the weak July jobs report, only a horrific CPI reading would have derailed a Fed rate cut next month.
The Dow Jones Industrial Average rallied 1.1% in Tuesday's stock market trading. The S&P 500 index also climbed 1.1%. The Nasdaq composite popped 1.4%. The small-cap Russell 2000 soared 3%, hitting its best level in nearly six months.
The Dow Jones and especially Russell 2000 regained their 21-day moving averages. So did the Invesco S&P 500 Equal Weight ETF, up 1.3%.
The First Trust Nasdaq 100 Equal Weighted Index ETF jumped 1.2%, back above the 50-day line and just topping its 21-day.
The improved market breadth was also reflected in leadership, with financials, airlines and casinos among the areas showing strength.
U.S. crude oil prices fell 1.2% to $63.17 a barrel.
The 10-year Treasury yield rose two basis points to 4.29%. The 10-year yield dipped two basis points to 3.73%, reflecting higher Fed cut hopes.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF jumped 2.1%. The iShares Expanded Tech-Software Sector ETF rose 1.1%. The VanEck Vectors Semiconductor ETF ran 2.3% higher, with Nvidia and Lam Research stock in the ETF. ARK Innovation ETF advanced 2.1% and ARK Genomics ETF leaped 3%.
SPDR S&P Metals & Mining ETF rallied 2.9%. U.S. Global Jets ETF soared 7.3%, with United Airlines stock a huge member. SPDR S&P Homebuilders ETF gained 3.6%. The Energy Select SPDR ETF climbed 0.5% and the Health Care Select Sector SPDR Fund added 0.7%.
The Industrial Select Sector SPDR Fund gained 1%. The Financial Select SPDR ETF rose 1.2%, with Goldman Sachs and Capital One stock both key members.
Best Growth Stocks To Buy And Watch
Stocks In Buy Zones
Meta stock rose 3.15% to 790, clearing a shelf slightly above a prior base. That offered a new buying opportunity.
Lam Research stock gained 3.2% to 105.28, continuing to rebound from the 50-day/10-week line and clearing a 102.59 buy point. That buy point is from a short consolidation, which could be viewed as a handle to a 13-month base.
Goldman Sachs stock popped 3.4% to 743.38, rebounding from the 21-day line and clearing several weeks of trading after a prior breakout.
Capital One stock gained 4.1% to 216.73, rebounding from the 50-day line and breaking the downtrend of an emerging consolidation forming just above a prior base.
United Airlines stock vaulted 10.2% to 98.47, clearing a 94.57 entry, though it closed 14.1% above its 200-day line. Airline stocks jumped Tuesday as Spirit Air warned it may not survive, just five months after exiting bankruptcy. That could mean less competition for other carriers. Meanwhile, airfares soared in the July CPI report.
Las Vegas Sands stock climbed 1.6% to 53.89, clearing a shelf with a 53.58 entry that mostly formed in the buy zone of a cup-with-handle base.
Sea stock surged 19.1% to 174.12, jumping from the low of a consolidation to clear a 172.65 buy point, according to MarketSurge. The Southeast Asian e-commerce giant reported strong earnings and the best sales growth in years. SE stock is actionable, or investors could wait a few days to see if it holds its gains.
Time The Market With IBD's ETF Market Strategy
What To Do Now
The market rally continues to show strength. Tuesday's breadth, via overall advancers but especially leading stocks, was encouraging.
Investors could have taken advantage of new buying opportunities, including to diversify their holdings. But you can be choosy if you're already heavily invested.
You want to make an informed choice, which means updating watchlists and doing some research on your prime candidates.
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.
