Palantir Stock- PLTR Shares: Is It a Buy Right Now? Here’s what earnings show, Palantir stock chart
Dow Jones futures rose modestly Tuesday night, along with S&P 500 futures and Nasdaq futures. The stock market rally came to a halt on Tuesday, and the major indices fell after a good rebound in recent sessions.
TurboTax Manufacturer Intuit (INTU), cybersecurity stock Zscaler (ZS) and luxury home builder Toll Bros. (TOL) titled the earnings after the close. Dick sporting goods (DKS) reports early Wednesday.
Shares in Intuit, already in a buy zone, rose slightly overnight on solid earnings and guidance. INTU shares could move out of the 5% hot spot. Zscaler shares rose in extended trading on a bumps and rallies report, indicating a gap above its 50-day line and possibly moving up to a downtrend line. But ZS shares would still be well below all-time highs. Toll shares rose in gains after the shares bounced off their 50-day line on Tuesday.
The stock market rally gave up morning gains but remained above key levels.
Airlines, cruise lines, and other travel-related stocks were the first leaders, with JetBlue (JBLU), Carnival (CCL) Y Boeing (licensed in letters) clear anticipated entries while MGM Resorts (MGM) Y Caesars Entertainment (CZR) exploded. But several of these stocks broke out of the morning highs well or even closed lower. In the long term, its earnings outlook does raise some concerns.
Meanwhile, chip-gear stocks continued to perform well. Lam research (LRCX) Y Applied Materials (AMAT) Rosa again. Both LRCX and Applied Materials stocks are still in range after recovering from their 10-week lines and breaking the trend lines on Monday.
Dick’s stock and applied materials are in IBD leaderboard. JetBlue, AMAT and CZR shares are on SwingTrader.
Tesla Vision Quest
A day later he reports that Tesla ((TSLA)) was testing Lidar on some vehicles, the electric vehicle giant said Tuesday that it will remove the radar from Model 3 and Model Y vehicles for the North American market, beginning with May deliveries. Some functions of the autopilot or other driver assistance systems, such as Summon, may be temporarily limited. Radar will continue to be included in the revamped Model S and X, at least for the short term.
Tesla CEO Elon Musk had hinted at a vision-only change in recent weeks. Most automakers and tech companies working on autonomous driving rely on a variety of sensors.
Dow Jones Futures Today
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular session of the stock market.
Join IBD experts as they discuss actionable stocks in the stock market rally on IBD Live.
Coronavirus cases worldwide reached 168.51 million. Deaths from Covid-19 exceeded 3.49 million.
Coronavirus cases in the US have reached 33.94 million, with deaths exceeding 605,000.
Stock Market Rally Tuesday
The stock market rally gave up morning gains to end near session lows, but the major indices did not give up much ground.
The 10-year Treasury yield fell 4 basis points to 1.56%, falling for the fourth consecutive session. That’s good news for home builders and highly valued growth stocks and a drag on many finances.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.5%, while the Innovator IBD Breakout Opportunities ETF (COM(BA)T) fell 1.1%. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.2%. The VanEck vectors semiconductor ETF (SMH) rose 0.7%, highlighting the shares of AMAT and Lam Research.
SPDR S&P Metals & Mining ETF (XME) fell 2.4% and the Global X US Infrastructure Development ETF (TO PAVE) lost 1%. US Global Jets ETF (JETS) fell 0.36% and JBLU shares participated in JETS. SPDR S&P Homebuilders ETF (XHB) was up 1%, with TOL stock as an XHB component. The SPDR S&P Regional Bank ETF (KRE) skidded 2.3%.
Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) both rose 0.6%. Both ARKK and ARKG remain below their 200-day moving averages. Tesla shares are ARK Invest’s main position in its ETFs.
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How far can travel shares travel?
JBLU shares fell 0.85% to 19.86 after hitting initial highs of 20.89. CCL shares rose 2.4%, one of the best results of the S&P 500 despite breaking out of highs. Boeing shares advanced 1.4% but were unable to close above their 50-day line. MGM shares rose 1.1% to 42.21 after briefly surpassing a buy point of 42.84, according to MarketSmith. CZR shares rose 1.9% to 107.06, close to session highs and cleared a buy point of 106.30 or 106.95.
A bigger concern is profit. Obviously, this sector had a disastrous 2020 during the pandemic, and many of these companies are still expected to lose money in 2021. Analysts expect little to modest gains in 2022. But gains matched or exceeded before the pandemic will not happen until 2023, if then, for shares of Boeing, Carnival and JetBlue. How much more can these actions be recovered in that context?
MGM shares will be profitable again next year and will not be far behind pre-pandemic earnings. Caesars’ earnings will hit roughly pre-pandemic levels next year. But neither MGM nor Caesars had a tremendous earnings performance before 2020.
Not all economic recovery actions share this flaw. To consider Caterpillar (CAT) Y ford (F.). Both industrial giants, which remained profitable in 2020, are expected to see large EPS gains in 2021, at roughly pre-pandemic levels. Earnings should continue to rise in 2022. Caterpillar shares are in a buy zone, while Ford shares may be forming a checkpoint just below a buy point after rising last week.
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Market rally analysis
The outlook for the stock market recovery didn’t change much after Tuesday.
The Russell 2000 is still the furthest behind. The small-cap index tried to regain its 50-day line, but reversed lower as financial and energy stocks fell back.
While travel stocks recovered much of Tuesday’s gains, homebuilders held strong, while chipmakers like LRCX stocks added to recent gains.
On the downside, mining and steel stocks continued to decline after strong streaks. Many financial institutions backtracked with a fall in 10-year Treasury yields.
The market rally is still under pressure, but it is in much better shape than it was a week ago. The S&P 500 setting new highs would be a positive sign, along with the Nasdaq moving further above its 50-day line. On the downside, the Nasdaq falling below 50 days would be a bad sign with May lows as the last line of defense for the major indices.
Above all, investors will want to see how the leading stocks, especially those that recently triggered buy signals, perform in the days and weeks ahead.
What to do now
The last days show the importance of staying committed and being ready to act, wisely. After several weeks of choppy market action, the major indices are trending up. Investors should be prepared for AMAT stock buying opportunities, attacking quickly but not too aggressively.
If the market rally is kicking off a prolonged streak of steady gains, you’ll want to be among the top leaders, adding exposure modestly while developing additional buying opportunities over time. But this could be the last wave in a market of ups and downs. If so, buying quickly can give you the opportunity to exit with a small profit, or possibly hold it until the next wave.
Read The Big Picture every day to stay in sync with the direction of the market and the major stocks and sectors.
Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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