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Dow Jones futures edged lower after hours, along with S&P 500 futures and Nasdaq futures. Interactive Brokers wavered on earnings Tuesday night while AI server maker Super Micro soaring on preliminary Q4 results. with GE Vernova due before the open.
Google-parent AlphabetGOOGL and TeslaTSLA loom Wednesday night.
The stock market rallied Tuesday, shrugging off higher oil prices and Treasury yields. Chip and AI names led, especially memory plays Micron TechnologyMU, SandiskSNDK, SK HynixSKHY, Seagate TechnologySTX and Western DigitalWDC.
Meanwhile, XometryXMTR, ATIATI, International SeawaysINSW and Carpenter TechnologyCRS flashed buy signals.
ATI stock is on Leaderboard. Google stock is on the IBD Long-Term Leaders watchlist. Xometry was Tuesday's IBD Stock Of The Day. The video embedded in this article reviews Tuesday's market action and analyzes ATI, DatadogDDOG and Micron stock.
Dow Jones Futures Today
Dow Jones futures edged lower vs. fair value. S&P 500 futures declined 0.1% and Nasdaq-100 futures fell 0.2%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Key Earnings
Interactive BrokersIBKR earnings beat views late Tuesday. IBKR stock edged lower in extended action. In Tuesday's session, shares rose 3% to 94.42, continuing to bounce from the 50-day line and nearing an emerging flat base buy point of 97.84.
Super Micro ComputerSMCI said fiscal fourth-quarter revenue will be at the low end of guidance, below consensus. But gross margins will be roughly double what it expected. Supermicro also said it had more than $60 billion in near orders in Q4. Super Micro stock spiked higher, with rivals Dell TechnologiesDELL and Hewlett-Packard EnterpriseHPE rising solidly.
GE VernovaGEV reports early Wednesday with the AI energy play's orders and backlog key. Shares fell 37 cents to 1,076.93, reversing lower from solid morning gains after rebounding from the 50-day line in the prior two sessions. Investors could use 1,195.94 as a buy point after earnings, though GEV stock has a recent history of gapping up on results and then pulling back over time.
Tesla earnings should be strong following a big beat on Q2 EV deliveries, but the focus will be on capital spending, robotaxis, Optimus robots and Elon Musk's conference call comments. Tesla stock rose 2.5% on Tuesday, but was still below key levels.
Google's earnings growth is expected to be solid. Shares retreated 1.4% to 347.15, below key moving averages. Google guidance and capital spending plans will be huge for the entire AI ecosystem.
Stock Market Rally
The stock market rally saw broad, solid gains Tuesday led by AI. The Dow Jones Industrial Average advanced 0.7% in Tuesday's stock market trading and the small-cap Russell 2000 jumped 1.5%, both peeking above their 21-day moving averages. The S&P 500 index climbed 0.9%, back above its 50-day and 21-day lines. The Nasdaq composite rose 1.3%, but is still below its 50-day and 21-day lines.
The Invesco S&P 500 Equal Weight ETFRSP climbed 0.2%, just retaking its 21-day line.
The Direxion Nasdaq-100 Equal Weighted ETFQQQE rebounded 1.2%, just below its 50-day line.
Chips had a powerful day, but SMH remains below its 50-day line. Software lagged, with cybersecurity and other leaders such as Datadog retreating. Energy, commodities and biotechs had strong sessions.
U.S. crude oil prices popped 2% to $84.91 a barrel.
The 10-year Treasury yield rose three basis points to 4.63%, hitting a one-month high.
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ETFs
Among growth ETFs, the CapForce IBD 50 ETFFFTY gained 1.4%. The iShares Expanded Tech-Software Sector ETFIGV fell 1.25%, with Datadog a component. The VanEck Vectors Semiconductor ETFSMH bolted 4.5%. Micron stock is a major holding.
ARK Innovation ETFARKK bounced 3.7% and ARK Genomics ETFARKG rallied 3.7%. Tesla stock is the No. 1 holding across ARK Invest's ETFs.
SPDR S&P Metals & Mining ETFXME bounced 3.95%. SPDR S&P Homebuilders ETFXHB edged down 0.1%. The Energy Select SPDR ETFXLE climbed 1% and the Health Care Select Sector SPDR FundXLV was up 0.6%.
The Industrial Select Sector SPDR FundXLI advanced 0.3%. The Financial Select SPDR ETFXLF edged up 0.1%.
Best Growth Stocks To Buy And Watch
Memory Plays
Memory plays were big winners. Sandisk stock spiked 14.3%, but is still well below its 50-day line. Western Digital jumped 12.5%, right up to its 50-day, while hard-drive peer Seagate leapt 11.1%, just above that level. Micron stock gained 12.2%, also reclaiming its 50-day line, according to MarketSurge. SK Hynix stock ran up 13.75% as its U.S. shares work on an IPO base.
Google capital spending will be important for these names, along with other hyperscalers out next week. Seagate and SK Hynix report earnings next week as well.
What To Do Now
The stock market had a solid bounce, with techs coming back. But the Nasdaq and SMH are still below their 50-day lines, along with a lot of leading AI stocks. Will they reclaim and decisively clear those key levels or hit resistance and fall back to recent lows?
Huge earnings from Google and others over the next week will have a major impact on AI stocks. Meanwhile, rising oil prices and the surrounding geopolitics are a renewed headwind.
Some stocks outside of AI are flashing buy signals or setting up, including ATI, Xometry, International Seaways and Carpenter Steel.
In the current volatile market, watch out for stocks that are holding or regaining support and showing relative strength, even if their patterns are messy.
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.
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