Dow Jones futures edged higher overnight, along with S&P 500 futures and Nasdaq futures, with a big inflation report on tap before Wednesday’s open.
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The stock market rally lost ground, pulling back from resistance levels as Micron Technology (MU) triggered a sell-off in chip stocks.
On the upside, some natural gas-related stocks showed strength, including Range Resources (RRC), EQT Corp. (EQT) and Equinor (EQNR), which all broke downtrends in handles, flashing potential early entries. However, RRC stock was the only one moving on OK volume. Golar LNG (GLNG) cleared some short-term levels, still near its 50-day line, but earnings are due Thursday.
Apple (AAPL) and Microsoft stock edged higher, with the Dow Jones tech titans helping to minimize losses on the major indexes. Tesla (TSLA) continued a recent reversal to the downside while China’s Li Auto (LI) sold off hard.
Key Earnings
Celsius (CELH) and Exelixis (EXEL) headlined notable earnings after the close, along with fallen growth plays Coinbase (COIN), Roblox (RBLX) and Trade Desk (TTD).
CELH stock rose slightly in overnight action after initially retreating. Celsius earnings’ triple-digit EPS and sales growth topped Q2 views. But gross margins came in a little light. Celsius stock tumbled 7.8% on Tuesday to 93.38, pulling back from the Aug. 2 high of 109.74 but the highly valued energy drinks maker has soared in the past three months. That was capped by the early August run on a PepsiCo (PEP) investment and distribution deal with Celsius.
EXEL stock rose modestly in extended trade after Exelixis earnings topped expectations. Shares fell 2.3% to 21.06 on Tuesday. Exelixis stock is working on a messy cup-with-handle base with a 22.57 buy point. Investors could use a downward-sloping trendline to find a slightly lower early entry.
COIN stock fell solidly overnight as Coinbase posted revenue below views and a loss that was much worse than expected. Shares of the cryptocurrency exchange skidded nearly 11% to 87.68 on Tuesday. Coinbase stock had doubled since late June, but is far below its April 2021 opening day peak of 429.54.
RBLX stock plunged in extended action as Roblox reported a wider-than-expected loss while revenue fell short. Bookings and user growth also missed. Shares fell 3.35% to 47.26 on Tuesday. RBLX stock had more than doubled since bottoming in early May. But shares of the video game platform are far below their November 2021 peak of 141.60.
TTD stock surged in overnight trade as Trade Desk met EPS views, but beat revenue views and gave bullish guidance. That would still be below its 200-day line. Trade Desk stock fell 0.9% to 54.50 on Tuesday, but has run up sharply from a 52-week low of 39 on July 14.
EQNR stock is on the IBD Leaderboard watchlist. RRC stock is on SwingTrader and is Tuesday’s IBD Stock Of The Day. Microsoft (MSFT) is an IBD Long-Term Leader. CELH stock and Equinor are on the IBD 50.
The video embedded in the article discussed Tuesday’s market action and analyzed RRC stock, Costco Wholesale (COST) and Hyatt (H).
Dow Jones Futures Today
Dow Jones futures tilted higher vs. fair value. S&P 500 futures and Nasdaq 100 futures climbed 0.1%.
The Labor Department will release the July CPI inflation report at 8:30 a.m. ET. The inflation data will surely have a big impact on Dow futures and Treasury yields.
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 actionable stocks in the stock market rally on IBD Live
Inflation Report
Economists expect the July consumer price index to show a 0.2% increase vs. June, after the prior month’s 1.3% spike. The CPI inflation rate is expected to cool to 8.7% from June’s 40-year high of 9.1%. These slowdowns reflect the decline in gasoline prices, which will also provide some relief in August.
But core CPI, which excludes food and energy, should show a 0.5%…
Read More: Dow Jones Futures: Market Rally Braces For Inflation Report; Trade Desk Soars On