Dow Jones futures were little changed after hours, along with S&P 500 futures and Nasdaq futures. In Tuesday’s stock market rally, the large-cap index rose slightly. But small- and mid-cap stocks had their best days.
X
Two big Kathy Wood Holdings, shopify (shop) and coinbase global (coin), Tuesday went in the opposite direction.
SHOP shares rose strongly, extending Monday’s rally and showing signs of early entry. transmedics group (TMDX), Taiwan semiconductor manufacturing (TSM), lifetime group (LTH) and Marriott International (March) showed a bullish move.
Meanwhile, the SEC has accused Coinbase of being an unlicensed broker and violating other securities rules. COIN shares broke out of intraday lows but fell 12%. Coinbase shares fell more than 9% on Monday, falling below the 50- and 200-day lines after the SEC sued Binance, the world’s largest cryptocurrency exchange.
SHOP stock added IBD Leaderboard and SwingTrader on Tuesdays. TMDX inventory is IBD50. Shopify was also selected for his IBD Stock Of The Day on Tuesday.
dow jones futures today
Dow Jones futures fell slightly against fair value. S&P 500 futures and Nasdaq 100 futures were flat.
Note that overnight trading such as Dow Futures does not necessarily translate into actual trading in the next regular stock market.
IBD experts analyze hot stocks during the stock market rally on IBD Live.
stock market rise
The rise in the stock market showed the breadth of the market even though the major indices traded in tight ranges.
The Dow Jones Industrial Average posted a modest gain in stock market trading on Tuesday. The S&P 500 index rose 0.2%. The Nasdaq Composite rose 0.4%. Small-cap Russell 2000 rose 2.7%.
US oil prices fell 0.6% to $71.74 a barrel. The 10-year U.S. Treasury yield rose one basis point to 3.7%.
ETFs
Among Growth ETFs, Innovator IBD 50 ETF (FFTY) rose 1.5% to a 2023 high. iShares Augmented Technology Software Sector ETF (IGV) increased by 0.2%. VanEck Vectors Semiconductor ETF (SMH) rose 0.7%. The TSM strain is the main component of SMH.
A stock that reflects a more speculative story, the ARK Innovation ETF (Arkuk) rose 1.5%, while the ARK Genomics ETF (Argu) rose 2.3%. As mentioned above, COIN stock and Shopify are the main holdings of Ark Invest’s ETFs. Tesla (TSLA), Year (Year) and draft kings (DKNG) also had other key components posting solid gains on Tuesday.
SPDR S&P Metals & Mining ETF (XME) rose 2.4%, while the Global X US Infrastructure Development ETF (pave) 1.5%. US Global Jets ETF (Jets) rose 1.7%. SPDR S&P Homebuilders ETF (XHB) rose 2.9%. Energy Select SPDR ETF (XLE) 0.8% and the Healthcare Select Sector SPDR Fund (XLV) retreated by 0.8%.
Financial Select SPDR ETF (45) rose 1.3%. SPDR S&P Regional Banking ETF (create) surged nearly 5% to its highest level since late April.
Top 5 Chinese stocks to watch right now
Stocks in the buy zone
Shopify shares rose 6.2% to 63.66, clearly breaking the short-term consolidation trendline. Trading volume was the highest since the three-day crash following the first-quarter results. SHOP shares had already rebounded from the 21st line on Monday and were at practical levels. It’s starting to look expanded. The e-commerce giant could set up a new home, but not until next weekend.
Transmedics shares surged 6.2% to 79.40, with volume rebounding from the 50-day line. The buy point for TMDX stock is 90.15, but action is possible here.
Taiwan’s semiconductor stock rose 1.8 percent to 99.82, again above the 98.99 points of buy in above-average trading, MarketSmith analysis showed. The chip foundry giant expects a strong performance in the second half of 2023, also guiding capital spending to the lower end of previous guidance. TSM stock deviated sharply from baseline on May 25 following the crash results and guidance from key clients. Nvidia (NVDA), but soon withdrew. On Monday, stocks retreated to just above the 21st line before rebounding.
Lifetime shares surged 4.2% to $20.94, recovering the buying point of the 20.35 cup base on strong trading. Investors may see the past few weeks as a flat base at 21.39 entry. LTH shares did indeed hit an 18-month high of $21.75 during the day.
Marriott shares rose 2.1% to 180.90, signaling an early entry into the emerging flat base next to the handle cup base for the year. A flat base for MAR shares will not form until Friday, but the buy point is likely to be 183.27. A new entry above the traditional buy point of 181.55 marks the highest closing price in 52 weeks.
market rise analysis
The stock market rally had a dull day, but there was some underlying strength, according to major indexes.
The Nasdaq has risen, but has yet to expand significantly. The S&P 500 continues to trade just below its August 2022 high. The Dow Jones turned up after pushing back to the 50-day line.
Meanwhile, the Russell 2000 and S&P 500 MidCap 400 both rose to their highest levels since March 9.
Invesco S&P 500 Equal Weight ETF (RSP) rose 0.7%, hitting a one-month high after retracing the 50-day and 200-day lines last Friday.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) rose 0.2% to a true 52-week high.
Overall, winners beat losers more than 3-1 on the New York Stock Exchange and more than 5-2 on the Nasdaq. The number of stocks making new highs easily exceeded the number of stocks making new lows.
The market rally has been led by a handful of tech giants and the rise of AI. Many of those names are on hiatus, or at least they haven’t topped this area. That’s probably healthy for these stocks and the market as a whole. This could help keep the Nasdaq from overheating, hopefully as more groups take the lead.
Homebuilding, building products, medical products and travel stocks have shown some strength.
Timing the Market with IBD’s ETF Market Strategy
what to do now
Investors may continue to add to their buys over time as major indices remain stable, market spreads show tentatively positive trends, and there are few opportunities to buy. For small investment traders, it is an opportunity to increase exposure, and for AI wave traders, it is an opportunity to diversify their portfolios.
Shakeouts are still common, but many stocks with deep foundations appear to be extended at traditional buy points. So look for early entries and try to buy stocks as close to the buy point as possible. This is where creating watchlists and setting alerts comes into play. If you do your homework, the actual test will be much easier.
Read “The Big Picture” daily to stay on top of market direction and key stocks and sectors.
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