Dow Jones Futures: Netflix, Chipotle Report Earnings Late; Broad Market Rally Lacks


Dow Jones futures tilted higher Tuesday night, along with S&P 500 futures and Nasdaq futures. The stock market rally rebounded Tuesday with broad-based gains, though it came on lighter volume. Treasury yields reversed higher while Bitcoin undercut $30,000.


Netflix (NFLX) headlined key earnings reports late Tuesday, along with Intuitive Surgical (ISRG) and Chipotle Mexican Grill (CMG). Netflix earnings missed while its subscriber guidance was light. NFLX stock still edged higher late. Intuitive Surgical and Chipotle earnings topped, with both stocks rising overnight.

Dutch chip-equipment giant ASML (ASML) releases Q2 results very early Wednesday morning after holding above its 50-day line.

The major indexes all extended rebounds Tuesday from Monday’s intraday lows. The 10-year Treasury yield, which fell Tuesday morning to fresh five-month lows, rebounded higher. Crude oil prices rose slightly after plunging Monday. Copper prices also came higher.

Leading stocks fared well Tuesday.

DocuSign (DOCU) broke out while Facebook (FB) rebounded bullishly from its 50-day and 10-week lines. Marvell Technology (MRVL), Shopify (SHOP), Sea Ltd. (SE) and PayPal (PYPL) were among stocks reclaiming official buy points.

The video embedded in this article analyzes DocuSign, Marvell and FB stock, as well as reviewing the overall market rally.

ASML, PayPal and DocuSign stock are on IBD Leaderboard. Shopify, DocuSign, PayPal and Marvell stock are on SwingTrader. ASML stock and PYPL stock are on IBD Long-Term Leaders. ASML and SHOP stock are on the IBD 50.

Get 3 Weeks Of Leaderboard For Just $9.95

Bitcoin Price

The price of Bitcoin fell below $30,000 on Tuesday, at the low of a two-month range from just above $29,000 to roughly $41,000. The cryptocurrency has been trending lower, within that range, since late June. Bitcoin peaked at $64,829.14 in April.

Bitcoin and other cryptocurrencies have come under pressure amid crackdowns or threats of greater oversight from China, the U.S. and many other countries. Bitcoin’s weakness also may reflect a “risk off” mentality as highly valued growth stocks retreated for much of July.

A break below $29,000 could signal a new leg down for Bitcoin.

Dow Jones Futures Today

Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures edged up 0.15% and Nasdaq 100 futures climbed 0.1%.

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

Coronavirus News

Coronavirus cases worldwide reached 192.15 million. Covid-19 deaths topped 4.11 million.

Coronavirus cases in the U.S. have hit 35.06 million, with deaths above 625,000.

Stock Market Rally

The stock market rally enjoyed solid price gains Tuesday, though volume was below average.

The Dow Jones Industrial Average climbed 1.6% in Tuesday’s stock market trading. The S&P 500 index rose 1.5%. The Nasdaq composite advanced 1.6%. The small-cap Russell 200 rallied 3.1%.

The 10-year Treasury yield rose 3 basis points to 1.21% after sinking to 1.13% intraday. Crude oil prices rose 1.5% to $67.42 a barrel after tumbling 7.5% on Monday.

Hospital stocks surged on blowout results from HCA Healthcare (HCA). But gains were broad-based across various sectors.

Why This IBD Tool Simplifies The Search For Top Stocks

Top ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) popped 2.7%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 2.8%.

The iShares Expanded Tech-Software Sector ETF (IGV) gained 1.9%, moving back above a buy point like a lot of top software names. DOCU stock is a notable IGV holding, but not Shopify.

The VanEck Vectors Semiconductor ETF (SMH) climbed 1.2%. ASML stock and Marvell are on SMH.

SPDR S&P Metals & Mining ETF (XME) climbed 3.1% and Global X U.S. Infrastructure Development ETF (PAVE) 2.8%. U.S. Global Jets ETF (JETS) rebounded 5.05% after tumbling to its lowest level in nearly eight months on Monday. SPDR S&P Homebuilders ETF (XHB) added 2.8%. The Energy Select SPDR ETF (XLE) bounced back 1.3% and the Financial Select SPDR ETF (XLF) rose 2.5%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) bounced 3% and ARK Genomics ETF (ARKG) 2.8%. ARKK moved back above its 200-day line after finding support at its 50-day line in recent sessions. ARKG reclaimed its 50-day line.

Five Best Chinese Stocks: Just One Is Near A Buy Point

Netflix Earnings

Netflix earnings jumped 87% to $2.97 a share as revenue grew 19% to $7.34 billion. Analysts expected Netflix earnings of $3.18 a share on revenue of $7.32 billion.

Investors have tended to focus on Netflix subscribers. The streaming TV giant added 1.54 million customers vs. its own target of 1 million. Analysts expected Netflix subscriber growth of 1.15 million. However, the FANG giant expects a net gain of 3.5 million subscribers in the third quarter vs. Wall Street…

Read More:Dow Jones Futures: Netflix, Chipotle Report Earnings Late; Broad Market Rally Lacks

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