Dow Jones futures: Nvidia profits rise again as AI booms, but is it enough?

Dow Jones futures were little changed after hours, along with S&P 500 futures and Nasdaq futures. Leader of Amnesty International Nvidia (NVDA) hesitated of late despite another strong report on outperformance and upside.

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Nvidia’s earnings have huge implications for market rally and AI stocks. Notable AI plays Microsoft (MSFT), Advanced micro devices (AMD), the parent company of Google the alphabet (Google), Meta platforms (dead), Palantir Technologies (Belter) and Super micro computer (SMCI) are in or near buy zones.

In Tuesday’s session, major indexes fell modestly on Tuesday heading into Nvidia’s earnings, while small caps saw larger losses. The stock market rally still looks strong, despite the extension of several blue-chip stocks.

In addition to Nvidia Urban Outfitters (urban), HP Company (Hbq), autodesk (ADSC) and dLocal (DLO) also reported earnings on Tuesday night.

ADSK and URBN stock initially rose of late, but then reversed lower, after both closed in buying range. DLO stock fell after third-quarter earnings per share and revenues declined. HP stock fell on mixed results.

Microsoft, Nvidia, and Meta platforms are on the IBD Leaderboard. META stock is on SwingTrader. MSFT stock is on IBD’s list of long-term leaders. Nvidia, Microsoft, and Super Micro stocks are in the IBD 50. Microsoft, Meta Platforms, and SMCI are also in the IBD Big Cap 20.

Dow jones futures today

Dow Jones futures were flat against fair value. S&P 500 futures fell 0.1%, and Nasdaq 100 futures fell 0.1%. Nvidia stock is a major component of the S&P 500 and Nasdaq 100, along with several other big AI-related plays.

Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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Stock market pool

The stock market rally eased modestly on Tuesday, as investors took some profits ahead of Nvidia’s earnings.

The Dow Jones Industrial Average fell 0.2% in stock market trading Tuesday. The S&P 500 index also lost 0.2%. The Nasdaq Composite Index fell 0.6%.

The Nasdaq 100 fell from the 52-week high it hit on Monday.

The small-cap Russell 2000 index fell 1.3%, hovering below its 50-day line.

US crude oil prices fell 6 cents to $77.77 a barrel.

The 10-year Treasury bond yield settled at 4.42%.

Meeting minutes from October 31 to November. The Fed’s September 1 meeting showed that policymakers remain concerned about inflation and are not considering interest rate cuts. The Fed’s minutes had little impact on stocks or Treasury yields.

The market’s rally, which entered into a strength trend on Monday, looks healthy. Tuesday was only the third day of decline for the S&P 500 and Nasdaq since bottoming out in late October. Leading stocks are doing well, although many are extended.

ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) fell on Tuesday. Microsoft stock is a major component of the IGV. VanEck Vectors Semiconductor ETF (SMH) shares fell 1.5%. Nvidia stock is the #1 stock in SMH. With AMD stock a prominent member.

Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) fell 2.25% and the ARK Genomics ETF (ARKG) fell 3.7%.

The SPDR S&P Metals and Mining Fund (XME) rose 0.25% and the Global X US Infrastructure Development Fund (PAVE) fell 0.3%. SPDR S&P Homebuilders ETF (XHB) fell 0.9%. The Energy Select SPDR ETF (XLE) is down 0.2% and the Healthcare Sector SPDR ETF (XLV) is up 0.6%.

The Industrial Sector SPDR ETF (XLI) and the Financial Select SPDR ETF (XLF) fell 0.1%.

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Nvidia profits

Nvidia’s profits rose 593% from a year earlier, while revenue jumped 206% to $18.12 billion, both of which easily surpassed fiscal third-quarter views. The AI ​​chip giant also trended higher.

But after reports of outperformance and rise in the first and second quarters, will this satisfy investors?

NVDA stock was down slightly in active overnight trading. Shares fell 0.9% to 499.44 in Tuesday’s session, still within a 476.09 buy point range from a double-bottom base.

AI shares

Microsoft stock rose in after-hours trading. Shares fell 1.2% to 373.07 on Tuesday, within a 366.78 base buy point. A longer pause would allow the moving averages to catch up.

The OpenAI drama is far from over, but it seems likely that Microsoft will eventually strengthen its position.

AMD stock fell in extended trading. Shares fell 1.9% to 119.18 on Tuesday. The Nvidia competitor now has a buy point of 122.41 cup with handle.

Google stock fell in late action. Shares rose 0.5% on Tuesday to 136.97. Investors can use Thursday’s high of 137.22 as an early entry point into a flat base. The official buy point is 141.22.

Meta stock didn’t change much overnight. Shares fell 0.9% to 337.01 on Tuesday, within a consolidation buy zone dating back to late July.

PLTR stock was slightly lower in the extended move. Shares fell 7.2% to x19.8 on Tuesday in an external bearish reversal. Palantir stock fell back below its 20.24 cup buy point, according to a MarketSmith analysis. On Tuesday, Palantir won a contract with the UK’s National Health Service, although that had been expected.

SMCI stock was flat in overnight trading. Shares fell 4.8% to 289.85 on Tuesday after jumping 5.55% on Monday, arguably providing an early entry. Super Micro stock has a buy point of 317.50 from a less than ideal double bottom buy point.

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What are you doing now

The stock market rally took a modest dip, but showed real strength in November.

Investors should invest heavily, taking advantage of the influx of buying opportunities in the past few weeks. At this point, many leading stocks are extended. A temporary market pause would allow some stocks to form new buy points or additional entries.

The market is rising in a strong trend, so investors can try to hold on to potential winners longer, and are more willing to bet on strong growth plays. But stick to your selling rules.

Remember to check for new settings and update your watchlists.

Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.

Please follow Ed Carson on X/Twitter at @IBD_ECarsonthreads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.

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