The stock market rally was marked by small to modest gains on Tuesday, with the Nasdaq recovering to close slightly higher.
Palantir Technologies (PLTR), BellRing Brands (BRBR) And Varonis Systems (VRNS) issued buy signals after earnings, but with very different movements. PLTR stock rose sharply while Veronis surged but then pared its gains. BRBR stock has been hovering around a buy point.
Cybersecurity stocks Fortinet and Tenable were big winners overnight, signaling possible buys, while Azek broke out of a buy zone. Ford could offer an aggressive entry above its 200-day line.
CMG and ELF shares rose slightly while Amgen was little changed. All are extended. ENPH stock has surged but is in a long downward trend.
Snap stock collapsed overnight due to weak revenue and guidance. The Snapchat parent had hit a trendline entry just before Tuesday's close.
Meanwhile, Walt Disney's ESPN, Fox (FOX) And Discovery of Warner Bros. (WBD) will launch a joint sports streaming service this year. Disney (SAY), which reported Wednesday evening, fell slightly. Shares of Fox and WBD rose slightly.
ELF Beauty and UBER stocks are in progress MII classification. ELF stock is on the MII 50. FTNT stock is on sale IBD large cap 20. The video embedded in the article reviews Tuesday's market developments and analyzes PLTR, BellRing Brands and Varonis stocks.
Dow Jones Futures Today
Dow Jones futures rose 0.1% from fair value as DIS stock pulled back slightly. S&P 500 futures rose slightly and Nasdaq 100 futures rose 0.1%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading during the next regular trading session.
Stock market rally
The Dow Jones Industrial Average rose 0.4% in Tuesday trading. The S&P 500 index rose 0.2%. The Nasdaq Composite Index edged up less than 0.1% after being lower for most of the session. The small-cap Russell 2000 rose 0.85%, resuming its 50-day line.
Market breadth was strong on Tuesday, but has generally been weak in 2024.
Additionally, the number of buying opportunities has decreased and many hot stocks have been expanded. Some values created generate short-term profits, such as Expedia (EXPÉ) And Affirm assets (AFRM). Recent breakouts or buy signals that have worked have often been powerful profit gaps, while many others have quickly undercut the entry.
As the market pauses for a few days, the Nasdaq is 4.9% above its 50-day line and no longer extended.
US crude oil prices rose 0.7% to $73.31 per barrel.
The 10-year Treasury yield fell 7 basis points to 4.09% after climbing in the previous two sessions.
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) fell 0.2%; Fortinet, Palantir and VRNS stocks are all members of the IGV. The VanEck Vectors Semiconductor ETF (SMH) fell 1.1% as Nvidia and AMD fell.
The SPDR S&P Metals and Mining ETF (XME) edged up 0.1%, and the GlobalPAVE) added 0.6%. American World Jets (JETS) climbed 3.35%. SPDR S&P Home Builders (XHB) and SPDR energy selection (XLE) both increased slightly by 0.3%.
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Stocks Flash Buy Signals
Palantir stock climbed 31% to 21.87, surpassing the 50-day line and other resistance areas, including a consolidation buy point from 21.85 to 21.85. At this point, investors may want to wait and see if PLTR stock can hold onto the gains for a few days. Monday evening, Palantir reported that its fourth-quarter profits doubled while sales growth accelerated for the second quarter, to 20%. Business growth has exploded, with AI also optimistic for 2024.
BellRing Brands shares hit 58.50 and 55.76 before settling down 1.3% at 56.84. The maker of protein shakes and nutrition bars broke through a flat base buy point of 57 on Monday, but is now just below that level. On Monday evening, BellRings reported an EPS gain of 30% with revenue up 19%, beating views.
Varonis climbed as high as 50.60, closing up 6.7% at 48.60. VRNS rebounded from its 10-week line and ended several weeks of sideways action. Investors could buy here, but they might want to wait to see if the database software can stop and then rise. Monday evening, Varonis reported an EPS gain of 29% with revenue up 8%.
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Market Rally Analysis
The market recovery is still in good shape. However, scale remains an issue in 2024. Buying opportunities have been limited recently, and many are struggling.
A number of titles created have profits due. While Palantir, Varonis, and perhaps Fortinet are strong buying opportunities with a high earnings spread, Snap stock shows the risk of buying just ahead of earnings.
Investors should therefore be careful when adding exposure. Do this gradually or just maintain your current exposure.
Whether you take partial profits on certain big winners depends on your investing style, your conviction in the stock, the size of your stake and more.
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