Dow Jones futures rose slightly Thursday morning, along with S&P 500 futures and Nasdaq futures. Okta, Veeva Systems, Asana and Signet Jewelers were big earnings movers.
The stock market rally closed mixed Wednesday, near session lows, but still near all-time highs. Netflix (NFLX) neared a buy point as fellow streaming players Roku (ROKU) and Disney (DIS) made positive moves.
Key Earnings Reports
Okta (OKTA), Veeva Systems (VEEV), Asana (ASAN), Semtech (SMTC) and Five Below (FIVE) reported earnings after the close.
Okta, Veeva and Asana all beat views and generally guided higher. But Okta stock fell 3% early Thursday and Veeva stock tumbled 7%, below recent buy areas. ASAN stock spiked 11% early Thursday. Five Below beat on earnings but missed on sales. FIVE stock dived 8%, below a buy zone and its 50-day line. Semtech earnings and targets topped views. SMTC stock rose 4% overnight after recently reclaiming its 200-day line.
Early Thursday, Signet Jewelers (SIG) easily beat EPS views. Revenue soared 102% to $1.79 billion. SIG stock rose 4% before the open, signaling a move above an 83.10 cup-base buy point.
Apple App Store Changes
Apple (AAPL) will let some app developers link to outside websites to let customers pay for their services, avoiding 30% App Store fees, the company said late Wednesday. The shift does not include game apps. It’s part of a settlement with the Japan Fair Tree Commission. But Apple said it’ll make the change globally in early 2022. Apple and Google app store fees have come under growing attention from governments around the world. Earlier this week, South Korean lawmakers voted to bar Apple and Google app stores from requiring developers to use their payment systems and pay the 30% fee.
Meanwhile, the Justice Department is getting ready to file a second antitrust suit vs. Alphabet (GOOGL) unit Google over its digital-advertising business, Bloomberg reported late Wednesday. The DOJ and several states filed a Google antitrust suit over its search dominance late last year.
Apple stock rose a fraction Thursday morning. Google stock was not yet active. Apple stock and Google edged higher on Wednesday, hitting all-time highs intraday.
Netflix Stock, Streaming Plays Rise
Netflix stock climbed 2.3% on Wednesday to 582.07, closing in on a 593.39 buy point. NFLX stock has rallied 11.5% over the past 10 sessions. The web streaming giant has been in multiple consolidations going back a year. Netflix said Wednesday it will begin streaming “Seinfeld” on Oct. 1 after six years on Disney-owned Hulu.
Meanwhile, Roku stock popped 4.5% to 368.10, just reclaiming the 200-day line. Aggressive traders could try to start a Roku stock position off the 200-day line, but perhaps wait for a bit of a bounce. Disney stock climbed 1.2% to 183.48, bouncing from the 50-day line. But investors might want to treat 187.68 as a “proper” early entry, just above the post-earnings pop on Aug. 13, when it stalled out close to a prior short-term peak in July. The official DIS stock buy point is 203.12.
VEEV stock is on IBD Long-Term Leaders. ASAN stock is on the IBD 50.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed 0.2% while Nasdaq 100 futures were up 0.2%.
Bitcoin moved back above $50,000.
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
Stock Market Rally
The stock market rally had a disappointing finish Wednesday after Tuesday’s pause.
The Dow Jones Industrial Average fell 0.1% in Wednesday’s stock market trading. The S&P 500 index closed a fraction higher, with AbbVie (ABBV) and Wells Fargo (WFC) weighing on the benchmark index. The Nasdaq composite eked out a 0.3% gain, but showed some stalling action. The small-cap Russell 2000 advanced 0.7%.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.7%, while the Innovator IBD Breakout Opportunities ETF (BOUT) climbed 0.4%. The iShares Expanded Tech-Software Sector ETF (IGV) advanced 0.5%. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.2%.
SPDR S&P Metals & Mining ETF (XME) gained 0.3% and Global X U.S. Infrastructure Development ETF (PAVE) fell 0.3%. U.S. Global Jets ETF (JETS) edged down 0.1%. SPDR S&P Homebuilders ETF (XHB) advanced 0.65%. The Energy Select SPDR ETF (XLE) sank 1.5% and the Financial Select SPDR ETF (XLF) gave up 0.6%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 1.4% and ARK Genomics ETF (ARKG) 1.5%. ARKK reclaimed its 50-day and 200-day lines, while ARKG moved above its 50-day.
Five Best Chinese Stocks To Watch
Market Rally Analysis
The stock market rally faded to mixed on Wednesday, near session lows, but the bullish trend remains intact. The Nasdaq is at record levels while the S&P 500 index came within less th an a point of a fresh high. The Nasdaq composite also isn’t extended, about 4% above the 50-day line.
Meanwhile, the Russell 2000’s revival is a good sign for market breadth, while ARKK and ARKG offer a little encouragement for highly valued growth.
Market leadership looks a little narrower. Apple (AAPL), Facebook (FB) and Google stock. So are cybersecurity and some other software names, as well as a few chip, retail and apparel names — Figs (FIGS) and PVH Corp. (PVH) flashed new buys Wednesday — along with some hot IPOs.
Financials are edging lower, with a few like Wells Fargo and Capital One (COF) struggling. Industrial stocks are fading, but haven’t fallen apart. Housing stocks are close to breakouts, but generally aren’t quite there. Steelmakers found support intraday, though.
Time The Market With IBD’s ETF Market Strategy
What To Do Now
Not every day is about making big buys or sells. Some days are about watching and sitting. There were only a few new buying opportunities on Wednesday. In fact, the past few days have a relatively small number of breakouts or buys. But investors who took advantage of the stock market rally rebound from Aug. 19 by adding exposure are enjoying strong gains.
If the market rally goes sideways or pulls back over the next few days, you’ve got a cushion to ride that out. If stocks keep marching higher, you’ll reap the rewards.
Use your watchlist to scan for potential new buys, especially in sectors that have lain fallow for the past couple of weeks or months.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
YOU MAY ALSO LIKE:
Why This IBD Tool Simplifies The Search For Top Stocks
Catch The Next Big Winning Stock With MarketSmith
Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader
Best Growth Stocks To Buy And Watch
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today