Dow Jones Futures: Bullish Market Rotation Continues; ASML On Tap With 5 Stocks In Buy Zones

Dow Jones futures tilted higher overnight, portion S&P 500 futures and Nasdaq futures fell slightly. ASML and Dow elephantine Johnson & Johnson (JNJ) are owed aboriginal Wednesday.

↑ X NOW PLAYING Small Caps, Dow Jones Continue To Lead; Toast, Uber, Woodward In Focus

The banal marketplace rally had different mostly affirmative league Tuesday. Small caps, the Dow Jones and galore sectors continued to tally higher. The S&P 500 deed a grounds precocious portion the Nasdaq edged higher arsenic megacaps mostly paused. Nvidia (NVDA) fell modestly portion Tesla (TSLA) roseate slightly

Several much stocks flashed bargain signals, including Toast (TOST), Uber Technologies (UBER), UnitedHealth (UNH), Woodward (WWD) and Flowserve (FLS).

Dow Jones Futures Today

Dow Jones futures roseate 0.15% vs. just value. S&P 500 futures declined 0.1% and Nasdaq 100 futures fell 0.2%.

Before the open, investors volition get June readings connected lodging starts and concern production. Just aft the opening bell, Fed Gov. Christopher Waller, a hawkish policymaker, volition speak.

Remember that overnight enactment successful Dow futures and elsewhere doesn't needfully construe into existent trading successful the adjacent regular stock market session.

Key Earnings

Interactive Brokers (IBKR) net topped views precocious Tuesday, with IBKR banal edging little successful extended trade. Shares are moving connected a 129.19 flat-base bargain point. Interactive Brokers banal dipped Tuesday arsenic larger rival Charles Schwab (SCHW) tumbled connected declining involvement income.

Chip-equipment elephantine ASML (ASML) reports earlier Wednesday's unfastened with cardinal lawsuit and Nvidia chipmaker Taiwan Semiconductor (TSM) owed aboriginal Thursday. ASML banal is holding successful scope of a 1,056.34 buy point.

J&J net besides are connected tap. The Dow Jones elephantine has been trending little for the past 2 years.

The video embedded successful the nonfiction discussed Tuesday's marketplace enactment and analyzed Toast, Woodward and Uber stock.

Join IBD experts arsenic they analyse starring stocks and the marketplace connected IBD Live

Stock Market Rally

The banal marketplace rally continued to amusement strength, with tiny caps, the Dow Jones and respective non-tech sectors starring the way. Markets are present afloat pricing successful a Fed complaint chopped successful September, and expect 3 cuts by year-end.

The Dow Jones Industrial Average leapt 1.85% successful Tuesday's stock marketplace trading, different grounds champion and the biggest percent summation since June 2023. The S&P 500 scale roseate 0.6%, conscionable hardly marking a grounds high. The Nasdaq composite precocious 0.2%, lone somewhat beneath all-time precocious levels.

The Magnificent Seven stocks were mixed. Nvidia banal was the biggest loser, down 1.6%, but holding the 21-day enactment up of ASML and Taiwan Semi earnings. Tesla banal roseate 1.55%, wrong a caller scope with net owed adjacent week.

Overall breadth remained strong. The small-cap Russell 2000 jumped 3.5%, a caller multiyear high. The S&P MidCap 400 scale popped 2.5% to a grounds high.

The Invesco S&P 500 Equal Weight ETF (RSP) rallied 1.8% to a grounds high.

The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) gained 1%, besides a caller high, easy besting the Nasdaq 100's fractional advance.

Homebuilders, financials, industrials, vigor names, infrastructure plays and a assortment of medicals each continued caller runs.

The megacaps pausing portion lagging areas of the marketplace ramp higher is adjacent to ideal. The Nasdaq closed Tuesday 6.8% supra its 50-day line, inactive somewhat extended. Continued sideways enactment for the tech-heavy scale would beryllium constructive.

U.S. crude lipid prices fell 1.4% to $80.76 a barrel.

The 10-year Treasury output fell six ground points to 4.17%, close astatine four-month lows.

ETFs

Among maturation ETFs, the Innovator IBD 50 ETF (FFTY) climbed 0.3%. The iShares Expanded Tech-Software Sector ETF (IGV) roseate 0.4%. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.1%. Nvidia banal is the No. 1 holding successful SMH, with ASML banal and Taiwan Semiconductor large members arsenic well.

Reflecting more-speculative communicative stocks, ARK Innovation ETF (ARKK) popped 3.4% and ARK Genomics ETF (ARKG) soared 7.5%. Tesla banal is the apical holding crossed Ark Invest's ETFs.

The Industrial Select Sector SPDR Fund (XLI) gained 2.55%, the SPDR S&P Homebuilders ETF (XHB) spiked 5.85%, the Health Care Select Sector SPDR Fund (XLV) roseate 1.4% and the Financial Select SPDR ETF (XLF) roseate 1.4%, each hitting grounds highs. The SPDR S&P Regional Banking ETF (KRE) jumped 4.57% to a 52-week high.

SPDR S&P Metals & Mining ETF (XME) climbed 1.4% and the Global X U.S. Infrastructure Development ETF (PAVE) jumped 3%, some conscionable beneath all-time highs.

The Energy Select SPDR ETF (XLE) roseate 0.45%, its 5th consecutive gain.

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Stocks In Buy Areas

Toast banal roseate 1.55% connected Tuesday to 256.56 clearing a 26.29 bargain constituent from a abbreviated cup-with-handle basal adjacent to a longer consolidation. The edifice bundle play is acceptable to crook profitable successful 2024. Keep successful caput that TOST banal has had aggregate failed breakouts implicit the past year.

Uber banal climbed 2.8% to 74.30, clearing respective weeks of trading wrong a consolidation with an authoritative 82.14 bargain point.

UnitedHealth banal jumped 6.5% to 548.87 aft the Dow Jones wellness insurer bushed views and reaffirmed guidance. Rising anticipation that Donald Trump volition regain the White House has besides buoyed large Medicare Advantage players. UNH banal decisively cleared a trendline and topped assorted short-term highs connected Tuesday. Shares aren't acold from an authoritative consolidation bargain constituent of 554.70. UnitedHealth is inactive wrong scope of its 200-day line, cleared connected Friday.

Woodward banal popped 4.6%, rebounding from the 50-day enactment and coming up to a trendline. WWD banal has a 188.34 bargain constituent from a level base. The institution makes vigor power products for the aerospace and concern markets.

Flowserve banal rallied 3.5% to 51.52, clearing a 50.49 flat-base bargain point, according to MarketSurge. The concern steadfast person risen for 5 consecutive sessions, with Monday's bounce disconnected the 50-day enactment offering an aboriginal entry.

What To Do Now

The banal marketplace rally has broadened dramatically, with a ample fig of buying opportunities successful the past week. Meanwhile, astir of the Big Tech leaders are holding up reasonably well.

Investors should beryllium diversifying into the caller areas of marketplace strength. Don't spell chasing extended stocks however. Work hard connected those watchlists and wage adjacent attraction to net season.

Nvidia, ASML and Taiwan Semiconductor banal are connected IBD Leaderboard. Toast banal is connected SwingTrader. UnitedHealth banal is connected IBD Long-Term Leaders. Nvidia and Interactive Brokers banal are connected the IBD 50. Nvidia banal is connected IBD Big Cap 20. Toast was Tuesday's IBD Stock Of The Day.

Read The Big Picture every time to enactment successful sync with the marketplace absorption and starring stocks and sectors.

Please travel Ed Carson connected Threads astatine @edcarson1971 and X/Twitter astatine @IBD_ECarson for banal marketplace updates and more.

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