Dow Jones futures fell slightly Tuesday morning, along with S&P 500 futures and Nasdaq futures. The stock market rally had a rough Monday for growth names, including but definitely not limited to Tesla (TSLA), Square (SQ) and Nvidia stock.
Chip breakouts struggled with software names faltering around their 50-day line.
While the major indexes all remain near record highs, it’s been a “hard penny” market, according to famed investor Mark Minervini on Monday’s IBD Live. Even with the stock market rally trending higher, entering a Power Trend on Friday, it’s been a tough environment for making slim gains.
A rising 10-year Treasury yield, a weaker Bitcoin price and bad news for Nvidia and Tesla stock specifically all weighed on tech stocks Monday. Coinbase (COIN) continued to consolidate following last week’s much-hyped direct listing.
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United Airlines (UAL), Steel Dynamics (STLD) and Dow Jones giant IBM (IBM) reported earnings after the close.
United Airlines reported a wider-than-expected loss and missed on revenue. UAL stock sank 3% before the open. Shares fell 1.6% to 54.99 on Monday, testing their 50-day line. Airline and other travel stocks have retreated over the last few weeks after riding a “reopening” rally.
Steel Dynamics earnings topped forecasts. STLD stock rose 2% in extended trade. Shares dipped 0.6% on Monday to 51.19. Intraday, Steel Dynamics stock hit 52.72, just clearing a four-weeks-tight pattern with a 52.69 buy point.
IBM earnings beat views while revenue edged higher, a rare year-over-year gain. Cloud revenue led the way. IBM stock rose 2.5% in the premarket. Shares dipped 0.35% to 131.12 on Monday. IBM stock has been consolidating for a few weeks. Investors could view that as a handle to a 14-month consolidation, with 137.17 as the buy point. But the relative strength line has been in a downtrend since late 2011, highlighting IBM stock’s long-term underperformance vs. the S&P 500 index.
Fellow Dow giants Travelers (TRV), Johnson & Johnson (JNJ) and Procter & Gamble</…….