Dow Jones futures leaned higher late Wednesday, along with S&P 500 futures and Nasdaq futures. The coronavirus stock market continued to expand and move higher in hopes of economic recovery. Dow Jones and the S&P 500 led in the midst of a transition to economic recovery games, with Boeing growing. At the same time, Nasdaq moved within 2% of its peak before coronavirus.
Smartsheet (SMAR) as well Cloudera (CLDR) reported better than expected results after closing. But the Smartsheet stock and Cloudera stock tumbled overnight during buy points on weak guidance.
KLA Corp. (KLAC) Trade Desk (TTD) as well Tesla (TSLA) rival Nine (NIO) cleared buy points during Wednesday’s session.
The Nasdaq composite has led the coronavirus stock market rally, with gains concentrated among some big cap and megacap technologies and medicine. The index was extended from the Dow and S&P 500. It would not have been a shock to see Nasdaq move aside or withdraw for a few weeks in a sector rotation against “real economy” stocks in the Dow Jones and S&P 500 But while the Dow and S&P outperformed, continuing Nasdaq to go at record highs.
Trade Desk stock is available on SwingTrader. The Tesla share, which is in the purchase range, is on the IBD Leaderboard. Both TTD shares and TSLA stocks are volatile growth names that have recovered from very deep bases.
Dow Jones Futures Today
Dow Jones futures rose 0.3% compared to fair value, while the S&P 500 futures rose 0.2%. Nasdaq 100 futures rose higher. Remember that overnight action in Dow futures and elsewhere is not necessarily translated into actual trading during the next regular stock market session.
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Coronavirus cases worldwide have peaked at 6.56 million. Covid-19 deaths are at least 386,000.
Coronavirus cases in the United States have reached 1.90 million, with deaths of 109,000.
Coronavirus stock market rally
Coroanvirus stock market rally had another strong session, driven by positive economic news. ADP’s employment survey estimated that private employers cut wages by 2.76 million. But that is well below estimates for a loss of 8.66 million jobs and April’s revised decline of 19.56 million. Along with some other economic data, the ADP report suggests that the US economy is at the bottom.
Meanwhile, just before Wednesday’s end, Bloomberg reported that the German government has reached an agreement on a major stimulus package there.
The Dow Jones industrial average fell 2.05% to just below its 200-day moving average. The S&P 500 index rose 1.4%. The Boeing share rose 13%, giving a boost to the Dow Jones and S&P 500.
The Nasdaq composite added 0.8%, now less than 2% of the peak time.
Growth stocks released. Among the best ETFs, Innovator IBD 50 ETF (FFTY) rose 0.3%. IShare’s Expanded Tech-Software Sector ETF (IGV) went just higher. VanEck Vectors Semiconductor ETF (SMH) dipped 0.3%, even with KLA bearings and other chip exchange names that did well.
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KLA shares rose 4.9% to 186.05 on Wednesday, clearing resistance near 180 and its old high of 184.50. The relative strength of the KLA share is not really high, but has trended higher over the past year. The RS line, the blue line in the accompanying chart, reflects the performance of a stock compared to the S&P 500 index.
Trade Desk Stock
Trade Desk stock vaulted 11.5% to 354.98 on Wednesday, surpassing a 327.45 cup-with-handle point of purchase. The TTD share is now outside the hunting zone at 5%. The Trade Desk share plunged 56% in the market crash for fear of online advertising, but it has dropped record highs and hopes for financial recovery.
If the Trade Desk share is not volatile enough, why not try the Nine share. Goldman Sachs upgraded the Chinese manufacturer of luxury electric vehicles and showed a strong cash position, improved sales trends, “quality products” and a path to profitability. Nine stocks vaulted 19% to 5.60, clearing a 5.29 buy point. Intraday, the shares were 52 weeks high.
Obviously, a Chinese carmaker who loses money in the middle of a weak economy and increased competition is a risky game.
The Tesla share rose 0.2% to 882.96. The TSLA share is still in the buying range from an 869.92 buying point from a 64% -borne cup-with-handle base.
The enterprise software maker dropped 11 cents a share, beating opinions for a loss of 19 cents. Revenue increased 52% to $ 85.5 million, also peaking. But the Smartsheet guidance for the second quarter was easy, as was its full-year revenue target.
The Smartsheet share tumbled 23% to 45.50 overnight, signaling an upturn in recent buy points. The SMAR share had risen 1.3% to 59.08 on Wednesday. The Smartsheet stock in recent weeks cleared a 52.39 point of purchase from a double bottom base, according to MarketSmith analysis. This week, the short-term resistance cleared around 58.
Cloudera income came to 5 cents per share, compared with a loss of 13 cents a year earlier. Revenue increased by 12% to $ 210.3 million. Analysts expected Cloudera earnings of 1 cents a share on revenue of nearly $ 205 million.
But the software maker controlled low Q2 revenue.
The Cloudera share fell 12% to 10.94, back below a 12.32 buy point. The CLDR share increased by 10% to 12.40 in massive volume exceeding earnings. But buying directly before revenue is very risky, especially considering that the Cloudera share is a profit.
Follow Ed Carson on Twitter at @IBD_ECarson for updates on the stock market and more.
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