Dow Jones futures rose moderately late Tuesday, along with S&P 500 futures and Nasdaq futures. The Coronavirus stock market on Tuesday continued to pull up bellicose rhetoric from President Trump and continued unrest in cities across the country.
Zoom video communication (ZM), Crowd Strike (CRWD) as well Ambarella (AMBA) reported results late Tuesday. The Zoom Video stock fell overnight and the CrowdStrike stock jumped despite delivering strong results and guidance. The Ambarella share fell as it tried to cross a point of purchase.
Zoom Video starts playing corona virus software, with DocuSign (DOCU) as well Slack Technologies (WORK) reports later this week. A major question for coronavirus plays overall is whether current booming demand will hold up after the pandemic disappears. The blowout of Zoom Video revenue and guidance indicates that it will stick.
Meanwhile, Tesla (TSLA) is leading a wave of recovery growth stocks, along with fast-growing names like Trade Desk (TTD), RH (RH) as well Carvana (CVNA). The Tesla stock, Trade Desk stock, RH stock and Carvana stock were major losers during the market crash, but have now struggled back to record highs as coronavirus shutdowns facilitate and hope for an economic recovery.
The Tesla stock dipped during Tuesday’s session following Monday’s breakout. TTD stocks, RH stocks and CVNA stocks rose against record increases and potential outbreaks.
Tesla bearings are available on the IBD Leaderboard. Trade Desk stock is available on SwingTrader.
Dow Jones Futures Today
Dow Jones futures rose 0.5% compared to fair value. S&P 500 futures rose 0.45% and Nasdaq 100 futures rose 0.4%. Keep in mind that overnight action in Dow futures, Zoom Video stock and elsewhere does not necessarily translate into actual trading during the next regular stock market session.
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Coronavirus cases worldwide have peaked at 6.47 million. Covid-19 deaths are at least 382,000.
Coronavirus cases in the United States have reached 1.88 million with deaths over 108,000.
Coronavirus stock market rally
Coronavirus’s stock market rally had another solid outing, closing near the highlights of the session. Market rallies have been extremely resilient, tucked away from China tensions and now several days of protests and looting throughout the country. Dozens of cities enforce curfews, often beginning long before dark, to try to curb enormous unrest.
The Dow Jones industrial average climbed 1.05%, the S&P 500 index 0.8% and the Nasdaq composite 0.6%. The Nasdaq comes very close to record highs. Its 50-day moving average has now crossed its 200-day line.
Among the best ETFs iShares Expanded Tech-Software Sector ETF (IGV) was flat, but just at record highs. VanEck Vectors Semiconductor ETF (SMH) jumped 2.1%.
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Zoom video revenue
Zoom Video revenue increased 566% to 20 cents per share, and revenue increased 169% to $ 328.2 million. Analysts expected Zoom Video revenue of 9 cents on $ 202 million sales.
Zoom Video guided Q2 and full-year forecasts significantly higher, indicating that the coronavirus work-from-home trend is not going away any time soon.
The only question is whether the blowout results are already priced at the ZM share price.
The Zoom Video share fell 1.6% overnight losses. The ZM share had a record high of 212.69 intradays on Tuesday, closing 1.9% to 208.08. The Zoom Video layer had been arched out of a short consolidation in recent days.
Crowd Strike revenue
CrowdStrike revenue came in at 2 cents a share, compared with a loss of 11 cents a year earlier. Revenue increased 85% to $ 178.1 million. Analysts predicted a loss of 6 cents on revenue of $ 165.4 million.
The cyber security company provided strong guidance during the second quarter.
CrowdStrike stocks fell 6% overnight. The CRWD share fell 2.7% on Tuesday to 92.25. The CrowdStrike share has risen sharply in recent weeks and is rushing to peak times. Shares have not really offered a point of purchase along the way, although 101.98 would be a possible item.
The CrowdStrike IPO was priced at 34 shares in early June and then shot up to its peak in August at 101.88. The CRWD share was sold strongly and ended no later than 32.12 on 16 March.
Ambarella earnings came in at 4 cents per share as revenue increased 16% to $ 54.6 million. Analysts were expecting a $ 1 million loss on revenue of $ 54.3 million.
But the maker of video processing chips provided easy guidance for revenue.
The Ambarella share fell 3.5% to 59.40 overnight. AMBA shares fell 6.5% to 61.55 on Tuesday. The Ambarella stock cleared a 59.09 buy point from a cup-with-handle base, although the short handle is not much above the center of the base.
The RS line is at a short-term peak, but not at consolidation or peak times.
Tesla is leading growth shares for economic recovery
ill-fated sectors such as airlines and energy are recovering somewhat, but many struggled before the coronavirus pandemic. But Tesla, Trade Desk, RH and Carvana have shown rapid growth.
Notably, the relative strength lines for TSLA bearings, TTD bearings, RH bearings and CVNA bearings are all at or near record highs. The RS line, the blue line in the lists below, tracks the performance of a stock compared to the S&P 500 index. An RS line that hits new peaks with or before a stock’s outbreak is exceptionally bullish.
Tesla stock plunged 1.8% to 881.56 on Tuesday, but after rising 7.6% to 898.10 on Monday, a head-to-head buying point of $ 869.92 exploded. That base was 64% deep. Although there is concern about demand in the US and now in Europe, the overall revenue development to date has been strong and Tesla has been profitable on an adjusted basis for three straight quarters.
Trade Desk Stock Nears Buy Point
The Trade Desk share rose 2.6% to 318.26, the closest point of purchase for 327.45 handles. The online ad game dropped 56% during the market crash, but competed up to a new height on May 7 – just before revenue. Then withdrew. TTD shows the risk of buying a share that goes straight up from the bottom.
RH Stock Surges
The RH share rose 17% to 248.26, continuing to peak, after falling 71% during the market crash. The exclusive furniture retailer expects margins to increase by 2020 and said they plan to move into the housing market itself. RH revenue depends on Thursday night. Wealthy people could move travel money to their homes.
Carvana stock flirts with breakout
The Carvana share rose 19% to close at 109.12 and topped a buy point of 109.40 intraday. A couple of research companies reported improving sales trends for the used car website online. Separate car dealer Lithia Motors (LAD) reported improved sales trends. Carvana stocks crested 81% during the market crash. As the company grows rapidly, deep losses are expected to continue for years to come.
Follow Ed Carson on Twitter at @IBD_ECarson for updates on the stock market and more.
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