Finance
Dow Jones Futures Fall: AI Stock Palantir Plunges on Earnings; Next Apple ‘Let Loose’ event
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were lower ahead of Tuesday’s stock market open. After the closing Monday, leader in the field of artificial intelligence Palantir Technologies (PLTR) plummeted after first-quarter earnings results, while Apple’s ‘Let Loose’ event will take place on Tuesday.
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Late Monday, Palantir reported inline quarterly earnings and higher-than-expected sales. But shares fell more than 10% in extended trading before paring losses to around 8%. Shares of the AI leader rose 8.1% on Monday to regain their 50-day line.
Other major profit makers include Axon company (AXON), Clear engines (LCID), Microchip (MCHP) And Vertex Pharmaceutica (VRTX).
Axon shares fell almost 1%, while Lucid shares fell almost 7%. Microchip shares sold off 4%. And shares of Vertex rose nearly 1% in extended trading.
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Fair today
On Monday, the Dow Jones Industrial Average rose 0.5% and the S&P 500 rose 1%. The tech-heavy Nasdaq composite gained 1.2%.
Chipotle Mexican Grill (CMG), NXP semiconductor (NXPI), Texas Roadhouse (TXRH) And Tradeweb Markets (TW) – plus Dow Jones components American Emphatic (AXP) And Merck (MRK) – are among the best companies to watch in the stock market today.
And Dow Jones technology icons Apple (AAPL) And Microsoft (MSFT) finished mixed in today’s stock market, with Apple down 0.9% and Microsoft up 1.7%.
Chipotle and Merck were in this Stocks Near a Buy Zone column.
Dow Jones today: oil prices, government bond yields
Ahead of Tuesday’s opening bell, Dow Jones futures, S&P 500 futures and tech-heavy Nasdaq 100 futures were each down about 0.1% from fair value. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading during the next regular stock market session.
On Monday, the yield on 10-year US Treasury bonds fell to 4.48%. And oil prices rose, with West Texas intermediate futures settling around $78.60 a barrel.
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Stock market today: what to do now
This is an important time to read IBD’s The Big Picture column, amid recent stock market gains. After Monday’s action, be sure to check out today’s The Big Picture for an updated exposure level.
On Monday the IBD Live show, the IBD Live team discussed last week’s strong action, which saw the Nasdaq reclaim its 50-day line. Once again, the Nasdaq’s strong gains came on slightly lower volume, but the panel explained why IBD increased market exposure.
An essential resource for everyday breakouts is IBD MarketSurges “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks breaking past new buy points. Remarkable, Duolingo (DUOL) broke past the 245.59 buy point of a Cup base. Meanwhile, the MarketSurge “Near Pivot” list shows stocks that are essentially approaching their buy points.
For more stock ideas, check out IBD stock lists such as IBD50, Large hood 20 and stocks near a buy zone. These features identify bullish patterns and buy points and can be checked every day.
Dow Jones: American Express, Merck
American Express is rebounding in heavy volume from support around the 50-day moving average Market wave Graphs. A recovery put the software leader in new buying territory. And the shares also rise above a quote of 231.69 in a short consolidation.
Meanwhile, drug giant Merck is building a flat base with an entry of 133.10.
4 top growth stocks to watch Stock market action
Outside the Dow Jones Industrial Average, Chipotle rose another 1.4% on Monday to finish further above a 3,023.98 buy point in a short consolidation, according to IBD market wave.
NXP Semiconductors closed in the buy range Monday past a double-bottom buy point at 251.96.
Texas Roadhouse rose out of buy range above the 157.12 buy point on a flat base, rallying 2.5% on Monday.
Tradeweb breaks past the 108.04 buy point from a flat base. That puts the stock in new buying territory.
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Stocks to watch
These are four stocks in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct purchase point | Purchase point type |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD data as of May 5, 2024
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Beautiful seven stocks: Nvidia, Tesla
Among the Magnificent Seven shares, Nvidia (NVDA) And Tesla (TSLA) advanced 3.8% and 2% respectively on Monday.
Nvidia shares rose further above the 50-day line on Monday, continuing to build a base with a buy point at 974. Meanwhile, an early buying trigger looms at 888.19, the April 30 high. The AI giant is an IBD Leaderboard stock.
Tesla shares extended their winning streak to three sessions on Monday, finding support at the 50-day line after last week’s surge.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple shares fell 0.9% on Monday, giving back some of Friday’s gains. Shares are back above their 200-day line, forming the right side of a new base.
The Apple ‘Let Loose’ event starts Tuesday at 10 a.m. ET. Two new iPad Pro models are expected, the 11-inch and the 12.9-inch models, according to Forbes. Meanwhile, a new design is expected to change the look of the tablets for the first time in more than three years.
Microsoft shares rose 1.7% on Monday, right at the 50-day mark. The software giant is building a new flat base with a 430.82 buy point and the 50-day line will be a major hurdle.
Make sure you follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more information about growth stocks and the Dow Jones Industrial Average.
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