Dow Jones futures were slightly changed on Tuesday night, along with S&P 500 futures and the Nasdaq. The stock market rally had another quiet session, with the main indices holding close to record highs. Bitcoin fell to multi-month lows, but recovered in the latest test for the cryptocurrency.
UiPath (PATH) reported better-than-expected earnings in its first post-IPO report, but the initial reaction to PATH shares was strongly negative.
Clover health (CLOV) and On Wendy (WEN) jumped when they joined Reddit’s “honey supply”. The GME stock has been launched GameStop (GME) revenue on Wednesday. Bed Bath & Beyond (BBBY) and AMC Entertainment (AMC) continued higher. But RIDE stocks fell after that Lordstown (RIDE) has issued a notice for an operating company.
The S&P 500 was essentially flat on Tuesday. But Generac (GNRC) and Marvell Technology (MRVL) exploded. Google parent Alphabet (GOOGL) pushes for a breakthrough and a new high. Applied materials (AMAT) withdrew, but now has consolidation when it tests its 50-day line again.
Generac’s stock joined the IBD rankings on Tuesday. Google and AMAT are already in the rankings. GOOGL shares are for long-term IBD leaders.
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Dow Jones Futures Today
Dow Jones futures were unchanged at fair value. S&P 500 futures were flat. Nasdaq 100 futures rose slightly.
Remember that overnight action in Dow futures and elsewhere does not necessarily become real trading in the next regular session of the stock market.
Revenue on UiPath
UiPath’s gains are at the top of the readings, as opposed to loss forecasts. Revenues moderately hit targets. The manufacturer of software for robotic process automation is oriented higher in some indicators. But sales growth slowed to a still huge 64% in the first quarter and is likely to continue to slow in the second quarter.
PATH shares fell 7% in expanded trading. Shares rose 2.9% to 76 on Tuesday.
PATH shares went public with 58 shares in late April, soon forming an IPO base. Shares of UiPath exploded after a buy point of 83.50 in late May. On May 28, shares of PATH reached a record 90, but then turned sharply down. Shares have declined since then.
Price of bitcoin
Bitcoin was trading at just $ 33,000 on Tuesday night, still a modest decline the day before. During the day, the price of bitcoins sank to $ 31,035, lowering the level since the end of May. A drop below $ 30,000 would signal a key collapse for Bitcoin, which is trying to maintain support but has hit resistance at about $ 40,000 in recent weeks. Bitcoin reached a record $ 64,829.14 in mid-April.
Other cryptocurrencies, including Ethereum and Dogecoin, were also sold off before recovering to some extent.
U.S. law enforcement said Monday it has recovered $ 2.3 million worth of Bitcoin, paid by Colonial Pipeline to hackers last month. This cyberattack caused the shutdown of the main gas pipeline on the East Coast. Colonial said it paid $ 4.4 million worth of bitcoin at the time.
A key point about selling bitcoin is that it is private and difficult to track, making it popular with criminals and tax evaders. But the partial refund of the ransom for the colonial pipeline suggests that law enforcement may be able to track bitcoin payments to some extent. Meanwhile, the United States is taking steps to combat Bitcoin-related tax evasion by targeting cryptocurrency exchanges such as Coinbase (COIN) for reporting large transactions.
Shares of COIN fell 4.7% to 220.66, reaching a record low. Among other stocks related to bitcoins, Trust of bitcoins in the gray rock (GBTC) fell 7.2% to 2021 levels
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Stocks of memes
Shares of Clover Health jumped 86% to 22.15 on Tuesday, reaching a record 24.93 during the day as they became the latest stocks to be actively discussed at Reddit Wall Street forum betting. Shares of CLOV jumped 32% on Monday. Combining several speculative topics into one, the shares of CLOV went public on January 8 through a special acquisition company or SPAC, managed by venture capital Chamath Palihapitiya. Clover Health collapsed after Hindenburg Research claimed that the health insurer had deceived investors.
Wendy, meanwhile, jumped 26 percent to 28.87, clearing consolidation in mid-October. WEN stocks have recently started chatting on social media.
GME stocks rose 7.1% to 300 after reaching 344.66 during the day, a three-month high. GameStop’s gains come late Wednesday, with investors focusing on what the revamped management team will say about its quest to be a digitally focused video game retailer.
Shares of AMC rose 0.1% to 55.05. Shares have fallen since they jumped 95% on June 2nd.
Shares of BBBY rose 8.4% to 36.83.
While the sharply shortened shares are ripe for a brief contraction, this is also a sign that the company’s core business and prospects are bleak.
Lordstown stocks jumped to 3.80pm on the day they joined the madness of the meme. But in the afternoon, the launch of the EV pickup issued a warning to an operating company as part of its annual submission.
“The company believes that our current level of cash and cash equivalents is not enough to fund commercial-scale production and launch sales of such vehicles.”
Shares of RIDE turned sharply down, closing 16% to 11.22. The shares continue to lose late.
Another question about meme stocks is how hot they can be at the same time. What happens to, say, AMC shares after a massive run and Reddit investors turn their attention to CLOV shares or the next hot thing?
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Stock market rally on Tuesday
The stock market rally had a relatively quiet session, especially on major indexes.
The Dow Jones industrial average fell 0.1 percent on Tuesday. The S&P 500 index ended just above the point. The Nasdaq composite rose 0.3%. Russell 2000 jumped 1.1%.
The yield of the 10-year treasure fell by 4 basis points to 1.53%, corresponding to the lowest close in nearly three months.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.15%, while the Innovator IBD Breakout Opportunities (BOUT) ETF fell 1.1%. The expanded iShares Advanced Technical Software Sector ETF (IGV) grew 0.2%. VanEck Vectors Semiconductor ETF (SMH) fell 0.8%. AMAT shares, which withdrew 2.2%, are a notable SMH component.
The SPDR S&P Metals & Mining ETF (XME) won 1.9% and the Global X US Infrastructure Development ETF (PAVE) advanced 0.9%. The US Global Jet ETF (JETS) rose nearly 1%. The SPDR S&P Homebuilders ETF (XHB) was up 0.6%.
Reflecting more speculative historical stocks, the ARK Innovation ETF (ARKK) rose 0.4% and the ARK Genomics ETF (ARKG) rose 1%. ARKK is below the 50-day and 200-day moving averages. ARKG closed right on its 200-day line and just below its 50-day line.
The ARK ETF has held large positions in COIN stocks since it went public on April 14. Cathie Wood’s ARK also owns PATH shares.
The incidence of coronavirus worldwide reached 174.72 million. Covid-19 deaths reached 3.76 million.
Coronavirus cases in the United States have reached 34.24 million, with more than 613,000 deaths.
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Market rally analysis
The S&P 500 and Dow Jones continue to trade just below record highs, with the S&P 500 reaching 1% of its all-time record. Russell 2000 continued its recent solid progress, also reaching 1% of record levels. Nasdaq is also closing new peaks.
Ultimately, the question for active investors is whether there are good stocks to buy. While the current rally is not a wild bull, it is a stock market. There have been good stocks to buy from bullish bases or rebounds and lately these moves have been working. Generac and Marvell stocks are just the latest breakthroughs. AMAT and Vale shares may or may not apply in the coming days or weeks.
Investors should take advantage of this stock market rally. But this market requires discipline. Work hard on your watch lists to find the best stocks possible.
Remember that even the best stock pickers will take a lot of lemons. The key is to reduce these losses.
Read the Big Picture every day to stay in line with market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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