Dow Jones Futures Signal Stock Market Rally Rebound; Vaccine Play Soars

Dow Jones futures rose Wednesday morning, along with S&P 500 futures and Nasdaq futures, but with gains fading somewhat. The stock market rally retreated Tuesday, hitting resistance at a natural area after Monday’s big bounce. But the major indexes also found support at natural levels.

Veeva Systems (VEEV), FuboTV (FUBO), Maravai LifeSciences (MRVI) headlined notable earnings reports.

Growth stocks did not have a good day. Zoom Video (ZM) and Target (TGT) suffered nasty reversals following earnings. Tesla (TSLA) rivals Nio (NIO), Xpeng (XPEV) and Li Auto (LI) sold off on news as EV stocks struggle while traditional auto giants General Motors (GM) and Ford (F) make bullish moves.

Meanwhile, Rocket Companies (RKT) lived up to its name. RKT stock shot up 71% to 41.60, hitting a record high as the heavily shorted mortgage lender became the latest social media-driven squeeze play. Rocket stock jumped 10% on Friday following strong earnings, then 11% on Monday. Before the open, RKT stock fell solidly.

Key Earnings

Maravai earnings beat views as the company makes a compound for the Pfizer (PFE) and BioNTech (BNTX) coronavirus vaccine. Maravai sees 2021 revenue more than doubling. MRVI stock skyrocketed 20% in the premarket, signaling a new high after shares fell 3.9% on Tuesday.

Veeva earnings and revenue topped estimates while the company gave a bullish guidance. VEEV stock rose modestly in premarket trade. Shares fell 2.2% on Tuesday, around the 50-day line after a late February breakout failed.

FuboTV reported a wider-than-expected loss but beat on revenue and subscriber growth. FUBO stock fell in overnight trade. Shares rose 8% Tuesday, retaking the 50-day line and breaking a downtrend in a very deep handle in a very deep consolidation. The sports-focused streaming operator is moving to get into the online sports betting game.

Tesla stock is on IBD Leaderboard and IBD 50. Veeva stock is on IBD Long-Term Leaders.

Dow Jones Futures Today

Dow Jones futures were 0.6% above fair value. S&P 500 futures rose 0.5%. Nasdaq 100 futures climbed 0.5%. Futures were off their morning highs.

The Bitcoin price continued its rebound. Bitcoin rose to $52,000 Wednesday morning.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Coronavirus News

Coronavirus cases worldwide reached 115.40 million. Covid-19 deaths topped 2.56 million.

Coronavirus cases in the U.S. have hit 29.37 million, with deaths above 529,000.

Texas and Mississippi lifted coronavirus mask mandates and said businesses can operate at 100% of capacity.

The White House now says there will be enough coronavirus vaccine available for every American by the end of May. The Biden administration had sought to keep expectations low, even as vaccinations ramped up in January and February and with the Johnson & Johnson (JNJ) one-shot treatment just rolling out.

Stock Market Rally

The stock market rally gave up some of Monday’s strong broad-based gains. The Dow Jones Industrial Average fell 0.5% in Tuesday’s stock market trading. The S&P 500 index retreated 0.9%. The Nasdaq composite slid 1.7%.

Growth stocks took the brunt once again.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.65%, while the Innovator IBD Breakout Opportunities ETF (BOUT) sank 2.3%. The iShares Expanded Tech-Software Sector ETF (IGV) slumped nearly 2%, with Zoom stock a notable component. The VanEck Vectors Semiconductor ETF (SMH) tumbled 3.1%.

Reflecting more-speculative story stocks, Ark Innovation ETF sank 2.3% and Ark Genomics ETF 1.9%.

Zoom Video, Target Reverse

Zoom Video earnings crushed views late Monday while the videoconferencing giant gave bullish revenue guidance. Target earnings also beat amid booming digital sales.

Zoom stock jumped 7.4% Tuesday morning — after rising more than 10% overnight — but reversed lower almost immediately. ZM stock closed down 9% to 372.79, below its 50-day line. It’s not clear why Zoom sold off. But investors need to sell on technicals, not wait for negative fundamental news to be obvious.

ZM stock rose early Wednesday on news that Cathie Wood’s ARKK ETF bought up shares Tuesday.

Target stock also rose solidly soon after Tuesday’s open, rebounding from its 50-day line and clearing a downtrend, two solid buy signals. But TGT stock reversed lower after Target management said it would spend heavily to beef up fast-growing online operations. Target stock closed down 6.8%, undercutting the low of its flat base.

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