Dow Jones futures remained steady on Wednesday while S&P 500 futures and Nasdaq futures rose slightly. Key earnings from ELF Beauty, Chipotle Mexican Grill, and Snap were in the spotlight. Additionally, the stock market rally saw slim to modest gains on Tuesday, with noticeable earnings reports from Palantir Technologies, BellRing Brands, and Varonis Systems. Meanwhile, ELF Beauty, Chipotle, Snap, Amgen, Fortinet, Tenable, Ford, Azek, and Enphase Energy were among the notable companies releasing their earnings.
Cybersecurity stocks Fortinet and Tenable were big winners, while Azek gapped out of a buy zone and Ford jumped, signalling an aggressive entry above its 200-day line. On the flip side, CMG stock rose modestly, ELF stock rose solidly, and Amgen remained little changed, with all three companies being extended. Snap stock cratered overnight on weak revenue and guidance, while Uber Technologies, Alibaba, and Hilton Worldwide also experienced shifts in response to their earnings guidance.
With the around-market shift, Walt Disney, Fox, and Warner Bros. Discovery are set to launch a joint sports streaming service, adding to the shifts in stock market trends. ELF Beauty and Uber stock were identified as leaders on IBD Leaderboard, while ELF stock was tagged as part of the IBD 50. Tradable shares of FTNT were in the IBD Big Cap 20, which rounded out the latest movements in the stock market and key sectors.
It’s important to exercise caution and hold current exposure while monitoring the market rally, especially since the number of buying opportunities has dwindled and stock setups have earnings in the near term. This assessment comes as the market pausing for a couple of days and no longer appearing to be extended. Meanwhile, a number of stocks setting up have earnings due, as Palantir, Varonis, and perhaps Fortinet showcase big earnings gap-up buying opportunities. So investors should be cautious about expanding their exposure.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Stocks Flashing Buy Signals
Palantir stock skyrocketed 31% to 21.87, gapping above the 50-day line and other resistance areas, including a 21.85 consolidation buy point of 21.85. At this point, investors may want to wait to see if PLTR stock can hold the gains for a few days. Late Monday, Palantir reported Q4 earnings doubled while sales growth accelerated for a second quarter, to 20%. Commercial growth boomed, with the AI play bullish on 2024 as well.
BellRing Brands stock got as high as high as 58.50 and as low as 55.76 before settling down 1.3% to 56.84. The maker of protein shakes and nutrition bars cleared a 57 flat-base buy point on Monday, but is now just below that level. Late Monday, BellRings reported a 30% EPS gain with revenue up 19%, beating views.
Varonis gapped as high as 50.60, closing up 6.7% to 48.60. VRNS did rebound off its 10-week line and cleared several weeks of sideways action. Investors could buy here, but perhaps could wait to see if the database software play can pause and then move higher. Late Monday, Varonis reported a 29% EPS gain with revenue up 8%.