Dow Jones futures were little changed while S&P 500 futures and Nasdaq futures rose slightly on the Netflix earnings report. The stock market rally rebounded Tuesday after retreating modestly last week.
Netflix (NFLX) missed on earnings but beat on revenue and subscriber growth, even as Walt Disney (DIS) becomes a bigger threat with its fast-growing Disney+. Netflix stock spiked above an early entry overnight. Disney stock also rallied.
Joe Biden will be inaugurated as president on Wednesday.
Apple, Netflix stock and most big techs rose slightly in Tuesday’s session but didn’t change their character as lackluster performers. One possible exception was Google parent Alphabet (GOOGL), a FANG stock peer to Netflix.
Dow Jones Futures Today
Dow Jones futures edged lower vs. fair value, with Disney stock offering a small boost. S&P 500 futures climbed less than 0.1%. Nasdaq 100 futures rose 0.3%, buoyed by Netflix stock.
Coronavirus cases worldwide reached 96.62 million. Covid-19 deaths topped 2.06 million.
Coronavirus cases in the U.S. have hit 24.80 million, with deaths above 411,000.
New U.S. Covid cases have slowed significantly in the past several days, but remain very high. Hospitalizations appear to have peaked, at least nationwide, with daily deaths also potentially at a top.
Coronavirus vaccinations may speed up in the coming weeks as supply improves, state and federal guidelines on vaccine eligibility loosen and the holiday weekend season ends. Vaccination rates have tended to fall on the weekends, especially on holidays.
Stock Market Rally
U.S. Stock Market Today Overview
Last Update: 4:06 PM ET 1/19/2021
The stock market rally had a solid session, led by techs and growth names.
The Dow Jones Industrial Average rose 0.4% in Tuesday’s stock market trading. The S&P 500 index climbed 0.8%. The Nasdaq composite jumped 1.5%. While the Nasdaq is just below the Jan. 8 peak, it closed 5.9% above the 50-day line vs. 8% on Jan. 8.
Apple stock rose 0.5% to 127.83, but is still below its 21-day exponential moving average.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 2.3%, while the Innovator IBD Breakout Opportunities ETF (BOUT) surged 6.5%. The iShares Expanded Tech-Software Sector ETF (IGV) rallied 1.4%. The VanEck Vectors Semiconductor ETF (SMH) popped 3.4%, with QCOM and ASML stock notable components.
Netflix earnings fell 8% to $1.19 a share as revenue grew 21% to $6.64 billion. Analysts expected Netflix earnings of $1.39 a share on sales of $6.62 billion.
Netflix added 8.51 million new streaming subscribers, for a total of 203.66 million. At the start of the fourth quarter, it had forecast adding 6 million subscribers worldwide. Wall Street expected Netflix subscribers to rise by 6.06 million.
For the first quarter, Netflix expects to add 6 million streaming subscribers.
The internet TV giant also said it’s considering a NFLX stock buyback.
The Netflix earnings and subscriber report eases concerns about Disney, which is seeing booming Disney+ subscriber gains. With its huge content library, a slew of new programming and global reach, Disney+ is a real rival.
Netflix stock spiked 12% to 563.20 in extended trade, flashing at least an early buy signal. Shares are in a six-month consolidation with a 575.47 buy point, with 545.60 as an early entry. NFLX stock closed up 0.8% to 501.77, continuing to struggle around the 50-day line and 21-day line.
Disney stock rose 2% in overnight trade. After a big run, DIS stock has pulled back in the past few weeks to its 21-day and just above its 10-week average.
Google stock rose 3.3% to 1,784.47, reclaiming its 50-day and 10-week moving averages. Investors could take an early stake in GOOGL stock now as it works on a flat base with an 1,843.93 buy point. They might want to wait until Google stock is above the Jan. 8 short-term high of 1,799.36. Shares did reach 1,803.84 intraday.
Note that the relative strength line has moved sideways over the past year and has trended lower since early November. That reflects Google stock’s lackluster performance vs. the S&P 500 index.
QCOM stock popped 4.25% to 163.77, above a flat base and its 161.17 buy point, according to MarketSmith analysis. Last week, Qualcomm briefly cleared the entry but didn’t close above it. The RS line for QCOM stock hit its highest level since early 2013.
Synopsys stock rose 3.6% to 268.20, clearing a 264.72 entry from a three-weeks-tight pattern. That three-weeks-tight entry formed just above a prior base for SNPS stock.
Synopsys software helps design semiconductors. Rival Cadence Design Systems (CDNS) rose 2.2%. CDNS stock is close to its own three-weeks-tight entry above a prior base.
Maravai stock leapt 10% to 30.60, rising as high as 31.69 intraday. That briefly cleared a 31.29 IPO base with a cup-with-handle shape. Investors could have bought MRVI stock as it cleared downward-sloping trend lines either from the all-time high from the Nov. 29 IPO debut or starting from the Dec. 22 handle peak.
Starting a position in an IPO at a traditional buy point after rushing up from low in the base is risky because odds of a pullback are high.
One Medical Stock
One Medical stock rose 12% to 47.71, clearing a 44.59 buy point from a deep cup-with-handle base in heavy volume. ONEM stock is now slightly extended from the 5% chase zone.
One Medical, formally, 1Life Healthcare (ONEM), is a concierge health practice, charging an annual fee on top of typical insurance rates in exchange for faster, better care.
ONEM stock debuted in January 2019 at 14 a share.
One Medical Stock was the IBD Stock Of The Day.
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