Finance

Futures: Palo Alto leads decline; sell Nvidia before profits?


Dow Jones futures were slightly lower overnight, as were S&P 500 futures and Nasdaq futures. Palo Alto Networks (Pan Wei) made headlines for overnight earnings.




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Stock market gains broadly retreated on Tuesday, led by gains in artificial intelligence stocks, including Nvidia (NVDA), will release its financial results on Wednesday evening.

These results and guidance will have significant impacts in the following areas: Advanced Micro Devices (AMD), Arm Holdings (arm) and super microcomputer (SMCI), all of which fell sharply from their lows on Tuesday. But Nvidia could be a catalyst for dozens of artificial intelligence companies, including some major ones.

Investors should be cautious about new purchases and must also decide whether to hold or take profits on Nvidia and other artificial intelligence stocks.

The video embedded in this article discusses Tuesday’s market moves and analyzes manhattan associates (Mann), Immediate service (Now) and Zhaoyun Technology (colorectal cancer). MANH stock and ServiceNow are falling back to key levels, while GigaCloud suffered a sharp sell-off on Tuesday.

Nvidia, ServiceNow and ARM stocks rise IBD rankingsNvidia, ServiceNow, Manhattan Associates and GCT stocks are among IBD50Nvidia, ServiceNow, Manhattan Associates and SMCI stocks are among IBD Large Cap 20.

amazon.com (Amazon) will Join the Dow Jones Industrial Average S&P Dow Jones Indices announced Tuesday evening before the market open on Monday, February 26. AMZN stock will replace Walgreens Boots Alliance (world boxing association). Uber Technologies (Uber) will join the Dow Jones Transportation Average, replacing JetBlue Airways (Jilin University).

Amazon edged higher in long-term trading, while Uber edged higher. Walgreens fell slightly and JetBlue Airways was little changed.

Dow Jones Futures Today

Dow Jones futures fell 0.1% from fair value, S&P 500 futures fell 0.1% and Nasdaq 100 futures fell 0.25%.

Remember what you did that night Dow Jones Futures and other places that won’t necessarily translate into actual transactions on the next regular basis stock market Meeting.

benefit

Palo Alto earnings beat expectations But the cybersecurity giant cut its full-year billing and revenue guidance. PANW stock took a dive overnight. In regular trading on Tuesday, the stock fell slightly by 10.1% to 366.09. Palo Alto stock is set to fall below its 50-day line this month after hitting an all-time high earlier.

Several other cybersecurity stocks fell sharply on Palo Alto’s lead.

toll brothers (Thor) Profit easily beat first-quarter expectationsTOL shares edged up slightly during the session and are close to a breakout. The luxury home builder rose 1.3% to 103.55 on Tuesday, rebounding from its 50-day line. Toll Brothers stock is not far from a flat bottom of 105.91 buy some.

Solar Edge Technologies (SEDG) topped the list in terms of earnings per share, but in terms of revenue and sharp drop During the first quarter, SEDG shares plunged overnight. The solar inverter maker fell 0.75% to 84.42 on Tuesday.

bud social (SPT) were slightly better than fourth-quarter estimates, but SPT stock sold off amid extended action.Shares edged down 0.3% to 64.48, but found support again at the 21-day line after reversing lower from 66.42 Cup with handle Buy some on February 12th.


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Stock market rebounds

Stock market gains have eased as investors took profits in artificial intelligence and other technology stocks, although the index has moved away from its worst levels.

The Dow Jones Industrial Average fell 0.2% on Tuesday stock market tradingand Walmart (WMT) provides a boost. The S&P 500 fell 0.6%. The Nasdaq fell 0.9% but closed above its 21-day line.

The small-cap Russell 2000 index fell 1.4% and continued to fluctuate sharply on a daily basis, remaining above the 21-day and 50-day lines.

The market rally is experiencing a much-needed pullback. This could be constructive, allowing the moving averages to catch up and create new buying opportunities for leading stocks.

U.S. crude oil prices fell 1.28% to $78.18 a barrel.

The 10-year Treasury yield fell two basis points to 4.28%.

ETF

Among growth ETFs, iShares Expanded Tech-Software Sector ETF (IGV) fell 1.2%, with heavy holdings in Palo Alto and ServiceNow. VanEck Vectors Semiconductor ETF (SMH) fell 2%. Nvidia stock is SMH’s top holding, with AMD being a major component.

The ARK Innovation ETF reflects the more speculative story stocks (alke) fell 3.3%, with the ARK Genomics ETF (arkg) fell 2.6%.

SPDR S&P Metals & Mining ETF (XME) fell 2%, with the SPDR S&P Homebuilders ETF (Xinhong) closed slightly higher. Energy Select SPDR ETF (XLE) fell 0.9%, with the Healthcare Select Sector SPDR Fund (XLV) dropped 0.3%.

Industrial Select Sector SPDR Fund (XLI) and Financial Select SPDR ETF (XLF) fell 0.3%.


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NVIDIA Stock

NVIDIA’s stock price fell 4.35% to 694.52 points on Tuesday, but it reached a low point and never fell below the 21-day line. The chip giant has risen for six consecutive weeks, with its stock price still above its 21-day line.

Nvidia’s earnings will be released after the market close on Wednesday. Analysts expect earnings per share to rise a whopping 422% and revenue to rise 237% to $20.37 billion. This would be the third consecutive quarter of triple-digit growth. But investors may be anticipating another growth spurt — filing reports.

Any sign of slowing growth could hit Nvidia, the tech industry and the overall market.

NVDA stock fell slightly overnight, following the lead of profit-taking losers in Palo Alto.

So should investors hold Nvidia for income, or capture all or part of the profits?

People who bought around 505.48 flat, a breakout based on early January or earlier has certainly earned the right to own NVDA stock. But this depends on your investing style, position size, your belief in the stock, and overall market conditions.

Maybe instead of selling Nvidia, investors should consider selling other Artificial Intelligence Stocks Many artificial intelligence stocks are surging ahead of Wednesday’s close, while others are struggling near buy points.

Other Artificial Intelligence Stocks

AMD stock is a direct competitor to Nvidia, so there will almost certainly be a significant reaction to the latter’s earnings report. AMD fell 4.7% to 165.69 on Tuesday, falling below its 21-day moving average and below its lows of the past few weeks. Close to the 50-day line and the 10-week line.

ARM shares fell 5.1% to 121.77, but found support at the 10-day moving average. The stock has given back its big post-earnings moves since the start of the month, but hasn’t given up its initial earnings day gains.

AMD’s stock price fell to 692.50 points during the session, but later rebounded to close at 787.57 points, down only 2%. The move comes after SMCI shares plunged 20% from what appeared to be a high on Friday after rising sharply in less than a month. It is still higher than the stock level. It is above the 21-day moving average and more than 150% above the 200-day moving average.

ServiceNow shares fell 1.6% to 752.84 points on Tuesday, rebounding slightly from near the 50-day and 10-week lines. This is a place to buy or add to the stock, but Nvidia’s earnings report significantly increases the risk.

Like Nvidia, all four AI companies were slightly lower in longer-term action amid weak earnings from Palo Alto and other companies.


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what to do now

Now is not a good time to buy stocks, especially the technology sector. Some stocks like ServiceNow and Manhattan Associates are pulling back to key levels, suggesting there may be a buying opportunity, but Nvidia’s earnings significantly increase the risk.

Non-AI stocks, especially non-tech stocks, may generally perform better, but they may also struggle if the overall market continues to decline.

Investors may consider further profit-taking in the near future.

However, now is a good time to look for buying opportunities and set-ups within the current retracement. Please keep your watch list updated.

read overall view Stay up to date with market direction and leading stocks and industries every day.

Please follow Ed Carson’s thread: @edcarson1971 andX/Twitter @IBD_ECarson Get stock market updates and more.

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