Dow Jones Futures: Netflix Flashes Buy Signal; Stock Market Rally Fuels Qualcomm, IPO Breakouts
Dow Jones futures and S&P 500 futures rose slightly Tuesday night, with Nasdaq futures rising more on the Netflix earnings report. The stock market rally rebounded Tuesday after retreating modestly last week.
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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.
Dow Jones giant UnitedHealth Group (UNH) and chip-equipment giant ASML Holding (ASML) are among those reporting early Wednesday.
Joe Biden will be inaugurated as president on Wednesday.
In Tuesday’s solid stock market rally, Apple supplier Qualcomm (QCOM) cleared a buy point while Synopsys (SNPS) and 2020 medical IPOs Maravai LifeSciences (MRVI) and One Medical (ONEM) broke out.
Find The Best Long-Term Investments With IBD Long-Term Leaders
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.
Apple and Maravai stock are on IBD Leaderboard. Apple stock is on IBD SwingTrader. UnitedHealth stock is on IBD Long-Term Leaders. SNPS stock is on IBD 50.
Dow Jones Futures Today
Dow Jones futures rose 0.1% vs. fair value, with Disney stock offering a small boost. S&P 500 futures climbed 0.2%. Nasdaq 100 futures rose 0.5%, buoyed by Netflix stock.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.
Coronavirus News
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 |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30930.52 | +116.26 | +0.38 |
| S&P 500 | (0S&P5) | 3798.91 | +30.66 | +0.81 |
| Nasdaq | (0NDQC ) | 13197.18 | +198.68 | +1.53 |
| Russell 2000 | (IWM) | 213.50 | +2.75 | +1.30 |
| IBD 50 | (FFTY) | 45.20 | +1.02 | +2.31 |
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
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
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.
Qualcomm Stock
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
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
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.
Maravai makes a component used in the Pfizer (PFE) and BioNTech (BNTX) coronavirus vaccine. But the new IPO stock is also a leader in nucleic acid production, biologics testing and protein detection.
Why This New IPO Stock Is One To Watch In 2021 As Covid Vaccines Grow
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.
Read The Big Picture every day to stay in sync with the 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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