Stock futures for Dow Jones, S&P 500, and Nasdaq 100 were lower before the stock market opened on Tuesday. Notably, Arm stock soared 42% to new highs on Monday, while Arista Networks stock plummeted after its earnings results were released. Arm was able to surpass analyst expectations for its fiscal third quarter and provided optimistic guidance for the current period, contributing to its 29% gain on Monday. However, Arista saw a decrease of around 7% despite exceeding both earnings and sales estimates. Another stock, Cadence Design Systems, also experienced a significant drop of around 6% in extended trade. The Dow Jones Industrial Average had a 0.3% increase on Monday, while the S&P 500 dipped 0.1% and the tech-heavy Nasdaq composite fell 0.3%. Tesla displayed the largest decline among the Magnificent Seven stocks, dropping 2.8%, and Nvidia rallied to reach fresh record highs.
Dow Jones futures fell 0.1%, and S&P 500 futures lost 0.2% on Tuesday’s opening bell. Oil prices continued to rise, with West Texas intermediate futures settling at $77 a barrel as the 10-year U.S. Treasury yield dipped to 4.17%. This indicates a confirmed uptrend in the stock market outlook. Meanwhile, the “Breaking Out Today” list from IBD MarketSmith showed that NXP Semiconductors broke out past a 238.27 flat-base entry. This list highlights MarketSmith’s Growth 250 stocks that are breaking out past new buy points. Furthermore, it was observed that the “Near Pivot” list demonstrated stocks nearing buy points in bases, such as Toll Brothers approaching a 105.91 flat-base entry. The stock findings were based on the Magnificent Seven stocks, which included Nvidia, Tesla, Apple, and Microsoft. Notably, Apple is currently forming a double-bottom base with a new buy point at 196.38, and Microsoft shares remained out of buy range past a 384.30 buy point in a flat base.
In the current stock market rally, Novo Nordisk, Merck, DraftKings, and Spotify are listed as the best stocks to watch. Novo Nordisk has a correct buy point at 105.69, Merck at 119.65, DraftKings at 39.35, and Spotify at 202.88. Moreover, these insights are relevant owing to the confirmed uptrend in the stock market outlook.