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Dow Jones Futures: Dow Catching Up As Coronavirus Stock Market Rally Booms; Smartsheet, Cloudera Dive On Guidance - Investor's Business Daily

Dow Jones futures were little changed late Wednesday, along with S&P 500 futures and Nasdaq futures. The coronavirus stock market rally continued to broaden out and move higher on economic recovery hopes. The Dow Jones and S&P 500 led amid a shift to economic recovery plays, with Boeing surging. Meanwhile, the Nasdaq moved within 2% of its pre-coronavirus peak.

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Smartsheet (SMAR) and Cloudera (CLDR) reported better-than-expected results after the close. But Smartsheet stock and Cloudera stock tumbled overnight below buy points on weak guidance.

KLA Corp. (KLACTrade Desk (TTD) and Tesla (TSLA) rival Nio (NIO) cleared buy points during Wednesday's session.

The Nasdaq composite has led the coronavirus stock market rally, with gains concentrated among some big cap and megacap techs and medicals. The index was getting extended from the Dow and S&P 500. It wouldn't have been a shock to see the Nasdaq move sideways or pull back for a few weeks in a sector rotation toward "real economy" stocks in the Dow Jones and S&P 500. But while the Dow and S&P are outperforming, the Nasdaq keeps marching toward record highs.

Trade Desk stock is on SwingTrader. Tesla stock, which is in buy range, is on IBD Leaderboard. Both TTD stock and TSLA stock are volatile growth names that have rallied back from very deep bases.

Dow Jones Futures Today

Dow Jones futures rose 0.3% vs. fair value, while S&P 500 futures climbed 0.1%. Nasdaq 100 futures were flat. 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 coronavirus stock market rally on IBD Live.


Coronavirus News

Coronavirus cases worldwide have topped 6.56 million. Covid-19 deaths are at least 386,000.

Coronavirus cases in the U.S. have reached 1.90 million, with deaths hitting 109,000.

Coronavirus Stock Market Rally

The coroanvirus stock market rally had another strong session, fueled by upbeat economic news. The ADP Employment Survey estimated that private employers cut payrolls by 2.76 million. But that's far below estimates for a loss of 8.66 million jobs and April's revised decline of 19.56 million. Along with some other economic data, the ADP report suggests that the U.S. economy is bottoming out.

Meanwhile, just before Wednesday's close, Bloomberg reported that Germany's government has reached a deal on a big stimulus package there.

The Dow Jones Industrial Average popped 2.05% to just below its 200-day moving average. The S&P 500 index rose 1.4%. Boeing stock spiked 13%, giving a lift to the Dow Jones and S&P 500.

The Nasdaq composite added 0.8%, now less than 2% off its all-time high.

Growth stocks lagged. Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.3%. The iShares Expanded Tech-Software Sector ETF (IGV) just edged higher. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.3%, even with KLA stock and other chip-gear names doing well.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

KLA Stock

KLA stock rose 4.9% to 186.05 on Wednesday, clearing resistance near 180 and its old high of 184.50. The relative strength line on KLA stock isn't quite at highs, but has trended higher over the past year. The RS line, the blue line in the charts provided, reflects a stock's performance vs. the S&P 500 index.

Trade Desk Stock

Trade Desk stock vaulted 11.5% to 354.98 on Wednesday, soaring past a 327.45 cup-with-handle buy point. TTD stock is now beyond the 5% chase zone. Trade Desk stock plunged 56% in the market crash on fears online advertising fears, but it's raced to record highs o economic recovery hopes.

Nio Stock

if Trade Desk stock isn't volatile enough, why not try Nio stock. Goldman Sachs upgraded the Chinese luxury electric vehicle maker, touting a strong cash position, improving sales trends, "quality" products and a path to profitability. Nio stock vaulted 19% to 5.60, clearing a 5.29 buy point. Intraday, shares hit a 52-week high.

Needless to say, a money-losing Chinese automaker amid a weak economy and increasing competition is a risky bet.

Tesla stock rose 0.2% to 882.96. TSLA stock is still in buy range from an 869.92 buy point from a 64%-deep cup-with-handle base.

Smartsheet Earnings

The business software maker lost 11 cents a share, beating views for a 19-cent loss. Revenue grew 52% to $85.5 million, also topping. But Smartsheet guidance for Q2 was light, as well as its full-year revenue target.

Smartsheet stock tumbled 23% to 45.50 overnight, signaling a move below recent buy points. SMAR stock had climbed 1.3% to 59.08 on Wednesday. Smartsheet stock in recent weeks cleared a 52.39 buy point from a double-bottom base, according to MarketSmith analysis. This week it cleared short-term resistance around 58.

Cloudera Earnings

Cloudera earnings came in at 5 cents a share vs. a 13-cent loss a year earlier. Revenue grew 12% to $210.3 million. Analysts expected Cloudera earnings of 1 cent a share on revenue of nearly $205 million.

But the software maker guided low on Q2 revenue.

Cloudera stock plunged 12% to 10.94, back below a 12.32 buy point. CLDR stock surged 10% to 12.40 in massive volume heading into earnings. But buying right before earnings is highly risky, especially with Cloudera stock running up into results.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Dow Jones Futures: Dow Catching Up As Coronavirus Stock Market Rally Booms; Smartsheet, Cloudera Dive On Guidance - Investor's Business Daily
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