U.S. stocks closed mixed on Tuesday. The Nasdaq Composite led the rebound with a 0.83% gain, and the Nasdaq 100 added 0.68%. The S&P 500 and Russell 2000 also finished higher, while the Dow fell 197 points. Chip stocks helped lead the move, with Nvidia, AMD and Broadcom all gaining more than 2%.
The S&P 500’s close told only part of the story. Decliners outnumbered advancers 318 to 167 in the index, and only nine of the Dow’s 30 stocks finished higher. Nasdaq breadth was positive, with 1,630 advancers against 1,566 decliners. Buyers made more progress in tech, but participation was still fairly narrow.
U.S. closing levels
- Dow Industrial Average −197.00 points (−0.38%) to 51,792.19
- S&P 500 +27.52 points (+0.36%) to 7,568.92
- Nasdaq Composite +207.69 points (+0.83%) to 25,372.01
- Russell 2000 +6.57 points (+0.23%) to 2,812.45
- Nasdaq 100 +190.44 points (+0.68%) to 28,180.26
Chip stocks lead, while Apple bucks the move
- Microsoft rose 2.74%, Meta gained 2.36%, Nvidia added 2.27% and Amazon rose 2.06%. Alphabet edged up 0.37%, while Apple fell 1.90%.
- Credo gained 7.78%, Monolithic Power Systems rose 6.78% and SanDisk added 4.78%. AMD closed up 3.65% at $483.90 heading into its earnings release, while Texas Instruments rose 3.46% and Broadcom gained 3.07%.
- Outside the chip names, Bloom Energy rose 9.05%, AppLovin gained 7.28%, Nebius added 7.25% and GE Vernova climbed 6.49%.
Nasdaq buyers keep the 200-day moving averages in play
The Nasdaq Composite closed at 25,372.01 after Monday’s selloff took it to 25,145.95, just above its rising 200-day moving average near 25,073. The buyers have some room off that support now. On a pullback, Monday’s low is the first barometer. A move below it would put the 200-day back in focus, and getting and staying below the average would increase the bearish bias.
The Nasdaq 100 came even closer to its 200-day moving average on Monday, bottoming at 27,967.44 against the average near 27,952.83. Tuesday’s close at 28,180.26 gives buyers some breathing room. The next test on the topside is near 28,538. Getting and staying above that level would have traders looking toward the 28,822–28,953 swing area.
Trading lesson
Pair the index close with the advance-decline count. In a capitalization-weighted index like the S&P 500, gains in a few large stocks can lift the index even as most members fall. If the index extends its rebound and more stocks join in, that tells you buyers are gaining ground across more of the market. Tuesday’s S&P 500 close leaves that as a question for the next session.
After the close, AMD and Super Micro beat on earnings and revenue
All seven companies topped adjusted EPS estimates, and six beat on revenue. Super Micro Computer posted the largest revenue beat of the group, coming in $3.88 billion above expectations. AMD beat by $0.14 per share and $300 million in revenue. Booking Holdings was the lone revenue miss, coming in $650 million below expectations even as earnings beat.
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AMD — Adj. EPS $2.09 vs. $1.95 (BEAT) · Revenue $13.40B vs. $13.10B (BEAT). Shares are trading at $524 up 8.32%. It’s 100 day moving averages at $529.15. Stay above is more bullish.
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Block — Adj. EPS $1.13 vs. $1.03 (BEAT) · Revenue $6.72B vs. $6.58B (BEAT). Shares are trading at $82.10 up 8.03%. The price is back above its 100 day moving average at $78.24
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Arista Networks — Adj. EPS $1.20 vs. $1.08 (BEAT) · Revenue $3.66B vs. $3.33B (BEAT). Shares are trading at $182.25 up 7.26%. Its 100 day moving averages at $186.18.
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Super Micro Computer — Adj. EPS $1.81 vs. $1.20 (BEAT) · Revenue $19.90B vs. $16.02B (BEAT). It’s shares are trading at $33.69 up 7.29%. Its 100 day moving averages at $34.28.
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Booking Holdings — Adj. EPS $4.66 vs. $4.49 (BEAT) · Revenue $8.90B vs. $9.55B (MISS). It’s shares are trading down 2.26% at $152.82. The price is moving away from its 100 hour moving average at $156.60, and its 200 hour moving average at $158.17.
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Amgen — Adj. EPS $6.45 vs. $5.79 (BEAT) · Revenue $10.40B vs. $10.07B (BEAT) · Adj. operating income $4.70B vs. $4.33B (BEAT). Shares are trading at $449 is down -2.66%. The next key target on the downside is the 100 hour moving average at $446.93.
This article was written by Greg Michalowski at investinglive.com.