Dow Jones Futures: Market Rally Tops Key Level

Dow Jones futures rose modestly overnight, along with S&P 500 futures and Nasdaq futures, with Netflix subscribers in focus and Tesla results looming. The major indexes rebounded Tuesday above some key levels after hitting resistance on Monday.

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Gains were broad-based, but there were few new buying opportunities.

Netflix (NFLX) jumped overnight on better-than-expected earnings and subscriber additions. Trucking giant J.B. Hunt Transport Services (JBHT) and egg producer Cal-Maine (CALM) also topped EPS views Tuesday night.

Chip-equipment giant ASML (ASML) reports early Wednesday.

Tesla (TSLA) headlines earnings Wednesday night. Tesla earnings should show an increase vs. Q2 2021 but decline substantially vs. Q1, reflecting Covid-related impacts on Shanghai production. Tesla stock climbed 2.1% on Tuesday to 736.59, above its 50-day line and just below some short-term resistance. But TSLA stock is far below its late 2021 peak of 1,243.49.

The video embedded in this article analyzed the market rally action and discussed Li Auto (LI), Flex LNG (FLNG) and Synopsys (SNPS).

Dow Jones Futures Today

Dow Jones futures climbed 0.45% vs. fair value. S&P 500 futures rose 0.5%. Nasdaq 100 futures gained 0.55%, with NFLX stock providing a boost.

Crude oil prices fell slightly. Copper futures rose 2%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Elon Musk Loses Round To Twitter

Meanwhile, a Delaware Chancery Court judge granted an expedited trial of the Twitter (TWTR) lawsuit vs. Tesla CEO Elon Musk for his effort to terminate the Twitter takeover. The trial will start in October. Musk had sought a delay into 2023, which would have put pressure on Twitter to settle. While the ruling was not on the merits of the case, it’s a positive indication for Twitter. Musk could end having to pay a major penalty — above a $1 billion breakup fee — or possibly even have to close the $44 billion, $54.20-a-share deal. That could force Musk to sell more TSLA stock.

Twitter stock rose 2.8% to 39.49, moving above its 50-day line for the first time in two months.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally rose solidly at the open and gained momentum, closing with big gains near session highs.

The Dow Jones Industrial Average rose 2.4% in Tuesday’s stock market trading, even with Dow giants IBM (IBM) and Johnson & Johnson (JNJ) falling on earnings. The S&P 500 index popped 2.8%. The Nasdaq composite jumped 3.1%. The small-cap Russell 2000 leapt 3.5%.

U.S. crude oil prices rose 1.6% to $104.22 a barrel. Natural gas futures fell 2.9% amid reports that Russia will restart its Nord Stream natural gas pipeline to Europe as scheduled. Russia’s Vladimir Putin signaled possible new delays late Tuesday, however.

The 10-year Treasury yield rose 6 basis points to 3.02%. The 2-year Treasury yield popped 8 basis points to 3.24%, with the yield curve still inverted from the 2-year and 10-year notes.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.6%, while the Innovator…