Dow Jones futures rose slightly late Wednesday, along with S&P 500 futures and Nasdaq futures. The current stock market rally continues to swing on China trade headlines, with China trade talks set to resume. Dow Jones component Walt Disney (DIS), Roku (ROKU), Etsy (ETSY) and Carvana (CVNA) reported earnings late Wednesday.




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Disney stock rose in late trade, well extended from its April breakout. Roku stock, Etsy stock and Carvana stock moved sharply after they all closed Wednesday near buy points.

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures advanced 0.15%. Nasdaq 100 futures were up 0.2%. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Current Stock Market Rally

The Dow Jones and other major averages faded late as Intel (INTC) cut long-term guidance. The Dow rose a couple of points while the S&P 500 index fell 0.2% and the Nasdaq lost 0.3%. But the stock market rallied for much of the session Wednesday after President Donald Trump and the White House said that Beijing wants a China trade deal.

That follows two days of stock market selling on Trump threats to hike tariffs on $200 billion worth of Chinese goods to 25% from 10%. Tuesday’s big declines spur a shift in the current stock market rally to “uptrend under pressure.”

China trade talks begin Thursday and continue Friday. Will Trump go ahead and hike China tariffs on Friday, or will he hold off based on progress towards a China trade deal?

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Growth Stocks Fare Well

One positive for the current stock market rally Wednesday was the performance of growth stocks. Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.5%. The iShares Expanded Tech-Software Sector ETF (IGV) was flat, though some top software stocks had strong gains. The VanEck Vectors Semiconductor ETF (SMH) fell 0.7%.

Key Earnings Late

Etsy stock has a 98 IBD Composite Rating out of a best-possible 99. Disney stock has an 85 Composite Rating. Carvana stock and Roku stock, fast-growing 2017 IPOs that are still losing money, have Composite Ratings of 79 and 69, respectively.

Disney Earnings

Disney earnings fell 13% to $1.51 a share. Revenue climbed 3% to $14.92 billion. Wall Street expected Disney earnings per share to skid 14% to $1.59 with revenue up 1% at $14.64 billion, according to Zacks Investment Research.

Disney stock was up less than 1% late. Shares rose 1.2% to 134.99 in Wednesday’s stock market, but have trended lower since hitting a record 142.37 on April 29. Disney stock broke out past a 115.90 buy point on April 9, then skyrocketed April 12 after the Disney+ streaming service unveiling.

Roku Earnings

The Roku earnings report was better than expected. The streaming video platform lost 9 cents a share as revenue of $206.7 million. Analysts expected Roku to lose 24 cents a share on sales of $189 million. Roku added 2 million users, for 29.1 million active accounts.

The company also raised its full-year revenue target.

Roku stock jumped 8.1% to 70.15 late. Shares closed 0.8% higher at 64.92, continuing to find support at the 50-day line. Roku stock is in a two-month consolidation with a 74.45 buy point. That current pattern is next to a 66% deep base. Bases that are more than 40% deep are less likely to succeed, so the more recent, 26% deep consolidation is more encouraging for Roku stock.

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Etsy Earnings

Etsy earnings came in at 24 cents share as revenue rose 40% to $169.3 million. Wall Street expected Etsy earnings of 14 cents on revenue of $170 million. Etsy’s gross merchandise sales grew 19% to $1 billion.

Etsy stock tumbled 6.9% to 63.40 late. Shares closed up 1.7% to 68.08, just above the 50-day. Etsy stock is in a flat base with a 73.44 buy point.

Keep in mind that Etsy stock often is very volatile after earnings.

Carvana Earnings

The Carvana earnings report was mixed. The used-car e-commerce site lost 69 cents a share as revenue surged to $755.2 million. Analysts expected an adjusted loss of 47 cents on revenue of $702 million.

Carvana stock climbed 3.8% to 74.40 late. Shares closed up 0.9% to 71.65, after hitting a record intraday high on Tuesday. Carvana stock is at the top of a consolidation 61% deep. Bases that are at least 40% deep are less likely to have successful breakouts. If Carvana moves back above 72.69, that would be a buy point. But investors might want to wait for a more appealing base to form.

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

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