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Dow Jones Futures: Market Rally Pauses, But Key Sector Waking Up; , AMC Keeps Soaring, Zoom Video Leads Key Earnings

Posted Date: June 02 2021
Dow Jones futures were little changed Wednesday morning, along with S&P 500 futures and Nasdaq futures. Zoom Video Communications (ZM) and APPS stock were key earnings movers overnight. AMC Entertainment (AMC) skyrocketed yet again before the open, with fellow meme stock BlackBerry (BB) also rising solidly.
 
The stock market rally closed narrowly mixed Tuesday, retreating from opening gains. Sector rotation continued, with commodity plays in favor while software and medical names retreated.
 
Meanwhile, China names are trying to wake up. 360 DigiTech (QFIN) surged Tuesday, while NetEase (NTES) is setting up. Internet giants Pinduoduo (PDD), JD.com (JD) and Tencent (TCEHY) rebounded above their 50-day lines after a long slide. Nio (NIO) and Xpeng (XPEV) are leaving their 50-day lines in the dust, while rival Tesla (TSLA) seems stuck. But, like the web giants, the Chinese EV makers are a long way from old highs.
 
QFIN stock is on the IBD 50.

Zoom Video, Other Key Earnings

Zoom Video stock, Digital Turbine (APPS), Ambarella (AMBA) and Hewlett Packard Enterprise (HPE) headlined after-hours earnings movers.
 
Zoom Video earnings were better than expected, with guidance also strong. Zoom stock, one of the biggest 2020 winners, rose 2% in premarket trade. ZM stock fell 1.15% to 327.72 on Tuesday, far from its October peak of 588.84.
 
Digital Turbine earnings growth continues to boom while the mobile monetization specialist guided up on sales. APPS stock climbed 1.5% early Wednesday, still well below its falling 50-day line. Digital Turbine stock rose 2.2% on Tuesday.
 
Ambarella earnings topped views while the video processing chipmaker also guided up on sales. AMBA stock popped 5% before the open, signaling a bounce from near its 50-day line. An aggressive trader could view that as an early entry. AMBA stock edged up 0.75% to 101.13 on Tuesday.
 
HPE earnings beat views. But HPE stock fell 2% in extended action, signaling a move below its 50-day line. HPE stock climbed 0.7% on Tuesday to 16.07, just above its 50-day line and slightly below a 16.24 buy point from a base first cleared in late April.

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