Dow Jones futures rose slightly Wednesday night, along with S&P 500 futures and Nasdaq futures. Treasury yields and crude oil prices rose sharply. The stock market rally on Wednesday added to its rebound with recovery plays, chipmakers and most EV makers powering higher, but trading volume declined yet again. Bitcoin rebounded.
Texas Instruments (TXN), Discover Financial (DFS) and Tenet Healthcare (THC) reported earnings late after all three closed in buy range. Discover stock rose slightly overnight while TXN and Tenet retreated.
In Wednesday’s solid market rally, Square stock broke past a cup-with-handle base buy point on Wednesday, perhaps helped by Bitcoin. Floor & Decor (FND) moved past its own cup-with-handle pattern. Morgan Stanley (MS) cleared a flat base after rebounding from its 50-day line on Tuesday, according to MarketSmith analysis.
Li Auto (LI) soared, breaking a downtrend in a handle in a very deep consolidation, offering an aggressive buy point. Nio (NIO) and Xpeng Motors (XPEV) also jumped, but their “handles” are too low in their own deep bases. Tesla stock, meanwhile, edged lower.
Bitcoin Price Rebounds
Bitcoin rose as high as $32,815 on Wednesday, trading just below $32,000 Wednesday night. The Bitcoin price rebounded from below $30,000 on Tuesday, essentially at 2021 lows. Tesla CEO Elon Musk, Square (SQ), Twitter (TWTR) CEO Jack Dorsey and ARK Invest’s Cathie Wood spoke about Bitcoin and cryptocurrencies at the Bitcoin event “The B Word.”
Musk said he personally owns Bitcoin, Ethereum and, of course, Dogecoin. He added that Tesla (TSLA) and SpaceX own Bitcoin. Musk, who has made positive and negative comments about Bitcoin, says “on balance I support Bitcoin.” He joked about how his tweets, memes and other winks have boosted cryptocurrencies, but said he doesn’t use those times to sell. “I might pump but I don’t dump.”
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Texas Instruments earnings beat while the chipmaker gave cautious Q3 sales guidance. TXN stock slid 5% in extended trade. Shares climbed 3.45% on Wednesday to 194.24, back above a 192.13 cup-with-handle buy point. But the relative strength line for TXN stock has lagged somewhat.
Discover Financial earnings easily beat views as loans increased. The credit-card operator also announced a DFS stock buyback of $2.4 billion and raised its quarterly dividend 14% to 50 cents a share. Discover Financial stock edged higher overnight. DFS stock popped 3.5% on Wednesday to 125.55, just reclaiming a 125.48 buy point.
Tenet Healthcare earnings unexpectedly rose but the hospital operator guided low. THC stock fell 3% overnight, but off its worst levels. Shares rose 2.45% on Wednesday to 72.25, hitting a 17-year high and clearing a 70.85 buy point from a flat base. That’s after gapping above its 50-day line Tuesday following blowout results from HCA Healthcare (HCA).