Stock Market Today: Dow futures hold at record highs as traders eye Nvidia earnings

JD.com Inc.’s U.S.-listed stock rose 5% early Tuesday, after the Chinese e-commerce company announced a new share buyback program of up to $5 billion.

The program will last through end August 2027.

The stock has fallen 10.7% in the year to date, while the S&P 500 has gained 17.8%, turning lower after Walmart Inc. said last week it has sold its entire stake in JD.com for $3.6 billion. The news sent the stock down 8% the day it was announced.

The stock had gained days before when Beijing-based JD.com posted a sharp increase in quarterly profit on the back of a push to boost its efficiency using artificial intelligence.

Three hours before the opening bell rings on Wall Street and stock futures have given back early minor gains.

The E-mini S&P 500 and Dow Jones contracts are pointing to a 0.1% or so dip, while the Nasdaq 100 contract now indicates a flat start.

Last Friday’s speech at Jackson Hole by Federal Reserve Chair Jerome Powell was considered dovish and has provided additional support for stocks, notes Jonathan Krinsky, technical strategist at BTIG.

“Hard to stand in front of a market trending higher that is about to get rate cuts,” says Krinksy, though he adds the S&P 500 will look to consolidate near the 5,700, which was around the previous highs.

“No rush to push all your chips in right here, especially as we enter one of the worst seasonal stretches of the year,” says Krinsky.

However, typically September tends to be stronger in the first half, with weakness in the back half, according to Krinsky. “Something to think about for a potential ‘sell the news’ after the September 18th FOMC.”

Stocks making notable moves in Tuesday’s premarket action:

Before the opening bell.

After the close.

Here are some of the potential market catalysts due Tuesday for traders to consider:

How are stock-index futures trading:

On Monday, the Dow Jones Industrial Average rose 65 points, or 0.16%, to 41241, the S&P 500 declined 18 points, or 0.32%, to 5617, and the Nasdaq Composite dropped 152 points, or 0.85%, to 17726.

Early futures action shows the Dow Jones Industrial Average will hold the new record high reached on Monday, as the rally from the early August sell-off consolidates.

The next big hurdle for the market will be the earnings and guidance from chip behemoth Nvidia, due after the market closes on Wednesday.

Stocks are being underpinned by benchmark Treasury yields hovering near their lows of the year as investors become more certain that the Federal Reserve will begin a cycle of interest rate reductions in mid September.

The pace of those cuts will likely depend on economic data from here on, particular the PCE inflation report this coming Friday, and the nonfarm payrolls data a week later.

Stephen Innes, managing partner at SPI Asset Management, welcomed evidence that the breadth of the stock market was improving as hopes for lower borrowing costs encourages investors to seek opportunities away from the big technology plays.

“As the tech giants take a breather, small-caps have seized the moment, basking in their time in the spotlight. It’s a healthy sign that the market’s not just a one-trick pony, and there’s still plenty of opportunity across the board,” says Innes.

But he warns: “As we approach Nvidia’s highly anticipated earnings report—arguably the most significant of 2024—tech investors are understandably on edge.”