Dow Futures Edge Lower While Tech Futures Climb on Mixed Earnings Reports

By Staff Reporter

Dow Jones futures declined modestly in early Wednesday trading, while S&P 500 futures and Nasdaq-100 futures posted small gains. NextPower (NXT) and Astronics (ATRO) released earnings after Tuesday's close, with shares showing varied reactions in extended trading. Alibaba (BABA) reported results before the market opened Wednesday.

Tuesday's stock market session ended mixed, with major indexes showing divergent performances amid rising crude oil prices above $100 per barrel. The Dow Jones Industrial Average closed slightly higher, while the Nasdaq Composite and Russell 2000 small-cap index fell, though both recovered from deeper intraday declines. Shares in artificial intelligence and semiconductor companies experienced notable declines, including SanDisk (SNDK), Micron Technology (MU) and Intel (INTC), before partial rebounds later in the day.

An embedded video from Investor's Business Daily reviewed Tuesday's market action and discussed stocks including Micron, GE Vernova (GEV) and TechnipFMC (FTI).

Current Futures Snapshot

Dow Jones futures fell 0.2% versus fair value in pre-market trading. S&P 500 futures rose 0.25%, and Nasdaq-100 futures increased 0.7%. Among individual stocks, Nvidia (NVDA) showed early gains. Micron and SanDisk posted solid rebounds, with Intel also advancing.

Crude oil futures edged lower after Tuesday's sharp rise. The April producer price index (PPI) is scheduled for release at 8:30 a.m. ET, with economists anticipating a year-over-year increase to 4.8% for headline PPI and 4.3% for core PPI.

Overnight futures movements do not always predict the direction of regular trading hours.

Earnings Highlights

NextPower surpassed consensus estimates and provided guidance well above expectations. The solar energy company's shares gapped higher in after-hours trading, moving above a consolidation buy point at 131.59.

Astronics, an aerospace and defense contractor, slightly beat earnings estimates but saw shares dip modestly in extended trading. The stock had entered a buy zone during Tuesday's session.

Alibaba, the Chinese e-commerce and cloud computing company, reported fiscal fourth-quarter earnings that declined sharply, with revenue growth missing analyst projections. BABA shares fell slightly ahead of Wednesday's open.

Tuesday's Market Performance

Major U.S. indexes closed mixed on Tuesday. The Dow Jones Industrial Average rose 0.1%. The S&P 500 declined 0.2%. The Nasdaq Composite fell approximately 0.7%, and the Russell 2000 dropped about 1%, recovering from intraday losses exceeding 2%.

Semiconductor and AI-related stocks, which had been among the market's stronger performers earlier in the year, faced pressure. SanDisk (SNDK)—previously acquired by Western Digital in 2016 and delisted before an apparent relisting in recent years—and Intel (INTC), cited by Investor's Business Daily as two of the S&P 500's top performers so far in 2026, declined roughly 6.2% and 6.8%, respectively. Micron Technology (MU), another notable gainer in the sector, fell about 3.6%. All three stocks closed well above their session lows.

Retailers, homebuilders and consumer-related sectors extended losses. In contrast, energy stocks, health insurers, large pharmaceutical companies and cybersecurity firms advanced.

U.S. crude oil prices surged 4.2% to $102.18 per barrel, driven in part by renewed U.S.-Iran tensions, including reported U.S. strikes on Iranian sites following attacks on U.S. forces in the Strait of Hormuz. The 10-year Treasury yield rose five basis points to 4.46%, its highest closing level since July.

ETF Movements

Growth-oriented exchange-traded funds (ETFs) generally declined. The Innovator IBD 50 ETF (FFTY) fell 1.3%. The iShares Expanded Tech-Software Sector ETF (IGV) dropped 1.4%. The VanEck Semiconductor ETF (SMH), which holds significant positions in Micron and Intel, declined 2.6%.

The ARK Innovation ETF (ARKK) shed 2.3%, while the ARK Genomic Revolution ETF (ARKG) fell 0.7%.

Sector-specific ETFs showed mixed results: The SPDR S&P Metals & Mining ETF (XME) dropped 0.75%; the U.S. Global Jets ETF (JETS) declined 1.3%; the SPDR S&P Homebuilders ETF (XHB) fell 1.6%. The Energy Select Sector SPDR ETF (XLE) rose 0.7%, and the Health Care Select Sector SPDR ETF (XLV) gained 2%.

The Industrial Select Sector SPDR ETF (XLI) slipped 0.4%, while the Financial Select Sector SPDR ETF (XLF) advanced 0.8%.

Managing Positions in Extended Stocks

Investors often establish rules for entering positions and exiting underperforming stocks, but handling significant winners requires a more nuanced approach. Strategies vary based on individual goals, such as capturing short-term gains or holding for longer-term appreciation.

For stocks that have extended sharply from recent bases, some investors consider partial profit-taking as part of portfolio and risk management. This can involve selling portions after major point gains or on breaks below short-term moving averages, such as the 10-day or 21-day lines.

SanDisk and Micron recorded their largest single-day point gains on the prior Friday, with Intel close behind. All three reached new intraday highs on Monday before Tuesday's pullback. Even at Tuesday's lows, they remained above their 10-day moving averages, with 21-day and 50-day lines further below.

Partial sales aim to lock in gains while allowing room for further upside. Investors taking such steps anticipate potential rebounds and focus on capturing most of a stock's advance rather than exiting at the absolute peak.

In the current environment, some market observers suggest trimming select positions incrementally while remaining attentive to underperformers. The broader uptrend in technology and power-related sectors remains intact, prompting watch for potential add-on opportunities even amid minor trims.

SanDisk, Micron and Intel have been highlighted in Investor's Business Daily's stock lists, including the IBD 50, alongside TechnipFMC and GE Vernova on its Leaderboard.

Market participants can refer to daily analyses such as The Big Picture for updates on trends, leading stocks and sectors. Tools like ETF market strategies and Average True Range indicators are used by some to gauge volatility and timing.

For broader guidance, resources on bull and bear market rules, top stock searches and premium lists are available through platforms like MarketSurge.

Follow market updates from sources including Investor's Business Daily on platforms such as Threads (@edcarson1971) and X (@IBD_ECarson).

*Related reading: Tools for simplifying stock searches; rules for buying and selling in various market conditions; managing swings in growth stocks.*

*(Market data as of early Wednesday pre-market; percentages approximate based on reported closes. SanDisk history: Acquired by Western Digital in 2016 and delisted; current SNDK trading reflects post-separation activity. Oil drivers include geopolitical events as reported by energy analysts. Word count: 1,172. Copyright considerations apply to original sources.)*

*(Sources: Investor's Business Daily original reporting, market data from major exchanges, earnings releases from company filings, oil context from Reuters and Bloomberg reports on U.S.-Iran developments.)*