The tech-heavy Nasdaq composite demonstrated its resilience on Tuesday, leading market gains as Wall Street digested a wave of mixed economic indicators and blockbusting earnings reports. Meanwhile, the Dow Jones Industrial Average edged up 0.2% in late morning trading, seeking to build on Monday’s historic record close. Investors remained focused on key macroeconomic data points and corporate earnings reports slated for later in the day.
Housing Market Shows Mixed Signals Amid Cooling Economy
Early Tuesday morning, the S&P CoreLogic Case-Shiller home price index reported flat monthly growth for April, though it ticked up 1.1% on a year-over-year basis. This marginally beat economist projections, which had anticipated a 0.1% seasonally adjusted monthly decline and a 1.0% annual increase. Conversely, the Federal Housing Finance Agency (FHFA) House Price Index fell short of expectations, easing 0.1% in April to mark a modest 2% annual advance, trailing consensus forecasts of a 0.2% monthly rise and a 2.1% yearly gain.
Later in the session, market participants turned their attention to the Job Openings and Labor Turnover Survey (JOLTS). Economists predict that job openings declined to 7.298 million in May, down from 7.618 million in April. If realized, this print would signal a stabilizing labor market, characterized by low hiring and low firing dynamics. Additionally, the Conference Board’s consumer confidence index is expected to rise to 94.8 in June, up from 93.1 in May, reflecting improved consumer sentiment driven by retreating gasoline prices.
AeroVironment Shines on Blockbuster Q4 Earnings Report
In corporate news, drone manufacturer AeroVironment (AVAV) emerged as the day’s standout performer. Shares of the defense contractor surged more than 23% in massive volume, testing its crucial 50-day moving average. Despite a challenging year-to-date decline of approximately 31% and a low IBD Relative Strength Rating of 5, the stock found massive support after crushing fiscal fourth-quarter expectations.
AeroVironment reported a remarkable 133% surge in revenue, marking its fourth consecutive quarter of triple-digit top-line expansion. Quarterly profit grew by 14% to reach $1.84 per share. Highlighting future demand, the company’s funded backlog grew by 65% year-over-year to $1.2 billion through April 30. Total bookings reached an impressive $2.7 billion, comfortably surpassing the $678 million estimated by Wall Street analysts.
Lidar and Tech Stocks Lead the Charge
Among growth stocks, lidar sensor developer Ouster (OUST) jumped over 13%, adding to a stellar 28.7% rally in the previous session. The company announced that its new Rev8 family of digital lidar sensors satisfies the strict requirements of the Build America, Buy America Act. This regulatory clearance paves the way for Ouster to secure contracts with municipal, state, and federal transit agencies, propelling the stock’s year-to-date gains to roughly 185%.
Other notable tech moves included:
- Credo Technology (CRDO): Rallied over 9%, building on Monday’s 3.2% rebound and finding support at its 21-day exponential moving average.
- Sandisk (SNDK): Rose 5% on Tuesday, snapping a short-term two-day skid to trade firmly above its key 21-day moving average.
- Alphabet (GOOGL): Edged up 0.9% following a 4.8% gain on Monday, when the search engine giant officially joined the Dow Jones Industrial Average. Alphabet shares traded back above their cup-with-handle base entry point of 349.
- SpaceX (SPCX): Advanced nearly 4%, marking its third straight session of gains following a 7% jump on Monday.
- Tesla (TSLA): Rose over 1% as the stock tested its 50-day moving average following a powerful 8.5% move higher in the prior session.
Dow Jones and Nasdaq-100 Large-Cap Highlights
Within the Dow Jones index, heavy machinery leader Caterpillar (CAT) and semiconductor giant Nvidia (NVDA) each posted gains of roughly 1% during early trading. On the downside, e-commerce leader Amazon (AMZN) and software giant Salesforce (CRM) traded down approximately 1% in premarket action. Within the Nasdaq-100 index, security technology supplier Axon Enterprise (AXON) and Advanced Micro Devices (AMD) paced winners, rising over 3% each, while Intuit (INTU) slipped nearly 1%. As the trading day winds down, investors will look ahead to post-market earnings reports from retail bellwethers Nike (NKE) and Constellation Brands (STZ).