Dow Jones futures were little changed early Friday, along with S&P 500 and Nasdaq futures. The stock market rally rebounded on Thursday from the previous day’s pullback.
nvidia (NVDA) and advanced micro devices (amd) were big winners on a strong day for semiconductors. Nvidia and AMD stocks broke through some resistance levels, offering aggressive additional entries for existing long-term incumbents.
fellow chip maker broadcom (AVGO) surpassed a buy point, while commodities play oil marathon (MPC) and bhp (bhp) broke out, at least intraday. father of google Alphabet (GOOGLE) showed a new buy signal. Anthem (ANTME) returned to a shopping area since health insurers and service providers act well.
Earlier Thursday, the first ET7 luxury sedans rolled off the assembly line. On March 28, Nio ET7 deliveries begin, with two more new electric vehicles set to debut later this year. Xpeng (XPEV) reports earnings on Monday, with the giant EV WORLD (I AM GOING TO) is also likely due that week, along with China electric vehicle sales for March.
Late Thursday night, Nio gave more details about its cheaper ET7 sedan and a newer ES7 due out in the third quarter. He also said work is well underway on a new, lower-priced EV brand.
Nio shares fell 2% Thursday night, but trading was halted ahead of the company’s 9 pm ET conference call. Shares rose 0.5% in trading on Thursday. Shares of XPEV and BYD also rose a fraction. Tesla shares rose 1.5% to 1,013.92.
Actions on IBD lists
Nvidia, Tesla and Anthem stocks are on the march IBD classification table. AMD stock added to Swing Trader. Google shares are active IBD long-term leaders. Shares of Tesla, Nvidia and AVGO are in the IBD 50.
The video embedded in the story looks at Thursday’s market rally and looks at Nvidia, AMD and AVGO stocks.
Dow Jones Futures Today
Dow Jones futures were up a fraction from fair value. S&P 500 futures were flat and Nasdaq 100 futures fell 0.1%.
The 10-year Treasury yield rose 2 basis points to 2.36%.
The stock market rally rebounded from Wednesday’s pullback, gaining strength after an unsurprising NATO meeting.
The Dow Jones Industrial Average rose 1% in trading on Thursday stock trading. The S&P 500 index rose 1.4%, with Stocks of Nvidia and other chipmakers among the best performers. The Nasdaq Composite jumped 1.9%. The small-cap Russell 2000 rose 1.1%.
US crude oil prices fell 2.3% to $112.34 a barrel, continuing to fall in electronic trading as stocks continued to trade.
The 10-year Treasury yield rose 2 basis points to 2.34%, although off session highs.
Between best ETFsInnovative IBD 50 (FFTY) rebounded 2.2%, while Innovator IBD Breakout Opportunities (COMBAT) rose 0.8%. The iShares Extended Technology Software Sector ETF (VAT) fell 0.7%. VanEck vector semiconductor (SMH) jumped 4.9%. NVDA and AMD shares are SMH’s main holdings, with Broadcom a significant stake.
The SPDR S&P Metals & Mining ETF (XME) gained 2.7%, the Global X US Infrastructure Development ETF (TO PAVE) advanced 1.2%. US Global Jets (JETS) rose 2.1%. SPDR S&P Home Builders (XHB) fell 1.1%. The Energy Select SPDR ETF (XLE) was up 0.25%, and the Financial Select SPDR ETF (XLF) rose 0.8%. The SPDR Fund of the Select Sector of Health Care (XLV) added 1.2%.
Mirroring stocks with more speculative histories, the ARK Innovation ETF (ARKK) rose 1.1% and ARK Genomics (ARKG) added 1.2%, with both trading between their 21- and 50-day lines. Tesla shares remain the number one position among Ark Invest ETFs. Ark Invest also owns some BYD and XPEV shares.
Nvidia shares rose 9.8% to 281.50 on high volume after a few days’ pause. A trader could have used Thursday’s move above this week’s highs, roughly coinciding with the peak in early February, to initiate a new position, but the risks are high. Thursday’s move was more suited to additional buying, if anything.
AMD shares rose 5.8% to 120.53, breaking the 50- and 200-day lines. An aggressive trader could have used this as an opportunity to take an early position, but there is a lot of resistance overhead.
Broadcom shares advanced 4.5% to 626.43, beating an early entry of 614.74. AVGO shares are moving towards consolidation point of purchase from 677.86. the relative strength linethe blue line on the charts provided is already near the highs.
BHP shares rose 1.8% to 74.27, clearing a cup with handle purchase point of 73.68. Investors could have taken a position on March 18, when the mining giant broke out of a downtrend in mango.
Mining and metal games have been trending upwards but are prone to significant setbacks.
Oil Stock Marathon
Marathon Petroleum is a major US refiner, as well as a retailer and shipper of petroleum products, so it is not as closely tied to crude prices as, say, shale oil producers.
Shares of Google rose 2.4% to 2,831.44, bouncing again from its 200-day moving average and moving slightly above Tuesday’s high. Investors can buy GOOGL shares now as an early entry or as a long-term leader.
Anthem shares advanced 2.5% to 473.73, again above buy points at 470.12 and 472.11.
Market recovery analysis
The stock market rally rebounded on Thursday, closing near session highs. The Nasdaq led while the S&P 500 fell back above its 200-day moving average. The Dow Jones, little changed for the week, closed above its 50-day line once again.
Sideways action or a modest pullback in the major indices here would not be a bad thing. It would allow the butts to finish the bases and form handles, or at least longer resistance areas.
If the market rally doesn’t stop here, the major indices could do so near their early February peaks.
While it would have been nice to see Nvidia stock pause for a few more days, it’s definitely a positive to see chip names rally. It’s hard to see a technological breakthrough without chip stocks playing a big role.
Energy and commodity stocks such as Marathon Petroleum and shares of BHP still look strong. Health insurers, like ANTM stock, trade around buy points. Some biotech and pharmaceutical companies, such as Regeneron Pharmaceuticals (RAIN) could be working on tall handles or handles. Some network stocks still look strong.
Some travel plays are trying to carve out new consolidations, but could use a little more time to extend their V-shaped patterns.
Between the megacaps, Apple (AAPL) rose for the eighth session in a row, still in the range of an early entry and close to an official breakout. But it would be great to see a handle, or at least a pause. father of google Alphabet (GOOGLE) is offering a buy signal. Shares of Tesla pulled back above the 1000 level for their eighth straight advance, but could use a handle to offer a lower buying point.
The stock market rally continues to show strong action, recovering from Wednesday’s pullback.
There are buying opportunities, but many stocks are extended or rising from below. Don’t feel obligated to keep adding exposure if you don’t like the settings. If you regained exposure during the previous week, there’s nothing wrong with sitting idly by.
Keep working those watch lists. Some stocks will drop off their lists because they are extended or are now lagging. A new crop of stocks is coming to light.
Read The panorama every day to stay in sync with market direction and major stocks and sectors.
Follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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