Dow Jones futures were little changed Thursday night, along with S&P 500 futures and Nasdaq futures. The stock market rally had a strong session Thursday as Treasury yields tumbled despite a slew of robust economic reports.
Tech titans led the way, with Nvidia (NVDA), Adobe (ADBE) and Facebook (FB) making bullish moves around entry points. Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN) and Google parent Alphabet (GOOGL) also had solid advances.
All of those stocks fell Wednesday, as the market that day favored cyclical stocks such as Freeport McMoRan (FCX).
S&P 500 Steady Ascent
The mini-rotations have made the market rally challenging, despite the general uptrend. But look at a chart of the Dow Jones and especially the S&P 500, and you’d struggle to see much volatility. While Apple stock, Facebook, Microsoft, Google, Amazon, Adobe and Nvidia are big weights in the S&P 500, the benchmark index also boasts non-tech giants such as Goldman Sachs (GS), General Motors (GM), Deere (DE), Home Depot (HD), Target (TGT), FCX stock and many more. So while some of these names and sectors will lead or lag on any given day, the broad-based S&P 500 has been rising modestly most days.
In the current market rally, investors should strive for sector balance like the S&P 500 does, but focus on leading stocks. In addition to Nvidia, Adobe and Facebook stock, Goldman Sachs, GM, Freeport McMoRan, Deere and Target arguably are all actionable now, with Amazon nearing an early entry. Home Depot is extended.
In overnight news, DraftKings (DKNG) rose after announcing it’ll be the NFL’s exclusive sports betting partner. It’ll also remain the NFL’s fantasy football partner.
Alcoa (AA) easily beat quarterly profit views, also topping on revenue. The aluminum giant climbed overnight.
Dow Jones Futures Today
Dow Jones futures were slightly above fair value. S&P 500 futures were flat and Nasdaq 100 futures edged lower.
In addition to the hot U.S. economic data Thursday, China is set to release key reports Friday morning local time, including Q1 GDP growth that should easily top 10%.
Coronavirus cases worldwide reached 139.64 million. Covid-19 deaths topped 2.99 million.
Coronavirus cases in the U.S. have hit 32.22 million, with deaths above 578,000.
Stock Market Rally
The stock market rally rebounded solidly Thursday, with the Dow Jones, S&P 500 and Nasdaq 100 all setting record highs.
The Dow Jones Industrial Average rose 0.9% in Thursday’s stock market trading, crossing 34,000 for the first time. The S&P 500 index climbed 1.1%. The Nasdaq composite jumped 1.3%. The Nasdaq 100 popped 1.5%. The Russell 2000 edged up 0.4% after rebounding 1% on Wednesday.
The 10-year Treasury yield plunged 11 basis points to 1.53%, the lowest in several weeks, though it pared gains in late afternoon trade to about 1.57%. That’s despite retail sales and jobless claims that were much better than expected, while other reports also showed strong growth. On Tuesday, the 10-year yield fell despite consumer prices rising more than views.
Accelerating economic growth and falling Treasury yields are a recipe for a broad-based advance, aside from rate-sensitive financials. But even those charts generally look fine.
Trillion-Dollar Stocks Rally
The major indexes are likely to fare well when Apple, Microsoft, Amazon and Google are up more than 1%. Apple stock has a market cap north of $2.2 trillion, while the other titans are worth more than $1.5 trillion. All are on the S&P 500 and Nasdaq composite, with Apple and Microsoft stock are also on the Dow Jones Industrial Average.
Apple stock rose 1.9% to 134.50, moving toward a 145.19 cup-base buy point. Volume has generally been sluggish as AAPL stock builds the right side of its base.
Microsoft stock climbed 1.5% to 259.50, now slightly extended from its 246.23 entry from a flat base, which was part of a base-on-base pattern.
Google stock rallied 1.9% to 2,285.25, also extended from its flat base.
Amazon stock advanced 1.4% to 3,379.09. On Tuesday, AMZN stock hit resistance just below its Feb. 3 high of 3,434, which could be seen as the start of a cup base within a longer seven-month consolidation. It’s possible Amazon stock will form a handle around these levels.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 0.8%, while the Innovator IBD Breakout Opportunities ETF (BOUT) was up 0.7%. The iShares Expanded Tech-Software Sector ETF (IGV) gained 1.85%, with Microsoft and ADBE stock major components. The VanEck Vectors Semiconductor ETF (SMH) perked up 1.3%, with Nvidia stock and many other chip plays faring well, offsetting weakness in Taiwan Semiconductor (TSM).
SPDR S&P Metals & Mining ETF (XME) added 1%, with FCX stock a major holding. Global X U.S. Infrastructure Development ETF (PAVE) moved up 0.5%. U.S. Global Jets ETF (JETS) fell 0.9% as Delta Air Lines (DAL) retreated as it kicked off airline earnings reports.
Tech Giants Reclaiming Buy Points
Nvidia stock leapt 5.6% to 645.49, rushing back above a 615 buy point from a cup base, according to MarketSmith chart analysis, after dipping below that entry Wednesday. NVDA stock is on the edge of the 5% chase zone, which ends at 645.75. The relative strength line for Nvidia stock is near a consolidation high.
Adobe stock rallied 2.5% to 523.25, moving back above early entries of 506.61 and 507.02, while clearing another entry at 519.70. ADBE stock is nearing the official buy point of 536.98 from a consolidation going back to early September.
Facebook rose 1.65% to 307.82, back above the alternate entry of 304.77 just above the top of its long consolidation. FB stock had fallen for five straight sessions, but never dropped below the official 299.81 buy point.
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