Dow Jones Futures: Dow, S&P 500, Nasdaq hit highs, Nvidia leads 12 new buys; What to do now

Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. Warren Buffett’s Berkshire Hathaway is in the spotlight.

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The stock market rally saw record highs for the Dow Jones, S&P 500 and Nasdaq, following subdued inflation and weak retail sales.

Nvidia (NVDA), the market’s top stock, broke past a buy point a week before earnings reports. Dell Technologies (DELL), Pulte Group (PHM), Intuitive surgery (ISRG), Deckers (DECK), Eli Lilly (LLY), Azek (AZEK), KLA Corp. (KLAC), DesignKings (DKNG), KKR (KKR) NetApp (NTAP) And Service now (NOW) were among the leading stocks with buy signals.

After the close, Warren Buffett’s Berkshire Hathaway (BRKB) announced the purchase and sale of shares in the first quarter. Berkshire announced that insurer Chubb (C.B) is the ‘mystery stock’ that Buffett has been buying confidentially in recent months. CB stock jumped late.

Cisco systems (CSCO) reported strong earnings late Wednesday. Shares of Cisco are up late, but are still trying to break an eight-month downtrend.

Fellow Dow giant Walmart (WMT) reports early Thursday. WMT shares moved lower on Wednesday and continued to decline after a brief breakout on Monday.

Nvidia stock and Eli Lilly are active IBD rankings. Dell stock, Intuitive Surgical, DraftKings, ServiceNow and Nvidia are listed on SwingTrader. KLAC stock is on the IBD Long-Term Leaders list. Nvidia and KKR stocks are on the list IBD50. Nvidia was the IBD stock of the day on Wednesday.

Dow Jones futures today

Dow Jones futures rose 0.2% versus fair value. S&P 500 futures rose 0.15% and Nasdaq 100 futures rose 0.2%. CSCO shares are part of the Dow Jones, S&P 500 and Nasdaq 100.

The yield on ten-year government bonds fell slightly to 4.32%.

Crude oil futures rose slightly.

Remember, overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading during the next regular stock market session.

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Stock market rally

The stock market rally posted solid gains on Wednesday, with all major indexes hitting new highs on favorable economic data.

April’s consumer price index was in line with expectations, with core inflation falling to a three-year low. April’s retail sales report and May’s Empire State manufacturing index were weaker than expected.

The Dow Jones Industrial Average rose 0.9% on the stock market on Wednesday. The S&P 500 index rose 1.2% and the Nasdaq index rose 1.4%.

The Nasdaq’s strong move had significantly higher volume than the previous session.

The small-cap Russell 2000 rose 1.1%, nearing a two-year high since late March.

A large number of leading stocks showed buy signals in various sectors, many more than mentioned in this article. These track several actionable stocks over the past week.

US crude oil prices fell 0.8% to $78.63 per barrel.

The yield on ten-year government bonds fell by 9 basis points to 4.35%, below the 50-day limit for the first time in two months.

ETFs

Of the growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rose 2.5%, with ServiceNow shares a major component. The VanEck Vectors Semiconductor ETF (SMH) increased by 3%. Nvidia stock is No. 1 in SMH, with KLAC also being a notable member.

Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) climbed 1.4% and ARK Genomics ETF (ARKG) advanced 0.5%. DKNG shares are a notable holding in Ark Invest’s ETFs.

SPDR S&P Metals & Mining ETF (XME) gained 1.3% and the GlobalPAVE) rose by 1.2%. US Global Jets ETF (JETS) fell by 0.5%. SPDR S&P Home Builders ETF (XHB) rose 2.35%, with PulteGroup taking a notable position. The Energy Select SPDR ETF (XLE) rose 0.2% and the Health Care Select Sector SPDR Fund (XLV) advanced 1.5%, with Eli Lilly the No. 1 holding and ISRG stock also a member.

The Industrial Select Sector SPDR fund (XLI) and Financial Select SPDR ETF (XLF) rose by 0.7%.

Five best Chinese stocks to watch now

Nvidia stock is breaking out

NVDA shares rose 3.6% to 946.30, reaching a cup-with-handle buy point of 922.20. The AI ​​chip leader reports its earnings on May 22.

Other stocks clear buy points

Dell shares rose 11.2% to 149.16, offsetting a short consolidation entry of 136.16. It has now expanded and the buy zone ends at 142.97. The relative strength line, the blue line in the charts shown, is at an all-time high, a bullish sign. On Wednesday, Morgan Stanley called Dell the “best way to play” with its AI infrastructure buildout.

Shares of PulteGroup rose 5.1% to 122.07, surpassing the base buy point for a short cup with handle of 120.74. Market wave. Investors could also have used a break in the downward trend of the price as a somewhat early entry. Some other builders including KB Home (KBH), also caused buying signals.

Intuitive Surgical shares fell 4% to 399.39, recovering from the 50-day line and clearing near-term highs, offering an early entry. ISRG stock has a flat-base buy point of 403.76.

Deckers shares rose 2.4% to 903.68, decisively breaching the 50-day mark after Tuesday’s gain. DECK stock is useful here, with an official buy point of 956.17 on a cup basis. Several other specialty footwear companies have also performed well. Deckers results for the fourth quarter ended in March are expected next week.

Shares of Eli Lilly rose 3.2% to 787.02, crossing the 50-day mark and breaking a brief downtrend. Eli Lily stock has an official buy point of 795.50 handle and a shallow base with a double bottom. Drug rival for weight loss Novo Nordisk (NVO) is also usable, slightly below its own base buy point.

Management, Chip Gear stock also in focus

KKR stock rose 5.1% to 107.67 to close above a flat-base buy point of 103.48 after flirting with a breakout on Monday. Several other asset management stocks issued buy signals.

Shares of Azek rose 5.8% to 48.29, topping the 50-day mark in heavy volume, offering an early entry. The faux wood maker for residential and commercial customers has a buy point of 50.78 from a flat base.

KLA stock rose 4.1% to 759.72, hitting a flat-base buy point of 729.15.

NetApp shares rose 1.45% to 110.62, within range of a double-bottom buy point of 108.82 and an all-time high. Pure storage (PSTG) And Nutanix (NTNX) have also recently released buy points.

ServiceNow stock rose 5.4% to 760.67, resuming its 50-day line in above-average volume, offering an aggressive entry or place to start a position. A downtrend line, currently around 780, as well as short-term highs around 795 and 808 also provide early entry opportunities. NOW stock has an official consolidation buy point of 815.32.

DraftKings stock rose 4.6% to 46.15, bouncing off the 50-day line, clearing short-term highs and breaking a trendline, allowing for an early entry. The stock is also above a previous, invalid entry above 45. DKNG stock has a consolidation buy point of 49.57.

What to do now

The stock market rally is at record highs as more leading names give buy signals.

Investors should take advantage of these opportunities. By adding these gradually over the past week, traders could regain solid or heavy exposure. If you already have a large exposure, you may want to consider trimming some laggards or slower movers as the market appears to be shifting more clearly into a risky environment.

Yes, Nvidia’s earnings are a week away, so you might not want to massively increase your AI chip holdings right now. But overall, earnings season is well past its peak, with the major inflation reports in the rearview mirror.

More stocks are bubbling up, so keep updating your watchlists.

Read The Big Picture every day to stay informed about market direction and the most important stocks and sectors.

Follow Ed Carson on Threads at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.

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