Finance
Dow Jones Futures: Jobs Report Looms, 7 Stocks in Buy Zones; Tesla, Nvidia in the picture
Dow Jones futures edged higher Thursday evening, while S&P 500 futures and Nasdaq 100 futures fell slightly after U.S. stock markets closed for the July 4 holiday. Bitcoin expanded a recent slide. The jobs report will be released early Friday.
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Nasdaq and S&P 500 reach highs; ASML, Tencent Music, Agnico-Eagle mines in focus
The S&P 500 and Nasdaq hit record highs during Wednesday’s half-day session. Tesla (TSLA) continued its strong run, heading towards a major trendline. Nvidia (NVDA) had a solid session on a strong day for chips.
ASML (ASML), Entegris (ENTG), monday.com (MNDY), Agnico-Eagle Mines (AEM), Southern copper (SCCO), Tencent music (TME) And Vistra (VST) flashed buy signals on Wednesday.
Dow Jones futures today
Dow Jones futures traded just above fair value. S&P 500 futures moved lower and Nasdaq 100 futures fell 0.1%.
The yield on ten-year government bonds rose to 4.37%.
Bitcoin has fallen to around $57,000, near a multi-month low.
Friday’s jobs report will tip Dow futures and Treasury yields early Friday.
The Labor Party is poised for a landslide victory in Thursday’s British election, although the ruling Conservative Party may not have done as badly as expected.
Remember, overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading during the next regular stock market session.
Jobs Report
The Department of Labor will release the June jobs report at 8:30 a.m. ET on Friday. Economists expect nonfarm payrolls to rise 189,000, a cooling from May’s 272,000 increase. The unemployment rate is expected to remain at 4%. The average hourly wage increased by 3.9% from a year earlier, compared to 4.1% in May.
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Stock market rally
Technically, the stock market rally was mixed on Wednesday, but action from the S&P 500, Nasdaq and leading stocks showed a distinctly bullish tone.
The Dow Jones Industrial Average lost a fraction in stock trading on Wednesday. The S&P 500 index rose 0.5%. The Nasdaq index rose 0.9%. The small-cap Russell 2000 rose 0.1%, but came off highs after briefly rebounding from the 50-day mark.
The Nasdaq is 7.6% above the 50-day line, extended further. This increases the risk of a relapse, although this does not have to happen immediately.
US crude oil prices rose 1.3% to $83.88 per barrel.
Ten-year government bond yields fell 9 basis points to 4.35%, down 13 basis points in two sessions.
Treasury yields tumbled as the June ISM services index signaled a contraction, along with weaker-than-expected labor data from the ADP Employment Report and initial unemployment claims.
Minutes from the Fed’s June meeting released after the early market close showed policymakers saw risks “moving toward a better balance.” However, they want ‘more confidence’ before cutting rates.
ETFs
Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) rose 0.6% on Wednesday. The iShares Expanded Tech-Software Sector ETF (IGV) turned out to be higher. The VanEck Vectors Semiconductor ETF (SMH) rose by 2.4%. Nvidia shares and ASML are important SMH holdings.
Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) rose 1.8% and ARK Genomics ETF (ARKG) rose by 1.2%. Tesla stock is the #1 stock in Ark Invest’s ETFs. Cathie Wood sold some Tesla shares on Tuesday and again on Wednesday.
SPDR S&P Metals & Mining ETF (XME) rose by 1.8%. The Energy Select SPDR ETF (XLE) rose 0.25% and the Health Care Select Sector SPDR Fund (XLV) fell by 0.7%.
The Industrial Select Sector SPDR fund (XLI) rose by 0.3%. The Financial Select SPDR ETF (XLF) fell by 0.2%.
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Nvidia stock
Nvidia shares rose 4.6% to 128.28, well above the 21-day mark and above the 10-day mark since June 20. An aggressive investor could have used Wednesday’s action as an opportunity to add a few more stocks. But NVDA stock could use a longer break.
Tesla shares
Tesla shares rose 6.5% to 246.39 on Wednesday, extending its weekly gain to 24.6% after rising 8.1% last week.
The stock is significantly extended from the 191.08 buy point. TSLA stock is approaching a long-term trendline back to its all-time high at the end of 2021. Ideally, Tesla would take a break. Earnings are expected within two weeks.
Shares in buy areas
ASML shares rose by 2.2% to 1,071.20, again above a buy point of 1,056.34. MarketSurge Analysis. The chip equipment giant recently found support at the 21-day line. ASML’s results are expected on July 17.
Entegris shares fell 3.1% to 140.81, above a buy point of 139.81.
Monday.com shares rose 2.65% to 243.31, back above 239.54 and regaining an earlier base buy point of 239.22.
Shares of Angico-Eagle fell 4% to 68.27, rebounding above the 50-day line and breaking a trendline. AEM stock has a buy point of 71.50 from a flat base.
Shares of Southern Copper rose 5.5% to 116.03, bouncing above the 50-day mark. SCCO stock is in a consolidation pattern with a buy point of 120.79.
Tencent Music shares rose 3.5% to 14.94, breaking a trend line within a flat base. The official buy point is 15.77. TME stock bounces off the 50-day line.
Vistra shares fell 4.1% to 91.31, back above the 50-day mark and near-term highs. The power generation company, an AI-adjacent company, may begin building the right side of a new base.
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What to do now
The stock market rally is showing strength across the major indices. The breadth could be better, but there are plenty of stocks showing buy signals from different sectors.
That’s why it’s crucial to keep your screens running consistently and casting a wide net.
The Nasdaq’s increasing expansion is a reason to be cautious about adding exposure, but the broader bullish trend is still intact. Pay attention to the earnings dates. The quarterly reports will start to improve in the next week or so.
Read The Big Picture every day to stay informed about market direction and the most important stocks and sectors.
Nvidia, ASML and Agnico-Eagle shares are on the list IBD rankings, with Weatherford stock on the watchlist. Nvidia and Monday.com are active IBD50.
ASML was the IBD share of the day on Wednesday.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
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