Finance
Dow Jones Futures: Market Rises, But This Must Happen; Meta leads 15 stocks near buy points
Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. ELF Beauty (ELEVEN) headlined the earnings reports on Thursday evening. Nvidia chipmaker Taiwanese semiconductor (TSM) reports key figures before the Friday opening.
The attempted stock market rally had a strong session on Thursday as falling unemployment claims eased recession fears, with the major indexes closing solidly higher and Nvidia (NVDA) who leads the megacaps.
The next step is for the rally attempt to organize a follow-up day, which could come as early as Friday. Investors should prepare by building their watchlists.
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Stocks rise as rally attempt strengthens; LLY, SN, CYBR In pictures
Metaplatforms (META), GE Aviation (GE), Spotify (PLACE), Palantir Technologies (PLTR), Fortinet (FTNT), Intuitive surgery (ISRG), Goldman Sachs (GS), W. Berkley (WRB), Agnico-Eagle Mines (AEM) are all located in or near buying zones. So too Samsara (IOT), Arista Networks (ANET), TransMedics (TMDX), Tenet healthcare (THC), Waste connections (WCN) And MercadoLibre (MELI).
Nvidia stock and Agnico-Eagle Mines are active Leader board. Palantir Stock, MercadoLibre, Fortinet, Intuitive Surgical, Samara, WR Berkley, TransMedics and Waste Connections are all scheduled IBD 50 list. MercadoLibre, Arista Networks and GE stock are active IBD Bigcap 20.
Dow Jones futures today
Dow Jones futures rose 0.15% from fair value. Futures on the S&P 500 rose 0.2% and futures on the Nasdaq 100 rose 0.4%.
The yield on ten-year government bonds fell to 3.98%.
Consumer prices in China rose by 0.5% in July compared to a year earlier, slightly more than expected. Producer prices fell by 0.8%, a slightly smaller decline than expected. The figures alleviate deflation fears somewhat.
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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Main income
ELF Beauty’s revenues and sales easily exceeded views in the first quarter. But the budget cosmetics manufacturer, which has repeatedly raised its long-term expectations, has set a slightly lower price for the full year despite the first quarter profit. Shares plummeted overnight. ELF shares rose 3.4% to 187.95 on Thursday, heading towards the 50-day mark, before recovering below the 200-day mark early Monday.
Trade Bureau (T.D) beat second quarter views. TTD shares soared and headed toward a test of their 50-day line.
Sweet green (S.G) skyrocketed thanks to the restaurant’s strong results and prospects
SoundHound AI (SOUND) reported a wider-than-expected loss, but a 54% revenue gain exceeded previous insights. Shares tumbled in late trading. SOUN shares rose 21.2% to 5.21 on Thursday, again above the 50-day limit.
Nvidia has a stake in SoundHound AI, which uses Nvidia technology.
Meanwhile, Taiwan Semiconductor, which makes chips for Nvidia and many others, will report July sales on Friday in early July. It will provide a new indication of the demand for AI chips.
Stock market rally
The stock market rally had a strong session, recovering as unemployment benefits data eased fears of a recession.
The Dow Jones Industrial Average fell 1.8% in stock trading on Thursday, closing a hair above the 50-day mark. The S&P 500 index gained 2.3%. The Nasdaq composite rose 2.9%. The small-cap Russell 2000 rose 2.4%, close to the 50-day index.
The Invesco S&P 500 Equal Weight ETF (RSP) climbed by 1.8% and resumed the 50-day line.
The first Trust Nasdaq 100 equal-weighted index ETF (QQEW) gained 2.7%.
Thursday was day three of an attempted rally in the stock market. That means a follow-up day could occur to confirm the new uptrend. Look for a strong price gain of 1% or more on one or more of the major indexes with higher volume than the previous session.
For now it is still a market correction. The major indexes are still lower this week, albeit far from Monday morning’s lows.
US crude oil prices rose 1.3% to $76.19 per barrel, up 4.5% in three sessions.
Ten-year Treasury yields rose three basis points to nearly 4%, continuing to recover from Monday morning’s 52-week low of 3.67%.
ETFs
Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) rose by 3.1%. The iShares Expanded Tech-Software Sector ETF (IGV) rose 3.3%, with Palantir shares, Samsara and Fortinet all among members. The VanEck Vectors Semiconductor ETF (SMH) rose by 6.4%. Nvidia shares, the leading member, rebounded 6.1% on Thursday but are still down 2.1% this week.
Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) rose 4.6% and ARK Genomics ETF (ARKG) 3.9%.
SPDR S&P Metals & Mining ETF (XME) gained 2.25% and the GlobalPAVE) advanced 2.5%. SPDR S&P Home Builders ETF (XHB) rose by 1.8%. The Energy Select SPDR ETF (XLE) rose by 2.15%.
The Healthcare Select Sector SPDR fund (XLV) rose 2.2%, with Intuitive Surgical as a holding. The Industrial Select Sector SPDR fund (XLI) added 2.3%, with GE shares being a major component. The Financial Select SPDR ETF (XLF) recovered 1.6%, with Goldman shares taking a notable position.
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Stocks to watch
Spotify stock, Palantir, Goldman Sachs, WR Berkley, Agnico-Eagle Mines, Waste Connections, Intuitive Surgical, Tenet Healthcare, TransMedics and MercadoLibre are in buy zones or demonstrably actionable.
Meta Platforms, GE Aerospace, Arista Networks and IOT Stock have reclaimed the 50-day lines and are close to buy points. Fortinet stock could forge a handle after getting an opening in its base.
These stocks have relative strength lines that are rising or at least holding, with some like Palantir or Intuitive Surgical stocks at their 52-week highs.
These shares come from different sectors. A few of these, notably Palantir stock and Samsara, are volatile, so investors need to understand that as they get into them.
Analysis of the market rally
The attempted stock market rally regained momentum on Thursday, but has yet to prove anything.
An FTD would send a strong signal that a new uptrend is underway.
Aggressive traders can start taking pilot positions, but be prepared to get out quickly. For the most part, investors should wait for a follow-up day to confirm the new uptrend. Even in that scenario, investors should gradually increase their exposure.
When it’s time to take action, you want to be ready. Build your watchlists well beyond the 15 stocks discussed here.
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