Dow Jones futures were little changed early Wednesday, along with S&P 500 futures and Nasdaq futures.
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Stock markets continued to rise as US Treasury yields fell, but the Nasdaq hit resistance at key levels. tesla (TSLA), super microcomputer (SMCI), Uber Technologies (Uber), novo nordisk (NVO), NetEase (NTES) Nvidia (NVDA) was one of the stocks that was issuing a new buy signal.
NVO stock also rose in the second half on positive pharmaceutical news.
If the market continues to advance, investors should continue to add exposure over time and look for possible entry opportunities.
On Wednesday, investors will receive the September producer price index and minutes from the Fed’s late September policy meeting before trading begins. The CPI inflation report is expected to be released on Thursday.
Nvidia stock is on IBD Leaderboard, Tesla and Uber stocks joined the leaderboard on Tuesday. Uber and NVO stocks are listed on SwingTrader. Nvidia, Super Micro and Tesla stocks are on the rise IBD50. SMCI stock, Tesla, Nvidia are on the rise IBD big cap 20. Uber Technologies was IBD’s Stock of the Day on Tuesday.
A video embedded in the article discusses Tuesday’s market trends and analyzes Uber Technologies, Novo Nordisk and SMCI stocks.
exxon mobil (XOM) nearing deal to buy Permian shale giant pioneer natural resources (PXD) traded for more than $250 a share, Bloomberg reported Tuesday night.
Dow Jones futures today
Dow Jones futures were stable relative to fair value. S&P 500 futures rose slightly. Nasdaq 100 futures rose 0.2%.
The yield on 10-year government bonds fell slightly to 4.64%.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
The stock market has continued to rise since Friday’s follow-through day.
In stock market trading on Tuesday, the Dow Jones Industrial Average rose 0.4%, staying above its 200-day line during the day but falling toward the close. The S&P 500 rose 0.5%, breaking above its 21-day moving average and above its August low. The Nasdaq Composite rose 0.6%, but the intraday gain was halved as it reached its 50-day line. The Nasdaq 100 ended above 50 days.
The small-cap Russell 2000 rose 1.1%, but there is still some distance between the 200-day line and the 50-day line. The markets were wide-ranging, with winners outnumbering losers by more than 2 to 1 on the Nasdaq and nearly 3 to 1 on the New York Stock Exchange. This trend continues to be a short-term trend even after months of poor performance.
US crude oil prices fell 0.5% to $85.97 per barrel.
The 10-year US Treasury yield fell 13 basis points (bp) to 4.65%. The bond market was closed on Monday for Columbus Day, but various ETFs such as TLT suggested that U.S. Treasury yields were falling that day. The odds that the Fed will raise rates again this year have become much less likely, with policymakers suggesting a sharp rise in U.S. Treasury yields is reducing the need for central bank action.
The US dollar fell for five consecutive sessions.
Despite this week’s gains, the Israeli-Hamas conflict remains an X-factor for the stock market, along with the upcoming inflation report and the start of earnings season.
ETF
Among growth ETFs, Innovator IBD 50 ETF (FFTY) rose 1%. iShares Enhanced Technology Software Sector ETF (IGV) added 0.45%. VanEck Vectors Semiconductor ETF (SMH) rose 1.2%. NVIDIA stock is SMH’s top holding.
ARK Innovation ETF (Arkku) up 2.1%, ARK Genomics ETF (arcg) 2.5%. Tesla stock is the No. 1 holding among Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) rose 1.3%. US Global Jets ETF (jets) rose 1.7%. SPDR S&P Home Builders ETF (XHB) rose 1.15%. Energy Select SPDR ETF (XLE) rose 0.1%, while the Healthcare Select Sector SPDR Fund (XLV) rose 0.5%.
Industrial Select Sector SPDR Fund (XLI) muscle was 0.6% higher. Financial Select SPDR ETF (XLF) rose 0.7%.
Top 5 Chinese stocks to watch right now
Stocks in the buy area
Tesla stock rose 1.5% to 263.62 on Tuesday, off an intraday high of 268.94. Major EV companies have been taking action since clearing the 50-day line last week. On Tuesday, TSLA stock broke above last Thursday’s high of 263.60, suggesting another early entry. The EV giant’s official purchase points are 278.98 points for a cup base with handle.
Tesla stock shrugged off a spate of bad news in October. Third-quarter results are scheduled to be released on October 18, and analysts are in the process of lowering their forecasts after recent delivery misses.
Nvidia stock rose 1.2% to 457.98, above Friday’s high of 457.89, just above its 50-day line. This allows for early entry. The consolidated buy point for NVDA stock is 502.66.
Uber stock rose 2.6% to 46.63, breaking out of its 50-day line and breaking out of a short trendline for an early entry within a sideways base. The ride-hailing giant’s official buying point is 49.49.
Novo Nordisk stock rose 1% to 93.01, moving out of its 50-day and 21-day lines. This was the entry, and NVO stock was engaged in a new consolidation. The Danish pharmaceutical giant has grown rapidly thanks to weight-loss drugs, but that’s not the only part of its portfolio.
NVO stock rose solidly on Tuesday night after Novo Nordisk announced early completion of a Phase 3 trial of its kidney failure drug, which was found to be highly effective.
Super Micro stock surged 7% to 310.31, clearing resistance around the 287-294 area and allowing for early entry. The stock price appears to have extended slightly from the 50th. The consolidated buy point for SMCI stock is 357.
NetEase stock rose 2.25% to 106.42, marking its fifth consecutive year of gains and third consecutive year of high volume. The Chinese mobile gaming giant regained its 50-day line on Monday. On Tuesday, NTES stock decisively broke out of the downtrend line, suggesting an early entry. According to MarketSmith analysis, the stock is working toward a flat-base buy point of 110.82.
Timing the Market with IBD’s ETF Market Strategy
what to do now
The stock market is on track to rise. Investors should have seen some buying in the past few days. But this upward trend is a good example of why increasing exposure over time makes sense. The major indexes have a series of possible resistance levels. The Nasdaq hit 50-day resistance at midday Tuesday, but the index closed with solid gains.
Investors may want to wait for the Nasdaq to clear its 50-day line before adding further exposure. However, once the market clears various levels, it won’t take long to gain significant exposure.
Many stocks issued buy signals on Tuesday, and many stocks took positions. Therefore, investors should update their watchlists and monitor possible targets closely.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
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