Dow Jones futures fell overnight, along with S&P 500 and Nasdaq futures.DocuSign earnings and charging deal with Tesla general motors (GM) came into focus overnight.
X
Stock market gains on Thursday showed modest to solid gains in major indices, with the Nasdaq rebounding somewhat after Wednesday’s downside reversal. Small- and mid-cap stocks, on the other hand, tumbled slightly, making a big break from their lows and abandoning some of their recent rally.
dow jones giant Boeing (BA), cardinal health (CAH), floor and decoration (FNDMore) and TG Therapeutics (TGTX) is in the purchase area.
That’s true Taiwan semiconductor manufacturing (TSM). Taiwan Semi is the world’s largest chip foundry, Nvidia (NVDA), apple (AAPL), Qualcomm (QCOM) and many others. Taiwan Semi announced sales figures for May in the early hours of Friday morning.
Tesla (TSLA) Thursday’s trading volume extended a record streak of days of growth. After the deal closed, news broke that General Motors would use Tesla’s supercharger and charging technology.This follows a similar deal ford motor (F.) was announced in late May. TSLA shares and GM both rose in extended trading.
docusign (documents) reported first-quarter results late Thursday. DOCU shares were up 5% in after-hours trading on the earnings and guidance. The digital document and e-signature software company is grappling with a buy point at 69.45 to recapture the late May 200-day line. DocuSign shares rose 2.2% to 58.48 on Thursday.
Tesla and Nvidia are on the rise IBD Leaderboard. The BA stock was added to SwingTrader on Thursday, joining the FND stock. Floor & Decor was Thursday he was IBD Stock Of The Day.
dow jones futures today
Dow Jones futures fell 0.1% against fair value. S&P 500 and Nasdaq 100 futures fell 0.1%. Tesla stock is a major member of the S&P 500 and Nasdaq 100.
The 10-year U.S. Treasury yield climbed 3 basis points to 3.74%.
Late Thursday, former President Donald Trump said on his site Truth Social that he was indicted on federal criminal charges related to classified documents that were kept after he left the White House. This is the second time this year that multiple agencies have confirmed criminal charges against Trump.
Note that overnight trading such as Dow Futures does not necessarily translate into actual trading in the next regular stock market.
IBD experts analyze hot stocks during the stock market rally on IBD Live.
stock market rise
Stock market gains gradually improved through Thursday, with the index closing near the trading highs.
The Dow Jones Industrial Average rose 0.5% in stock market trading on Thursday. The S&P 500 index rose 0.6%. The Nasdaq Composite rose 1.0%. Small-cap Russell 2000 fell 0.4%.
US oil prices fell 1.7% to $71.29 a barrel.
The 10-year U.S. Treasury yield fell seven basis points to 3.71%.
ETFs
Among Growth ETFs, Innovator IBD 50 ETF (FFTY) rose 0.8%, while the Innovator IBD Breakout Opportunity ETF (game) rose 0.5%. iShares Augmented Technology Software Sector ETF (IGV) rebounded by 1.3%. VanEck Vectors Semiconductor ETF (SMH) rose 1.2%. The TSM stock is a huge component of SMH alongside Nvidia.
A stock that reflects a more speculative story, the ARK Innovation ETF (Arkuk) rose 1%, while the ARK Genomics ETF (Argu) fell 0.1%. Tesla shares are the number one holding of all Ark Invest ETFs.
SPDR S&P Metals & Mining ETF (XME) fell 0.2%, while the Global X US Infrastructure Development ETF (pave) fell 0.1%. US Global Jets ETF (Jets) rose 0.6%. SPDR S&P Homebuilders ETF (XHB) fell 0.35%, making FND stock a notable holding for XHB. Energy Select SPDR ETF (XLE) surrendered 0.4% to the Healthcare Select Sector SPDR Fund (XLV) rose 0.6%.
Financial Select SPDR ETF (XLF) gave up 0.1%. SPDR S&P Regional Banking ETF (KRE) retreated 1.2%.
Top 5 Chinese stocks to watch right now
Stocks in the buy area
Boeing shares rose 2.9% to 218.11 on Thursday, above various short-term highs and trendlines, suggesting early entry. There was a lot of volume. BA shares are approaching the buy point of 221.33 from a flat base in about four months. This follows a strong move by Dow Aerospace giant from late September to mid-February.
CAH shares climbed 2.5% to 85.33, rebounding from the 21-day and 10-week lines and breaking the short-lived downtrend with a small margin just above the 5-month bar that was definitively cleared in early May. Earlier Thursday, Cardinal Health said it would slightly raise the midpoint of its 2023 earnings guidance and buy back CAH shares for $3.5 billion.
TGTX shares climbed 7.3% to 28.98, breaking the downtrend by breaking the 10-week line and regaining the 21-day line. The stock nearly doubled from its late-March breakout through early March, then fell back. TG Therapeutics is still in the red. Sales in the most recent quarter he jumped 286%, but remained at $7.8 million. Investors may get some indication of monthly sales next week.
FND shares fell 1.2% to 96.55 on Thursday in small volume. However, it regained the 50-day line after a 5.1% gain in Wednesday’s heavy trading. Flooring retailers are still available. The buy point for the Cup With Handle for Floor & Decor stock is also at 101.49.
TSM shares slipped 0.35 percent to 99.94, but remained above the combined buy point of 98.99, according to MarketSmith analysis. Taiwan Semi initially jumped into the buying zone on May 25 following Nvidia’s explosive earnings and guidance. On Monday, Taiwanese semi-stocks fell to near the 21st line before narrowing losses. Taiwan Semiconductor is expected to release May sales figures early Friday morning.
Meanwhile, Nvidia shares rose 2.8% to 385.10, continuing to trade within a range after the May 25 earnings gap increase. There are no buying opportunities for NVDA shares at the moment, but a tight pattern or, for example, a pullback to the 21st line could create opportunities for additional shares.
tesla stock
Tesla shares rose 4.6% to 234.86 on Thursday, hitting a seven-month high. The EV giants are now recovering in 10 sessions, their longest winning streak since 11 in January 2021. However, the number of sales above the average has increased the record for the ninth consecutive time. TSLA shares continue to rise from the buy point of 207.79.
Paid deal between Tesla and GM
Thursday night’s deal between Tesla and GM will give General Motors access to 12,000 Superchargers next year through adapters. GM will also start using the charging port used by Tesla starting with the 2025 model year. The partnership will not only bring more revenue for Tesla, but also significantly expand charging options for GM and Ford, which are expanding their EV production.
Tesla shares lagged behind, rising 5%.
GM shares jumped 4% overnight, suggesting a move above the 200-day line again.
market rise analysis
The rally in the stock market turned out to be another positive day, with Wednesday’s losers generally gaining support, while the recent big winners resisted a big drop.
The Nasdaq rebounded above the 10-day line after leading a retreat on Wednesday. But it’s unclear if they can make big moves without longer pauses or withdrawals. The Composite and Nasdaq 100 Indexes are no longer above the 50-day line, but it won’t be long before they appear to be picking up again.
The S&P 500 is trading just below its 2023 high and 52-week high. The Dow Jones is slightly above last week’s high and not far from the high of the year.
Overall, winners and losers were evenly matched, as the forwards won decisively in the previous two sessions.
The Russell 2000 and S&P MidCap 400 maintained most of Wednesday’s big gains.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) rose 0.85% and remains near its 52-week high.
Invesco S&P 500 Equal Weight ETF (RSP) made a small profit after a 0.7% winning streak.
Ideally, the Nasdaq and many of the major tech stocks would take a temporary hiatus or moderately lower prices while other sectors would take over in the broader market. We’ve seen signs of that over the past week, but it may not last long.
Leadership may be changing or expanding. At the moment, not many stocks are giving buy signals.
The software market surged on Wednesday, but the damage to the charts depended on the expansion of individual stocks or recent breakouts near buy points. Some of these names recover quickly, some do not. Semiconductor makers generally performed well on Wednesday, but many stocks are showing constructive moves.
Housing inventories are showing firmness on the whole. The travel industry is moving, but there aren’t many stocks that look viable at this point. BA shares have shown strength in aerospace stocks, as well as machinery and industrials in general. Some biomedical and medical product manufacturers are doing relatively well.
Timing the Market with IBD’s ETF Market Strategy
what to do now
The uptrend in the stock market is certain, with the Nasdaq and S&P 500 hitting new highs for 2023 and showing signs of an improving range. As such, investors may consider additional exposure, albeit with limited buying opportunities.
Many stocks across a wide range of sectors are starting to set, or may set, by coming in to buy points and exiting bullishly. Keep your watchlist up to date.
Adjust for the current situation, not for what you want for market conditions and leadership.
Read “The Big Picture” daily to stay on top of market direction and key stocks and sectors.
Follow Ed Carson on Twitter. @IBD_ECarson Stock market updates and more.
You may also like:
Why this IBD tool simplifies your search for top stocks
Catch Your Next Big Win With MarketSmith
Best growth stocks to buy and watch
IBD Digital: IBD’s Premium Stock Listings, Tools and Analysis Now Available
Tesla vs. BYD: EV giants vie for the throne, but which one is better to buy?
