Dow Jones futures were little changed in after-hours trading, but S&P 500 and Nasdaq futures were higher as NVDA shares surged in the closing minutes following the earnings results.of Nvidia (NVDA) Earnings report will have a huge impact not only on early market rally attempts, but also on other chip and AI stocks. snowflake (snow), splunk (Sprak) and netapp (NTAP) also reported Wednesday night.
X
Attempts to rally stocks rose ahead of Wednesday’s earnings report, improving the range. U.S. Treasury yields fell sharply after some economic data were weak and retail and consumer activity showed disappointing results and outlook.
The market is gaining some momentum but has yet to confirm an upward attempt.
Nvidia shares rose sharply last night on gains. SPLK stock and Snowflake also rose, but NetApp fell slightly.
Meanwhile, a number of AI-related stocks also performed slightly better in Nvidia’s earnings. Some may give a buy signal on Thursday.
They also include chip makers broadcom (AVGO) and marvel technology (MRVL) to software makers like Service Now (now), Adobe (Adobe), Palantir Technologies (PLTR), C3.ai (AI) and Samsara (IoT) and server manufacturers super microcomputer (SMCI). Don’t forget the megacaps such as. microsoft (MSFTMore), meta platform (meta) and Google’s parent alphabet (Google).
In other news Boeing (BA) discovered a new 737 Max manufacturing issue that may have resulted in hundreds of incorrect holes being drilled.that’s the job the supplier does Spirit Aerosystems (SPR). Boeing says it has a fix. Short-term deliveries may be delayed, but the issue reportedly does not affect MaxJet in service. BA stock fell slightly, testing the buy point and the 50-day line. Spirit Aero overturned.
NVDA stock and meta are on IBD Leaderboard. Microsoft stock is on his IBD long-term leader list. ADBE stock and ServiceNow IBD50. Google stock, Meta, ServiceNow IBD Big Cap 20.
dow jones futures today
Dow Jones futures are slightly above fair value, weighed down by Boeing shares. S&P 500 futures were up 0.6% and Nasdaq 100 futures were up 1.1%. Nvidia stock is a key component of the Nasdaq 100 and S&P 500, along with Broadcom, ServiceNow, Adobe, Microsoft, Meta, Google and more.
Futures markets suggest the S&P 500 and Nasdaq may test the 50-day line at Thursday’s open.
Note that overnight trading such as Dow Futures does not necessarily translate into actual trading in the next regular stock market.
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stock market rise
The stock market’s rally attempt has traded solidly for earnings in tech giant-led Nvidia.
The Dow Jones Industrial Average rose 0.5% in stock market trading on Wednesday. The S&P 500 index jumped 1%. The Nasdaq Composite rose 1.6%. Small-cap Russell 2000 rose 1%.
US oil prices have fallen 2.9% so far this week and are down 0.9% to $78.89 a barrel.
Copper futures are up 1.4% and are now up 4.2% on a five-session winning streak.
The 10-year U.S. Treasury yield fell 13 basis points to 4.2%, retreating from a 15-year high. Weaker-than-expected economic data and a downward revision to job growth for the 12 months to March could ease pressure on Fed Chairman Jerome Powell as he makes his big speech in Jackson Hole on Friday morning.
ETFs
Among Growth ETFs, Innovator IBD 50 ETF (FFTY) rose 1.3%. iShares Augmented Technology Software Sector ETF (IGV) rose 1.6%. VanEck Vectors Semiconductor ETF (SMH) rose 2.2%. NVDA shares are SMH’s number one holding.
A stock that reflects a more speculative story, the ARK Innovation ETF (Arkuk) up 2.3%, while the ARK Genomics ETF (Argu) 2.1%.
SPDR S&P Metals & Mining ETF (XME) rose 0.1%, while the Global X US Infrastructure Development ETF (pave) rose 1%. US Global Jets ETF (Jets) rose 0.6%. SPDR S&P Homebuilders ETF (XHB) rose 2.1%. Energy Select SPDR ETF (XLE) fell 0.25%, while the Healthcare Select Sector SPDR Fund (XLV) rose 0.3%.
Industrial Select Sector SPDR Fund (XLI) rebounded 1%.
Financial Select SPDR ETF (XLF) advanced 1%. SPDR S&P Regional Banking ETF (KRE) rose 1.3%.
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Nvidia Earnings
NVIDIA’s revenue easily surpassed views, thanks to increased data center demand reflecting the massive AI boom. The semiconductor giant also upgraded its current third-quarter results and announced a $25 billion buyback of its NVDA shares.
Expectations were very high for Nvidia’s results.
Nvidia’s shares strayed from Wednesday night’s highs, but rallied in overnight trading to a record high.
Shares rose 3.2% to 471.16 in regular trading on Wednesday. Nvidia shares hit an intraday high of 481.87 on Tuesday, temporarily relieving short-term consolidation, but closed 2.8% lower at 456.68. This was after it surged 8.5% on Monday and flashed a buy signal. The relative strength line, the blue line in the chart provided, hit a new high on Monday.
AI stock reaction
Semiconductor makers Broadcom and Marvell rose solidly in late-season trading. AVGO shares and MRVL edged higher on Wednesday to about 50-day moving averages. AI chip performance could be a buy signal, but Marvel’s earnings are set to be released on Thursday night, while Broadcom’s will be released on August 31.
Software giants ServiceNow and Adobe rose slightly in after-hours trading. NOW stock rose slightly on Wednesday, breaking the 50-day line and breaking the trend line. ADBE shares edged up from the 21st line in a short-term consolidation. Both Adobe and ServiceNow have generative AI partnerships with Nvidia.
Amid more volatile AI software trends, PLTR shares, AI shares and IOT rose strongly in late trading. All three stocks were up 4% to 5% on Wednesday, but well below the 50-day line.
Wednesday night’s Snowflake and Splunk earnings could also affect software makers, along with AI leader Nvidia.
SMCI shares surged in long-term trading. Supermicro shares climbed 7.6% to rebound above the 50-day line after a big sell-off in profits this month.
As for the megacap, MSFT shares edged higher in overnight trading, suggesting a possible 50-day ordeal. Microsoft rose 1.4% on Wednesday, regaining its 21-day line. META stock rose 2.3% to close out the 50th, before rising slightly in the closing hours, perhaps signaling aggressive entry.
Google shares rose slightly in extended trading. The stock rose 2.55% on Wednesday, entering the buy zone and outperforming alternative entries. The internet giant has announced upcoming security improvements to Gmail and other Google Workspace products, some of which will use AI.
All three are big buyers of Nvidia AI chips.
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Other main income
SNOW shares rose solidly in volatile after-hours trading. Snowflake’s revenue exceeded views, and data analytics software makers followed suit. On Wednesday, Snowflake shares rose 2% to 155.70, just regaining the 200-day line.
SPLK’s stock skyrocketed overnight, suggesting that Splunk’s earnings were slightly ahead of its views, and that it had rebounded past the 50-day line as earnings also exceeded. Manufacturers of databases and security software led to higher ranks. Sprunk shares rose 1.8% to 99.93 on Wednesday. The flat base buy point for the stock is 112.03.
NTAP shares fell slightly in extended trading after NetApp’s earnings slightly beat its first-quarter accounting guidance. The data storage giant has set course for the second quarter. NetApp shares rose 2 cents Wednesday to 76.53, just below the 50-day line. NTAP stock has been on a sideways trajectory since this week.
NetApp competitor pure storage (PSTG), reported next week, rose slightly in late trading. PSTG shares are already showing early entries from the 50-day line within their own flat base.
market rise analysis
The stock market rally attempt made a strong move. Wednesday’s market range was firm as losers outnumbered winners in the past two sessions.
We still need a follow-through date to see the uptrend in the market. The Nasdaq rally was strong enough to qualify for the FTD, but volume fell slightly below Tuesday’s levels. Although the S&P 500 had strong volumes, the solid price gains weren’t enough to meet his FTD’s criteria.
However, Wednesday’s rally makes it very likely that the major indices will recapture the 50-day line in the process should the market stage a follow-through date from these levels.
Several tech companies sent positive signals on Wednesday, but Nvidia’s earnings made it very dangerous.
The energy sector still looks strong, as do housing, industrial, construction, steel and some health sectors. The banking and consumer industries in general have struggled.
Fed Chairman Jerome Powell’s speech on Friday morning is likely to move stocks and Treasury yields.
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what to do now
Stock market rally attempts show promise, but we’re still in the “engagement” stage.
Investors can try to take advantage of buying opportunities, but it’s best to wait a few minutes or longer after trading opens. The Nvidia-led AI rally may gain momentum on Thursday, or it may lose momentum.
Gradually add exposure to limit the risk of a significant decline or reversal in the day’s market profits.
Don’t just keep the name of technology growth in mind, prepare a watchlist.
Read “The Big Picture” daily to stay on top of market direction and key stocks and sectors.
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