Dow Jones futures will begin trading on Sunday night, along with S&P 500 futures and Nasdaq futures. Nvidia (NVDA) Earnings loom large due to rising stock markets and a host of artificial intelligence. OpenAI’s firing of Sam Altman raises further questions about Microsoft and other AI stocks.
Stock market gains continued this week, helped by subdued inflation and lower U.S. Treasury yields. The major indexes paused late in the week, but did not want to fall. Suspensions and withdrawals are constructive and allow some leaders to forge handles and other entries.
The Nasdaq is likely to enter a “power trend” as soon as Monday. It is a time to be proactive in power dynamics but maintain discipline.
Nvidia, Microsoft, Meta, and Google stocks are all in buy territory, with PLTR stock and Super Micro near the entry. Clearly, Nvidia’s earnings could be a big positive or negative catalyst.
Microsoft stock, Nvidia and Metaplatform on the rise IBD Leaderboard. META stock is on SwingTrader. MSFT stock is listed on the IBD Long-Term Leaders List. Nvidia stock, Microsoft, Super Micro on the rise IBD50. Microsoft, Meta Platforms, and SMCI stocks are IBD big cap 20.
Dow Jones futures today
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, open at 6pm ET on Sunday.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
stock market rise
Stock market gains soared on Tuesday’s subdued inflation report, then rose slightly for the rest of the week.
In stock market trading last week, the Dow Jones Industrial Average rose 1.9%. The S&P 500 index rose 2.2%. The Nasdaq Composite rose 2.4%.
The small-cap Russell 2000 rose 5.4% despite being removed from the 200-day line. Invesco S&P 500 Equal Weight ETF (RSP) rose 3.4%, regaining its 200-day high.
The First Trust Nasdaq 100 Equal Weight Index ETF (QQEW) has been a good proxy for growth stock leadership, rising 2.9%, above October’s high.
The Nasdaq 100 rose to just below its 52-week high set in July.
The Nasdaq Composite and S&P 500 are trading near short-term highs set on September 1st, with the next hurdle being a 52-week high in July.
The market has paused in a sense, but it is by no means a rebound. The S&P 500 and Nasdaq are on a four-day winning streak. Since bottoming in late October, these indexes have only fallen twice.
Major stocks are doing well and their stock prices are expanding. It is also a leader in chips, software, and some e-commerce, retail, finance, travel, and industrial/aerospace industries.
The yield on the 10-year Treasury note fell nearly 19 basis points to 4.44%, its lowest level in two months.
Last week, U.S. crude oil futures fell 1.7% to $75.89 per barrel. Oil prices hit their lowest since July this week, but rebounded sharply by 4.1% following reports that OPEC+ may cut production further.
Not all market upswings are the same. Some are choppy and short-lived, while others display real power. Power trends indicate the latter.
The power trend includes several criteria, some of which have already been met.
The Nasdaq has traded above its 21-day exponential moving average low for at least 10 consecutive times. The 50-day moving average is trending upward.
The 21-day EMA needs to close above the 50-day line five times in a row. Monday will be the fifth day.
If Monday is a positive trade for the Nasdaq, a power trend will begin. If not, the power trend will start from the next up date.
The Power Trend is a time to be more proactive, such as being more open to aggressive growth companies.
Market rallies in power trends are often large and upward, but there are also times when the power trend disappears quickly. Therefore, keep watching the market trends.
Among growth ETFs, iShares Expanded Technology Software Sector ETF (IGV) rose 2.65%, hitting a 52-week high. MSFT stock is the main component, and PLTR stock is also an important holding. VanEck Vectors Semiconductor ETF (SMH) rose 3.4%, hitting a record high. Nvidia stock is SMH’s largest holding.
SPDR S&P Metals & Mining ETF (XME) rose 6.5% last week. Global X US Infrastructure Development ETF (pave) rose 3.6%. SPDR S&P Home Builders ETF (XHB) increased by 6.3%. Energy Select SPDR ETF (XLE) 1.5% and Healthcare Select Sector SPDR Fund (XLV) 1.6%. Industrial Select Sector SPDR Fund (XLI) rose 3%, breaking the downward trend.
Top 5 Chinese stocks to watch right now
Nvidia’s financial results are scheduled to be released Tuesday night. Wall Street expects third-quarter profits to jump 481% and revenue to rise 173% to $16.19 billion. But investors may be looking for more after reports of two big beat-and-raises.
Analysts will also seek comment on the impact of China’s tightening of export controls.
Nvidia stock rose 2% last week to 492.98, rising from a double-dip base to a buy zone. The official buying point is 476.09. Like the broader market and many leaders, NVDA stock has largely paused since Tuesday.
Microsoft shares rose 17 cents to settle at 369.84 on Friday, down 1.7% from Thursday’s all-time high. The stock price remains within the cup-based buy point of 366.78. A longer pause allows the moving average to catch up.
Microsoft on Tuesday unveiled its own AI chip aimed at reducing dependence on Nvidia and others.
Just before the close on Friday, Microsoft-backed OpenAI announced that CEO Sam Altman was stepping down because “the board no longer has confidence in his leadership.” On Friday night, OpenAI president and co-founder Greg Brockman said he was resigning due to “today’s news.”
Most of Friday’s losses were due to OpenAI news, with MSFT stock also down 1% in after-hours.
Google stock rose just over 2% last week to 135.31, again above its 50-day line, despite falling 1.2% on Friday. Investors could use Thursday’s high of 137.22 as an early entry on a flat basis. The official buying point is 141.22.
The Information reported Thursday night that Google is delaying the launch of Gemini, a potential rival to OpenAI’s ChatGPT 4, to early 2024.
Meta shares rose 1.9% to 335.04, staying within the buy zone of the consolidation since late July.
PLTR stock rose 4.2% to 20.49, clearing a cup-based buy point of 20.24, according to MarketSmith analysis. If the price rises 23% above the 50-day line, it would be healthy to pause around this level. But Palantir stock shows little of that trend.
SMCI stock jumped 8.5% on the week to 288.59, mainly due to Tuesday’s 14.9% rise. We earned a buy point of 317.50 from a less-than-ideal double bottom buy point. Supermicro stocks are pausing around several key levels and downtrend lines. A break above Wednesday’s high of 297.48 could allow for early entry.
These are just some of the many AI-related initiatives, many of which may depend on Nvidia’s revenue and guidance.
market rise analysis
The stock market rally continues to be very strong, reflecting future power trends. Investors can continue to add exposure, but may decide to wait for a new setup or his Nvidia earnings.
There are a lot of important financial reports this week. On Tuesday, the same day as Nvidia’s report, Abercrombie & Fitch (ANF), american eagle outfitters (AEO), urban outfitters (URBN) and China miniso (MNSO) is being tapped.
Continue building your watchlist. I want to be prepared in case the market rally accelerates again. Conversely, develop a strategy in case the market or a particular holding declines significantly.
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