Dow Jones futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures. palo alto networks (Panwoo) and Cisco Systems (CSCO) dived late to the instruction. walmart (WMT) and alibaba (Baba)Tap.
The stock market rally added to Tuesday’s broad and strong gains, but ended well below Wednesday’s intraday high. U.S. Treasury yields have rebounded after falling sharply on Tuesday.
President Joe Biden met with Chinese President Xi Jinping near San Francisco on Wednesday.
microsoft (MSFT) on Wednesday with an in-house AI chip, arm holdings (arm)Design of. Microsoft AI chips could help reduce the Dow giant’s dependence. Nvidia (NVDA). Advanced Micro Devices (AMD), super microcomputer (SMCI), ARM stock also moved on the Microsoft news.
Microsoft and Nvidia stock prices are on the rise IBD Leaderboard. MSFT stock is listed on the IBD Long-Term Leaders List. LI stock, Super Micro, Nvidia, Microsoft are on the rise IBD50. PANW stock and Microsoft are on the rise IBD big cap 20.
PANW stock fell steadily in extended trading, but it has fallen off its initial lows. Palo Alto’s revenue beat first-quarter earnings estimates, but the cybersecurity giant lowered its full-year billings target. Shares fell 1.9% to 256.18 in Wednesday trading, below the buy point of 258.88.
CSCO stock plummeted overnight. Cisco’s revenue beat first-quarter earnings estimates, but Dow Jones’ networking giant lowered its full-year outlook. The stock rose 0.2% to 53.28 on Wednesday, just below its 50-day line.
Arista Networks fell slightly in extended trading.
Walmart rose slightly Wednesday in the buy zone as rivals the goal (target) rose sharply due to strong performance. BABA stock rose 3.8% JD.com (J.D.) exceeded the number of views, but the two major Chinese e-commerce companies are far behind their highs.
Dow Jones futures today
Dow Jones futures fell 0.1% to fair value. S&P 500 futures fell 0.2%. Nasdaq 100 futures fell 0.25%. Cisco stock is a component of the Dow Jones, S&P 500, and Nasdaq 100. PANW stock is a member of the S&P 500 and Nasdaq 100.
The yield on the 10-year Treasury note fell several basis points to 4.5%.
Crude oil futures fell slightly.
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
Stocks’ gains widened on Wednesday, but the gains narrowed after a rebound in U.S. Treasury yields and Microsoft’s AI announcement.
The Dow Jones Industrial Average rose 0.5% in stock market trading Wednesday. The S&P 500 index rose nearly 0.2%. The Nasdaq Composite rose 0.1%.
The Nasdaq rose above its September high during the day, but has since fallen back. The Nasdaq 100 is just shy of its 52-week high set in July.
The small-cap Russell 2000 rose 0.2%, paring intraday gains after hitting resistance near its 200-day line. Invesco S&P 500 Equal Weight ETF (RSP) rose 0.5%, just below 200 days. Both regained their 50-day line on Tuesday.
As the market widens, it seems constructive that growth stocks, which have been rising, will take a lull. Both factors can create new purchasing opportunities.
US crude oil prices fell 2% to $76.66 per barrel.
The 10-year Treasury yield rose 9.5 basis points to 4.535%, after falling 19 basis points on Tuesday.
Among growth ETFs, iShares Expanded Technology Software Sector ETF (IGV) fell 0.6%, with MSFT stock being a major holding, and Palo Alto also being an important component. VanEck Vectors Semiconductor ETF (SMH) rose 0.1%. Nvidia stock is a major component, and AMD is also a notable holding.
SPDR S&P Metals & Mining ETF (XME) Advanced 0.2% SPDR S&P Home Builders ETF (XHB) fell 0.2%. Energy Select SPDR ETF (XLE) fell 0.2%, while the Healthcare Select Sector SPDR Fund (XLV) increased by 0.1%.
Top 5 Chinese stocks to watch right now
microsoft AI chip
Microsoft announced Azure Maia AI chips and Arm-powered Azure Cobalt CPUs at the Ignite 2023 conference. The goal is to reduce dependence on Nvidia AI chips. Earlier this year, there were rumors that Microsoft was working on an AI chip with AMD.
Microsoft plans to deploy Maia AI chips into its data centers early next year. It powers Microsoft Copilot and Azure OpenAI services. Azure Cobalt is a general-purpose data center chip also coming in 2024.
MSFT stock rose 13 cents to 369.65, falling within a cup-based buy point of 366.78.
Nvidia stock fell 1.55% to 488.88, retreating from Tuesday’s record closing price but paring the loss. The stock remains above the double-bottom buy point at 476.09. Nvidia’s financial results are scheduled to be released on November 21st.
AMD stock fell 1.6% to 118 shares. Following the financial results, stock prices have been rising on the right side of the cup basis. The buy point is 132.83, but the handle will be convenient.
ARM stock jumped 3.7% to 55.43. The British wireless chip designer went public at 51 shares per share, reaching 69 shares on September 15, its second day of trading. However, the stock price fell to 46.50 last month. Investors may use resistance just above 56 as an early entry.
SMCI stock fell to 287.78. Super Micro has been a big AI winner by running Nvidia chips on its servers, but it should be able to work with a variety of AI chips. SMCI stock is trading mainly on some early entries after surging 14.9% on Tuesday. According to MarketSmith analysis, the stock has an unsightly double-bottom base with an official buy point of 317.50.
Tesla stock rose 2.3% to 242.84, returning to its 50-day line for the first time in weeks. The stock has been rising for four consecutive days, with trading volume above average on each day. TSLA stock is building the right side of a double bottom base with a buy point of 278.98. A downward trendline currently above 255 could provide an early entry.
Li Auto stock rose 1.7% to 40.53, above the early buy point of 40.14 from a too-low handle. The maker of long-range electric vehicles will begin pre-ordering its first all-electric vehicle, the MEGA minivan, on Friday.
Shares of Chinese EV and battery giant BYD rose 1.1% to 32.30. The stock has rebounded from its 50-day line on Tuesday, clearing an aggressive entry. A safer but still early entry would be 32.76 or 32.80. BYD will also hold several important events on Friday, when the auto show begins.
meanwhile, XPeng (XPEV) rebounded after mixed third-quarter results, rising 2.3% to 17.39. This is close to the near-term high of 17.91 that allows for an aggressive entry.
Tesla rallies, rivals flash buy signals
what to do now
As the market has moved up significantly over the past few weeks, many leaders have extended from buy points and moving averages. Investors could make new purchases or add to their stock, but they could also just sit still. This is why it’s a good idea to start increasing your exposure from your follow-through date.
Don’t buy extended stocks. Keep your watchlist updated. You should see a significant increase in sales over the past week or two. Be sure to cast a wide net so you don’t miss any establishments or transfers in industrial stocks, housing stocks, travel stocks, etc.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
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