Dow Jones futures rose after hours, as did S&P 500 and Nasdaq futures. broadcom (AVGO), MongoDB (MDBs) Earnings headlines for the next day are set for the August jobs report on Friday morning. Tesla (TSLA) has officially unveiled its long-awaited Model 3 upgrade overnight in China.
X
Equity markets started higher as the relatively benign PCE inflation report continued a wave of economic data favorable to the Fed. However, the major indexes held off a modest gain and ended mixedly ahead of the August jobs report.
salesforce.com (CRM), cloud strike (CRWDMore) and Octa (Octa) made a profit, but shopify (shop) and Amazon.com (AMZN) jumped to the expanded alliance.
Broadcom, MongoDB, Nutanix (NTNX), lululemon athletica (Lulu), Samsara (IoT), Dell Technologies (Dell) reported after the close. MDB stock, Nutanix and Dell were the big winners. LULU shares also rose, while Samsara and AVGO shares fell.
Tesla (TSLA) is hanging around the early purchase point. On Thursday night, the EV giant unveiled the “Highland” Model 3 in China.
Tesla China rival Lee Auto (Lee), Nio (NIO) and XPeng (XPEV) will release the August deliveries early Friday morning. EV and battery giant BYD (BYDDF) August sales are reported on Friday or Saturday. Lee Automobile’s stock price is above the 21st line, approaching the possibility of entry.
AMZN stocks and Li Auto are listed on SwingTrader. LI and IOT inventory IBD50.Lulu’s inventory IBD Big Cap 20. Amazon was IBD’s “Stock of the Day” on Thursday.
A video embedded in the article reviews the market’s rebound move, showing AMZN stock, Shopify, meta platform (meta) and general electric (GE).
job report
The Labor Department will release its August jobs report at 8:30 a.m. ET. Economists expect nonfarm payrolls to rise by 170,000 from 187,000 in July. The unemployment rate remains at 3.5%. The average hourly wage is expected to rise by 4.4% year-on-year, unchanged from July.
As of 10 am, Wall Street expects the ISM manufacturing index to rise 0.4 points to 46.8 in August, but remains below the 50 level.
dow jones futures today
Dow Jones futures beat fair value by 0.15%. S&P 500 futures rose 0.1%, while Nasdaq 100 futures edged higher.
Note that overnight trading, such as Dow futures, does not necessarily translate into actual trading on the next regular stock market.
IBD experts analyze major stocks and markets on IBD Live.
Main income
AVGO shares fell sharply overnight after Broadcom’s profits and sales edged slightly higher. The chip and software giant provided inline guidance. Broadcom shares rose 3.4% to 922.89 on Wednesday, just below the flat buy point of 923.18. The relative line of force hit new highs on Wednesday, a bullish sign.
MDB shares rose solidly in extended trading, but were far from their early highs. MongoDB’s revenue has outstripped views, and the database software company has seen solid gains. MongoDB rose 1.5% to 381.30 on Thursday. The buy point is 439, but investors may take advantage of the decisive move above the 50-day line as an early entry.
NTNX stock surged after hours, suggesting a gap from base dating back to December last year. Nutanix outstrips views and announces $350 million share buyback. Nutanix shares rose 0.9% to 31.14 on Thursday.
IOT shares fell slightly in overnight trading as Samsara posted an unexpected profit of 1 cent per share. The Internet of Things and AI relationship rose 2.2% to 27.36 on Thursday. Samsara shares have a double bottom buy point of 29.79. Investors can use the trendline break just above 28 as an early entry.
Dell’s profits easily outpaced the stock, sending it soaring to an 18-month high. Shares rose 1% to 56.24 on Thursday.
Lulu shares edged lower after lululemon’s earnings just exceeded views and a guided yoga apparel retailer lifted lululemon’s share price by 1.2% to 381.26 on Thursday, regaining the 50-day line. Rose. Investors may use the movement above the 394 area as a buying area, but LULU stock has been volatile in recent months.
stock market rise
The stock market rally was mixed and continued to be led by growth stocks.
The Dow Jones Industrial Average fell 0.5% in stock market trading on Thursday. The S&P 500 index fell 0.2%. The Nasdaq Composite rose 0.1%.
The small-cap Russell 2000 fell 0.2%, briefly rebounding above the 50-day line before reversing.
Leaders continued to perform well, with more stocks sending buy signals, such as AMZN shares. Leadership continues to expand, with growth and energy performing well, housing sector recovering, various industrial/construction/metals performing well, and even travel doing well.
US oil prices jumped 2.45% on Thursday to $83.63 a barrel. Crude oil futures are up 23% over the past three months.
Copper futures fell 0.3% on Thursday, but fell 5.6% for the month.
The 10-year U.S. Treasury yield fell three basis points to 4.09%. 10-year bond yields are down 15 basis points so far this week.
Friday’s jobs report and other economic data will be key to the gains in US Treasury yields and stock markets.
ETFs
Among Growth ETFs, Innovator IBD 50 ETF (FFTY) increased by 0.55%. iShares Augmented Technology Software Sector ETF (IGV) rose 0.8%. IOT Stock and Nutanix are IGV components. VanEck Vectors Semiconductor ETF (SMH) rose 0.4%. AVGO shares are significant holdings of SMH.
A stock that reflects a more speculative story, the ARK Innovation ETF (Arkuk) rose 0.5%, while the ARK Genomics ETF (Argu) was just above breakeven. Tesla shares are the number one holding of all Ark Invest ETFs. SHOP stock is also a top ten holding.
SPDR S&P Metals & Mining ETF (XME) rose 0.15%. US Global Jets ETF (Jets) fell 0.3%. SPDR S&P Homebuilders ETF (XHB) rose 0.3%. Energy Select SPDR ETF (XLE) rose 0.1%, while the Healthcare Select Sector SPDR Fund (XLV) fell 1.2%.
Industrial Select Sector SPDR Fund (XLI) retreated by 0.45%.
Financial Select SPDR ETF (XLF) fell 0.4%. SPDR S&P Regional Banking ETF (KRE) rose 0.5%.
Top 5 Chinese stocks to watch right now
Tesla Model 3 upgrade
Tesla launched its upgraded Model 3 in China on Friday. The Shanghai factory has been ramping up production of the Hyland Model 3 in recent weeks. Dealers are also taking pre-orders in the coming weeks.
Looking at the photos of the new Model 3, you can see that the exterior and interior have been refreshed moderately.
The big question is whether Tesla will keep the Model 3’s price the same or cut it to meet growing demand. The upgraded EV is reportedly cheaper to produce, and Tesla says its pricing gives it room to boost its profit margins and sales.
Tesla China is likely to start exporting the new Model 3 to Europe and other major markets later this year.It’s unclear when Tesla’s Fremont factory will start manufacturing the new version for the U.S.
Meanwhile, Tesla appears to be stepping up discounts on its North American inventory of Model 3 and Model Y amid continued pressure on margins. Federal prosecutors are also reportedly investigating Tesla for misappropriating funds and inflating battery range. But they don’t seem to bother investors so far.
Tesla shares climbed 0.5 percent to 258.08 on Thursday, continuing to climb above the 50-day line after Tuesday’s surge. Investors may use Thursday’s high of 261.18 as an early entry. The EV giant’s official buy point is 299.29 points, according to Marketsmith analysis.
Chinese EV sales
Li Auto, Nio and XPeng will report August deliveries early Friday.
Li Auto will probably report more than 30,000 shipments again, despite limited production capacity. But on Wednesday, Mr. Li unveiled an insurance subsidy that would mark his first entry into China’s EV price war. Lee shares fell 0.8% to 41.65, maintaining the 21st line.
Nio deliveries are likely to reach around 20,000 in August, but the EV startup gave a conservative forecast for August-September sales earlier this week. Nio shares fell 3.75% between the 50-day and 200-day lines on Thursday.
Production of XPeng’s new crossover G6 is gradually recovering, and XPeng’s deliveries are expected to exceed 10,000 units again. XPEV shares fell 5.8%, a solid performance after a big move in recent months.
BYD could announce its August sale on Friday or Saturday. It is unclear whether the Chinese EV and battery giant will surpass its July record of 262,161 units. Exports are increasing. BYD shares fell 0.3% on Thursday, just below the 50-day line. The stock is up 9.2% this week after a sharp drop earlier this month.
Timing the Market with IBD’s ETF Market Strategy
what to do now
The stock market rally on Thursday paused, but continues to perform well. Major indices continued Tuesday’s decisive gains, making for a strong week. More stocks are offering buying opportunities and more are in the works.
Investors should gradually add exposure as the market continues to perform well. If you add 5%, 10% each day, it doesn’t take long to be significantly or fully invested.
Keep your watchlist up-to-date and ready. The extra work will ensure that you have the right inventory at the right time.
Friday’s reaction to the August jobs report will matter.
Read “The Big Picture” daily to stay on top of market direction and key stocks and sectors.
Follow Ed Carson on X/Twitter. @IBD_ECarson Stock market updates and more.
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