Dow Jones futures rose modestly on Thursday, along with S&P 500 futures and Nasdaq futures. The US stock market is closed for Thanksgiving.
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The stock market rebounded slightly higher on Wednesday. Nvidia (NVDA) fell on the back of impressive returns, but managed to break out of the lows and remain in the buy zone.main rival Advanced Micro Devices (AMD) broke through the buy point. Google’s parent company alphabet (Google) and Amazon.com (AMZN) also flashed a buy signal.
meanwhile, tesla (TSLA) fell on Wednesday, reversing buying potential. Electric vehicle giants are tightening discounts in the U.S. and Europe following Elon Musk’s controversial posts last week.
Nvidia and AMZN stocks are IBD Leaderboard line up. Nvidia stock is IBD50. AMD was IBD’s “Stock of the Day” on Wednesday.
Dow Jones futures today
Dow Jones futures rose 0.1% to fair value. S&P 500 futures rose slightly, and Nasdaq 100 futures rose 0.1%.
Crude oil futures fell slightly.
The U.S. stock market was closed for Thanksgiving, but other exchanges around the world were open.
Dow Jones futures are currently closed and will reopen at 6pm ET.
On Black Friday, U.S. stock exchanges close early at 1 p.m. ET, and bond trading ends at 2 p.m. ET. Trading volumes are expected to be limited.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
Wednesday’s stock market rally came despite a modest rebound in Nvidia stock, which fell slightly on the earnings.
The Dow Jones Industrial Average rose 0.4% in stock market trading Wednesday. The S&P 500 index rose 0.4%, with AMD among the top performers and TSLA stock among the worst performers. The Nasdaq Composite rose 0.5%, but it was far from its morning high. Both prices have exceeded the highs from late August to early September, and 2023 highs are in sight.
The small-cap Russell 2000 rose 0.7% but remains below its 200-day line after hitting resistance at that key level last week.
Invesco S&P 500 Equal Weight ETF (RSP) rose 0.5%, just above its 200-day line, its highest level in two months.
US crude oil prices briefly fell 5%, then fell 0.9% to $77.10 per barrel. OPEC+ has postponed its next meeting for several days to November 30th. This shows that the push for further oil production cuts is facing some resistance.
The yield on the 10-year U.S. Treasury was essentially unchanged at 4.415%, after falling to a two-month low of 4.365% during the day.
Investors have a lot to be thankful for in November and in 2023. The Nasdaq, which has a follow-through date of Nov. 1, is up 11% so far this month and 36.3% since the beginning of the year. The S&P 500 rose 8.65% in November and is up 18.7% in 2023.
ETF
Among growth ETFs, iShares Expanded Technology Software Sector ETF (IGV) closed the trade just below the break-even point. VanEck Vectors Semiconductor ETF (SMH) fell 0.2%. Nvidia and AMD stocks are SMH’s major holdings.
ARK Innovation ETF (Arkku) rose 1%, while the ARK Genomics ETF (arcg) rose 1.3%. Tesla stock remains a major holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) is the SPDR S&P Home Builders ETF (XHB). Energy Select SPDR ETF (XLE) lost some. Healthcare Select Sector SPDR Fund (XLV) rose 0.5%.
Industrial Select Sector SPDR Fund (XLI) added 0.2%, while the Financial Select SPDR ETF (XLF) rose 0.4%.
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Stocks in buy zone
Nvidia stock fell as low as 476.90 on Wednesday, but found support near the buy point to cushion some losses, closing 2.5% lower at 487.16. This is still within the buy point of 476.09 from the double bottom criterion.
Nvidia’s revenue soared 593%, revenue soared 206%, and the AI chip leader also raised its guidance. But investors may have been hoping for a little more after beat-and-raise reports in the first and second quarters.
Still, the movement in NVIDIA stock was relatively muted compared to the previous three earnings reports.
AMD stock rose 2.8% to 122.51, clearing the cup-with-handle buy point at 122.41.
Google stock rose 1.1% to 138.49, above Thursday’s high of 137.22, allowing for early entry. The official flat base buy point is 141.22.
Amazon shares rose nearly 2% to 146.71, regaining a consolidated buy point of 145.86.
tesla stock
Tesla stock fell 2.9% off-market to 234.21, below its 50-day line. The stock has fallen just 9 cents so far this week.
TSLA stock has a buy point of 278.98 on a double bottom basis. There is a trend line extending from the July 19th high, and there is a possibility of early entry at around 253. Investors could use a move above the November 15 intraday high of 246.70 as an aggressive entry from a too-low handle.
The EV giant has increased inventory discounts on the Model 3 and Model Y to $3,000 in the U.S., and is offering deep discounts on the Model Y in Europe. Tesla is aiming to achieve its delivery goal of 1.8 million vehicles, and it appears that it will be willing to sacrifice profit margins to achieve that goal.
Meanwhile, some inventory trackers suggest the backlog of Tesla EVs has ballooned over the past week. Elon Musk’s recent endorsement of anti-Semitic posts as “actual truth” may be hurting demand for Tesla.
Tesla is scheduled to hold a Cybertruck delivery event on November 30th, but expectations have been dampened somewhat by comments from Elon Musk and other executives.
Timing the Market with IBD’s ETF Market Strategy
what to do now
Thanksgiving is a time for binge eating, but investors were supposed to take advantage of buying opportunities and eat a steady diet throughout November. At this point, exposure should be relatively heavy while many leaders are extended.
You can also make additional or add-on purchases by adding exposure or reducing your current holdings to offset them.
As the market rally looks positive, investors should look for further opportunities. Work on your watchlist to find emerging leaders in other sectors, not just traditional tech stocks.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
X/ Follow Ed Carson on Twitter. @IBD_ECarsonthread of @edcarson1971 and in the blue sky @edcarson.bsky.social The latest information on the stock market, etc.
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