Dow Jones futures edged higher early Thursday morning along with S&P 500 futures and Nasdaq futures. micron technology (Mu) delayed earnings reporting.
X
After Tuesday’s bullish rally, the stock market gains were marginally mixed on Wednesday. The Nasdaq Composite rose modestly, but the gains during the day narrowed.
A number of software stocks sent a buy signal. hubspot (hub), MongoDB (MDBs), data dog (DDOG), snowflake (snow), Palantir Technologies (PLTR), dyna trace (DT), confluence (CFLTMore), Samsara (IoT), monday.com (mundi) and shopify (shop). However, some trades ended well below session highs.
Nvidia (NVDA) and Advanced Micro Devices (AMD) showed some resilience following reports that the Biden administration was considering tightening restrictions on chip exports to China.
A market rally could lead to a catch-22 situation, making new purchases more risky in the short term. Investors should therefore be careful with new purchases and their handling.
micron earnings
Micron reported a third-quarter accounting loss and lower sales, which were slightly better than expected. The memory chip giant told analysts it expects fourth-quarter losses to be wider, but sales to be about the same. The company cited the recent Chinese restrictions on Micron chips as “significant headwinds that are impacting our outlook and slowing our recovery.” Still, Micron expects memory chips to bottom out.
MU shares rose 3% in pre-market trading. The stock rose 0.4% to 67.07 on Wednesday, rebounding from near the 50-day line again.
Worthington Industries (WOR) profits were easily outperformed, but revenues were insufficient. WOR stock rose 4% in overnight trading, signaling a breakout. Worthington’s shares rose 1.4% to 63.37 on Wednesday, trading at a buy point of 63.37 for the cup with handle.
MongoDB, Nvidia, Shopify, Dynatrace, HUBS in stock IBD Leaderboard. CFLT stocks and Dynatrace can be found on SwingTrader. Shares of MongoDB, HubSpot, Dynatrace, Monday.com, Datadog, and IOT are IBD50. Datadog and MDB shares are IBD Big Cap 20. HubSpot was Wednesday’s IBD Stock Of The Day.
bank stress test
As expected, the Federal Reserve announced late Wednesday that all 23 major financial institutions passed their annual stress test, with capital levels sufficient to conceive a hypothetical deep recession. This follows the banking crisis that struck earlier this spring, and the damage was concentrated at local banks. nevertheless, JP Morgan Chase (JPM), bank of america (BACs), most of the other big banks rose slightly overnight.
dow jones futures today
Dow Jones futures beat fair value by 0.3%. S&P 500 futures rose 0.3%. Nasdaq 100 futures rose 0.4%.
The 10-year U.S. Treasury yield climbed 4 basis points to 3.75%.
Note that overnight trading such as Dow Futures does not necessarily translate into actual trading in the next regular stock market.
IBD experts analyze hot stocks during the stock market rally on IBD Live.
stock market rise
The stock market rally was mixed. The Dow Jones Industrial Average fell 0.2% in stock market trading on Wednesday. The S&P 500 index fell slightly. The Nasdaq Composite rose 0.3%. The small-cap Russell 2000 was up 0.5 on him.
US oil prices rose 2.75% to $69.56 a barrel. Copper futures fell 1.6%, falling 4.9% after falling for the fifth straight session.
The 10-year U.S. Treasury yield fell six basis points to 3.71%.
ETFs
Among Growth ETFs, Innovator IBD 50 ETF (FFTY) rose 1.9% to a seven-month high.
iShares Augmented Technology Software Sector ETF (IGV) was up 0.5%, while PLTR stocks, HubSpot, Datadog, Dynatrace and Confluent were all IGVs.
VanEck Vectors Semiconductor ETF (SMH) fell 0.9%. Nvidia stock, Micron and AMD are his major holdings in SMH.
A stock that reflects a more speculative story, the ARK Innovation ETF (Arkuk) rose 2%, while the ARK Genomics ETF (Argu) rose 2.9%. SHOP stock is among the top 10 ARK holdings.
SPDR S&P Metals & Mining ETF (XME) fell 0.3%. US Global Jets ETF (Jets) rose 0.8%. SPDR S&P Homebuilders ETF (XHB) fell 0.4%. Energy Select SPDR ETF (XLE) recovered 1% and the Healthcare Select Sector SPDR Fund (XLV) decreased by 0.3%.
Industrial Select Sector SPDR Fund (XLI) flat closed.
Financial Select SPDR ETF (XLF) fell 0.2%. SPDR S&P Regional Banking ETF (KRE) down 0.5%,
Top 5 Chinese stocks to watch right now
Stocks in the buy zone
HUBS shares rose 1.7% to 524.68, rebounding from the 21-day line, breaking a brief downtrend and outperforming most of the tight 4-week pattern. Investors could have used the June 23rd high of 522.20 as an early entry. The official tight buy point is 535.12.
MDB shares surged 2.5% to hit a 52-week high of $398.02 in heavy trading. However, the stock retreated from its intraday high of 414.48 and settled below the buy point of 398.89 from the three-week tight or high-tight flag. MongoDB was already flushing initial entries in the last few days.
DDOG stock rose 2.6% to 98.15, breaking the downtrend of the deep cup base handle. The official buy point is 103.80, but this early entry may be a safer bet.
SNOW stock posted a strong 3.9% jump in volume to 183.86, but was well off its intraday high of 191.94. Snowflake shares may break a new handle downtrend with a long-term consolidation, but failed to close above the previous buy point of 185.
PLTR shares, which had just recovered their level on Tuesday, rose 4.6% to $15.28, rebounding from the 21st line. However, both profits came at below-average volumes for Palantir.
DT shares rose 1.4% to 51.20, rebounding from the 21st line in a three-week tight run just above the buy zone. But the stock closed in the lower half of the range.
CFLT shares climbed 5.4% to 35.54, rebounding 21 days after consolidating for several weeks, slightly above previous benchmarks.
IOT shares surged 5% to 27.03, recovering 21 days of decline and breaking a brief downtrend. It has hit resistance on the 10th.
MNDY shares rose 2.7 percent to 172.72, above the buy point of 171.89, according to MarketSmith analysis. Already a short downtrend is about to break.
SHOP shares rose 1.3% to close at 64.62, rebounding further from the 21st line and breaking a brief downtrend. Volumes were low and the stock retreated from intraday movement above 65.54 buy points. Shopify’s stock has held firm after earnings disparities in early May.
nvidia stock
The Biden Administration Is Considering New Plans Export restrictions on artificial intelligence chipsThe Wall Street Journal reported Tuesday night.
The Commerce Department could stop shipments of AI chips by companies such as Nvidia to China and other countries of concern without obtaining prior licenses. Late last year, the United States imposed a drastic export ban on China, but Nvidia tweaked some of the affected chips to circumvent the restrictions. Those chips can be targets.
Nvidia shares fell 1.8 percent to 411.17, above the 21-day line near the middle of the range. It was an inside day until Tuesday and an inside day until Monday. A break above Tuesday’s 419.40, though the 21-day decline has not yet been extended, will break the brief downtrend and offer an opportunity to add a few shares or perhaps open a small position. The 10th line will also be one of the opportunities.
AMD shares fell 0.2% to 110.19, rebounding from the 10-week line during the day after a large decline in the past few weeks.
Stock market predictions for the next 6 months
market rise analysis
The Nasdaq continued its rally from its 21-day moving average on Tuesday, but closed the intraday high. It is trying to break the downtrend caused by the recent pullback.
The S&P 500 and Dow Jones fell slightly after breaking the downtrend on Tuesday.
Russell 2000 started low but ran into resistance at the 10-day line before improving with a slight gain
Invesco S&P 500 Equal Weight ETF (RSP) fell 0.2%, while the First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) rose 0.2% on Tuesday after both rallied from the 21-day line and broke out of the downtrend. So far this week, both have significantly outperformed the RSP and QQQ.
Market width was slightly positive, with gainers outnumbering losers.
Major stocks traded strongly. The software had Palantir, Snowflake, MongoDB, Shopify, and many other buying signals besides the names I’ve cited here.
Nvidia stock and other chip trends showed resilience.
Chipotle Mexican Grill (CMG), Extreme Networks (extra), Transmedics (TMDX), trade desk (TTD), carpenter technology (CRS) and super micro (SMCI) Cleared various purchase points.
The major stocks appear to be willing to go higher with even a modest rise in the major indices, but how much room is there?
At least for now, the market rally and major stocks are in a catch-22 situation. A renewed pullback in recent days would threaten the bullish performance of the past few days. But if the market is trending higher, the likelihood of another imminent drop will rise rapidly. It is also not suitable for new purchases.
The Nasdaq is currently 6.6% above its 50-day moving average. The Nasdaq 100 is 7.5% higher than the 50th after surpassing 8% during the day. It doesn’t take long for them to return to extreme levels of 10% or more.
Timing the Market with IBD’s ETF Market Strategy
what to do now
Many stocks are sending buy signals, offering investors an opportunity to add additional exposure.
The market rally is about to strengthen again. But if the Nasdaq makes a big gain soon, it could soon pull back again. So this could be a short-term ceiling for the market.
Such a back-and-forth move may not be too worrying for existing positions with significant profits, but it can be a cautionary tale for new purchases. An investor may want to grab a partial profit quickly.
It’s important to keep your screen running and your watchlist up to date. With an extensive list of strong stocks across major sectors, we pay special attention to a few viable or near-viable stocks that are of most interest.
By creating these lists and using alerts, you can jump on the leading stocks that are close to entry. As Wednesday’s action showed, that could help limit the risk of a reversal from highs.
Read “The Big Picture” daily to stay on top of market direction and key stocks and sectors.
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