Dow Jones futures edged up last night along with S&P 500 futures and Nasdaq futures. salesforce.com (CRM) Earnings soared overnight after the Fed’s favorite inflation report.
The stock market bounced slightly higher on Wednesday after Tuesday’s follow-through date confirmed a new uptrend. The ADP employment report was weaker than expected after Tuesday’s surprisingly weak job openings data.
CRM stocks and Okta surged overnight, indicating a buying opportunity. Veeva, Pure Storage and CRWD stocks also rose.
all night again shopify (shop) rose strongly after Amazon announced a deeper integration between the two e-commerce giants. Amazon is launching a “Buy with Prime” app for Shopify, allowing merchants to give shoppers the option to buy items with Prime benefits.
METAIn Stock IBD Leaderboard.
PCE Inflation Report
The Commerce Department will release the PCE price index for July, the Fed’s favorite inflation gauge, at 8:30 am ET on Thursday.
Economists expect the private consumption expenditure price index and core PCE to rise slightly by 0.2% from June. Overall his PCE inflation is expected to rise to 3.3% from 3% in June as the year-on-year tightened. Core PCE inflation should rise to 4.2%.
Fed Chairman Jerome Powell said in his report that he is watching the supercore inflation indicators of energy and services prices, excluding housing.
Also at 8:30 a.m. ET, the Department of Labor releases data on weekly unemployment claims. This comes ahead of the September jobs report, which is released on Friday. This comes after a shockingly low job openings figure released in the weak ADP employment report released on Tuesday and Wednesday.
dow jones futures today
Dow Jones futures rose 0.25% relative to fair value, and CRM stock became a constituent of the Dow. S&P 500 futures were up 0.1% and Nasdaq 100 futures were up 0.2%.
The PCE inflation report is likely to move Dow futures and US Treasury yields before the opening.
China factory activity contracted for the fifth straight month in August. The official manufacturing PM was 49.7, just below breakeven. This was up 0.4 points from July and surpassed 49.4 points of views. The non-manufacturing index fell from 51 to 51.5 in July to 53.2 in June.
Note that overnight trading, such as Dow futures, does not necessarily translate into actual trading on the next regular stock market.
CRM shares rose solidly in extended trading and signaled an entry above the 50-day line after Salesforce’s earnings outperformed second-quarter views and the business software giant led the gains. Salesforce rose 1.45 percent to 215.04 in regular trading on Wednesday. The buy point for CRM stock is 238.22, according to MarketSmith analysis.
CRWD shares trended higher after an initial drop on Wednesday evening. CrowdStrike revenue surpassed views, cybersecurity firm boosted EPS. On Wednesday, CrowdStrike shares rose 1.7% to 149.18, just below the 21- and 50-day lines. A move above the Aug 24 high of 155.55 would provide an early entry for the upstart CRWD stocks.
OKTA’s share price soared overnight, signaling an early entry after the cybersecurity firm easily outperformed its EPS view. OKTA shares rose 2.4% to 73.57 on Wednesday, rebounding from the 50-day line and regaining the 200-day line. A strong rally from these levels, perhaps above the July 31st high of 76.94, will allow early entry. The buy point for OKTA stock is 91.50.
VEEV stock rose a little later after Veeva’s earnings slightly outperformed and the life sciences software maker provided mixed outlook. The stock fell 0.2% to 192.59 on Wednesday, but remains below the 50-day line. Veeva shares have a buy point on a flat basis of 211.95, but above 50 days could be an early entry opportunity.
PSTG shares rose slightly overnight after Pure Storage’s view slightly outperformed. Pure Storage stock rose 0.4% to 36.48 on Wednesday after hitting 50-day resistance. This data storage company has a flat base with a buy point of 39.19. A breakout of the August 23 high of 38.49 would be a slightly early entry.
stock market rise
Wednesday’s gain in the stock market showed a modest rally, fueling Tuesday’s big rally.
The Dow Jones Industrial Average rose 0.1% in stock market trading on Wednesday. The S&P 500 index rose 0.4%. The Nasdaq Composite rose 0.5%. Small-cap Russell 2000 rose 0.4%.
US oil prices rose 0.6% to $81.63 a barrel. Crude oil prices rose 3.5% in five consecutive victories.
The 10-year Treasury yield held at 4.12% after falling 9 basis points on Tuesday.
Among Growth ETFs, Innovator IBD 50 ETF (FFTY) rose 0.6%. iShares Augmented Technology Software Sector ETF (IGV) rose 0.9%. CRM shares are IGV’s primary holdings, which CrowdStrike is also a component of. VanEck Vectors Semiconductor ETF (SMH) increased by 0.5%.
SPDR S&P Metals & Mining ETF (XME) fell 0.3%, while the Global XUS Infrastructure Development ETF (pave) increased by 0.2%. US Global Jets ETF (Jets) fell 0.7%. SPDR S&P Homebuilders ETF (XHB) rose 0.9%. Energy Select SPDR ETF (XLE) rose 0.5%, while the Healthcare Select Sector SPDR Fund (XLV) fell 0.1%.
Industrial Select Sector SPDR Fund (XLI) increased by 0.45%.
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Featured mega cap
Tesla shares fell 0.1 percent to 256.90. The 7.7% gain capped Tuesday, barely breaking a three-day winning streak. TSLA shares closed just above the falling 50-day moving average. Early entries will be allowed once it breaks above Tuesday’s high of 260.51. Tesla shares hit a new benchmark with a buy point of 299.29.
Federal prosecutors and the SEC are investigating a secret Tesla project described internally as being the special home of CEO Elon Musk. wall street journal It was reported Wednesday night, citing people familiar with the matter.
Apple stock rose 1.9% to 187.65, regaining the 50-day line with slightly above-average trading volume. It is to provide early entry. AAPL shares have a flat base entry at 198.23. On Tuesday, tech giant Dow Jones announced that it will hold an event on September 12th where it will unveil the Apple iPhone 15.
The meta stock fell 1% to 295.10, hitting 50-day resistance. A clear break above the 50-day line would allow early entry into the new consolidation.
AMZN shares rose 0.1% to 135.07, just above the 21-day and 50-day lines. Unlike the other three megacaps here, Amazon stock is retreating towards the supported 50-day line. If there is a strong backlash here, there is a possibility of entry. Amazon stock is likely to see a short-term consolidation and a flat base. Investors may see this as a clue to a year-long merger.
AMZN’s stock price changed little overnight despite the Shopify news.
market rise analysis
Stock market gains traded subdued after a game-changing advance on Tuesday. That’s fine. If a confirmed uptrend fails, it usually stalls quickly. Instead, the major indices held the 50-day line on Wednesday and rose slightly.
After rebounding from Friday’s 200-day line test, the Russell 2000 rose to the 50th and closed just below that level.
Meanwhile, a few more stocks offered buying opportunities. A handful of major stocks offered flash entries on Tuesday, mostly in growth areas. A few more growth stocks triggered buy signals on Wednesday, as did stocks in various sectors.
Many other names have been set. Therefore, should this market rally show further strength, we can expect significant buying opportunities from various sectors.
Falling U.S. Treasury yields on the back of weak economic data is key to the market’s rebound. Therefore, Thursday’s PCE inflation report and Friday’s jobs report will have a big impact on US Treasury yields and stock market gains.
Timing the Market with IBD’s ETF Market Strategy
what to do now
Investors could and probably should have bought something on Tuesday’s follow-through date. We could have had a little more exposure on Wednesday.
Do so gradually as the market pulls you in. Key economic reports due for the weekend increase the risk of a rebound, especially given the weak labor data fueled the gains this week.
But for now, it’s a solid upward trend, and major stocks are doing well. Keep your watchlist up to date and ready to take advantage of the best opportunities.
Read “The Big Picture” daily to stay on top of market direction and key stocks and sectors.
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