Dow Jones futures were little changed after hours, along with S&P 500 futures and Nasdaq futures.
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Market is rallying again; Nvidia, Shake Shack, Tesla in the spotlight
The stock market had a strong session, with major indexes now above their 50-day lines. Strong retail sales and other economic data were also reported on Thursday – along with Walmart (WMT) Earnings – strengthened the case for a soft landing and modest rate cuts by the Fed.
Nvidia (NVDA program) Magnificent Seven stock has reclaimed its 50-day value, providing an early entry. Meta platforms (Meta) keeps sending buy signals. Tesla (Tesla) Made a very aggressive entrance, with some caveats.
Shake Shack (Shak) and GE Vernova (GIV) Purchase points have also been cleared.
The rising stock market sends a clear message to investors to add exposure, but they should do so gradually.
Applied materials (I diedAMAT reported better-than-expected earnings Thursday night and forecast a slight increase for the current quarter. AMAT shares were down modestly in late trading. The chip equipment giant jumped 5.1% in regular trading Thursday, reclaiming its 21-day streak but still below its 50-day line.
Nvidia stock is on the rise LeaderboardShake Shack and GE Vernova stocks have joined SwingTrader. Shake Shack was the IBD Stock of the Day Thursday.
The video embedded in this article covers Thursday’s bullish market action and analyzes Nvidia, Shake Shack, and Tesla stocks.
Dow Jones Futures Today
Dow Jones futures were slightly higher versus fair value. S&P 500 futures and Nasdaq 100 futures were little changed.
Remember that overnight moves in Dow Jones futures and elsewhere do not necessarily translate into actual trades in the next regular stock market session.
Join IBD experts as they analyze leading stocks and the market on IBD Live.
Stock market rise
The stock market rally has started strongly and is gaining momentum. The Nasdaq Composite has jumped to just above its 50-day moving average, while the S&P 500 and Russell 2000 are now clearly above their 50-day lines.
The Dow Jones Industrial Average rose 1.4% in stock market trading on Thursday, led by Walmart. The S&P 500 rose 1.6%. The Nasdaq Composite rose 2.3%. The Russell 2000 index of small-cap stocks jumped 2.45%. Volume was higher on both exchanges.
Thursday saw a follow-through day, a FTD-like session after the original follow-through day on Tuesday to confirm the rally. Tuesday’s FTD had some caveats, given the relatively low volume uptick from the August 5 lows. But the indices showed continued strength, breaking through key levels, along with more and more stocks flashing buy signals and extending gains.
The Nasdaq still needs to decisively break above its 50-day line, though it probably won’t happen right away. After several days of rising, the market may pull back or pause. However, this could be constructive, allowing many stocks to form lower V-shaped patterns and build handles.
US crude oil prices rose 1.5% to $78.16 a barrel.
The yield on the 10-year Treasury note rose 10 basis points to 3.92%, recovering from generally strong economic data that put an end to recession fears that emerged earlier this month. The yield on the 2-year Treasury note, which is closely tied to Federal Reserve policy, rose 15 basis points to 4.1%, back above the 4% level.
IBD Live Podcast with Charles Harris: Trade Tesla with Your Head, Not Your Heart
Exchange Traded Funds
Among the growth ETFs is the Innovator IBD 50 ETF (Boy) rose 1.3%. iShares Expanded Technology & Software ETFIGV) rose 1.8%. VanEck Vectors Semiconductor ETF (poison) jumped 4.2%. Nvidia stock is the #1 investment in SMH, with AMAT stock being a notable investment.
The most speculative story stocks, the ARK Innovation ETF (Ark) jumped 4.8% and the ARK Genomics ETF (I will ride) rose 5.4%. Tesla is a large holding across Ark Invest’s ETFs, but Meta is a bigger holding. Cathie Wood has also built a large stake in Nvidia.
SPDR S&P Metals & Mining ETF (XMESPDR S&P Homebuilders ETF ( ) rose 2%.XHP) rose 1.8%. The Energy Select SPDR ETF (XLE) rose 1.2% and the Healthcare Select Sector SPDR Fund (XLV) rose by 0.6%.
Select Industrial Sector SPDR Fund (Forty-one) rose 1.35%. Financial Select SPDR ETF (XLF) rose by 0.9%.
Nvidia Stock Volatility Surges Ahead of Earnings; Here’s How to Profit
nvidia stock
Nvidia stock rose 4.05% to 122.86, breaking above its 50-day line. The stock is now up 17% this week, though the gains came on low volume. Investors could have used Thursday’s move as an early entry or a place to start a position. Keep in mind that Nvidia’s earnings are due in less than two weeks.
Tesla stocks
Tesla stock jumped 6.3% to 214.14, reclaiming its 21-day, 50-day and 200-day lines. The stock also broke a very sharp downtrend. Investors could use Thursday’s move as an aggressive entry into Tesla stock. But if you’ve covered the stock symbol, investors may choose to look for better-looking charts and stronger fundamentals.
Meta Stock
Meta shares rose 2% to 537.33, just shy of the record high of 542.81 set on July 8. In another day, that could be a new cup base for the parent company of Facebook and Instagram. The shares have been actionable through various entries, including a move Tuesday above the Aug. 1 post-earnings short-term high of 527.17.
GE Vernova Stock
GE Vernova shares rose 2.5% to 188.82, above a 185.50 buy point. Shares of the old General Electric Co. power company went public in late March and have been on a fast-track rally. GEV shares have rebounded strongly from an Aug. 5 low of 150.01.
Shake Shack Stock
Shake Shack rose 4.9% to 109.49, topping out at 105.68. The index started with an earnings gap on Aug. 1. Shares tested the 50-day line amid a global selloff on Aug. 5, but quickly rebounded.
What are you doing now
A rising stock market signals investors to increase their exposure. As long as the market and your holdings are making progress, you can continue to make new or additional purchases. But do so gradually.
With the Nasdaq rebounding and Nvidia back above its 50-day line, investors may want to shift their focus from defensive and growth stocks to growth stocks. But that doesn’t mean defensive stocks can’t continue to perform well.
A variety of sectors are showing strength, so your watchlists should reflect that.
Read The Big Picture every day to stay informed on market trends, leading stocks and sectors.
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