Dow Jones Futures: Boeing, Apple Chipmaker In Buy Zones; Tesla is late to the GM deal

Dow futures fell overnight, along with S&P 500 futures and Nasdaq futures. DocuSign earnings and Tesla charging deal with general motors (GM) have been focused on overnight.

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The stock market rally showed modest to strong gains on Thursday on the major indices, with the Nasdaq rebounding somewhat after a bearish reversal on Wednesday. Meanwhile, small and medium-sized businesses fell slightly, bottoming out and giving back only a portion of the advance they had made recently.

Dow Jones giant Boeing (Bachelor’s), Cardinal health (CAH), floor and decoration (FND) And TG treatments (TGTX) in the purchase areas.

That’s how it is Taiwanese semiconductor industry (TSM). Taiwan Semi is the world’s largest chip foundry, making semiconductors for nvidia (NVDA), apple (AAPL), Qualcomm (QCOM) And many other things. Reports of half of Taiwan’s May sales early Friday.

Tesla (TSLA) extended a record streak for days with high volumes on Thursday. After the shutdown, news broke that General Motors would use Tesla’s charging and supercharging technology. A similar deal followed with Ford Motor (F) announced in late May. TSLA and General Motors stock rose in an extended trade.

DocuSign (DOCU) announced its first-quarter financial results late Thursday. DOCU stock rose 5% in extended trading on its earnings guidance. The digital document and e-signature software company has a 69.45 base purchase point, regaining the 200-day streak in late May. DocuSign stock rose 2.2% to 58.48 Thursday.

Tesla and Nvidia stocks are running IBD Leaderboard. BA stock was added to SwingTrader on Thursday, joining FND stock. Floor & Decor was Thursday’s stock from IBD.

Dow jones futures today

Dow futures fell 0.15% against fair value. S&P 500 and Nasdaq 100 futures fell 0.1%. Tesla stock is a major member of the S&P 500 and Nasdaq 100.

Late Thursday, former President Donald Trump said on his Truth Social website that federal criminal charges have been filed related to classified documents kept after he left the White House. Trump’s criminal indictment, the second this year, has been confirmed by multiple organizations.

Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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Stock market rise

The stock market rally gradually improved during the day on Thursday, with indexes closing near session highs.

The Dow Jones Industrial Average rose 0.5% in stock market trading Thursday. The S&P 500 rose 0.6%. The Nasdaq Composite Index rose 1.0%. Small cap Russell 2000 fell 0.4%.

US crude oil prices fell 1.7 percent to $71.29 a barrel.

The 10-year Treasury yield fell 7 basis points, to 3.71%.

Exchange Traded Funds

Among the ETFs, the Innovator IBD 50 ETF (fifty(up 0.8%, while the Innovator IBD Breakout Opportunities ETF)fit) increased by 0.5%. iShares Expanded Technology and Software ETF (IGV) rebounded 1.3%. VanEck Vectors Semiconductor Corporation (SMH) by 1.2%. TSM stock is a huge SMH component, along with Nvidia.

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(up 1% and ARK Genomics ETF)ARKG) decreased by 0.1%. Tesla stock is the number one stock ETF held by Ark Invest.

SPDR S&P Metals & Mining ETFs (XME(down 0.2% and the Global Infrastructure Development Fund (ETF) in the USA)cradle) decreased by 0.1%. US Global Gates Foundation ETF (Planes) rose 0.6%. SPDR S&P Homebuilders ETF (XHB) was down 0.35%, as FND stock was carrying XHB significantly. Energy Defined Fund SPDR ETF (xle(waived 0.4% and the SPDR Fund to choose the healthcare sector)XLV) increased by 0.6%.

SPDR Financial Selection Fund (XLF) gave up 0.1%. SPDR S&P Regional Banking ETF (KRE) decreased by 1.2%.

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Stocks in buy zones

Boeing rose 2.9% to 218.11 on Thursday, moving above various short-term highs and a trend line, providing an early entry. The volume was strong. BA stock, at 221.33 buy points, is approaching a flat base dating back nearly four months. This followed a strong move by space giant Dow from late September to mid-February.

CAH rose 2.5% to 85.33, rebounding from the 21-day and 10-week lines and breaking a short downtrend in a small consolidation above a five-month base that cleared decisively in early May. Early Thursday, Cardinal Health slightly raised the midpoint of its 2023 earnings guidance and announced a $3.5 billion buyback of CAH shares.

TGTX stock rebounded 7.3% to 28.98, moving away from the 10-week line, retracing 21 days and breaking a downtrend. Stocks nearly doubled from the late-March to early-March breach before pulling back. TG Therapeutics is still losing money. Sales were up 286% last quarter, but only to $7.8 million. Investors may get some indication of monthly sales next week.

FND stock fell 1.2% to 96.55 in light volume on Thursday. But that followed a 5.1% jump on Wednesday in heavy trade, the retracement of the 50-day line. The flooring retailer is still doable than that. Flooring & Decor stock also has 40 point-of-purchase handle mugs.

TSM stock fell 0.35% to 99.94, still above 98.99 consolidated buy point, according to MarketSmith analysis. Taiwan Semi initially jumped into buy territory on May 25, following Nvidia’s strong earnings and guidance. On Monday, the quasi-Taiwan stock fell to about the 21-day line before cutting losses. The Taiwanese semiconductor company will report May sales as early as Friday.

Meanwhile, Nvidia stock rose 2.8% to 385.10, continuing to trade in a range after the May 25 earnings gap. There is no buying opportunity for NVDA stock right now, although a narrowing or pulling down pattern on, say, the 21-day line could provide opportunities to add shares.

Tesla stock

Tesla stock rose 4.6% Thursday to 234.86, its highest level in seven months. The electric car giant is now up for 10 sessions, its longest winning streak since 11 sessions in January 2021. But it posted nine straight gains on above-average trading volume. TSLA stock has been extended incrementally from the buy point of 207.79.

Tesla-GM charging deal

In Thursday night’s deal with Tesla-GM, GM will get 12,000 SuperChargers via adapter next year. GM will also begin using the charging port used by Tesla starting with the 2025 models. The deal will provide a boost to Tesla’s revenue, but also significantly boost charging options for GM and Ford as they ramp up production of electric vehicles.

Tesla stock jumped 5% late.

General Motors stock rose 4% overnight, indicating a return above the 200-day line.

Market rally analysis

The stock market rally had another constructive day, with Wednesday’s losers generally finding support while recent top gainers resisted big pullbacks.

The Nasdaq rebounded from above its 10-day line after leading a decline on Wednesday. But it is unclear if it can make a big move without a longer pause or drawdown. The Composite Index and the Nasdaq 100 are no longer extended from their 50 day lines, but it wouldn’t take much for them to look extended again.

The S&P 500 is trading at its 2023 highs and just below its 52-week peak. The Dow Jones index surpassed its highest levels last week and is not far from its best levels of the year.

In general, the winners and losers were approximately equal, the applicants having decisively won the previous two rounds.

The Russell 2000 and S&P MidCap 400 held back nearly all of Wednesday’s strong gains.

First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW) rose 0.85%, still near its 52-week high.

Invesco S&P 500 Equal Weight Fund (RSP) made little gain after a consecutive 0.7% gain.

Ideally, the Nasdaq and many of the leading technology stocks will pause or decline modestly for a while, while other sectors take over in a broader breadth. There are signs of that over the past week, but this may not last.

Leadership may be rotating, or it may be expanding. Right now, there aren’t a lot of stocks flashing buy signals.

The program took a pounding on Wednesday, though the damage to the scheme depends on whether individual names are extended or recent hacks hover around purchase points. Some of these names may recover quickly, but others may not. The chipmakers, which generally did better on Wednesday, had a number of stocks showing constructive action.

Housing stocks are generally showing strength. Travel is on the move, but not many stocks seem doable at the moment. BA stock is among the many space names that show strength, along with machinery and industrial plays in general. Some medical and medical product makers are doing relatively well.

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What are you doing now

The stock market rally is in for a sure uptrend, with the Nasdaq and S&P 500 at 2023 highs and some signs of improving supply. So investors can look forward to increased exposure, although buying opportunities are limited.

A number of stocks from a variety of sectors are creating or potentially doing so, by going out to buy pips and pulling back higher. Keep your watchlists up to date.

Adapt to market conditions and drive as they are, not what you want to be.

Read the big picture every day to stay in sync with market trend, leading stocks and sectors.

Please follow Ed Carson on Twitter at @employee For stock market updates and more.

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