Dow Jones futures were little changed early Friday, along with S&P 500 futures and Nasdaq futures, as Dow Jones giant Nike rose on the back of earnings. The Fed’s preferred measure of inflation, the Personal Consumption Expenditures Price Index, is scheduled to be released before the open.
The stock market’s rally attempt made modest gains on Thursday after a weak and mixed advance on Wednesday. Treasury yields fell from new long-term highs while crude oil fell.
If the market’s rally attempt continues to gain momentum, investors may look to a follow-up day starting next week to confirm the new uptrend. But Friday’s PCE inflation report and a potential government shutdown loom large.
Right now, this is still a market correction, but this is a critical time to create your watchlist. Meta platforms (dead)Nvidia (NVDA), Arista Networks (network), Uber technologies (Uber), Crowd Strike (CRWD), Duolingo (Ragdoll), Aehr test systems (AEHR), summary (Snaps) And Vertif (VRT) are nine tech stocks worth watching.
Shares of Meta, Vertiv, Uber, Arista Networks, CrowdStrike, and Synopsys arguably flashed or flirted with aggressive entries on Thursday.
Nvidia, Meta, and Uber stocks are in play IBD Leaderboard. SNPS stock is on IBD Long-Term Leaders. ANET, Duolingo, CrowdStrike, and Synopsys stocks are in the market Bahraini dinar 50. Nvidia and CRWD shares are on the market IBD Big Cap 20.
Dow jones futures today
Dow futures rose against fair value, even as NKE shares rose. S&P 500 futures tilted lower and Nasdaq 100 futures rose a fraction.
The yield on the 10-year Treasury note fell to 4.58%.
The PCE inflation report is sure to weigh on Dow Jones futures and Treasury yields on Friday morning.
Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Gold prices continue to decline today; These factors may have a greater impact
NKE shares rose in late trading after Nike’s earnings unexpectedly rose, although sales growth lagged behind the number of views. Nike shares closed up 0.2% to 89.63 on Thursday after hitting an 11-month low during the day.
Carnival (CCL) reports Friday morning, with its first quarterly earnings since the pandemic. CCL stock was a big winner in the S&P 500 in 2023, but has been declining since early July. Shares rose 3.3% on Thursday.
The Commerce Department will release the Personal Consumption Expenditures Price Index for August at 8:30 a.m. EST on Friday. Economists expect the general index to rise by 0.5% compared to July, driven by higher gasoline prices. The annual inflation rate for personal consumption expenditures is expected to rise to 3.5% compared to 3.3% in July. But the core PCE price index is expected to rise 0.2% again, with core inflation slowing to 3.9% from 4.2% in July.
The PCE inflation data follows the Fed’s hawkish interest rate hike expectations on September 20, which reflected relatively strong economic growth and steady inflation. The Federal Reserve expects core PCE inflation for this year to reach 3.7%. But this assumes inflation will be relatively hot in the final months of 2023, despite the recent cool trend.
So, if core PCE inflation is below the Fed’s expectations in the next few months, policymakers will have an easy excuse not to go ahead with another rate hike this year.
Stock market pool
The Dow Jones Industrial Average rose 0.35% in stock market trading Thursday, although it remains below its 200-day line. The S&P 500 index advanced 0.6%. The Nasdaq Composite Index rose 0.8%.
Market gains were broad, with winners comfortably outpacing losers. The Russell 2000 index of small companies rose 0.8%, supported by the financial sector. Invesco S&P 500 Equal Weight Fund (RSP) rose 0.7%. Both are still well below the 200-day line.
Energy stocks largely maintained Wednesday’s big gains, while technology companies rallied, along with insurance companies and various construction-related groups.
US crude oil prices fell 2.1% to $91.71 a barrel after briefly topping $95 on Wednesday evening.
The 10-year Treasury yield fell about 3 basis points to 4.6% after hitting a new long-term high of 4.69% during the day.
Stocks took off as the 10-year bond yield erased gains and turned lower.
Thursday was the second day of a stock market rally attempt for the S&P 500 and Nasdaq and the first day for the Dow Jones. A follow-up day, perhaps next week, may indicate that the uptrend may have legs.
Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) by 0.85%. iShares Extended Technology Software Fund (ETF)IGV) rose 0.8%, and CRWD stock was one of its components. VanEck Vectors Semiconductor ETF (Trait) by 1.6%, with Nvidia stock ranking first. SNPS inventory is present in both IGV and SMH.
SPDR S&P Metals and Mining Fund (XME) advanced by 1.8%. US Global Jets ETF (Planes) rose 1.2%. SPDR S&P Homebuilders ETF (XHB) rose by 1.25%. Energy Select SPDR ETF (XLE(Up 0.1% and the Healthcare Sector SPDR Fund)Forty-fifth) by 0.5%.
Selected Industrial Sector SPDR Fund (forty-first) advanced by 0.4%.
The top five Chinese stocks to watch now
Stocks to watch
Meta stock rose 2.1% to 303.96, back above its 50-day line after Wednesday’s shakeout. Investors can use Thursday’s high of 306.33 as a strong entry just above the 50-day line, with 312.87 as another early entry. The Relative Strength line is already at its 52-week high, which is a bullish sign for Meta stock.
Nvidia stock rose 1.5% to 430.89, moving toward its 50-day line. The AI chipset leader broke below the 50-day level in mid-September, but never undermined the August lows. A decisive 50-day retracement could provide a strong entry as NVDA stock works to a new base.
ANET stock rose 1.6% to 184.43, bouncing from its 50-day level to just above its 21-day level and near a downward sloping trend line. Trading volume was light, but Wednesday’s gains came in the heaviest trading this month.
DUOL stock rose 3.2% to 159.14. Shares are working on a 167.35 buy point handle from a double bottom base. The handle was formed after the initial breakout failed, but Duolingo stock found support at the 50-day line.
Uber stock rose 2.2% to 46.14, reclaiming its 50-day level and testing a short, sharp trend line. The ride-hailing and food delivery giant has an official buy point of 49.49 from a flat base, according to MarketSmith.
SNPS stock rose 3.1% to 460.71, moving back above the 50-day line and breaking a short trend line. The chip design software maker has a buy point of 468.03 or 471.15.
CRWD stock rose 1.4% to 165.25, extending a 50-day rebound. CrowdStrike has no clear base, trading sideways in a chaotic manner since the end of May, but the RS line is at its 2023 highs.
AEHR stock advanced 1.8% to 46.23 and is reaching its 50-day level after falling below that level last week. Aehr Test Systems stock has a buy point of 53.05 from an awkward cup-with-handle base. Investors can get in early with a decisive clearing of the 50-day line. Trading volume was somewhat light due to the AEHR bounce.
VRT stock rose 2.3% to 37, extending Wednesday’s rebound from a 10-week line and a 21-day retracement. A move above Thursday’s high would provide an early entry from a short trend line.
Time the market with IBD’s ETF market strategy
What are you doing now
It can be difficult to watch stocks make strong moves without jumping in. But this is still a market correction. The rally attempt has not yet proven itself. Friday’s PCE inflation report and weekend close increase the risk of stocks selling off again.
If you can’t help yourself, take small test positions to start, but be prepared to exit quickly.
For most investors, waiting for further confirmation is probably the best course of action. This is a vital time to update your watchlists. While this article highlighted promising technology names like Meta and Nvidia, energy remains the leading sector. The variety of building and construction plays looks interesting, although home builders require more time for repairs. Insurance companies do well, along with some discount companies.
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