Dow Jones futures: S&P 500 rockets higher on Nvidia; Carvana leads earnings move of late

Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. Mercadolibre (Millie), Carvana (CVNA) And Booking Holding (Baking) under the title of another busy night of profits.

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The stock market rally had a strong day as it rose significantly Nvidia (NVDA) The earnings sent other AI stocks higher, including Advanced micro devices (AMD) And Super micro computer (SMCI). The Standard & Poor's 500 and Dow Jones indexes recorded their highest levels ever, while the Nasdaq index jumped above 16,000 points.

Investors could have taken advantage of some buying opportunities, although there were not necessarily many. The market looks really stretched again.

Mercadolibre, Booking Holdings, Carvana, Copart (CPRT) And Flooring and decoration (National Front) reported after the close. MercadoLibre, Copart and Floor & Door stock made higher moves ahead of the results, while Carvana was preparing.

Nvidia is running IBD Leaderboard, with inventory reserved in the leaderboard watchlist. Copart is listed among IBD's long-term leaders. Nvidia, Booking, and MercadoLibre stocks are available at Bahraini dinar 50. Nvidia and Super Micro stock are on the market IBD Big Cap 20. Royal Caribbean stock was the IBD stock of the day on Thursday.

Dow jones futures today

Dow Jones futures rose 0.1% versus fair value. S&P 500 futures rose. Nasdaq 100 futures fell.

Remember, an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

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Main profits

MercadoLibre's profits fell due to one-time tax hits, although revenue growth accelerated to 42%. However, MELI shares sold off overnight, suggesting at least a test of the 50-day line. Shares of the Latin American e-commerce and payments giant rose 4.6% on Thursday to 1,817.98, hitting a two-year high and surpassing a brief consolidation just above the previous base. This would have been doable if not for the earnings report.

Booking revenue outpaces views as the online booking site begins handing out profits, but room nights sold come in slightly lower than views. BKNG stock fell in extended trading, returning to its 50-day or more line. Shares rose 4.3% to 3,901.99 on Thursday, hitting a record high.

Copart's profits and sales were slightly lacking. CPRT stock fell hard overnight. The salvage car auction site rose 1.1% on Thursday to 49.41, bouncing from the 50-day line to above the 21-day line, as well as breaking a short downtrend. This could have provided an early trade or a place to start locking down a long-term leader, if not for Copart's earnings looming large. Copart has a buy point of 51.53 from a flat base, base-on-base structure.

Carvana provided upbeat 2024 guidance despite reporting a larger-than-expected loss and lost revenue. CVNA stock rose in an extended move. The online car dealership jumped 6.1% to 52.41 on Thursday, rebounding from a 50-day streak. Investors can use the Feb. 15 high of 57.89 as an early entry inside the cup base on the daily chart, or as a legitimate buy point on the weekly chart, according to MarketSmith analysis. The basic buy point for the cup on the daily chart is 62.59.

Flooring and Decoration beat earnings easily, although earnings per share guidance was light. FND stock rose modestly in overnight trading. Shares of the flooring retailer rose 3.9% to 113.53 on Thursday, breaking a trend line and short-term resistance at 112.57. The official buy point is 116.70 from a flat base next to the top of a cup base with a depth of 34%.

Stock market pool

The stock market rally, after pulling back in anticipation of Nvidia's earnings, showed strong gains on those strong results.

The Dow Jones Industrial Average rose 1.2% in stock market trading Thursday, with the S&P 500 up 2.1%, both at record levels. The Nasdaq Composite Index jumped 2.9%, returning above the 16,000-point level and achieving the highest closing level in two years. It is just below the two-year best on February 12 with the November 2021 all-time high just above that.

Market breadth was positive, but not significantly.

The small-cap Russell 2000 rose nearly 1%, back above the 2,000 level but has been stuck in a range since the final days of 2023.

Invesco S&P 500 Equal Weight Fund (RSP) by 1%, lagging the S&P 500 but reaching a record high. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) jumped 2.3%, briefly hitting a new record high although not as strongly as the Nasdaq 100's 3% rise.

RSP and QQEW – as well as the sector ETFs below – point to broad market leadership.

While shares of Nvidia, AMD and AI advanced Thursday, a number of non-technology stocks rose or flashed buy signals on earnings or guidance, such as Iron Mountain (IRM), Nordson (NDSN), Royal Caribbean (kick), Quanta Services (PWR) And TechnipFMC (Fast Track Initiative).

However, with Thursday's big gains, the S&P 500 and Nasdaq are already extending their 50-day limits. While they can certainly continue to rise, the risks of another pullback will grow. Bullish sentiment was high even before Thursday's big moves.

US crude oil prices rose 0.9 percent to $78.61 per barrel, near their highest levels this year.

The 10-year Treasury yield rose slightly at 4.33%, reaching a new three-month high of 4.35% during the day. Investors are now anticipating three rate cuts from the Fed, with the odds of a fourth cut falling by a quarter point to below 50%.

ETFs

Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) rebounded by 2.6%. VanEck Vectors Semiconductor ETF (Trait) by 6.8% to a new high. Nvidia is the No. 1 stock in SMH, and AMD is also a large component. Innovator IBD ETF stock jumped 4.5%.

Reflecting more speculative stocks, the ARK Innovation ETF (Ark(2.5% and ARK Genomics ETF)Arkj) advanced by 2.3%.

SPDR S&P Metals and Mining Fund (XME(0.1% and Global X US Infrastructure ETF)cradle) rose 1.5%, hitting a new high. US Global Jets ETF (Planes) by 1.3%, recording its highest level in six months. SPDR S&P Homebuilders ETF (XHB) rose 1.7%, almost achieving its best level ever. FND stock is the property of XHB.

Energy Select SPDR ETF (XLE) rose by 0.1%. Healthcare Select Sector SPDR Fund (Forty-fifth(and the SPDR Industrial Sector Fund)forty-first) Both advanced 1.2% to new highs. Financial Select SPDR ETF (XLF) rose 1.3%, its best level in two years.

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Nvidia shares, these AI plays are rising

Nvidia stock rose 16.4% to 785.38, rebounding from the 21-day moving average to hit a record high. Q4 results were phenomenal, with Nvidia's profits up 486% and revenue up 265%. The AI ​​chipset leader also gave bullish guidance and was very bullish on generative AI. Existing Nvidia holders were able to add a few additional shares on Thursday, but it's pretty stretched so investors should be careful about opening a new position.

AMD stock jumped 10.7%, rebounding from its 10-week line and surpassing the bulk of the short consolidation, posting a record close of 181.86. It's already a big outside week for AMD, Nvidia's close competitor. Investors would have taken a position on Thursday morning, but it has extended from the 50-day/10-week lines now.

Super Micro stock rose 33% to 972. This after showing what looked like a peak peak on Friday – after an admittedly short period – and continuing the downtrend to start this week. But sometimes, it seems like a stock has reached a peak, but then it quickly corrects itself and makes another big move. Super Micro AI servers are a big beneficiary of Nvidia and other AI chips. However, there is really no entry for SMCI stock.

What are you doing now

Investors could have taken advantage of some buying opportunities, whether in AI or technology or not, especially if they reduced their exposure over the previous week or so. But there weren't many attractive entries, and some names quickly ran out.

There was nothing wrong with enjoying Thursday's gains in your portfolio without making new moves.

With the stock market rally already looking somewhat extended, investors will want to be cautious about new purchases and adding a lot of exposure.

But you want to have your watchlists ready. Thursday morning was an example of the importance of preparation and participation.

More stocks are set for Thursday, so keep your screens running. Make sure you look beyond the realm of AI stocks.

Read The Big Picture every day to stay on top of market trend and leading stocks and sectors.

Please follow Ed Carson on topics at @edcarson1971 And X/Twitter at @IBD_ECarson For stock market updates and more.

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