Nvidia Skid raises questions, and 3 stocks are close to buy points; Future Fed Inflation Gauge | Daily investor business

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. Micron technology (Mo) Earnings and the Fed’s preferred measure of inflation headline next week.

↑
X

Now play
What to expect after a bearish reversal? Nvidia, Alphabet and Spotify are in focus

The stock market rally saw weekly gains, with the S&P 500 and Nasdaq Composite hitting all-time highs on Thursday morning. But there was some weakness late in the week.

Nvidia (NVDA) and other artificial intelligence chipsets play like Broadcom (Afgo), Taiwan Semiconductor Co., Ltd (TSM), Holding arm (arm) Micron stock reversed a decline from record highs after big moves in recent weeks. Nvidia stock in particular has been flirting with very extended levels.

Micron’s earnings late next Wednesday could be key to whether this AI chip play finds support or suffers a more serious decline.

Carnival (CCL), fedex (FDX) and a Dow Jones component Nike (Nicky) also report this coming week. The three stocks were laggards but will provide reads on the economy and consumer spending.

Amazon.com (Amzn), Meta platforms (dead), Nu Holding (No) Stocks are prepared.

Nvidia and Taiwan Semiconductor stock is in play IBD Leaderboard. Meta, Nu Holdings, and Amazon stocks are available on SwingTrader. Nvidia and Arm Holdings shares are in the market Bahraini dinar 50. Broadcom and Nvidia shares are in the market IBD Big Cap 20.

The Federal Reserve’s measure of inflation

The Commerce Department will release the Fed’s preferred measure of inflation, the Core Personal Consumption Expenditures Price Index, on Friday morning. Economists expect a relatively weak reading for May. Markets now see roughly 65% ​​odds of a Fed rate cut in September and two cuts in 2024.

Dow jones futures today

Dow Jones futures open at 6pm EST on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

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

Join IBD experts as they analyze leading stocks and the market on IBD Live

Stock market pool

The stock market rally saw small to strong gains on major indexes over the past week, despite late-week turmoil caused by AI chip rollouts.

The Dow Jones Industrial Average led the indexes with a 1.45% advance in stock market trading last week, moving above its 50-day line to a one-month high. The S&P 500 rose 0.6%. The Nasdaq Composite Index rose less than one point.

The Russell 2000 small-cap index rose 0.8%, but is still stuck below its 50-day level.

Invesco S&P 500 Equal Weight Fund (RSP) rose 1.1%, returning above the 50-day line. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) advanced 1%, just below record highs.

Blue chip stocks had a mixed week, with most gains on Monday and some suffering heavy losses over Thursday and Friday.

However, the Nasdaq and S&P 500 are below their all-time highs. It is difficult to see many problems on the weekly charts.

The Nasdaq is now 6.7% above its 50-day line. This is still extended but is down from 8.3% on Monday. The Nasdaq pausing or falling slightly over a two-week period as Nvidia and AI stocks take a break would be a positive.

Better yet, small cap stocks and some other areas of the market are above major levels.

The yield on 10-year Treasury bonds rose four basis points to 4.26%.

US crude oil futures rose 3.4% to $80.73 per barrel last week.

ETFs

Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) fell 1.1% last week. iShares Extended Technology Software Fund (ETF)IGV) rose 2%. VanEck Vectors Semiconductor ETF (Trait) sank 1.1%. Nvidia is the No. 1 holding in SMH, but Taiwanese semiconductor companies Micron and Broadcom are the major members.

SPDR S&P Metals and Mining Fund (XME) by 1.5% last week. Global X US Infrastructure Development Foundation (ETF)cradle) advanced by 0.9%. US Global Jets ETF (Planes) rose 1.5%. SPDR S&P Homebuilders ETF (XHB) decreased by 1%. Energy Select SPDR ETF (XLE(Bounced 1.9% and Healthcare Sector SPDR Fund)Forty-fifth) rose 0.6%. Selected Industrial Sector SPDR Fund (forty-first) rebounded 1.5%. Financial Select SPDR ETF (XLF) rose by 1.7%.

Reflecting more speculative stocks, the ARK Innovation ETF (Ark) fell 1.2% last week and the ARK Genomics ETF (Arkj) decreased by 2.8%.

Time the market with IBD’s ETF market strategy

Nvidia stock

Nvidia stock fell 5% over the week to 126.57. Shares fell from a record high of 140.76 during the day Thursday. The AI ​​chip leader is now 25.3% above its 50-day line. This after briefly exceeding 40% at Thursday’s peak.

Back on March 7, NVDA stock closed 41.9% above its 50-day line, its highest level in 21 years. The next day, Nvidia stock saw a sharp reversal that marked the beginning of consolidation.

Micron profits

Micron will report third-quarter financial results on Wednesday. It is expected to report a profit of 42 cents per share, the first positive reading in six quarters. Revenue is expected to rise 58% to $5.82 billion after a 16% second-quarter gain.

The memory chip giant’s findings and guidance will be important for other AI plays. It will also impact the broader semiconductor field, including chip equipment makers.

Micron fell 1.3% to 139.54 in stock market trading last week, well off Tuesday’s peak of 157.54. Shares rebounded slightly from Friday’s test of the 21-day line.

Shares of other AI chips

Broadcom stock fell 4.4% to 1,658.63, falling from a record high of 1,851.62 during the day on Tuesday. This followed a 23% rise in profits the previous week.

Arms stocks rose 1.5% to 160.30 during the week, but were far from Tuesday’s record high of 177.31. The UK-based wireless chip giant settled below the official consolidated buy point of 164. However, Arm Holdings has rallied over the past two months. Investors may wait to see if Arm stock can pause around a buy point, allowing the moving averages to fill the gap.

Taiwan Semiconductor shares rose 0.8% during the week to 173.96, despite falling from Tuesday’s high of 184.86.

Stocks near buy points

Meta Platforms fell 1.9% over the week to 494.78, forming a handle and testing the 21-day line. The parent company of Facebook now has a buy point of 414.01 from the base of the cup with handle. Meta stock can have an early entry from a downtrend break of the handle.

Amazon stock rose nearly 3% to 189.08 last week, rebounding from a 50-day streak. The e-commerce and cloud computing giant has a flat base with a buy point of 191.70. The June 12 high of 188.35 provided an early entry into AMZN shares. Investors can treat the base as a cup with a short, shallow handle with an official entry level at 188.35.

Nu Holdings stock rose 4.2% to 12.25 during the week, matching a record closing level after several weeks of tight movement. The Brazilian digital bank has a flat base next to further consolidation, according to Marketsorg analysis. Buy point is 12.49. NU stock was actionable on Friday after breaking the downtrend into a flat base.

What are you doing now

The market seems a bit indecisive. It doesn’t help that the Nasdaq is still somewhat extended while the Russell 2000 is below its 50-day line.

If you own a large stake in Nvidia, you may feel some discomfort heading into the weekend. But this is after the huge gains made in the past few weeks and months.

Maybe the Nasdaq and AI chip plays are taking a break.

Meanwhile, other major companies look generally strong, with Meta and Amazon well established Microsoft (MSFT) and arguably Google-parent the alphabet (Google) within the scope of purchase.

There are a number of stocks in non-technology sectors that are showing strength or are close to being strong.

So investors should track these names. But this is not a particularly good time to add exposure, except perhaps for swing trades.

Meanwhile, if positions start to struggle, investors should rush out.

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.

You may also like:

Why This IBD Tool Simplifies the Process of Finding the Best Stocks

Best growth stocks to buy and watch

IBD Digital: Unlock IBD’s featured stock listings, tools and analysis today

The giant S&P 500 index is topped by five stocks near buy points