Dow futures were little changed overnight, along with those for the S&P 500 and Nasdaq futures, after a strong session of the stock market rally.
Major indices posted strong gains on Wednesday. Bank concerns continued to recede micron technology (mo) offered some hope for a bottom in the chips despite the dismal report and near-term outlook.
A number of stocks are flashing buy signals, including Micron stock, Microsoft (MSFT), Shift4Payments (four), Mobileye Global (MBLY), STMicroelectronics (STM), Wayne Resorts (where), Kings (DKNG), rambus (RMBS), Horizon champion (sky) And a work day (day).
Microsoft, Rambus, Workday and STM stocks have gone beyond the traditional buying points. MU Stock, Shift4Payments, Wynn, DraftKings and Skyline are all bouncing off key areas, breaking downward sloping trendlines for early entries. MBLY stock has regained key levels.
SKY, Rambus and Wynn Resorts are in the works IBD Leaderboard. WYNN Stock and DraftKings are available on SwingTrader. MSFT stock is at IBD Long-Term Leaders. STMicro, DraftKings, Shift4Payments, and WDAY stocks are available at defect 50. MBLY stock is running IBD Big Cap 20. Skyline Champion was also IBD stock for Wednesday, while FOUR stock was for Tuesday.
Regional banks have not risen much this week, but at least they are not falling. Trapped The first republic (FRC) rebound. Like the largest banks c. B. Morgan Chase (JPM) And American bank (Buck) rebounded this week after hitting at least 2023 lows during Friday.
Investors should look to increase exposure, given the movement in major indices and blue-chip stocks. But don’t rush it.
Dow jones futures today
Dow Jones futures lost a fraction of their fair value. S&P 500 futures were flat and Nasdaq 100 futures were down 0.1%.
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 opened strongly higher, with major indexes adding to gains in the late afternoon.
The Dow Jones Industrial Average rose 1% in trading on Wednesday. The S&P 500 rose 1.4%, with Micron stock being one of the best performers. The Nasdaq Composite Index jumped 1.8%. Small cap Russell 2000 rose 1.1%.
US crude oil prices fell 0.3% to $72.97 a barrel.
The 10-year Treasury yield was essentially flat at 3.565%.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty) increased by 2.2%. iShares Expanded Technology and Software ETF (IGV) rose 1.7%, with MSFT stocks holding mainly, the business day was also a staple. VanEck Vectors Semiconductor Corporation (SMH) jumped 1.7%, with MU and STMicro both components of SMH.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(up 3.8% and the ARK Genomics ETF)ARKG) 3.2%.
SPDR S&P Metals & Mining ETFs (XME(up 1%, while the US Global Jets ETF rose)Planes) rose by 2.15%. SPDR S&P Homebuilders ETF (XHB) by 0.8%. Energy Defined Fund SPDR ETF (xle(Increased 1.5% and SPDR Healthcare Sector Fund)XLV) increased by 0.3%
SPDR Financial Selection Fund (XLF) rebounded 1.5%, with JPM and Bank of America shares alike. SPDR S&P Regional Banking ETF (KRE) gained 1.1%. FRC stock, a component of KRE, is up 5.6% on Wednesday and 15.4% so far this week. Still down 88% in March.
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Market rally analysis
A day after major indices held key support, the stock market rally attempt gained momentum, and cleared some notable levels.
The Nasdaq Composite led the way, with a strong bounce after approaching the 50-day line at its lows on Tuesday. The 12,000 level looms as the next challenge, with the peak of the market rally on February 2nd not much higher than that.
The S&P 500 moved back above the 4000 level and the 50-day moving average as well as breaking the downward sloping trend line.
The Dow closed above the 21-day line for the first time since March 6, but it is still below the 200-day mark. Russell 2000 is bouncing off Friday 2023 lows, but has some distance to the 50-day and 200-day lines.
Nasdaq trading volume was higher than it was on Tuesday. The volume on the NYSE seems to be picking up a bit. The exchange volume was lower than usual.
Winners led decisive losers on the NYSE and Nasdaq, with an uptick in breadth this week. However, market leadership remains relatively narrow.
Chip stocks were some of the biggest gainers on Wednesday, after tumbling on Tuesday ahead of Micron’s earnings report. In addition to MU stocks, Mobileye, Rambus and STM are chips that play blinking buy signals. Several others have shown upward movement.
Microsoft and WDAY stocks are among a number of software names in buy territory, while SKY stocks are just one of many homebuilders coming forward. Investors place their bets on gaming stocks such as Wynn Resorts and DKNG stock.
Four stocks are among the few paying stocks that do well, including Flying wire (FLYW). MercadoLibre (millie), which has some similar graph actions to Shift4, is an e-commerce giant with a thriving payments business.
While banking concerns are easing, Treasury yields are not racing higher. Recent banking problems, even if the worst is over, will likely lead to less lending and tighter financial conditions in general, slowing the economy and reducing the need for rate hikes by the Fed. For now, the markets are leaning towards a Fed rate stop in early May. Friday’s PCE inflation report, the Fed’s preferred rate measure, could change that dynamic.
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What are you doing now
The stock market is gaining some traction as the banking crisis seems to have peaked while the Fed rate hike is over, or thereabouts. Major indices have shown a mixture of resilience and strength this week, while a number of stocks are flashing buy signals.
So it’s a good idea to start adding some exposure – gradually. If the market had real legs, it wouldn’t take long for him to become a 100% investor. If the market quickly reverses to the bottom or fades, it will be easier to get out mechanically and psychologically if you are not fully committed.
But it’s important to be prepared by updating your watchlists and staying in touch.
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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