Dow Jones futures rose slightly last night, along with S&P 500 futures and Nasdaq futures. Nvidia (NVDA) Chip manufacturer taiwan semiconductor (TSM) is scheduled to release sales data on Friday.
X
Stock market gains were solid on Thursday, with the Dow Jones rising for seven straight sessions. Major stocks showed bullish or constructive movements.
Nvidia stock fell slightly for the third day in a row as it grapples with the possibility of acquiring a handle. broadcom (AVGO) is close to various entries.Major chip equipment manufacturer applied materials (AMAT) and KLA Co., Ltd. (KLAC) is also close to a buy point.
Taiwanese semiconductor stocks hovered between two buy points ahead of the April sales release. TSMC is his Nvidia, Broadcom, apple (AAPL) and many others. The company is also a huge buyer of Chipgear.
Taiwan Semi’s sales data follows AI chip IPO earnings report arm holdings (ARM) and Astera Research Institute (ALAB).
Meanwhile, Tesla stock just fell below key levels. tesla (TSLA) Rival BYD (BYDDF) Inside the purchase area.
Nvidia is on the IBD Leaderboard, and Taiwan Semiconductor and ALAB stocks are also on the Leaderboard’s watchlist. Nvidia stock is listed on SwingTrader and IBD 50. KLAC stock is listed on IBD Long-Term Leaders. AVGO stock is in the IBD Big Cap 20.
Dow Jones futures today
Dow Jones futures rose 0.2% to fair value. S&P 500 futures and Nasdaq 100 futures rose 0.1%.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
Stock market gains were broad-based on Thursday.
The Dow Jones Industrial Average rose 0.9% in stock market trading on Thursday. The S&P 500 index rose 0.5%. The Nasdaq Composite rose 0.3%. The small-cap Russell 2000 rose 0.9%.
The Dow Jones has risen for seven straight sessions and is trending towards a record high. The same goes for the S&P 500. The Nasdaq and Russell 2000 have paused in recent days. Both are above their 50-day moving averages.
Major stocks continue to perform well. In addition to various technology companies, a number of restaurant, financial, healthcare, construction and infrastructure companies are showing strength.
US crude oil prices rose 0.3% to $79.26 per barrel.
The yield on the 10-year U.S. Treasury note fell 3 basis points to 4.45%, its lowest level in a month.
ETF
Among growth stock ETFs, the iShares Expanded Technology Software Sector ETF (IGV) fell 0.1%. The VanEck Vector Semiconductor ETF (SMH) fell 0.6%. Nvidia and TSM stocks are his two largest holdings in SMH, with Broadcom, KLA and AMAT stocks also major members.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) fell 0.6% and the ARK Genomics ETF (ARKG) rose 1.9%. Tesla is the No. 1 holding in Ark Invest’s ETFs. Cathie Wood’s Ark also owns a small stake in BYD.
The SPDR S&P Metals Mining ETF (XME) rose 2.1% and the Global XUS Infrastructure Development ETF (PAVE) rose 1.2%. The SPDR S&P Home Builders ETF (XHB) rose 2.1%. Energy Select SPDR ETF (XLE) rose 1.3% and Healthcare Select Sector SPDR Fund (XLV) rose 0.9%.
The Industrial Select Sector SPDR Fund (XLI) rose 1% and the Financial Select SPDR ETF (XLF) rose 0.75%.
Timing the Market with IBD’s ETF Market Strategy
AI chip stocks
Taiwan Semiconductor fell 0.6% to 142.79 on Thursday. The stock is working towards a double bottom buy point at 148.43. TSM stock regained its 50-day line on May 3 and crossed the downtrend line.
Nvidia stock fell 1.8% to 887.47 on Thursday, marking its third straight year of modest declines, but remains at its 50-day line. According to MarketSurge, the AI ​​chip leader has an integrated buy point of 974 points. NVDA stock appears to be starting to work on a handle that would provide a lower buy point. Nvidia’s financial results are scheduled to be released on May 22nd.
Broadcom stock fell 1.5% on Thursday to 1,305.67, just below its 50-day line. The consolidation buy point for AVGO stock is 1,438.17, but an investor could use 1,403.98 as an early entry. A decisive move beyond 50 days, perhaps clearing the 1,355 area, could be a positive entry.
Applied Materials stock fell 0.5% to 206.33 on Thursday, still at its 50-day line. The stock’s flat base buy point is 214.91. Investors could use the May 7 high of 209.47 as an entry. However, Applied Materials’ earnings report is scheduled for May 16th.
KLA stock fell 0.9% to 710.67 on Thursday, just below the flat entry of 727.64.
Arm shares fell 2.3% to 103.59 on Thursday, coming off an intraday low of 97.76. The stock has rebounded somewhat in the past few weeks, but it has only recouped some of the huge losses suffered in mid-April. Late Wednesday, the AI ​​and wireless chip designer beat guidance for its fiscal fourth quarter and beat its guidance for the first quarter, but gave lackluster full-year sales targets.
Astera Labs stock rose 1.2% to 70.06 on Thursday, but plunged 9.1% on Wednesday. Late Tuesday, his IPO of the AI ​​chip was on track to top first-quarter views and lift this quarter’s results, but it wasn’t enough. The buy point for ALAB stock is 95.21 on an IPO basis, but the high price of 88.59 on April 29 may be a good entry point. However, like Arm, Astera Labs may take some time to set up again.
tesla stock
Tesla stock fell 1.6% to 171.97, just below its 50-day line. The stock has given up most of its 15% rise on April 29th. This comes after Tesla cleared a key hurdle toward fully self-driving cars in China.
Rich Otto announced Wednesday that he resigned as Tesla’s head of new product launches last week, citing low morale amid ongoing deep layoffs.
Elon Musk announced more than 10% layoffs. As it became clear that demand was slumping and people were turning away from new cars, he fired Supercharger and completely laid off the new car team. A number of executives have resigned or been fired in the past few months.
blood pressure (BP) announced Thursday that it wants to acquire Tesla Supercharger locations in the United States.
Meanwhile, China’s BYD rose 1.8% to 28.95. BYD stock, the only EV maker rising in 2024, could see some short-term consolidation above its 200-day line. The EV giant plans to unveil the Sea Lion, a Model Y rival, on Friday with features such as fast charging and smart car technology. BYD will officially launch its plug-in hybrid pickup on May 14th.
what to do now
The Nasdaq’s recent pause has allowed stocks like Nvidia to grapple with potential bases and handles, while high-flying stocks are quickly gaining relative strength.
This gives investors more time to update their watchlists, but don’t be lazy. Leading stocks continue to send buy signals. You can gradually add exposure as the market continues to move upwards.
Keep in mind that if these positions underperform or the major indexes fall below their 50-day lines, you will need to scale back again. Therefore, prepare an exit plan.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
Follow Ed Carson’s thread @edcarson1971 and X/Twitter. @IBD_ECarson The latest information on the stock market, etc.
You may also like:
Catch the next big winning stock with MarketSurge
The best growth stocks to buy and watch
IBD Digital: Get access to IBD’s premium stock lists, tools and analysis now
