Dow Jones futures will begin trading on Sunday night, along with S&P 500 futures and Nasdaq futures. Inflation statistics will be key next week.
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The stock market had a solid week of gains, with the major indexes edging toward record or 52-week highs, but the Nasdaq has mostly come to a halt since Monday.
Nvidia (NVDA) Chip manufacturer taiwan semiconductor (TSM) posted strong April sales on Friday, driven by demand for AI chips. Nvidia’s stock price itself is nearing a turning point. broadcom (AVGO), another customer of Taiwan Semi, is right at an aggressive buy point.
meanwhile, JP Morgan Chase (JPM) and a major construction aggregate company martin marietta (MLM) has cleared early entry.
vice versa, tesla (TSLA) fell sharply last week, breaking through major support as it bounced back and forth through the gap up on April 29th.
walmart (WMT) and applied materials (AMAT) and other Asian e-commerce giants are among the notable earnings reports this week. Ocean (SE) and alibaba (Baba).
inflation report
But with a busy economic calendar, investors’ attention will be focused on the big inflation report. The producer price index will be released on Tuesday and the consumer price index will be released on Wednesday. The PPI report is important because key factors are directly reflected in the Fed’s preferred inflation measure, the Core PCE Price Index.
Inflation data has been stagnant or rising in recent months, prompting the Fed to dial back expectations for rate cuts. Some recent reports have suggested that the labor market is starting to cool, which could ease price pressures.
However, the University of Michigan Consumer Confidence Index showed that inflation expectations are picking up. The news helped dampen market momentum on Friday.
Nvidia, Martin Marietta, and Taiwan Semiconductor stocks are listed on the IBD Leaderboard. Nvidia and JPMorgan stocks are listed on SwingTrader and IBD 50. Taiwan Semiconductor was the IBD Stock Of The Day on Friday.
Dow Jones futures today
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, open at 6pm ET on Sunday.
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
This week’s stock market rally started strong, with the Dow Jones, S&P 500 and Russell 2000 regaining their 50-day moving averages on Monday. While the Dow and S&P 500 continued toward record highs for the rest of the week, the Nasdaq and Russell stalled.
The Dow Jones Industrial Average rose 2.2% in stock market trading last week, extending its winning streak to eight trading sessions. The S&P 500 index soared 1.85%. The Nasdaq Composite rose 1.1%. The small-cap Russell 2000 rose 1.2%.
The development of the market rally is broad-based, as evidenced by the performance of sector ETFs. Last week brought together strong stocks from a variety of sectors, with many buy signals flashing.
The 10-year U.S. Treasury yield rose slightly to 4.5% after hitting a one-month low of 4.42% during the day on Tuesday.
Last week, U.S. crude oil futures rose 0.2% to $78.26 per barrel.
ETF
Among growth stock ETFs, the iShares Expanded Technology Software Sector ETF (IGV) gained 0.7% in last week’s trading. The VanEck Vector Semiconductor ETF (SMH) soared 2.6%. Nvidia and Taiwan Semiconductor are his two largest holdings in SMH, with AVGO stock and Applied Materials also holding significant positions.
SPDR S&P Metals Mining ETF (XME) rose 1.25% last week. The Global XUS Infrastructure Development ETF (PAVE) rose 2.85% led by Martin Marietta stock. The U.S. Global Jets ETF (JETS) rose 0.8%. The SPDR S&P Home Builders ETF (XHB) rose 2.2%, with significant holdings in Palto Group stock. The Energy Select SPDR ETF (XLE) rose 1.3% and the Healthcare Select Sector SPDR Fund (XLV) rose nearly 2%. Industrial Select Sector SPDR Fund (XLI) rose 2.4%.
The Financial Select SPDR ETF (XLF), whose main constituent is JPMorgan, rose 3.2%.
Reflecting the more speculative story stocks, the ARK Innovation ETF (ARKK) fell 5.6% and the ARK Genomics ETF (ARKG) edged down 0.5% last week. Tesla stock is the No. 1 holding among Ark Invest’s ETFs.
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Taiwanese semiconductor stocks soar
TSM stock rose 4.5% to 149.26 on Friday, clearing a double-bottom buy point at 148.43. The stock rose 5.4% for the week.
Before the start of trading on Friday, Taiwan Semiconductor reported that April sales jumped 59.6% year-on-year in local currency and 20.9% from March. Year-to-date revenue has increased 26.2%. AI and other advanced chips are leading the way for Taiwanese cicadas.
nvidia stock
Nvidia stock rose 1.2% this week to 898.78, a pause after Monday’s 3.8% rise capped a three-session 11% rally. According to MarketSurge, the AI ​​chip leader has an integrated buy point of 974 points. NVDA stock is set to take the wheel after Monday. This would present a lower buy point of 922.20. However, Nvidia’s financial results are scheduled to be released on May 22nd.
broadcom stock
Broadcom stock rose 4.3% this week to 1,332.82. On Friday, the stock rebounded above its 50-day line and entered aggressively around 1,355. The consolidation buy point for AVGO stock is 1,438.17. Investors may use 1,403.98 as an early entry.
JP Morgan stock
JPMorgan stock rose 4.3% this week to 198.75, nearing the sideways buy point of 200.94. On Wednesday, the stock rebounded from its 50-day line, broke below the trend line and broke out to a short-term high. JPM stock is still tradable from that entry.
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martin marietta stock
Martin Marietta stock rose 1.2% to 610.43 on Friday, decisively breaking above its 50-day line and breaking out of the trend line to new short-term highs, both of which are good signs for an early entry. The buy point for MLM stock was 626.67, a new flat base.
Martin Marietta is benefiting from the U.S. infrastructure boom, with revenue growth soaring. Revenue growth has been slow, falling entirely in the most recent quarter.
tesla stock
Tesla stock fell 7% last week to 168.47, below its 50-day line. Shares soared 15% on April 29 after Tesla cleared a key hurdle to introducing fully self-driving cars in China.
Investors are concerned about Tesla’s growth prospects as demand declines despite a series of price cuts. Its vehicle lineup is aging and its pipeline is limited, while rivals are increasingly entering the market, especially in China.
what to do now
Many stocks have issued buy signals over the past week. If the market continues to rise well, investors can continue to add exposure. But do it gradually.
This week’s inflation report could push the major indexes to new record highs or push them back towards their 50-day lines.
Create a watchlist. It’s a broad-based bull market, so you need to keep an eye on the top stocks in a variety of sectors.
Please review your assets. Are there any laggards that can be cut or leaders that are offering additional entries?
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.
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