Dow Jones futures rose slightly after hours, as did S&P 500 futures and Nasdaq futures. apple (AAPL) surpasses views and announces record buybacks. April employment data is coming before trading opens on Friday.
X
coinbase (coin), texas roadhouse (TXRH), mercadolibre (Meri) and Reservation held (BKNG) was one of many notable reports tonight.
The stock market’s rally attempt on Thursday ended in solid trading after a second day of Fed reaction, with the Nasdaq and small-cap stocks leading the way. This comes after market indexes gave up significant gains in the last hour to close mixed.
With all major indexes below their 50-day lines, any attempt at a market rally still requires a formal follow-through date to confirm a new uptrend.
Nvidia (NVDA) rose slightly but remains below important levels.
Apple broke some of its historical expectations and rose sharply in the closing stages after announcing a record $110 billion share buyback. texas roadhouse, draft kings (DKNG), MercadoLibre, and Booking stocks also rose. CoinDesk stock fell.
Nvidia stock is listed on the IBD Leaderboard. Texas Roadhouse stock is included in the IBD 50.
job report
The Department of Labor will release employment statistics for April at 8:30 a.m. ET. Economists expect nonfarm payrolls to rise by 243,000, after 303,000 jobs were added in March. The unemployment rate should remain at 3.8%. Average hourly wages are expected to rise by 0.3%, but the annual increase will be only 4%.
At 10 a.m. ET, investors will get the ISM Services Index. It is expected to rise by 0.6 points to 52, with numbers above 50 indicating growth.
The jobs report and services index will provide a broader reading of the economy and put Wednesday’s Fed meeting and Fed Chairman Jerome Powell’s comments into context.
The market is leaning toward the Fed’s first rate cut in September, and there’s a 50-50 chance of two rate cuts in the year.
Dow Jones futures today
Dow Jones futures rose 0.6% to fair value. S&P 500 futures rose 0.2%. Nasdaq 100 futures rose 0.45%. Apple stock is included in the Dow Jones, S&P 500, and Nasdaq Composite.
The jobs report is sure to cause big swings in Dow futures and Treasury yields before the start of trading.
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 solid in the lead-up to Friday’s jobs report, but not decisive.
In stock market trading Thursday, the Dow Jones Industrial Average rose 0.85%. The S&P 500 index rose 0.9%. The Nasdaq Composite rose 1.5%. The small-cap Russell 2000 rose 1.9%.
Similar to April 26, the strong price action on the Nasdaq occurred on lower volume than the previous session. Therefore, there is no official follow-through date (FTD) yet.
That might be for the best. Despite the strong gains, the Nasdaq was only a day away from reversing its decline on Wednesday. Also, it’s hard to get excited until the major indexes clear their 50-day moving averages. For the Nasdaq, that would also mean a return to the 16,000 level.
The good news is that Thursday’s move brought the 50-day line within reach.
There were also major stocks with large earnings gaps. Carvana (CVNA), Qualcomm (Qcom), Sprout Farmers Market (SFM), howmet aerospace (HWM), glaucus (GKOS) and aspen airgel (ASPN). However, buying a gap up in a volatile market can be risky.
Several Chinese names have broken out or offered aggressive entry. PDD Holdings (PDD) and BYD (BYDDF). But in an uncertain market, Chinese stocks pose another level of risk.
US crude oil prices fell 5 cents to $78.95 per barrel.
The yield on the 10-year U.S. Treasury note fell 2 basis points to 4.57%, giving up earlier gains.
ETF
Among growth stock ETFs, the iShares Expanded Technology Software Sector ETF (IGV) rose 1.05%. The VanEck Vector Semiconductor ETF (SMH) rose 2%. Nvidia stock is SMH’s No. 1 holding.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) rose 2.6% and the ARK Genomics ETF (ARKG) rose nearly 1%. COIN stock is a major holding across Ark Invest’s ETFs.
The SPDR S&P Metals Mining ETF (XME) rose 1.4%. SPDR S&P Home Builders ETF (XHB) rose 1.3%. The Energy Select SPDR ETF (XLE) rose 0.6% and the Healthcare Select Sector SPDR Fund (XLV) fell about 0.1%.
Industrial Select Sector SPDR Fund (XLI) rose 0.6%. Financial Select SPDR ETF (XLF) rose 0.25%.
Timing the Market with IBD’s ETF Market Strategy
apple revenue
Apple’s earnings and sales were slightly higher than previous estimates due to a 10% decline in iPhone sales.
The Dow giant announced its largest stock buyback in history, worth $110 billion. Apple also increased its quarterly dividend by 4% to 25 cents per share.
Apple stock soared overnight. Shares rose 2.3% to 173.18 in Thursday trading, above the 50-day slide line.
coinbase earnings
Coinbase’s earnings beat, with revenue up 112%. COIN stock fell slightly in extended trading. The stock rose 8.9% to 228.85 on Thursday, but remains below its 50-day line. Cryptocurrency exchanges have been withdrawn along with Bitcoin for several weeks. A strong move in the next 50 days could lead to early entry into a new consolidation.
Other income
DraftKings easily beat this by reporting a profit surprise, which was also topped by strong revenue growth. DKNG stock rose slightly overnight. The online sports betting giant rose 2.9% to 43.03 on Thursday, slightly below its 50-day line. A decisive move above that level could provide early entry as DraftKings stock builds on the right side of its fundamentals.
Texas Roadhouse’s earnings remained flat on sales, while TXRH recorded a slight increase in stock price in extended trading. The stock rose 0.55% to 157.93 on Thursday. Texas Roadhouse stock has been hovering around a flat-based buy point of 157.12 for the past few days.
MercadoLibre’s profits exceeded that. MELI stock rose solidly in overnight trading. Shares of the Latin American e-commerce and payments giant jumped 3.4% to 1,505.99 on Thursday, rebounding from its 200-day line and just breaking its 50-day decline.
Booking Holdings easily beat earnings estimates and also beat sales. BKNG stock rose steadily to near the 50-day line. This online travel site has his 3,918 flat base purchasing points.rival Expedia (EXPE) also exceeded the number of views in the final stages, but the stock price fell steadily.
nvidia stock
Nvidia stock rose 3.3% to 858.11 on Thursday after falling 3.9% on Wednesday, but remains just below its 50-day line. According to MarketSurge analysis, the AI ​​leader has 974 buy points with consolidation dating back to early March. Investors may use the April 30 high of 888.19 as a concrete trigger to use a decisive move beyond 50 days as an early entry.
what to do now
The stock market rally has been a strong trade, but it has yet to prove itself.
Investors could have made some test purchases on Thursday, but there was also reason to be cautious.
Perhaps Apple’s earnings, Friday’s jobs report, or other big news will trigger a move beyond FTD and the major tech levels. But the opposite could happen, wiping out Thursday’s gains and more.
Don’t try to guess what the market will do. Be prepared for real market movements.
Many stocks are set up or close to entry. So make sure your watchlist is up to date and pay special attention to smaller subsets.
Conversely, if the market heads towards or below April’s lows, many leading stocks will look damaged or insolvent. So make sure you have a good exit plan.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
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