The stock market rally saw the S&P 500 and Nasdaq hit record highs in Wednesday’s half-day session. The jobs report looms early Friday after the Fourth of July holiday.
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Nasdaq, S&P 500 Hit Highs; ASML, Tencent Music, Agnico-Eagle Mines In Focus
Treasury yields tumbled as the June ISM services index signaled contraction, along with weaker-than-expected labor data. Tesla (TSLA) continued its powerful run, running up to a major trendline. Nvidia (NVDA) had a solid session on a strong day for chips.
Fed minutes from the June meeting released after the market’s early close, showed policymakers seeing risks “moving into better balance.” However, they want “greater confidence” about inflation heading to the 2% goal before cutting interest rates.
ASML (ASML), Entegris (ENTG), Monday.com (MNDY), Agnico-Eagle Mines (AEM), Southern Copper (SCCO), Tencent Music (TME) and Vistra (VST)Â all flashed buy signals Wednesday.
Nvidia, ASML and Agnico-Eagle stock are on the IBD Leaderboard, with Weatherford stock on the watchlist. Nvidia, Monday.com are on the IBD 50.
ASML was Wednesday’s IBD Stock Of The Day.
Jobs Report
The Labor Department will release the June jobs report at 8:30 a.m. ET Friday. Economists expect nonfarm payrolls to show a gain of 189,000, cooling from May’s rise of 272,000. The jobless rate is forecast to remain at 4%. Average hourly earnings are seen rising 3.9% vs. a year earlier, down from 4.1% in May.
Dow Jones Futures Today
Dow Jones futures will open at 3 p.m. ET. ETFs tracking the Dow Jones, S&P 500 and Nasdaq 100 were little changed from Wednesday’s close.
U.S. stock and bond markets will be closed Thursday for the 4th of July. But other exchanges around the world will be open, with Dow futures trading normally.
Friday’s jobs report will be sure to swing Dow futures and Treasury yields early Friday.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally technically was mixed Wednesday, but the action of the S&P 500, Nasdaq and leading stocks cast a clearly bullish tone.
The Dow Jones Industrial Average lost a fraction in Wednesday’s stock market trading. The S&P 500 index climbed 0.5%. The Nasdaq composite rose 0.9%. The small-cap Russell 2000 edged up 0.1% but came off highs after briefly reclaiming the 50-day line.
The Invesco S&P 500 Equal Weight ETF (RSP) lost a fraction. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) advanced 0.15% to a record close.
The Nasdaq is now 7.6% above the 50-day line, increasingly extended. That raises the risks of a pullback, though it doesn’t have to happen right away.
U.S. crude oil prices rose 1.3% to $83.88 a barrel.
The 10-year Treasury yield fell 9 basis points to 4.35%, down 13 basis points in two sessions.
The ADP Employment Report and initial jobless claims pointed to a slightly weaker-than-expected labor market. Meanwhile, the ISM services index unexpectedly tumbled back into contraction territory.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.6%. The iShares Expanded Tech-Software Sector ETF (IGV) edged higher. The VanEck Vectors Semiconductor ETF (SMH) jumped 2.4%. Nvidia stock and ASML are major SMH holdings.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) popped 1.8% and ARK Genomics ETF (ARKG) climbed 1.2%. Tesla stock is the No. 1 holding across Ark Invest’s ETFs. Cathie Wood sold some Tesla shares on Tuesday.
SPDR S&P Metals & Mining ETF (XME) rallied 1.8%. The Global X U.S. Infrastructure Development ETF (PAVE) added 0.85%. U.S. Global Jets ETF (JETS) gained 1.5%. SPDR S&P Homebuilders ETF (XHB) advanced 0.5%. The Energy Select SPDR ETF (XLE) rose 0.25% and the Health Care Select Sector SPDR Fund (XLV) fell 0.7%.
The Industrial Select Sector SPDR Fund (XLI) climbed 0.3%. The Financial Select SPDR ETF (XLF) dipped 0.2%.
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Nvidia Stock
Nvidia stock leapt 4.6% to 128.28, bouncing decisively above the 21-day line and above the 10-day line since June 20. An aggressive investor could have used Wednesday’s action as a place to add a few more shares. But NVDA stock could use a longer pause.
Tesla Stock
Tesla stock jumped 6.5% to 246.39 Wednesday, extending its weekly gain to 24.6% after jumping 8.1% last week.
Shares are greatly extended from the 191.08 handle buy point. TSLA stock is coming up to a long-term trendline going back to its late 2021 all-time high. Ideally, Tesla would pause for a while. Earnings are due in two weeks.
Stocks In Buy Areas
ASML stock rose 2.2% to 1,071.20, moving back above a 1,056.34 buy point, according to MarketSurge analysis. The chip-equipment giant recently found support at the 21-day line. ASML earnings are due on July 17.
Entegris stock popped 3.1% to 140.81, moving above a handle buy point of 139.81.
Monday.com stock gained 2.65% to 243.31, back above a 239.54 entry as well as retaking a prior base buy point of 239.22.
Angico-Eagle stock popped 4% to 68.27, rebounding above the 50-day line and breaking a trendline. AEM stock has a 71.50 buy point from a flat base.
Southern Copper stock leapt 5.5% to 116.03, bouncing above the 50-day line. SCCO stock has a consolidation pattern with a 120.79 official buy point.
Tencent Music stock gained 3.5% to 14.94, breaking a trendline within a flat base. The official buy point is 15.77. TME stock is bouncing off the 50-day line.
Vistra stock popped 4.1% to 91.31, back above the 50-day line and short-term highs. The power generation company, an AI-adjacent play, may be starting to build the right side of a new base.
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What To Do Now
The stock market rally is showing strength on the most important indexes. Market breadth could be better, but there are plenty of stocks that have been flashing buy signals from a variety of sectors.
That’s why it’s critical to run your screens consistently and cast a wide net.
The Nasdaq being increasingly extended is a reason to be cautious about adding exposure, but the broader bullish trend is well intact.
Start paying attention to earnings dates. Quarterly reports will start picking up in the next week or so.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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