Dow Jones futures improved to flat overnight, while S&P 500 and Nasdaq futures rose. President Joe Biden wavered in Thursday night’s debate with former President Donald Trump. The Fed’s preferred inflation gauge will be available Friday morning.
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Nasdaq Makes Three in a Row, Eyes 18,000; Meta, Monday.com, ServiceNow in Brief
Stock markets rose slightly on major indexes on Thursday, while small caps led. Software values ​​stand out with powerful movements, continuing their monthly rebound.
Monday.com (MNDY), Zeta (ZETA), CyberArk Software (CYBR), Data dog (DOG), ServiceNow (NOW), AppLovin (APPLICATION) And AppFolio (FPAP) issued buy signals.
In the meantime, Metaplatforms (META) broke out on Thursday. Amazon.com (AMZN) And You’re here (TSLA) extended Wednesday’s eruptions.
Nike (OF) views on highest income Tuesday evening. But sales were below average and Nike cut its revenue growth forecast. Nike stock plunged after hours. The Dow Jones component has been in difficulty since the end of 2021.
Presidential debate: rematch between Trump and Biden
The first presidential debate of 2024 began at 9 p.m. ET. THURSDAY.
Heading into the event, polls suggested that former President Trump was the slight favorite to return to power, ousting the current incumbent, President Biden.
Biden’s performance in the debate was widely criticized, with hesitations and mumbling in his answers. Even a number of sympathetic observers questioned whether the president could stay in the race. Trump was widely seen as having made no mistakes.
Thursday night’s debate could swing market sentiment, giving specific sectors a boost or a blow on Friday.
Fed Inflation Gauge
The Commerce Department releases the May PCE price index at 8:30 a.m. ET as part of its income and spending report. The overall PCE price index is expected to increase 0.1% from April, with the PCE inflation rate cooling slightly to 2.6% from a year earlier.
The core PCE price index, the Fed’s preferred gauge of inflation, is also expected to rise 0.1% from April. The core PCE inflation rate is expected to slow to 2.6% from 2.8% in April.
Dow Jones Futures Today
Dow Jones futures were about level with fair value, even though Nike stock was down. S&P 500 futures rose 0.3%. Nasdaq 100 futures rose 0.4%.
The 10-year Treasury yield rose to 4.31%.
Crude oil futures rose slightly.
Dow Jones futures erased slight losses during the Trump-Biden debate. Core PCE inflation data is expected to move futures and Treasury yields ahead of the open.
Remember that nighttime action in Dow Futures and elsewhere does not necessarily translate into actual trading in the next regular quarter sotck exchange session.
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Stock markets rebound
Stock market recovery shrugs off post-earnings slump Micron Technology (IN) and a modest drop in Nvidia (NVDA).
The Dow Jones Industrial Average and S&P 500 rose 0.1% on Thursday. stock market tradingThe Nasdaq Composite Index gained 0.3%.
Market breadth was modestly positive.
The small-cap Russell 2000 index jumped 1%, closing just above its 50-day line for the first time since June 13.
A few days ago, the market seemed to be moving away from Nvidia gaming and AI and toward financials and industrials. The former seem to be trying to find their place while financial and industrial stocks have declined slightly. Now, software and megacaps are taking the lead.
U.S. crude oil prices rose 1% to $81.74 a barrel.
The 10-year Treasury yield fell three basis points to 4.29%.
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Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (VAT) climbed 2.1% with ServiceNow, CrowdStrike and more in IGV. The VanEck Vectors Semiconductor ETF (SMH) fell by 0.8%.
Reflecting more speculative stocks, ARK Innovation ETF (LEAF) rose 1% and ARK Genomics ETF (ARKG) fell 0.2%. Tesla stock is the top holding among Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) fell by 0.6%. SPDR S&P Homebuilders ETF (XHB) and the Energy Select SPDR ETF (XLE) edged up 0.2%. The Healthcare Select Sector SPDR Fund (XLV) lost 0.2%.
The Select Industrial Sector SPDR Fund (XLI) increased slightly by 0.1%. The Financial Select SPDR ETF (45) fell 0.1%.
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Large Cap Stocks Are in Buy Range
Meta stock rose 1.3% to 519.56, topping 514.01 cup-with-handle buy point. Shares have been actionable since the start of the week after breaking the downtrend handle.
Amazon shares rose 2.2% to 197.85, advancing into buy territory after Wednesday’s 3.9% rally cleared the 191.70 buy point.
Tesla shares rose 0.5% to 197.42. The electric vehicle giant jumped 4.8% on Wednesday, surpassing the 191.08 buy point. TSLA stock is still below its 200-day line.
Software stocks
The software sector struggled in early February before finally bottoming out in late May after Salesforce shares fell. The software sector has since rebounded, with big gains on Thursday.
Monday.com stock jumped nearly 3% to 236.28, ending a downtrend in what appears to be a mini-double bottom alongside another consolidation. This extends a recent rebound from the 50-day line. MNDY stock has an official price of 239.54 buy pointswhich roughly coincides with the previous base entry of 239.22.
Zeta stock also broke a downtrend into an emerging mini-double bottom base, while extending a 50-day rally. Shares jumped 5.5% to 17.32. Investors could also use 17.58 as a buy point.
AppLovin stock climbed 3.3% to 83.12, breaking through a tight trendline and near-term high of 82.66. The official fixed-base buy point is 88.50.
AppFolio stock jumped 3.8% to 248.89, above an early entry of 243.04 and extending a 50-day line rebound. It works on a 256.73 flat base point of purchase.
CyberArk shares climbed 2.9%, ServiceNow 2.7% and Datadog 4.3%, breaking all consolidation trendlines dating back to early February.
Leaders like Crowd strike (CRWD) showed solidity while a certain number of laggards, such as Salesforce.com (RCMP) bounced back.
At the same time, IGV stock looks a lot like ServiceNow, CyberArk and Datadog. This is a way of playing off the general movement of the sector with many names out of position. SwingTrader added IGV as a holding on Thursday.
The Amplify Cybersecurity ETF (TO HACK) and the Global X Cybersecurity ETF (BUG) also seem actionable, with the latter being more focused on purely cybersecurity-related actions.
What to do now
The stock market rally continues to perform well, with weekly charts showing little change or fractional gains on key indices.
Despite the market’s breadth, which is at best lackluster, investors have quality names to consider across a variety of sectors. While this article focuses on software and select megacaps, also pay attention to leaders in discount retail, financials, travel, industrials, medical and more.
Investors could make new purchases, either adding exposure or replacing losers and laggards in your portfolio. But if you’re investing heavily, holding steady is also a good strategy.
The Fed’s inflation gauge will be key on Friday, with the Biden-Trump presidential debate an unknown.
Nvidia, Amazon and Meta stocks are on the rise MII classification. Shares of Amazon, Meta Platforms and CrowdStrike are up SwingTrader. Nvidia stock is on the rise MII 50with AppFolio, Monday.com and ServiceNow. Amazon was the IBD Stock of the Day.
Read The big picture every day to stay in tune with market direction and major stocks and sectors.
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