Dow Jones futures were little changed Thursday, while S&P 500 and Nasdaq 100 futures edged lower and Bitcoin extended losses. U.S. stock markets are closed for the July 4 holiday. The jobs report will be released early Friday.
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Nasdaq, S&P 500 hit record highs; ASML, Tencent Music, Agnico-Eagle Mines in the spotlight
The stock market rally saw the S&P 500 and Nasdaq hit record highs during Wednesday’s half-day session. You’re here (TSLA) continued its powerful run, reaching a major trendline. Nvidia (NVDA) had a solid session on a strong day for chips.
ASML (ASML), integrated (ENTG), Monday.com (MNDY), Agnico-Eagle Mines (AEM), Southern Copper (SCCO), Tencent Music (TME) And See (VST) all issued buy signals on Wednesday.
Dow Jones Futures Today
Dow Jones futures were slightly above fair value. S&P 500 futures fell 0.1% and Nasdaq 100 futures fell 0.2%.
Bitcoin continued its downtrend, breaking above spring lows below $57,000 late Wednesday before paring losses above that level.
U.S. stock and bond markets are closed Thursday for July 4. But other stock markets around the world are open.
Friday’s jobs report is likely to tip the balance in favor of Dow futures and Treasury yields early Friday.
Remember that the night action in Dow Futures and elsewhere does not necessarily translate into actual trading in the next regular quarter stock market session.
Employment report
The Labor Department will release its June jobs report at 8:30 a.m. ET Friday. Economists expect nonfarm payrolls to rise by 189,000, down from 272,000 in May. The unemployment rate is expected to hold steady at 4%. Average hourly earnings are expected to rise 3.9% from a year earlier, down from 4.1% in May.
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Stock markets rebound
The stock market rally was technically mixed on Wednesday, but action in the S&P 500, Nasdaq and major stocks struck a clearly bullish tone.
The Dow Jones Industrial Average lost a fraction of its value on Wednesday. stock market tradingThe S&P 500 index gained 0.5%. The Nasdaq Composite added 0.9%. The small-cap Russell 2000 added 0.1% but pulled back 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) rose 0.15% to a record closing level.
The Nasdaq is now 7.6% above the 50-day line, an increasingly high value. That increases the risk of a pullback, although it doesn’t necessarily have to happen immediately.
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%, a drop of 13 basis points in two sessions.
Treasury yields fell as the June ISM services index signaled a contraction, along with weaker-than-expected employment data from the ADP payrolls report and initial jobless claims.
The minutes of the Fed’s June meeting, released after markets closed, show that Fed officials see risks as “balancing out.” But they want “greater confidence” before cutting interest rates.
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Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.6%. The iShares Expanded Tech-Software Sector ETF (VAT) increased slightly. The VanEck Vectors Semiconductor ETF (SMH) jumped 2.4%. Nvidia and ASML shares are SMH’s largest holdings.
Reflecting more speculative stocks, ARK Innovation ETF (LEAF) climbed 1.8% and ARK Genomics ETF (ARKG) climbed 1.2%. Tesla stock is the top holding among Ark Invest’s ETFs. Cathie Wood Sold Tesla Stock on Tuesday and again on Wednesday.
SPDR S&P Metals and Mining ETF (XME) gained 1.8%. The Global X US Infrastructure Development ETF (PAVE) added 0.85%. US Global Jets ETF (JETS) gained 1.5%. SPDR S&P Homebuilders ETF (XHB) rose 0.5%. The Energy Select SPDR ETF (XLE) rose 0.25% and the Health Care Select Sector SPDR Fund (XLV) fell by 0.7%.
The Selected Industrial Sector SPDR Fund (XLI) climbed 0.3%. The Financial Select SPDR ETF (45) fell by 0.2%.
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Nvidia Actions
Nvidia stock jumped 4.6% to 128.28, rebounding 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 an opportunity to add a few more shares. But NVDA stock could use a longer break.
Tesla Stocks
Tesla shares jumped 6.5% to 246.39 on Wednesday, extending their weekly gain to 24.6% after jumping 8.1% last week.
Stocks are broadly extended from the 191.08 level buy pointsTSLA stock is approaching a long-term trendline that takes it back to its late 2021 all-time high. Ideally, Tesla would take a break for a while. Earnings are expected in two weeks.
Actions in the buying zones
ASML shares rose 2.2% to 1,071.20, moving back above a buy point of 1,056.34, according to MarketSurge AnalysisThe chip equipment giant recently found support at the 21-day line. ASML’s results are due on July 17.
Entegris shares jumped 3.1% to 140.81, topping a buy point of 139.81.
Monday.com shares gained 2.65% to 243.31, pulling back above a 239.54 entry and reclaiming a previous base buy point of 239.22.
Angico-Eagle shares jumped 4% to 68.27, bouncing back above the 50-day line and breaking a trendline. AEM shares have a 71.50 buy point from a flat base.
Southern Copper stock jumped 5.5% to 116.03, bouncing back above the 50-day line. SCCO stock is in a consolidation pattern with an official buy point of 120.79.
Tencent Music shares gained 3.5% to 14.94, breaking a trendline within a flat base. The official buy point is 15.77. TME shares bounce off the 50-day line.
Vistra shares jumped 4.1% to 91.31, moving back above the 50-day line and near-term highs. The power generation company, an AI-adjacent player, may be starting to build the right side of a new base.
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What to do now
The stock market recovery is confirmed on the major indices. The market breadth could be better, but many stocks have issued buy signals in various sectors.
This is why it is essential to execute your screens consistently and cast a wide net.
The growing Nasdaq extension is a reason to be cautious about adding exposure, but the overall uptrend is well intact.
Start paying attention to earnings release dates. Quarterly reports will begin to be released in the coming week.
Read The big picture every day to stay in tune with market direction and major stocks and sectors.
Nvidia, ASML and Agnico-Eagle shares are on the rise IBD Rankingswith Weatherford shares on the watch list. Nvidia, Monday.com are on the list MII 50.
ASML was on Wednesday IBD Action of the Day.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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