Dow Jones futures rose slightly after hours, along with S&P 500 and Nasdaq futures. Nvidia (NVDA) chip manufacturer Taiwan Semiconductor (TSM) will announce sales data on Friday.
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The stock market rally was strong on Thursday, with the Dow rising for a seventh straight session. Top stocks showed bullish or constructive action.
Nvidia stock fell slightly for a third straight day, working on a possible handle. Broadcom (AVGO) is located near various entrances. Chip equipment giants Applied materials (HUGE) And KLA Corp. (CLUTCH) are also close to the points of purchase.
Taiwan Semiconductor stock traded between two buy points ahead of April sales data. TSMC makes chips for Nvidia, Broadcom, Apple (AAPL) and many more. It is also a big buyer of chips.
Taiwan Semi Sales Data Follows AI Chip IPO Profit Reports Arm holds (ARM) And Astera Laboratories (FIRE).
Meanwhile, Tesla shares just undercut a key level with You’re here (TSLA) rival BYD (I WILL) in a shopping area.
Nvidia is on MII classification, with Taiwan Semiconductor and ALAB stocks on the ranking watch list. Nvidia shares are in progress Swing Trader and the MII 50. KLAC Stock Is Activated Long-term leaders in IBD. AVGO stock is on the IBD large cap 20.
Dow Jones Futures Today
Dow Jones futures rose 0.15% from fair value. S&P 500 and Nasdaq 100 futures rose 0.1%.
Remember that overnight action Dow Jones Futures and elsewhere does not necessarily translate into real exchanges during the next regular class sotck exchange session.
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Stock market rally
The stock market rally posted broad gains on Thursday.
The Dow Jones Industrial Average rose 0.9% on Thursday stock market trading. The S&P 500 index rose 0.5%. The Nasdaq composite index rose 0.3%. The small cap Russell 2000 gained 0.9%.
The Dow Jones, up for seven consecutive sessions, is heading towards record levels. The same goes for the S&P 500. The Nasdaq and Russell 2000 have taken a break in recent days. All are above their 50-day moving averages.
Top stocks continue to perform well. In addition to various tech names, a large number of restaurant, financial, medical, construction and infrastructure stocks are showing strength.
US crude oil prices edged up 0.3% to $79.26 per barrel.
The 10-year Treasury yield fell 3 basis points to 4.45%, its lowest level in a month.
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Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (VAT) fell 0.1%. The VanEck Vectors Semiconductor ETF (SMH) fell by 0.6%. Nvidia and TSM stocks are the two largest holdings in SMH, with Broadcom, KLA and AMAT stocks also being key members.
Reflecting more speculative stocks, ARK Innovation ETF (ARKK) fell 0.6% and ARK Genomics ETF (ARKG) jumped 1.9%. Tesla is the #1 stock among Ark Invest ETFs. Cathie Wood’s Ark also has a small stake in BYD.
SPDR S&P Metals & Mining ETF (XME) jumped 2.1% and the GlobalPAVE) gained 1.2%. The SPDR S&P Homebuilders ETF (XHB) increased by 2.1%. The Energy Select SPDR ETF (XLE) climbed 1.3% and the Health Care Select Sector SPDR Fund (XLIV) added 0.9%.
The Select Industrial Sector SPDR Fund (XLII) rose 1% while the Financial Select SPDR ETF (45) advanced 0.75%.
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AI Chip Stocks
Taiwan Semiconductor fell 0.6% to 142.79 on Thursday. Stocks trading at 148.43 double bottom point of purchase. TSM stock reclaimed the 50-day line on May 3 and broke through a descending trendline.
Nvidia stock fell 1.8% Thursday to 887.47, a third straight slight decline, still holding the 50-day line. The AI ​​chip leader has a consolidation buy point of 974, according to Market increase. NVDA stock appears to be starting to work on a handle, which would offer a lower buy point. Nvidia earnings are due on May 22.
Broadcom stock slipped 1.5% Thursday to 1,305.67, just below the 50-day line. AVGO stock has a consolidation of 1,438.17 point of purchase, although investors can use 1,403.98 as an early entry. A decisive move above the 50-day mark, perhaps clearing the 1,355 area, could be an aggressive entry.
Applied Materials stock edged down 0.5% to 206.33 on Thursday, still holding the 50-day line. Shares have a 214.91 flat base point of purchase. Investors could use the May 7 high of 209.47 as an entry. But Applied Materials results are expected on May 16.
KLA stock fell 0.9% Thursday to 710.67, slightly below a flat base entry at 727.64.
Arm stock fell 2.3% Thursday to 103.59, following an intraday low of 97.76. Stocks have rebounded somewhat in recent weeks, but have only recovered part of the huge losses from mid-April. The AI ​​and wireless chip designer late Wednesday beat fiscal fourth-quarter forecasts and grew from the first quarter, but gave a lackluster sales target for the full year.
Astera Labs shares rose 1.2% Thursday to 70.06, but after plunging 9.1% Wednesday. Late Tuesday, the AI ​​chip IPO far exceeded first-quarter views and progressed over the current quarter, but that wasn’t enough. ALAB stock has a buy point of 95.21 from a Basis of IPO, although the April 29 high at 88.59 might be a better entry. However, Astera Labs, like Arm, may need time to settle down again.
Tesla Stock
Tesla stock fell 1.6% to 171.97, just below the 50-day line. Stocks gave up most of their 15% gain on April 29. This happened after Tesla overcame major obstacles to introducing fully autonomous driving in China.
Rich Otto announced Wednesday that last week he resigned as head of Tesla’s new product launchesciting poor morale amid continued massive layoffs.
Elon Musk announced layoffs of more than 10%. It scrapped the Supercharger and new vehicle shifts were scrapped entirely, amid low demand and an apparent shift away from new vehicles. A large number of senior executives have resigned or been fired in recent months.
P.A. (P.A.) said Thursday it wants to buy Tesla Supercharger sites in the United States
Meanwhile, China’s BYD rose 1.8% to 28.95. BYD stock, the only electric vehicle maker rising in 2024, is actionable above the 200-day line and a short consolidation. The electric vehicle giant is set to unveil the Sea Lion, a Model Y rival, packed with fast charging, smart car technology and other features on Friday. BYD will officially launch a plug-in hybrid pickup truck on May 14.
What to do now
Nasdaq’s recent pause has stocks like Nvidia operating on possible bases or handles, while sharply rising stocks gain quickly relative strength.
This also gives investors more time to update their watchlists, but don’t dawdle. Top stocks continue to flash buy signals. You can add exposure gradually as the market recovery continues to go well.
Remember, if these positions weaken or the major indexes fall below their 50-day lines, you will need to reduce them again. So make your exit plans.
Read The big picture every day to stay in tune with the direction of the market and the main values ​​and sectors.
Please follow Ed Carson on the discussions at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
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