Dow Jones futures fell Friday morning, as did S&P 500 futures and Nasdaq futures. JP Morgan Chase (JPM) and wells fargo (WFC) and citygroup (C) reported early Friday morning.
X
Stock markets generally rallied following Wednesday's high CPI inflation announcement as investors shrugged off mixed March PPI inflation reports.
Nasdaq closes in on record Nvidia (NVDA) has once again taken the lead and issued a buy signal following Wednesday's bullish rally.
Fellow AI Chip and Hardware Stocks broadcom (AVGO), Astera Research Institute (ALAB), Arista Networks (ANET) and super microcomputer (SMCI) also had a strong session. In the field of software, data dog (DDOG) triggered early entry, but microsoft (MSFT) rose in a buying range.
Thursday provided some buying opportunities, but don't increase your exposure right away. This could be the start of a new run, but it could be a false signal. Indices, including the Nasdaq, remain in a flat pattern.
Nvidia stock is listed on the IBD Leaderboard. Nvidia, Microsoft, and Broadcom stocks are listed on SwingTrader. Microsoft stock is listed on the IBD Long-Term Leaders list. Nvidia, Microsoft, Citigroup, and Arista stocks are included in the IBD 50. Nvidia, Datadog, Broadcom, Arista, Networks, and Super Micro stocks are included in the IBD Big Cap 20.
Microsoft was IBD Stock Of The Day on Thursday.
Dow Jones futures today
Dow Jones futures fell 0.25% to fair value. S&P 500 futures fell 0.3% and Nasdaq 100 futures fell 0.45%.
The 10-year US Treasury yield fell to 4.52%.
Oil prices rose more than 1%. Copper prices rose more than 2%.
In March, China's exports decreased by 7.5% in dollar terms compared to the same month last year, and imports decreased by 1.9%. Both were much weaker than expected, following some encouraging reports including exports.
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 key stocks and market gains on IBD Live.
bank profits
Bank earnings got off to a good start early Friday morning, with JPMorgan, Wells Fargo and Citigroup reporting better-than-expected first-quarter results.
However, JPMorgan's full-year forecast for net interest income was below consensus.
JPMorgan shares fell slightly, cutting their initial losses to almost nothing. Wells Fargo fell slightly. Citigroup rose slightly.
All three stocks found support at the 21-day line, and after a large rise, they have fallen back. Wells Fargo stock is at 58.44, its tightest entry in five weeks.
Major asset management company black rock (BLK) reported first-quarter profits that beat views and slightly higher sales. BlackRock stock rose slightly before moving back toward its 50-day line.
stock market rise
Stock markets rallied on Thursday, relieved that the PPI inflation report was not worse. Investors flocked to AI stocks.
The Dow Jones Industrial Average closed marginally lower in stock market trading on Thursday, after hitting its worst intraday level in nearly two months. The S&P 500 index rose 0.7%, again above its 21-day line. The Nasdaq Composite rose 1.7%, hitting a record high.
Nvidia once again leads the Nasdaq and S&P 500, both of which have rebounded from their 10-week lines this week.
In addition to the other AI efforts discussed in this article, Google's parent company alphabet (GOOGL) and Amazon.com (AMZN) rose 2.1% and 1.7%, respectively, both hitting new record highs and bringing their market caps closer to $2 trillion. apple AAPL rebounded from its 2024 lows and rose 4.3% as JPMorgan was rumored to be expecting to release an AI-powered iPhone this fall.
However, while the Mega Cap and AI plays shined, volumes on both exchanges were significantly down compared to Wednesday. Market breadth was positive but lackluster considering the Nasdaq's rise.
The small-cap Russell 2000 rose 0.7%, just above its 50-day line.
Invesco S&P 500 Equal Weight ETF (RSP) fell 0.1% after falling to its 10-week line during the day.
The First Trust Nasdaq 100 Equal Weight Index ETF (QQEW) rose 1%, missing the Nasdaq 100's 1.6% gain but just regaining 50 days of gains.
The Nasdaq Composite cleared the trend line and hit a new all-time high. It is still within range of the ugly downside reversal on April 4th. A break above that level and the March 21st intraday high would definitively signal a positive trend.
Ideally, this would also result in broader market participation.
US crude oil prices fell 1.4% to $85.02 per barrel.
The yield on the 10-year U.S. Treasury rose 2 basis points to 4.575%, the highest level in five months, and up 20 basis points for the week.
ETF
Among growth ETFs, the iShares Expanded Technology Software Sector ETF (IGV) rose 0.7%, with Microsoft stock the top holding. The VanEck Vectors Semiconductor ETF (SMH) rose 2.3%, with Nvidia as its No. 1 constituent and Broadcom stock a major member.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) rose 1.5% and the ARK Genomics ETF (ARKG) rose 0.5%.
SPDR S&P Metals and Mining ETF (XME) rose 0.35%. The SPDR S&P Home Builders ETF (XHB) rose 0.4%. Energy Select SPDRETF (XLE) fell 0.2% and Healthcare Select Sector SPDR Fund (XLV) fell 0.4%.
Industrial Select Sector SPDR Fund (XLI) rose 0.1%. The Financial Select SPDR ETF (XLF) fell 0.6%, highlighted by holdings in JPMorgan, Wells Fargo, and Citigroup.
Timing the Market with IBD's ETF Market Strategy
nvidia stock
Nvidia stock soared 4.1% to 906.16 on Thursday, breaking above its 21-day line and breaking a short downtrend. Early entry was possible because it was the day after the bullish rebound from the 10-week line. NVDA stock is expected to remain flat with a buy point of 974 points after Friday's close.
Raymond James on Thursday raised his price target for Nvidia from $850 to $1,100.
Other AI stocks
Broadcom stock rose 4.5% to 1,382.56, bouncing back from its 21-day and 10-week levels to its highest close in a month. The chip and software giant plans to roll out new integrations starting Friday. Investors could use the April 4 high of 1,403.28 as a handle buy point.
Astera Labs rose 6% to 75.59, clearing key resistance at the 75 level and issuing its first-ever buy signal. The AI networking chip maker, which went public in March, has an IPO base with an official buy point of 95.21 points. ALAB stock is very volatile as it is a brand new he IPO.
Super Micro stock rose 3.2% to 937.28, rebounding slightly from its 50-day line. Investors can use it as a place to initiate positions. Ideally, SMCI stock will regain its 21-day line and break out of the downtrend line currently near the 1,000 level. This is a highly volatile stock.
Arista Networks stock rose 2.9% to 296.58 on Thursday, above its 21-day line and flat buy point of 292.66, according to MarketSurge. The stock has been trading around this entry for several weeks. However, Arista fell nearly 4% early Friday after Rosenblatt Securities downgraded the stock to sell.
Datadog stock surged 4% to 130.80 on Thursday, closing above its 50-day line for the first time since early March. This allowed for early entry into flat-based, base-on-base patterns.
Microsoft stock rose 1.1% to 427.93, rebounding from its 21-day line and clearing some short-term levels.
On Thursday, Morgan Stanley raised its price target to 520 from 465, citing the Dow tech giant's generative AI leadership. The stock is within a buy point of 420.86 from a short consolidation that settled in mid-March. MSFT stock has been in a tight three-week pattern and could enter at 430.82.
Microsoft will release its earnings results on April 23rd, which will have major implications for Nvidia, Arista, and the entire technology industry.
what to do now
There were some bright spots Thursday. Perhaps the bull market has turned a corner and is starting to move higher. Or this could be another head fake.
Given the strength of heavy hitters like Nasdaq and Nvidia, investors could and should have taken advantage of some stocks on Thursday.
However, be careful not to get too excited and aggressively increase your exposure. Be prepared to exit if Thursday's gains cannot be sustained.
Regardless of whether you take any action on Thursday, you may want to wait for the Nasdaq to reach an intraday high before making any new purchases. Wider overall width would be a big plus.
It's time to keep your watchlist updated and proactive. Many interesting stocks have been set up, and some of them seem to be able to be put to practical use.
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