After a big week for the Nasdaq and major stocks, Dow Jones futures will begin trading Sunday night, along with S&P 500 futures and Nasdaq futures.
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apple (AAPL), Amazon.com (AMZN), novo nordisk (NVO), Eli Lilly (LLY), super microcomputer (SMCI) and Advanced Micro Devices (AMD) will report the full report next week. The latest Federal Reserve and monthly employment statistics are also scheduled.
Stock markets rallied strongly last week, driven by gains in large-cap stocks amid worrying inflation reports. NASDAQ and major stocks stood out. That's because the tech giant has seen strong growth and committed to massive AI spending.
AI chip manufacturer Nvidia (NVDA), broadcom (AVGO) and Astera Research Institute (ALAB) flashes a buy signal, App Lovin (app), KLA (KLAC), kava group (CAVA) and Embraer (ERJ).
Several other stocks issued buy signals with earnings scheduled for this week. Havel (hub), wingstop (wing), texas roadhouse (TXRH) and Generac (GNRC)
Investors should pay attention to changes in the nature of the market. However, with the return of bullishness, caution is necessary. All major indexes are below their 50-day moving averages. With Super Micro and AMD key to AI hardware, the earnings schedule could still shake up the market and sector. Apple is a laggard, but it's still a huge tech giant with a huge iPhone ecosystem. AI tips can help or hurt many stocks.
The Fed meeting and key economic data could also derail an early market rally.
Nvidia, Novo Nordisk, Generac, KLA, and Cava stocks are listed on the IBD Leaderboard, and Eli Lilly stock is listed on the Leaderboard Watchlist. Nvidia stock is listed on SwingTrader. KLA stock is listed on IBD Long Term Leaders. Wingstop, Hubbell's and Texas Roadhouse are included in IBD 50. Broadcom, Hubbell, and Super Micro stocks are included in the IBD Big Cap 20. Kava was the IBD Stock of the Day on Friday.
Dow Jones futures today
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, open at 6pm ET on Sunday.
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 leading stocks and markets on IBD Live.
stock market rise
This week's stock market rally was particularly strong for the Nasdaq and major stocks. In last week's stock market trading, the Dow Jones Industrial Average rose 0.7%. The S&P 500 index rose 2.7%. The Nasdaq Composite rose 4.2%. The small-cap Russell 2000 soared 2.8%.
After a long string of losses, the rebound earlier in the week wasn't all that surprising. On Thursday morning, the attempt to rally appeared unsuccessful, selling off after strong inflation data. meta platform (META) Fall due to induction. But major indexes trimmed their losses, as meta selling on big spending on AI supported Nvidia, Broadcom and AI hardware.
Share prices accelerated on Friday, helped by solid earnings and spending plans. microsoft (MSFT) and Google's parent company alphabet (Google).
The Nasdaq surged 2% on Friday, but volume was down slightly compared to Thursday, so it didn't qualify as a follow-through day. However, many leading stocks issued buy signals or extended moves.
The major indexes may face resistance at their 50-day lines, with the S&P 500 and Nasdaq near key levels. A calendar packed with earnings and economic news awaits investors next week.
The 10-year Treasury yield rose 5.5 basis points to 4.67%, a rise of 48 basis points in just four weeks. On Thursday, the 10-year Treasury yield approached 4.74%, its highest level since Nov. 1.
Markets are currently betting that the Fed will cut rates for the first time in September, which is a certainty. Investors are largely divided on whether there will be one or two rate cuts in 2024, and it is highly likely that no action will be taken.
The Fed meeting statement and Fed Chairman Jerome Powell, along with the April jobs report and other key data, should move Treasury yields and the probability of a rate cut.
U.S. crude oil futures rose 2% to $83.85 per barrel.
ETF
Among growth ETFs, the iShares Expanded Technology Software Sector ETF (IGV) rose 3.3%. The VanEck Vector Semiconductor ETF (SMH) rose 9.25%. Nvidia is the No. 1 holding, and Broadcom stock is also an important component.
SPDR S&P Metals Mining ETF (XME) fell 0.1% last week. The Global XUS Infrastructure Development ETF (PAVE) rose 2.3%. The SPDR S&P Home Builders ETF (XHB) rose 3.6%. The Energy Select SPDR ETF (XLE) rose 0.8%, and the Healthcare Select Sector SPDR Fund (XLV) rose 0.7%, with Eli Lilly holdings prominent.
Industrial Select Sector SPDR Fund (XLI) rose 1.8%. The Financial Select SPDR ETF (XLF) rose 1.1%.
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Nvidia flashes buy signal for AI chip stocks
Nvidia stock rose 15.2% last week to 876.90. Friday's 6.1% rise sent NVDA stock above its 50-day line and back just above the downtrend line, allowing for an early entry. The buy point for Nvidia stock is 974.
CBS' “60 Minutes” featured Nvidia on Sunday night, with an interview scheduled with CEO Jensen Huang.
Broadcom stock rose 11.6% last week and 3.8% on Friday, crossing its 50-day line to 1,344.05. If you do that, you might be able to make a positive entry. AVGO stock has a buy point of 1,403.98 on a double bottom basis.
Astera Labs' stock price soared 31.8% to 85 on the week, matching a record closing price. Friday's 18.7% surge pushed the March AI Chip IPO above resistance near 75, triggering an entry. But now the stock appears to be expanding further. The official IPO standard buy point for ALAB stock is 95.21 points. Astera's earnings are scheduled to be announced on May 7th.
AI chip play has surged following big spending by tech giants.
Supermicro and AMD's results on Tuesday night could shake up the group, along with Amazon's comments on AI spending. Super Micro had a solid week, but SMCI stock and AMD are still well below his 50-day line. Amazon stock rebounded for more than 50 days.
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Liquidation of purchase points for other stocks
KLA stock rose 12.4% for the week to 706.26. On Friday, the chip equipment maker soared nearly 5% on strong earnings results, topping the 50-day trend line. This allows for early entry. The buy point for KLAC stock is 729.15 on a flat basis.
Cava stock rose 16.7% to 69.61, regaining its 50-day line on Thursday but rising on Friday. The relative strength line marks a new high, showing Cava's outperformance versus the S&P 500. On Friday morning, the Mediterranean-themed restaurant cleared the trend line and made an aggressive entry. However, by the close, Cava stock had expanded. Investors could either wait for a rebound or wait for a suitable foundation to form.
AppLovin rose 10.5% last week to 73.82, recovering from its 50-day/10-week line for the first time since the break in late January. Friday's 6.7% rise sent APP stock rebounding above the 21-day line and breaking the short trend line.
Emberel stock rebounded last week after steadily retreating to its 10-week line over the past four weeks. It rose 9.25% to 25.98. This created a buying opportunity for Brazilian jet makers. According to MarketSurge analysis, there is now a new flat base with a buy point of 27.25.
Eli Lilly, Novo Nordisk
Eli Lilly will report early Tuesday morning, while Novo Nordisk will be up and running before the start of trading on Thursday. Strong growth is expected due to surging demand for weight loss drugs. Investors will be looking for guidance on production and progress on next-generation obesity rates.
Eli Lilly and Novo Nordisk's stock prices have been flat, with Lilly below its 50-day line and Novo near its key level.
what to do now
Friday is a great example of why investors need to stay interested and have their watchlists ready.
As the NASDAQ soared, many stocks broke through buy points. Many are still within range, but it's convenient to buy as close to entry as possible. In some cases, such as Cava and Astera Labs, if they didn't take advantage of Friday morning, their stock prices quickly extended.
Friday was the day to consider purchasing. However, this week's tough earnings and economic news, as well as the 50-day line tests on the S&P 500 and Nasdaq, are reasons not to aggressively increase exposure.
If the market goes up and your holdings continue to advance, you can add exposure as more stocks trigger entries.
So make sure your watchlist is up to date. Stocks that looked damaged Thursday morning may be actionable or trending higher. Nvidia and AI's names are prominent again, but their market leadership is widespread.
Your watchlist and portfolio should reflect that.
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