Dow Jones futures will begin trading on Sunday night, along with S&P 500 futures and Nasdaq futures.Warren Buffett's berkshire hathaway (BRKB) reported strong earnings and cash growth, with billionaire investors expecting further increases at the company's annual shareholder meeting.
X
Stock market gains had a solid week, with the Nasdaq rallying above a key level thanks to subdued employment data. apple (AAPL).
Nvidia (NVDA) regained key levels and issued an early buy signal on Friday, recovering from a mid-week decline.
Palantir Technologies (PLTR), Astera Research Institute (ALAB), Arista Networks (ANET), data dog (DDOG) and constellation energy (CEG) makes money entirely on tap. All of them are set up with plays involving AI.
Nvidia stock is listed on IBD Leaderboard, SwingTrader, and IBD 50. ALAB stock is on the Leaderboard Watchlist.
Berkshire Hathaway's earnings
Berkshire's first-quarter operating income increased 39% from the same period last year. Sales increased 5% to $89.87 billion. Both exceeded expectations.
The conglomerate bought $2.6 billion of its own stock during the quarter. Berkshire had a record $188.99 billion in cash, up from $167.6 billion in the fourth quarter and $157.2 billion in the third quarter.
Speaking at Berkshire's annual shareholder meeting, Buffett predicted “moderate” full-year earnings growth and expected cash levels to reach $200 billion by the end of the second quarter.
Berkshire has cut its stake in Apple by a huge amount for the second consecutive quarter. The company reported that Apple's stock is worth $135.4 billion, implying a 13% drop in its holdings to about 790 million shares. In the fourth quarter, Berkshire reduced its holdings in Apple by 10 million shares.
Buffett said he expects Apple stock to remain Berkshire's top holding.
Berkshire stock fell slightly last week, down 0.3% to 400.60, below its 50-day line. The flat base buy point for BRKB stock is 430 points. Investors may take decisive action beyond 50 days to allow early entry.
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
Stock market gains were choppy midweek, but held steady on Thursday and Friday, helped by earnings reports and benign employment data.
In stock market trading last week, the Dow Jones Industrial Average rose 1.1%. The S&P 500 index rose 0.55%. The Nasdaq Composite rose 1.4%. The small-cap Russell 2000 rose 1.7%.
The Nasdaq rebounded above its 50-day line on Friday, rising 2%. However, the Nasdaq market posted its third significant price increase in six sessions, although volume was slightly lower than the previous session. Therefore, there is still no official follow-through date for the market rally attempt.
The S&P 500, Dow Jones and Russell 2000 rose above their 50-day lines on Friday but ended below that key level, while the S&P remains slightly below that level.
Nvidia cleared an early buy point and while many stocks are rising, there weren't many buying opportunities on Friday.
The 10-year Treasury yield fell 17 basis points to 4.5%, retreating from its 2024 high.
US crude oil futures fell 6.85% last week to $78.11 per barrel.
ETF
Sector ETFs had little movement, but generally closed near weekly highs.
Among growth ETFs, the iShares Expanded Technology Software Sector ETF (IGV), which includes DDOG stock, fell 0.3% last week. The VanEck Vector Semiconductor ETF (SMH) rose slightly. NVIDIA stock is the number one holding.
The SPDR S&P Metals Mining ETF (XME) had another tough week's close, falling less than 0.1%. The Global XUS Infrastructure Development ETF (PAVE) rose 0.4%. The US Global Jets ETF (JETS) fell 0.1%. SPDR S&P Home Builders ETF (XHB) rose 1.4%.
Healthcare Select Sector SPDR Fund (XLV) rose 0.7%. Industrial Select Sector SPDR Fund (XLI) rose 0.1%. Financial Select SPDR ETF (XLF) fell 0.6%.
The big exception was the Energy Select SPDR ETF (XLE), which fell 3.3%.
Timing the Market with IBD's ETF Market Strategy
nvidia stock
Nvidia stock rose 1.2% last week to 887.83 and was up 3.6% on Friday. The stock regained its 50-day line and cleared the trend line, suggesting an early entry. NVDA stock also briefly rose above its April 30 high of 888.19, but did not close higher than that.
Nvidia stock has an official buy point of 974 due to consolidation dating back to its March 8th peak.Stocks bounced off Wednesday's losses on lackluster guidance from rival Advanced Micro Devices and AI Server Partners. super microcomputer (SMCI).
Nvidia's financial results are scheduled to be released on May 22nd.
AI revenue
Palantir's earnings are expected to be released Monday night. Analysts expect rapid profit growth and solid revenue growth, with a focus on commercial sales. PLTR stock rose 3.55% last week to 23.32, just below its 50-day line. If there is a decisive move above that level after the settlement, early entry may be possible. According to MarketSurge, the cross-buy point for Palantir stock is 27.50.
Datadog's financial results will be released early Tuesday. Analysts expect EPS and sales to increase 22%, but they expect earnings to decline for the rest of the year. DDOG fell 5.5% last week to 124.27 and fell below its 50-day line on Friday. cloudflare (NET) plunged after lackluster guidance. Datadog has a buy point of 138.61 from a flat base. Investors may use the April 26 high of 132.90 as an early entry.
Arista Networks' financial results will be released later Tuesday. The networking leader made a big jump in 2023, ultimately hitting its all-time high on March 22, 2024. After falling below the 50-day line in mid-April, the stock has rebounded as tech giants, including Arista's major customers, tout big AI investment plans. microsoft (MSFT) and meta platform (meta). ANET stock rose 3.7% last week to 274.38, rebounding 4.8% on Friday before hitting 50-day resistance. The buy point set a new standard at 307.74.
On Tuesday night, Astera Research Institute will also report its first earnings since going public in March. ALAB stock fell 0.5% to 76.96 last week following declines in Supermicro and AMD, but it has come a long way from its lows. The AI networking chip maker's IPO base has a buy point of 95.21 on the daily chart, but is expected to have a handle entry of 88.59 after Monday. This handle is already valid for a week.
Constellation Energy's results are expected to be released early Thursday, with analysts expecting strong first-quarter results. Because artificial intelligence chips require enormous amounts of power, nuclear power leaders have taken on an AI-adjacent role.
CEG stock rose 4.7% to 194.86 on Friday, rebounding from its 21-day line and breaking the trend line, setting a new record closing price. The relative force line has updated its highest value. All of these provided buy signals, but the upcoming earnings increase the risk. The flat base buy point for Constellation Energy stock is 198.83.
market rise analysis
The stock market rally cleared some key technical hurdles, while this week's huge earnings and economic news were largely positive.
There were several new purchase opportunities on Friday. If the market rebound continues to be successful, investors may continue to add exposure at moderate levels.
Therefore, please update your watchlist. While this article focused on Nvidia and AI trends, there are stocks in a wide range of sectors that are viable or set, including retail, financials, healthcare, and energy.
The S&P 500 and Russell 2000 returning to their 50-day lines would be a positive signal. On the other hand, it won't take long for the Nasdaq to fall below that key level.
While the economic calendar is light this week, earnings season is starting to ease, reducing the risk of big market moves.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
Follow Ed Carson's thread @edcarson1971 and X/Twitter. @IBD_ECarson.
You'll probably also like:
Robot surgeon will examine you now
The best growth stocks to buy and watch
IBD Digital: Get access to IBD's premium stock lists, tools and analysis now
Looking for market insights? Check out the IBD Live Daily Segment
Elon Musk advocates FSD amid Tesla EV predicament.Rivals advance by a record margin
