Dow Jones futures were little changed Thursday evening while S&P 500 futures and Nasdaq 100 futures fell slightly. U.S. stock markets are closed for the Fourth of July holiday. The jobs report looms early Friday.
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Nasdaq, S&P 500 Hit Highs; ASML, Tencent Music, Agnico-Eagle Mines In Focus
The S&P 500 and Nasdaq hit record highs in Wednesday’s half-day session. Tesla (TSLA) continued its powerful run, running up to a major trendline. Nvidia (NVDA) had a solid session on a strong day for chips.
ASML (ASML), Entegris (ENTG), Monday.com (MNDY), Agnico-Eagle Mines (AEM), Southern Copper (SCCO), Tencent Music (TME) and Vistra (VST) flashed buy signals Wednesday.
Dow Jones Futures Today
Dow Jones futures were even vs. fair value. S&P 500 futures dipped 0.1% and Nasdaq 100 futures fell 0.2%.
Bitcoin undercut spring lows below $57,000 Thursday before paring losses to $58,253.54 as of 4 p.m. ET, down 2.3%. That’s the lowest close since May 1.
Friday’s jobs report will be sure to swing Dow futures and Treasury yields early Friday.
The Labour Party is set for a landslide victory in Thursday’s U.K. elections, though the ruling Conservative Party may not have fared quite as badly as expected.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Jobs Report
The Labor Department will release the June jobs report at 8:30 a.m. ET Friday. Economists expect nonfarm payrolls to show a gain of 189,000, cooling from May’s rise of 272,000. The jobless rate is forecast to remain at 4%. Average hourly earnings are seen rising 3.9% vs. a year earlier, down from 4.1% in May.
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Stock Market Rally
The stock market rally technically was mixed Wednesday, but the action of the S&P 500, Nasdaq and leading stocks cast a clearly bullish tone.
The Dow Jones Industrial Average lost a fraction in Wednesday’s stock market trading. The S&P 500 index climbed 0.5%. The Nasdaq composite rose 0.9%. The small-cap Russell 2000 edged up 0.1% but came off highs 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) advanced 0.15% to a record close.
The Nasdaq is now 7.6% above the 50-day line, increasingly extended. That raises the risks of a pullback, though it doesn’t have to happen right away.
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%, down 13 basis points in two sessions.
Treasury yields tumbled as the June ISM services index signaled contraction, along with weaker-than-expected labor data from the ADP Employment Report and initial jobless claims.
Fed minutes from the June meeting released after the market’s early close, showed policymakers seeing risks “moving into better balance.” However, they want “greater confidence” before cutting interest rates.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.6%. The iShares Expanded Tech-Software Sector ETF (IGV) edged higher. The VanEck Vectors Semiconductor ETF (SMH) jumped 2.4%. Nvidia stock and ASML are major SMH holdings.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) popped 1.8% and ARK Genomics ETF (ARKG) climbed 1.2%. Tesla stock is the No. 1 holding across Ark Invest’s ETFs. Cathie Wood sold some Tesla shares on Tuesday and again on Wednesday.
SPDR S&P Metals & Mining ETF (XME) rallied 1.8%. The Global X U.S. Infrastructure Development ETF (PAVE) added 0.85%. U.S. Global Jets ETF (JETS) gained 1.5%. SPDR S&P Homebuilders ETF (XHB) advanced 0.5%. The Energy Select SPDR ETF (XLE) rose 0.25% and the Health Care Select Sector SPDR Fund (XLV) fell 0.7%.
The Industrial Select Sector SPDR Fund (XLI) climbed 0.3%. The Financial Select SPDR ETF (XLF) dipped 0.2%.
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Nvidia Stock
Nvidia stock leapt 4.6% to 128.28, bouncing 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 a place to add a few more shares. But NVDA stock could use a longer pause.
Tesla Stock
Tesla stock jumped 6.5% to 246.39 Wednesday, extending its weekly gain to 24.6% after jumping 8.1% last week.
Shares are greatly extended from the 191.08 handle buy point. TSLA stock is coming up to a long-term trendline going back to its late 2021 all-time high. Ideally, Tesla would pause for a while. Earnings are due in two weeks.
Stocks In Buy Areas
ASML stock rose 2.2% to 1,071.20, moving back above a 1,056.34 buy point, according to MarketSurge analysis. The chip-equipment giant recently found support at the 21-day line. ASML earnings are due on July 17.
Entegris stock popped 3.1% to 140.81, moving above a handle buy point of 139.81.
Monday.com stock gained 2.65% to 243.31, back above a 239.54 entry as well as retaking a prior base buy point of 239.22.
Angico-Eagle stock popped 4% to 68.27, rebounding above the 50-day line and breaking a trendline. AEM stock has a 71.50 buy point from a flat base.
Southern Copper stock leapt 5.5% to 116.03, bouncing above the 50-day line.
SCCO stock is currently in a consolidation pattern with an official buy point at 120.79.
Tencent Music stock saw a 3.5% increase to 14.94, breaking a trendline within a flat base. The official buy point for TME stock is at 15.77, and it is currently bouncing off the 50-day line.
Vistra stock experienced a 4.1% rise to 91.31, moving back above the 50-day line and short-term highs. The power generation company, which is an AI-adjacent play, may be in the process of building the right side of a new base.
The stock market rally is displaying strength across major indexes, although market breadth could be improved. It is important to consistently run screens and cast a wide net to identify potential buy signals in various sectors.
While the Nasdaq’s increasing extension warrants caution in adding exposure, the overall bullish trend remains intact. It is advisable to start paying attention to earnings dates as quarterly reports will begin to pick up in the coming week.
Keep track of market direction and leading stocks and sectors by reading The Big Picture daily. Nvidia, ASML, and Agnico-Eagle stock are featured on the IBD Leaderboard, with Weatherford stock on the watchlist. Nvidia and Monday.com are also highlighted on the IBD 50 list.
ASML was recognized as Wednesday’s IBD Stock Of The Day. Stay updated on stock market updates and more by following Ed Carson on Threads and Twitter.
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