Along with S&P 500 futures and Nasdaq futures, Dow Jones futures gained slightly on Thursday night. The stock market rally took a firm turn on Thursday, with the S&P 500 and Nasdaq enjoying their best gains in months, while growth names continued to rise.
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alcoa (AA) posted better-than-expected earnings after Thursday’s close, while also announcing a new dividend and AA stock buyback.
microsoft stock, NVIDIA (NVDA), service now (now) and Google Guardian Alphabet (GOOGL) made a bullish move from its 50-day moving average. freeport-mcmoran (FCX) broke down heavily, while snowflake (SNOW) approved a handle purchase point.
Alcoa stock could be actionable on Friday, though it could be out of reach. The aluminum giant jumped into expanded trading following news of earnings and shareholder return. AA stock rose 0.4% to 48.60 on Thursday, up 4.4% from its 10-week line.
Meanwhile, several other stocks made big moves, including Upstart Holdings (UPST) and ambarella (Amba). But they can now be seen as extended.
Microsoft (MSFT), Nvidia, ServiceNow, Google and SNOW all stock IBD with Upstart on the leaderboard. nvidia stock swing trader Microsoft, ServiceNow and Google stocks are all IBD long-term leaders. UPST Stock, Tasks, Ambarella and Google are at IBD 50. Microsoft was the IBD stock of the day.
The video embedded in this article has had a significant market day, as well as Google, Nvidia and . analyzed AMN Healthcare (AMN).
dow jones futures today
Dow Jones futures rose 0.15% versus fair value. S&P 500 futures rose 0.2%. Nasdaq 100 futures rose 0.2%.
Remember that overnight action in Dow futures and elsewhere does not necessarily entail actual trading in the next regular stock market session.
Join IBD experts as they analyze stock market rally actionable stocks on IBD Live
stock market rally
The stock market rally started off strong and closed closer to broad-based higher levels.
The Dow Jones Industrial Average rose 1.55% in Thursday’s stock market trading. The S&P 500 index jumped 1.7%, its best gain since March. The Nasdaq Composite also jumped 1.7%, the sharpest advanced since May. The small-cap Russell 2000 climbed 1.4%.
Nasdaq volumes were marginally higher than Wednesday. According to preliminary data, NYSE volumes were flat or perhaps slightly higher.
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The 10-year Treasury yield fell 3 basis points to 1.52%, the third straight decline, providing a broader market rally and a tailwind for growth names in particular. earning from Taiwan Semiconductor (TSM), unitedhealth (UNH), Bank of America (BAC) and other large banks also contributed. Copper prices made another strong gain and oil prices hit multi-year highs.
ETFs show broad gains
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) gained 1.65%, while the Innovator IBD Breakout Opportunities ETF (BOUT) gained 0.9%. The iShares Extended Tech-Software Sector ETF (IGV) advanced 1.6%. Microsoft and Now stock are big IGV components. The VanEck Vector Semiconductor ETF (SMH)% popped up. Taiwan Semiconductor and Nvidia stock major SMH components, but chip names fared well.
The SPDR S&P Metals & Mining ETF (XME) gained 0.6%, with Alcoa and FCX shares leading the way. The Global X US Infrastructure Development ETF (PAVE) rose 2.15%. The US Global Jets ETF (JETS) rose 0.7%. The SPDR S&P Homebuilders ETF (XHB) jumped 2.8%. The Energy Select SPDR ETF (XLE) Soared [email protected] And the Financial Select SPDR ETF (XLF) gained 1.7%.
Reflecting more speculative story stocks, the ARK Innovation ETF (ARKK) rose 1.9% and the ARK Genomics ETF (ARKG) rose 2.4%.
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Microsoft’s stock rose 2.2% to 302.75, rebounding above-average volume from its 50-day line. On the weekly chart, MSFT stock broke a trend line. The relative strength line is just below record highs, indicating strong Microsoft stock performance versus the S&P 500 Index. According to MarketSmith analysis, the official buy point from a flat basis is 305.94. But it is already actionable.
Google stock climbed 2.6% to 2,823.02, retracing its 50-day line and breaking a short trend line. The quantity was above normal. Like MSFT stock, the internet giant is trading on a flat basis with 2,925.17 buy points. The RS line is also close to the record high.
Now the stock is up 2.1% to 653.03, breaking a minor trend line and still holding close to the 50-day line. But the shares closed higher. ServiceNow stock has 681.20 flat-base buying point, though 670.59 is another resistance point.
Nvidia stock jumped 3.85% to 217.46, retracing the 50-day line after hitting resistance on October 8. Like the MSFT stock, an investor can also find a trend line break. The official buy point is 230.53 from a flat base. Nvidia’s move comes as rival Advanced Micro Devices (AMD) extended Wednesday’s move above its 50-day line and towards an official buying point.
SNOW stock rose 1.3% to 332.12, clearing 328.16 entry which can be viewed as a handle on a much deeper 10-month basis. Shares fell below their intraday highs. Volume was below average, but it follows a 4.8% move on Wednesday’s heaviest trade in the week.
FCX stock rose 3.7% to 37.13, its third gain in above-average volume in the past four sessions. After moving above the 50-day and 200-day lines on Wednesday, Freeport-McMoRan stock moved above Monday’s intraday high of 36.57. Investors can use this as an aggressive entry. FCX shares have jumped this week as copper prices have risen sharply. Keep in mind that earnings are due on October 21.
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market rally analysis
Typically in an attempt to bullish the market, some major stocks will begin breaking out or flash opening entries a day or two before the actual follow-through day. But this time, many development names are actionable or for several days. This is because it is a shallow market correction. But many growth names made impressive strides even on days when the major indices were down.
Now that conflict may end. The Nasdaq Composite jumped above its 21-day moving average and last week’s high, turning slightly away from its 50-day line. The S&P 500 and Dow Jones bounced back above their 21-day line and closed just above the 50-day line.
Higher Nasdaq volumes on Thursday indicated institutional support for a new market rally.
Meanwhile, major stocks continued to do well. Some stocks are just looking actionable, while many others are already somewhat or heavily expanded. While the big winners of the past week have been growth stocks, with energy and financial stocks holding well, some mining and metals play buying signs are shining or starting to establish.
The major indices have now broken out of the recent downtrend and around their 50-day lines. Pay close attention here. Like Microsoft, Google and Nvidia stocks over the past week, the index may power higher, turn away, or stay at these levels for some time before moving higher or lower.
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What should we do now
For investors who have been on the sidelines over the past few weeks, Thursday offered an opportunity to increase their exposure. This can be through individual stocks or broad or sector ETFs.
If you’ve already added some stocks, Thursday was an opportunity to load more depending on your exposure. Considering the healthy market conditions, you may continue to do so in the days to come.
But don’t chase extended stocks. Several hot growth names have gained 10%, 15% or more over the past several days, and could be vulnerable to a pullback. Some of the recent winners pulled back on Thursday even with the overall market firming up.
Other stocks may move into positions over the next few days, while many institutional quality names such as Google stock are buyable now.
But a word of caution. Major indices are still at key levels. Weighing in the name of growth, Treasury yields could rise again. Earnings season can derail a market rally or your personal holdings.
So pay attention to the major indexes and pay attention to what the market is telling you right now. Don’t get fixed or locked into a specific stock in a bullish or bearish mindset. Being flexible is critical to long-term investing success.
Please follow Ed Carson on Twitter @ibd_ecarson For stock market updates and much more.
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