The Dow Jones futures rose slightly overnight, along with the S&P 500 futures and Nasdaq futures. NVIDIA ,NVDA, salesforce.com ,CRM) And snowflake ,ice) hit the headlines on a busy night of earnings. ,
The stock market rally rose slightly, although the major indices again held resistance at their 21-day moving averages. Investors don’t want to commit to huge amounts ahead of Fed chief Jerome Powell’s Friday speech.
During this, Apple ,AAPLWarren Buffett’s Top Investment Holdings Berkshire Hathaway ,BRKB), gained higher on Wednesday. AAPL stock now has a valid handle on the daily chart. Tesla ,TSLA) is testing key levels as the 3-for-1 TSLA stock split occurs overnight.
NVDA Stocks, Salesforce and Snowflake provide insight into key technical areas. Nvidia income presents a scene in semiconductors, particularly in the data center and gaming sectors. Salesforce earnings will indicate demand for business software. While analytics firm Snowflake, the SNOW stock response signals investor demand for the highly valued former tech leaders.
Nvidia’s earnings were broadly in line with lower guidance as gaming revenue fell a third but data center revenue jumped 61%. The chip giant lowered guidance on Q3 revenue. NVDA stock fell over 4% in overnight trading. Nvidia stock rose 0.2% to 172.22 in Wednesday’s regular session.
Salesforce earnings topped the chart, but the software giant posted lower guidance for the current quarter. Despite the new $10 billion buyback program, CRM stock declined sharply in expanded action. Salesforce.com stock climbed 2.3% to 180.01 on Wednesday.
Snowflake reported higher-than-expected Q2 losses, but 83% revenue beat gains. SNOW’s stock climbed overnight. Snowflake stock rose 4.2% to 160.28 on Wednesday, having bounced off the 50-day line after pulling back over the past few weeks.
During this, splunk ,SPLK, Box ,Box) And Autodesk ,ADSK) added to a busy software lineup after the shutdown, which has huge storage NetApp ,ntap) and home goods and furnishings retailers Williams- Sonoma ,WSM) also reporting. Autodesk and NetApp soared overnight on results, while Williams-Sonoma rallied higher. Splunk and the box fell.
early Thursday, dollar general ,DG) And dollar Tree ,DLTR) are on tap, with the Dollar Store chain probably in the consumer sweet spot right now. DG Stock and Dollar Tree are both around buying points.
dow jones futures today
Dow Jones futures were up 0.2% versus fair value, with CRM stock a drag on blue chips. S&P 500 futures rose 0.3% and Nasdaq 100 futures rose 0.35%.
Remember that overnight action in Dow futures and elsewhere does not necessarily entail actual trading in the next regular stock market session.
stock market rally
The stock market rally witnessed marginal gains on Thursday, but the major indices once again found resistance.
The Dow Jones Industrial Average rose 0.2% in Wednesday’s stock market trading. The S&P 500 index rose 0.3%. The Nasdaq Composite rose 0.4%. The small-cap Russell 2000 climbed 0.8%.
US crude oil prices rose 1.2% to $94.89 a barrel. The US rejected Iran’s terms for a revived nuclear deal, meaning there is no agreement yet that would release Iranian crude to world markets.
Natural gas prices rose 1.5 percent. Natgas futures fell 5 per cent on Tuesday, retreating from a 14-year high.
The 10-year Treasury yield rose 5 basis points to 3.11%, the highest since June 29. It is up 24 basis points in four sessions. Markets are leaning toward a straight 75-basis-point Fed rate hike on Sept. 21. Of course Fed chief Powell speaks on Friday, and a slew of economic data will be released before the next Fed rate decision.
Among the best ETFs, the Innovator IBD 50 ETF (ffty) rose 1.4%, while the Innovator IBD Breakout Opportunities ETF (boxing) climbed 0.4%. iShares Extended Tech-Software Sector ETF (IGV) increased by 0.6 percent. CRM stock is a major IGV component. VanEck Vector Semiconductor ETF (smh) down 0.1%. Nvidia stock is a major SMH holding.
SPDR S&P Metals & Mining ETF (XME) 2.1% and the Global X US Infrastructure Development ETF (expansive) advanced 0.6%. SPDR S&P Homebuilders ETF (XHB) climbed 0.75%. The Energy Select SPDR ETF (XLE) picked up 1.2%. Health Care Select Sector SPDR Fund (xlv) 0.1% up
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Taking support from the 21-day line, Apple stock rose 0.2% to 167.53. The Dow Jones Tech Titan now has 176.25 handle buy point on the daily chart, with entry already on the weekly chart. Apple officially sent out invitations for the September 7 event, which was expected to unveil the iPhone 14.
The relative strength line is hitting new highs reflecting the outperformance of the AAPL stock versus the S&P 500 Index.
Berkshire Hathaway bought 3.9 million more shares in Q2 for a total of approximately 895 million shares.
The stake in the iPhone maker stood at $122.3 billion as of June 30, but Apple stock has risen significantly since then. AAPL stock accounted for 41% of Berkshire’s portfolio at the end of Q2.
Tesla stock rose 0.2% to 891.29, but pulled back after retesting the 200-day moving average intraday. TSLA stock has an aggressive entry at 944.10, just above short-term highs. The EV giant is a long way from its official buying point of 1,208.10.
A 3-for-1 stock split happens overnight, so prices and buy points will adjust to Thursday’s open.
market rally analysis
After falling below the 21-day moving average on Monday, major indices are now hitting resistance at that short-term level. The small-cap Russell 2000 moved above its 21-day line.
While major indices may swing on Nvidia, Salesforce, Snowflake and other big gains on Thursday, market rally awaits Fed chief Powell’s speech.
Shares that have broken or rebounded on bullish signals over the past few days have continued to do well. But many have been extended.
Meanwhile, recent market volatility is giving a lot of stocks, such as Apple, Carv handles.
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What should we do now
There are stocks that have shown buying signals in the recent past, especially in the energy and EV supplier sectors. However, the market rally is in a pullback, hitting short term resistance. Powell’s speech will likely be a market catalyst. So investors should be wary of adding more investments till then.
But be ready. If markets rally higher on Fed chief Powell’s comments, many buying opportunities could come to life. So an up-to-date watchlist will be important. If the market turns down, investors should be prepared to step down.
Read The Big Picture every day to keep up with the market direction and key stocks and sectors.
Please follow Ed Carson on Twitter @ibd_ecarson For stock market updates and much more.
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