Dow Jones Futures: Market Builds Up to Big Test; Intel has been sliding of late

With key inflation data due Friday morning, S&P 500 futures and Nasdaq futures were modestly lower after hours. Intel (INTC) and visa (V) with two more Dow components reported hours later, Chevron (CVX) and American Express (AXP), starting on Friday. With a chip-gear manufacturer KLA Corporation (Clutch), i.e. five stocks closed near buy points with earnings due before opening hours.




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Stock market gains continued on Thursday amid a flurry of earnings reports and economic data. Major indices closed at highs in the fifth consecutive session and are on the verge of breaking some major resistances.

Tesla (D.S.L.A) was a big revenue winner, buoyed by CEO Elon Musk’s bullish comments about 2023. Fellow megacaps Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN), Nvidia (NVDA), Google Parents letters (Google) and Facebook Parent Meta platforms (Meta) all had solid to strong gains. None of these stocks are in position, and only NVDA stock is above its 200-day line.

However, Jupiter’s gains are broad-based.

Main revenue

KLA topped revenue views, but the chip-equipment maker led less. KLAC stock fell sharply after hours. Shares rose 1.45% to 428.76 on Thursday. It was still above the 419.67 handle Point to buy From a long consolidation, but KLAC stock will lower it on Friday.

Intel’s revenue is down And the ailing chip giant guided for Q1 with very little. INTC shares fell in extended trade. Shares rose 1.3% to 30.09 on Thursday. INTC stock is working at 30.48 Cup-with-handle base It mostly formed above the 50-day line, but the chip giant is below the 200-day line. It’s been a long time since Intel was a real market leader.

Visa earnings topped fiscal Q1 forecasts. V stock rose slightly in overnight action. Shares were down 0.1% at 224.71 on Thursday MasterCard (MA) Visa stock is still in a range from the 220.08 buy point.

Chevron earnings open Friday morning, but CVX stock rose 4.9% to 187.79 on Thursday. It is not far from the official buy point of 189.78 Flat base. Late Wednesday, energy giant Dow Jones announced a $75 billion buyback and a 6% dividend increase.

AXP stock was down 0.6% at 155.88 after Thursday’s close. American Express has a 161.65 buy point from a bottom base. Investors could use a move above Thursday’s high of 158.23 as an initial entry.

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PCE inflation rate

The December PCE (personal consumption expenditures) price index, the central bank’s preferred measure of inflation, will be released at 8:30 a.m. ET as part of the Commerce Department’s Income and Expenditure report. Economists expect the PCE price index to be flat in November. Core PCE prices rose 0.3%, with the inflation rate falling to 4.4% from 4.7%.

Federal Reserve Chairman Jerome Powell recently said he would focus on prices of core services, excluding housing.

Thursday’s GDP report shows that Core PCE services minus housing It rose at an annualized rate of 4.7% in Q4. The 12-month super-core inflation rate rose to 4.4% from 4.2%.

Dow Jones Futures Today

Dow Jones futures fell 0.2%. fair value. S&P 500 futures were down 0.25%. Nasdaq 100 futures fell 0.45%. Intel stock is a Dow Jones, S&P 500 and Nasdaq component, though it doesn’t carry as much weight as it once did. Visa, Chevron and AXP stocks are Dow Jones S&P 500 components.

Remember that it is an overnight operation Dow futures The next routine elsewhere doesn’t necessarily translate into actual trading stock market session.


Join IBD experts as they examine stocks that could be in for a stock market rally on IBD Live


Stock market rally

The stock market’s rally had some morning wobbles, but has since regained steam.

The Dow Jones industrial average rose 0.6% on Thursday Stock market trading. The S&P 500 index rose 1.1%. The Nasdaq composite rose 1.7%. The small-cap Russell 2000 gained 0.6%.

Apple shares rose 1.5% to their best level in more than a month. Microsoft shares rose 3.1% to 248, retaking the 50-day line after falling to 230.90 on Wednesday. Google shares advanced 2.4%, Amazon advanced 2.1%. Nvidia rose 2.5% to its highest price since early May.

US crude oil prices rose 1.1% to $81.01.

The 10-year Treasury yield rose 3 basis points to 3.49%.

ETFs

Among growth exchange-traded funds, the Innovator IBD 50 ETF (FFTY) advanced 1.35%. iShares Expanded Technology-Software Sector ETF (IGV) rose 2.5%, with MSFT stock playing a leading role. VanEck Vectors Semiconductor ETF (SMH) advanced 1.8%, with Nvidia stock a key component. Intel and KLAC are significant SMH holdings.

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Reflecting the more speculative story stocks, the ARK Innovation ETF (ARKK2% higher and the ARK Genomics ETF (ARKGUp 0.15%. Tesla shares are a major holding across ArcInvest’s ETFs. Cathie Wood’s Ark has been lifting TSLA stock in recent weeks. Arc Invest also has a small position in a China EV and battery company BYD (I will do)

SPDR S&P Metals & Mining ETF (XME) accumulated 0.8% and the Global X US Infrastructure Development ETF (sidewalk) drove 1.9% higher. US Global Jets ETF (JETSDecreased by 0.15%. SPDR S&P Homebuilders ETF (XHB) gained 0.3%. Energy Select SPDR ETF (XLE) rose 3.2%, CVX stock is a mammoth holding. Fund Selection SPDR ETF (45) advanced 0.5%. AXP stock is an XLF component. Health Care Select Sector SPDR Fund (XLV) pushed 0.2% higher.


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Tesla stock

Tesla stock rose 11% to 160.27, above its 50-day and 10-week lines.

Tesla Earnings Rise 40%, Cut Views Revenue grew 37%, missing some estimates and topping others. Tesla’s gross margins fell more than expected, and that’s ahead of big price cuts starting in 2023. But it was the conference call that lifted TSLA shares. CEO Elon Musk said production will hit 2 million EVs in 2023. He said orders have roared back in recent weeks. But will that demand continue without further price cuts?

Tesla will discuss a new EV at the March 1 event, which could be a cheaper model to compete with China’s BYD and others.

Tesla stock is up 57% from its Jan. 6 bear market low of 101.81. But it is still below the 200-day line.

Meanwhile, BYD stock rose 4.6%, returning above the 200-day line for the first time since late August. Still building on the right side of a very deep cup base, BYD stock delivered an aggressive entry on Thursday.


Tesla Vs. BYD: Competing for the crown of EV giants, but which is the best buy?


Market rally analysis

Stock market bulls continued to show strong action on Thursday.

The Nasdaq composite hit its 200-day streak with its best close since mid-September. December intraday high just above 200-day line.

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The S&P 500 was above Monday’s peak and about 1% from its December peak. The index has broken a long-term downtrend.

The Dow Jones found support at its 50-day line. The Russell 2000 intraday hit a five-month high before pulling back, peaking in late 2022.

Tesla stock was a big contributor to the Nasdaq’s rise as Microsoft, Nvidia and other giants performed well.

But it’s not just megacaps. Direction Nasdaq-100 Equal Weight ETF (QQQE) rose 1.6% on Thursday to hit a five-month closing high. Invesco S&P 500 Equal Weight ETF (RSP) advanced 0.8%, hitting a five-month high.

Advancers led decliners 2-to-1 on the NYSE and 3-to-2 on the Nasdaq. New highs easily beat new lows.

Some of the leading stocks suffered a minor pullback, while others appeared to be stretched.

CVX stock on Thursday clearly outperformed fellow oil majors Exxon Mobil (XOM) and many other oil-related names. Allegro Microsystems (ALGM) recovered a buy point Tractor Supply (TSCO) and Wingstop (the wing) buy signals flashed.


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What to do now

Stock market boom, from Jan. 6 Day after day, a strong and healthy boom, with only moderate pulls. Breakouts and buy signals have a higher success rate than last year.

So investors should be building exposure gradually. That may continue, though you may choose to hold off on new buying until the major indices clear some final resistance areas, particularly higher earnings and the Federal Reserve meeting next week.

Energy, chip, e-commerce, restaurant/retail, housing, biotech, industrials, travel and financials sectors showed positive action, with stocks clearing or setting buy points. So make sure your watch lists are comprehensive.

According to Big picture Each day should be in sync with the direction of the market and the leading stocks and sectors.

Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.

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