Dow Jones futures: market rally continues to rise

Dow Jones futures rose slightly after hours, while S&P 500 futures and Nasdaq futures rose slightly. Shares of Shopify, Cisco, and Roku posted gains late Wednesday, while Crocs stock rose early Thursday.




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On Wednesday, the Nasdaq had a positive session due to a market rally despite a boom in retail sales and other better-than-expected economic data.

More stocks flared up, with a earnings gap of Airbnb (ABNB) and Materials by Martin Marietta (MLM). First solar (FSLR) made a bullish move from its 50-day line.

Shopify (SHOP), Albemarle (ALB), Synopsis (SNPS), Roku (ROCU), Cisco Systems (CSCO), Allison Transmission (ALSN) and Fast (FSLY) posted big earnings and losses late Wednesday night. Crocs (CROX), datadog (DDOG) and Toast (TOST) report early Thursday.

Dow Jones futures today

Dow Jones futures were up 0.15% compared to fair value. S&P 500 futures rose 0.2%. Nasdaq 100 futures rose 0.4%. CSCO shares are included in the Dow Jones, S&P 500 and Nasdaq 100 indices.

The 10-year Treasury yield fell 2 basis points to 3.79%.

At 8:30 am ET, investors will receive the January PPI and home construction reports, the Philadelphia Fed’s February manufacturing index and the latest jobless claims data.

Remember that overnight action in Dow futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.

Key income

SHOP shares fell at the end of trading. Shopify reported a surprise profit, but its revenue outlook was weak. Shares of Shopify rose 6.55% in Wednesday’s session, breaking away from a lower base.

ALB shares rose slightly after hours as Albemarle’s earnings and revenue slightly outperformed viewing growth, while revenue rose in 2023. The lithium giant pre-announced strong fourth-quarter results at the end of January and gave an upbeat outlook. Shares of ALB rose 0.8% to 272.79 on Wednesday after mixed trading. Levent (LTHM) profit. According to MarketSmith analysis, Albemarle shares have a buy point of 292.08 per cup and handle.

Roku’s stock rose sharply after fourth-quarter loss and revenue slightly outpaced viewership. The streaming media platform also attracted more users than expected. Roku’s revenue also rose in the first quarter and is projected to return to positive adjusted EBITDA in 2024. Roku shares have already jumped 12% to 63.49 on Wednesday. Shares are up 66% from their late December low. Roku shares are still below the 200-day line but could test this key level on Thursday.

Shares of SNPS fell sharply overnight, signaling a move below the buy point. Synopsys’ earnings topped first-quarter impressions while revenue stagnated. But the chip software company was targeting a decline in EPS in the second quarter. Shares rose 0.9% on Wednesday to 379.48, still in a range from the 364.09 double bottom buy base point. Synopsys shares rose on Tuesday after strong performance from competitor Cadance Design Systems (KDNS). CDNS shares rose 1.6%, extending earnings gains on Tuesday, but still in a buying zone.

CSCO shares edged up slightly after initial after-hours trading as Cisco’s earnings topped fiscal second-quarter guidance. The giant Dow Jones rose strongly in the third fiscal quarter and 2023. Shares of Cisco rose 1.6% to 48.45 on Wednesday, regaining the 50-day line. Stocks are trading above 50.81 buy point from flat base with early entry above 49.56.

ALSN stock rose significantly after Allison Transmission’s earnings and revenue easily outperformed viewing numbers. Shares rose 0.1% to 45.58, continuing to trade just above the base buy point of 45.43.

Shares of FSLY fell after the edge networking platform posted a smaller-than-expected loss and beat revenue targets. Fastly shares rose 3.3% on Wednesday to 41% this week.

As for Crocs, Datadog and Toast:

Crox shares are recovering from the first 50-day test of the line after breaking out in early November.

DDOG stock is on the cusp of returning to its 200-day line for the first time since last March.

The TOST stock is slightly extended from the lower base.

SNPS stock is on the long-term IBD leaderboard with Cadence Design. Crocs and TOST shares are at IBD 50.


Join IBD experts as they analyze valuable stocks in the stock market rally in IBD Live.


stock market rally

Retail sales surged in January, far exceeding pageviews. Industrial production remained at the same level, below the views, but the production exceeded all expectations. Meanwhile, the New York Fed’s Empire State manufacturing index showed a much smaller decline in February, beating expectations.

The Dow Jones Industrial Average rose 0.1% in equity trading on Wednesday, turning positive just before the close. The S&P 500 rose 0.3%. The Nasdaq Composite Index rose 0.9%. Small-cap Russell 2000 shares rose 1.05%.

The 10-year Treasury yield rose 5 basis points to 3.81%, a 2023 high. But short-term rates, more closely tied to the Fed, haven’t changed much. Investors still expect the Fed to raise rates by a quarter of a point at meetings in March and May. Markets are leaning towards a third advance in June or July, but the odds eased slightly on Wednesday.

The US dollar reached its highest level since January 6.

U.S. crude oil prices fell 0.6% to $78.59 a barrel from intraday lows. U.S. crude oil inventories jumped, while a stronger dollar also put pressure on commodities. Copper futures fell 1.4%.

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) was up 0.2%. The iShares Advanced Technology & Software (IGV) ETF rose 1.1%. The VanEck Vectors Semiconductor (SMH) ETF has not changed.

The SPDR S&P Metals & Mining ETF (XME) shed 0.1%, while the Global X US Infrastructure Development ETF (PAVE) gained 1.1%. The US Global Jets ETF (JETS) edged up 0.3%. The SPDR S&P Homebuilders ETF (XHB) added 0.6%. The Energy Select SPDR (XLE) ETF was down 1.7%, while the Financial Select SPDR (XLF) ETF was up 0.1%. Health Care Select Sector SPDR Fund (XLV) lost 0.5%

Reflecting more speculative stocks, shares of the ARK Innovation ETF (ARKK) jumped 5.9% and the ARK Genomics (ARKG) ETF jumped 2.2%. Roku stock is a major holding that overlaps with the Ark Invest ETF.


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Market Rally Analysis

The stock market rally continues to rise amid mixed economic data and earnings.

Despite hot economic data, the Nasdaq rose for the third consecutive session, returning above the 12,000 level. The S&P 500 is rising, while the Dow Jones and Russell 2000 bounced again from their 21-day lines.

Treasury yields have risen sharply since early February, acting as a modest headwind to the stock market rally, but not like a storm force like last year. Unlike in 2022, when they were rising mainly due to inflation and fears from the Fed, yields are now rising due to easing recession fears. While Wall Street would like the Fed to stop raising rates, it also doesn’t want the economy to collapse.

Rising returns are usually bad news for growth stocks, as future earnings are discounted at a higher rate. Thus, it is noteworthy that growth, especially speculative growth, continues to lead the market rally, including Roku and Fastly shares.

It is also notable that stocks are broadly holding up despite the recovery in the dollar. It is no coincidence that the market rally had its follow-up day on January 6, when the dollar and Treasury yields sold off strongly, and peaked on February 2, just as the 10-year yield and the dollar were sold. bottom.

Shares in energy and mining companies survived the day of decline as crude oil and metals prices partly fell on the strength of the dollar. But a positive day or two for basic commodities will make these areas intriguing again.


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What to do now

The stock market rally continues to offer reasons and opportunities for increased risk. Do it gradually, especially when the major indexes are trading in different directions within their recent range.

Breakouts and buying opportunities usually work, but not always. So get ready to quickly cut your losses. Don’t buy extended and diversify your holdings.

While some leading stocks are giving buy signals, many others are shaping up against a pause in the market rally. So keep updating your watchlists.

Read The Big Picture every day to stay up to date on market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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