Dow Jones futures and S&P 500 futures rose slightly Friday morning, while Nasdaq futures tilted lower.X
The stock market rally rose modestly Wednesday, heading into the Thanksgiving holiday. Nvidia (NVDA) fell following stellar earnings, but came off lows and held in a buy zone. Key rival Advanced Micro Devices (AMD) broke out of a buy point. Google parent Alphabet (GOOGL) and Amazon.com (AMZN) also flashed buy signals.
Nvidia stock fell Friday morning as it reportedly delayed the launch of an AI chip for China.
Meanwhile, Tesla (TSLA) fell Wednesday, backing off possible buy points. The EV giant is ramping up discounts in the U.S. and Europe following Elon Musk’s controversial post last week.
Nvidia and AMZN stock are in the IBD Leaderboard lineup. Nvidia stock is on the IBD 50. AMD was Wednesday’s IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures rose 0.25% vs. fair value. S&P 500 futures climbed 0.1%. Nasdaq 100 futures lost a fraction as NVDA stock retreated.
The 10-year Treasury yield rose a few basis points to 4.47%.
Crude futures fell slightly.
An Israel-Hamas four-day truce is set to begin Friday morning, with some 50 hostages from Israel released over that span.
On Black Friday, the U.S. stock exchanges will close early at 1 p.m. ET, with bond trading ending at 2 p.m. ET. Expect limited trading volume.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally rebounded modestly Wednesday, even with Nvidia stock falling modestly on earnings.
The Dow Jones Industrial Average rose 0.4% in Wednesday’s stock market trading. The S&P 500 index was up 0.4%, with AMD one of the top performers and TSLA stock one of the weakest. The Nasdaq composite climbed 0.5%, though well off morning highs. All are above their late August/early September highs with the 2023 highs in sight.
The small-cap Russell 2000 gained 0.7%, but is still below the 200-day line after hitting resistance at that key level last week.
The Invesco S&P 500 Equal Weight ETF (RSP) advanced 0.5%, moving a little further above the 200-day line to a two-month high.
U.S. crude oil prices fell 0.9% to $77.10 a barrel, but after tumbling 5% at one point. OPEC+ delayed an upcoming meeting by a few days to Nov. 30. That’s a sign that a push to cut oil production further is hitting some resistance.
The 10-year Treasury yield was essentially flat at 4.415% after falling to 4.365% intraday, a two-month low.
Investors have a lot to be thankful for in November and in 2023. The Nasdaq, which staged a follow-through day on Nov. 1, is up 11% so far this month and 36.3% for the year. The S&P 500 has rallied 8.65% in November and 18.7% in 2023.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) closed just below break-even. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.2%. Nvidia and AMD stock are major SMH holdings.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 1% and ARK Genomics ETF (ARKG) climbed 1.3%. Tesla stock is still a major holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) was up 0.5%, along with the SPDR S&P Homebuilders ETF (XHB). The Energy Select SPDR ETF (XLE) lost a fraction. The Health Care Select Sector SPDR Fund (XLV) rose 0.5%.
The Industrial Select Sector SPDR Fund (XLI) added 0.2% while the Financial Select SPDR ETF (XLF) gained 0.4%.
Five Best Chinese Stocks To Watch Now
Early Friday, Nvidia fell slightly, back toward the buy point again, after Reuters reported that it’s told Chinese customers that it’s delaying the launch of an AI chip until Q1 2024. Server makers reportedly are having trouble integrating the H20 chip, made to abide U.S. export restrictions.
On Wednesday, Nvidia stock fell as low as 476.90, but found support near the buy point, paring losses somewhat, closing down 2.5% to 487.16. That’s still in range of a 476.09 buy point from a double-bottom base.
Nvidia earnings skyrocketed 593% and revenue 206%, with the AI chip leader also raising guidance. But after beat-and-raise reports in Q1 and Q2, investors may have wanted a little more.
Still, the Nvidia stock move was relatively muted compared to the prior three earnings reports.
https://research.investors.com/ibdchartswp.aspx?cht=pvc&type=daily&symbol=nvda
Stocks In Buy Zones
AMD stock rose 2.8% to 122.51 on Wednesday, just clearing a 122.41 cup-with-handle buy point. Shares edged lower early Friday.
Google stock advanced 1.1% to 138.49, topping Thursday’s high of 137.22, offering an early entry. The official flat-base buy point is 141.22.
https://research.investors.com/ibdchartswp.aspx?cht=pvc&type=daily&symbol=GOOGL
Amazon stock gained nearly 2% to 146.71, reclaiming a 145.86 consolidation buy point.
Tesla Stock
Tesla stock fell 2.9% on Wednesday to 234.21 in an outside day, dropping back below the 50-day line. Shares are down just 9 cents so far this week.
TSLA stock has a 278.98 buy point from a double-bottom base. There is a trendline running from the July 19 high that could offer an early entry, currently around 253. Investors could use a move above the Nov. 15 intraday high of 246.70 as an aggressive entry from a too-low handle.
https://research.investors.com/ibdchartswp.aspx?cht=pvc&type=daily&symbol=TSLA
The EV giant is stepping up Model 3 and Y inventory discounts in the U.S. to $3,000, with hefty Model Y discounts in Europe. Tesla is aiming to hit a delivery target of 1.8 million vehicles, and appears willing to sacrifice profit margins to achieve that.
Meanwhile, some inventory trackers suggest unsold Tesla EVs swelling in the past week. Elon Musk’s recent endorsement of an antisemitic post as the “actual truth” may be hurting Tesla demand.
Tesla will hold a Cybertruck delivery event on Nov. 30, but comments by Elon Musk and other top executives have lowered expectations somewhat.
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What To Do Now
While Thanksgiving is a time for gorging, investors should have been dining on a steady diet of buying opportunities throughout November. At this point, exposure should be relatively heavy, while many leaders are extended.
You can still some additional purchases or add-on buys, either adding some exposure or offsetting them by trimming some current holdings.
The market rally is looking strong so investors should be looking for further opportunities. Work on your watchlists, making sure you’re looking beyond traditional tech stocks to find emerging leaders in other sectors.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.