In overnight trading, Dow Jones futures saw a slight uptick, as did S&P 500 futures and Nasdaq futures. After the market closed, FedEx (FDX), Lululemon Athletica (LULU), and Nike (NKE) reported their earnings. The stock market rally hit record highs on Thursday morning, but gains were trimmed as the day progressed. Micron Technology (MU) and Broadcom (AVGO) led the charge for AI chip names, with Microsoft (MSFT) also hitting a record high after its AI event.
However, not all news was positive, as the Justice Department filed an antitrust suit against Apple (AAPL) over the iPhone, causing a drop in Apple’s stock price and weighing on the major indexes. Despite this, CyberArk Software (CYBR) showed a buy signal, while non-tech names like Neurocrine Biosciences (NBIX) and On Holding (ONON) stood out. Goldman Sachs (GS) decisively broke out from a trading range, and several finance-investment management groups, including Blue Owl (OWL), Ares Management (ARES), Blackstone (BX), BlackRock (BLK), Apollo Global Management (APO), and KKR (KKR) made bullish moves.
Overall, 11 stocks are currently in buy areas, including Apollo Global stock, KKR, Neurocrine Biosciences, and Nvidia, which are on the IBD Leaderboard. CyberArk stock is on the Leaderboard watchlist, while Neurocrine stock, Ares, and Apollo Global are on SwingTrader. Microsoft stock is on IBD Long-Term Leaders, and Nvidia stock, Ares, Owl Capital, and KKR are on the IBD 50. Broadcom stock and Nvidia are on the IBD Big Cap 20 list, with Owl Capital being Thursday’s IBD Stock Of The Day.
In terms of futures, Dow Jones edged higher compared to fair value, with Nike stock being a blue-chip component. S&P 500 futures and Nasdaq 100 futures also saw slight increases. It’s important to note that overnight action doesn’t always translate directly to the next regular stock market session.
FedEx reported strong earnings, with guidance offsetting a narrow miss on revenue. Lululemon also beat earnings estimates, but their guidance was lower than expected. Nike’s earnings easily surpassed expectations, but the stock turned lower following the analyst call. Despite this, it’s essential to keep an eye on Nike’s results and outlook for companies like Deckers Outdoor and On Holding.
The stock market rally reached record highs across major indexes, with the Dow Jones Industrial Average rising 0.7% and the S&P 500 index climbing 0.3%. The Nasdaq composite closed up 0.2%. However, Apple stock fell 4.1% after the DOJ filed an antitrust suit, with Tesla and Adobe also experiencing slight retreats.
Overall, the market rally is showing breadth and broad-based leadership, with several stocks from different sectors flashing buy signals. It’s important to monitor the market’s movements and be cautious of potential extended levels.
In the ETF market, several ETFs saw gains, with the iShares Expanded Tech-Software Sector ETF (IGV) rising 0.7% and the VanEck Vectors Semiconductor ETF (SMH) popping 2.3%. Growth ETFs like ARK Innovation ETF (ARKK) and SPDR S&P Metals & Mining ETF (XME) also saw positive movement.
In conclusion, the stock market rally continues to show strength, with opportunities for investors to add exposure. However, caution is advised as some sectors may be reaching slightly extended levels. Keeping a close eye on market movements and individual stock performance is key in navigating the current market environment.