Futures: Market Rally Reaches Highs, Nvidia Leads 12 New Buys - Latest Global News

Futures: Market Rally Reaches Highs, Nvidia Leads 12 New Buys

Dow Jones futures rose slightly overnight, as did S&P 500 futures and Nasdaq futures. The focus is on Warren Buffett’s Berkshire Hathaway.




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The stock market rally led to record highs in the Dow Jones, S&P 500 and Nasdaq Composite after weak inflation and weak retail sales.

Nvidia (NVDA), the market’s top stock, crossed the buy point a week before the numbers. Dell Technologies (DELL), PulteGroup (PHM), Intuitive surgery (ISRG), Decker (DECK), Eli Lilly (LLY), Azek (AZEK), KLA Corp. (KLAC), DraftKings (DKNG), KKR (KKR) NetApp (NTAP) and service now (NOW) were among the leading stocks giving buy signals.

After the market closes: Warren Buffett’s Berkshire Hathaway (BRKB) announced share purchases and sales for the first quarter. Berkshire announced this insurer Chubb (CB) is the “mystery stock” that Buffett has been buying confidentially in recent months. CB stock rose late.

Cisco systems (CSCO) reported strong earnings late Wednesday. Cisco shares have recently risen sharply, but are still trying to break out of the downward trend that has been going on for eight months.

With Dow giant Walmart (WMT) reported early Thursday. WMT shares fell slightly on Wednesday and continued to slide after a brief breakout on Monday.

Nvidia shares and Eli Lilly are on the IBD leaderboard. Dell stock, Intuitive Surgical, DraftKings, ServiceNow and Nvidia are on SwingTrader. KLAC stock is on the IBD Long-Term Leaders list. Nvidia and KKR shares are in the IBD 50. Nvidia was the IBD stock of the day on Wednesday.

Dow Jones futures today

Dow Jones futures rose 0.15% from fair value. S&P 500 futures rose 0.1% and Nasdaq 100 futures rose 0.2%. CSCO stock is a component of the Dow Jones, S&P 500 and Nasdaq 100.

The yield on 10-year government bonds fell slightly to 4.32%.

Crude oil futures rose slightly.

Keep in mind that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.


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Stock market rally

The stock market rally posted solid gains on Wednesday, with all major indices hitting new highs on the back of favorable economic data.

April’s consumer price index was in line with expectations, with core inflation falling to a three-year low. The April retail sales report and the Empire State manufacturing index were weaker than expected in May.

The Dow Jones Industrial Average rose 0.9% in Wednesday trading. The S&P 500 Index rose 1.2% and the Nasdaq Composite gained 1.4%.

The Nasdaq’s strong move was accompanied by significantly higher volume than the previous session.

The Russell 2000 small-cap index rose 1.1%, nearing its two-year best set in late March.

A large number of leading stocks issued buy signals across various sectors, far more than listed in this article. These follow several actionable stocks in the last week or so.

U.S. crude oil prices fell 0.8% to $78.63 a barrel.

The 10-year Treasury yield fell 9 basis points to 4.35%, below the 50-day line for the first time in two months.

ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) rose 2.5%, with ServiceNow stock a key component. The VanEck Vectors Semiconductor ETF (SMH) rose 3%. Nvidia stock is No. 1 in SMH, with KLAC also a notable member.

The ARK Innovation ETF (ARKK) climbed 1.4% and the ARK Genomics ETF (ARKG) rose 0.5%, reflecting more speculative story stocks. DKNG stock is a notable holding in Ark Invest’s ETFs.

The SPDR S&P Metals & Mining ETF (XME) gained 1.3% and the Global X US Infrastructure Development ETF (PAVE) rose 1.2%. The US Global Jets ETF (JETS) fell 0.5%. The SPDR S&P Homebuilders ETF (XHB) rose 2.35%, with PulteGroup a notable holding. The Energy Select SPDR ETF (XLE) gained 0.2% and the Health Care Select Sector SPDR Fund (XLV) gained 1.5%, with Eli Lilly as No. 1 and ISRG stock also a member.

The Industrial Select Sector SPDR Fund (XLI) and Financial Select SPDR ETF (XLF) rose 0.7%.


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Nvidia stock is breaking out

NVDA shares rose 3.6% to 946.30, surpassing a 922.20 buy point for cups with handles. The AI ​​chip leader reports earnings on May 22nd.

Other stocks are clearing buy points

Dell shares rose 11.2% to 149.16, clearing a brief consolidation entry of 136.16. It is now extended with the buy zone ending at 142.97. The relative strength line, the blue line in the charts provided, is at a record high, a bullish sign. On Wednesday, Morgan Stanley called Dell the “best way to accelerate AI infrastructure expansion.”

According to MarketSurge, PulteGroup shares rose 5.1% to 122.07, surpassing a short cup-with-handle basis buy point of 120.74. Investors could also have used a break in the trade’s downtrend as a somewhat early entry. Some other builders including KB homepage (KBH) also triggered buy signals.

Intuitive Surgical shares rose 4% to 399.39, rebounding from the 50-day line and clearing short-term highs, providing an early entry. ISRG stock has a flat-base buy point of 403.76.

Deckers shares climbed 2.4% to 903.68, well above the 50-day line following Tuesday’s gains. DECK stock is actionable here with an official buy point of 956.17 cup basis. Several other specialty shoe manufacturers have also done well. Decker’s earnings for the fourth quarter ended March are expected next week.

Eli Lilly shares rose 3.2% to 787.02, crossing the 50-day line and breaking a brief downtrend. Eli Lily stock has an official buy point of 795.50 for a flat double bottom base. Competitor of weight loss drugs Novo Nordisk (NVO) is also actionable and is slightly below its own base buy point.

Management, Chip Gear shares also in focus

KKR shares rose 5.1% to 107.67, closing above a flat 103.48 buy point after flirting with a breakout on Monday. Several other investment management stocks have given buy signals.

Azek shares rose 5.8% to 48.29, crossing the 50-day mark on heavy volume, providing an early entry. The residential and commercial engineered wood manufacturer has a buy point of 50.78 with a flat base.

KLA shares rose 4.1% to 759.72, crossing a flat-base buy point of 729.15.

NetApp shares rose 1.45% to 110.62, near a double-bottom buy point of 108.82, setting a record close. Pure storage (PSTG) and Nutanix (NTNX) also recently cleared buy points.

ServiceNow stock rose 5.4% to 760.67, retracing its 50-day line on above-average volume, representing an aggressive entry or starting point for a position. A downward trendline currently around 780 and short-term highs around 795 and 808 also provide early entry opportunities. NOW the stock has an official consolidation buy point of 815.32.

DraftKings shares rose 4.6% to 46.15, bouncing off the 50-day line, clearing short-term highs and breaking through a trend line, providing an early entry. Shares are also above a previous invalid entry above 45. DKNG stock has a consolidation buy point of 49.57.

What now

The stock market rally hits record highs as more leading names signal buy signals.

Investors should take advantage of these opportunities. A gradual increase over the last week would allow traders to build solid or strong exposure again. If you are already heavily invested, you might consider cutting out some laggards or slower players as the market appears to be moving more clearly into a risk-on environment.

Yes, Nvidia earnings are due in a week, so you may not want to massively increase your AI chip holdings at this point. But overall, earnings season is well past its peak, while key inflation reports are in the rearview mirror.

More stocks are bubbling up, so keep updating your watchlists.

Read The Big Picture daily to stay up-to-date on market direction and the leading stocks and sectors.

Please follow Ed Carson in threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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