Dow Jones futures: market rally triggers an upward move; Tesla leads 9 stocks in overbought areas

Dow futures were little changed early Wednesday, while S&P 500 and Nasdaq futures were slightly lower. The stock market had a strong rally on Tuesday, with job openings falling much more than expected, with all major indices back above their 50-day moving averages. The Nasdaq led the index as growth stocks rose due to lower Treasury yields and the prospect of an interest rate hike by the Federal Reserve.

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Tesla (TSLA), nvidia (NVDA) and the parent of Google the alphabet (Google) were the big winners among the big companies, all buying opportunities flashed.

China PDD Holdings (PDD) And Lee Auto (for me) rose, flashing buy signals. Mercadoliber (millie), service now (now), Excelis Technologies (ACLS) Arguably, ORCL stock also looks doable.

Meanwhile, bitcoin and bitcoin-related shares rose after a federal appeals court ruled that the SEC was wrong to prevent Grayscale from converting its shares. Grayscale bitcoin fund (GBTC) to an actual Bitcoin ETF. Bitcoin again jumped above $27,000 and GBTC rose 17%.

Coinbase (currency) increased by 14.9% f Digital Marathon (Mara) increased by 29%.

Dell Technologies (Dale), HP Enterprise (HPE), HP (HPQ) And Box (Box) reported after closing. Dell and HPE shares fell modestly overnight while HPQ and Box shares sold off.

Nvidia stock running IBD Leaderboard. LI stock has been added to SwingTrader. NVDA, Li Auto and MELI stocks are on the market BD 50. Nvidia and GOOGL stocks are currently in the air IBD Big Cap 20. inspiration (ORCLIt was IBD stock for the day on Tuesday.

The video embedded in this article discussed Tuesday’s bullish move and analyzed Li Auto, Oracle, and MELI stocks.

Dow jones futures today

Dow Jones futures contracts were fixed against fair value. S&P 500 futures fell, and Nasdaq 100 futures fell 0.15%.

The yield on the 10-year Treasury note rose a few basis points to 4.16%.

Crude oil futures rose.

Remember that an overnight move in Dow futures and elsewhere does not necessarily translate into an actual trade in the next regular stock market session.

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stock market rally

The stock market rallied on Tuesday, gaining momentum at 10 AM ET as the Labor Department’s JOLTS survey provided a jolt. Job openings decreased by 338,000 in July to 8.8 million, the lowest number since March 2021. That was much lower than expected, with job openings in June revised sharply to 9.165 million.

The Grayscale Bitcoin ETF ruling added to the excitement.

The Dow Jones Industrial Average rose 0.85% during stock market trading Tuesday. The S&P 500 rose 1.45%, Tesla was the best performer and Nvidia was also the winner. The Nasdaq Composite Index jumped 1.7%. Russell 2000 junior stock rebounded 1.4%.

US crude oil prices rose 1.3 percent to $81.16 a barrel.

The 10-year Treasury yield fell 9 basis points to 4.12%, weighed down by the employment data. The odds of a late September 20 rate hike have fallen to 14%. More importantly, the odds of a rate hike by the November meeting have fallen to just under 50-50 from around 62% on Monday.

July personal consumption expenditures inflation, the Fed’s preferred measure, is due Thursday morning. On Friday, Labor will release the jobs report for August.

Exchange Traded Funds

Among the growth ETFs, the Innovator IBD 50 ETF (FFTY) by 2.3%. iShares Expanded Software Technology Fund (ETF)IGV) by 1.9%, with NOW and Oracle shares as major members. VanEck Vectors Trading Semiconductors Inc.Trait) by 2.6%, with NVDA stock occupying the first place.

Reflecting more speculative stocks, the ARK Innovation ETF (ark(jumping 5.4% and the ARK Genomics ETF)kick back) jumped 3.9%. Tesla stock is the #1 stock in Ark Invest’s ETFs. COIN stock is also among the top five stocks owned by Ark. Cathie Wood’s Ark also owns some GBTC and MELI shares.

SPDR S&P Metals & Mining Fund (XME) by 2.4% and the Global X US Infrastructure Development ETF (cradle) 1.5%. US Global Gates ETF (Planes) by 1.7%. SPDR S&P Homebuilders ETF (XHB) rose 2.4%. Energy Select SPDR ETF (xle(Increased by 0.3% and SPDR Health Care Fund)XLV) by 0.9%.

SPDR Fund for Selected Industrial Sector (xli) advancing 0.8%.

Financial Select SPDR ETF (XLF) by 0.9%. SPDR S&P Regional Banking Fund (Cree) by 0.95%.

Top five Chinese stocks to watch right now

Mega Cap shares

Nvidia stock rose 4.2% to 487.84, a record close. If you ignore the post-earnings reversal on August 24, investors can treat 480.88 as a legitimate buy point.

Google shares rose 2.7% to 234.57. Stocks have now extended from a buy cup point with the 127.10 handle, according to MarketSmith analysis. But an alternate entry of 133.74 has now been cleared from the multi-week shelf.

At Tuesday’s Google Cloud Next event, Google Cloud President Thomas Kurian and Nvidia CEO Jensen Huang expanded their partnership, announcing new AI infrastructure and software for customers to build and deploy large generative AI models.

Tesla rose 7.7% to 257.18, crossing the 21-day line and closing just above the 50-day line. Investors can buy TSLA shares here or with a little more strength as an early entry into a new base at a buy point of 299.29.

TSLA shares fell early Thursday, enough to drop below the 50-day level.

Investors are increasingly buzzing about the upcoming Cybertruck and the updated Model 3. Meanwhile, renewed Chinese optimism supported Chinese stocks and China-exposed stocks such as Tesla.

Stocks in buy zones

PDD rose 15.4% to 93.22, surpassing the buy cup handle point of 92.79. Investors can wait to see if PDD can pause for a few days to spot a new opening. Before opening, the DPP’s earnings easily exceeded views, with revenue growth accelerating to 66% despite concerns about the Chinese economy. PDD is the parent company of Chinese e-commerce giant Pinduoduo as well as fast-growing US site Temu.

LI jumped 7.8% to 42.91, jumping above the 21-day line. At that point, shares of the profitable Chinese electric car startup were on the verge of a 21-day rollover. Li Auto stock could form a new base with a potential buy point of 47.33.

Early Wednesday, LI shares fell 4%. Li Auto announced new insurance subsidies, which is the first time that it has been involved in China’s electric car price war, even indirectly. This is particularly notable because the electric vehicle startup has said that production bottlenecks, not demand, are limiting deliveries.

MELI rose 4.4% to 1,304.66, rebounding from the 21-day line after finding support at the 50-day line late last week. This could provide an early entry into the e-commerce and payments giant in Latin America. In early August, MercadoLibre stock briefly exited the cup base as part of a post-earnings streak, but quickly fell back. MELI might work on a new base, although one could look at 1,388.39 as an odd looking handle.

ACLS jumped 6.5% to 183.53, reclaiming the 50-day line, despite below-average trading volume. Electric Vehicle Convertible Chip Equipment Manufacturer is working on a new base, but it needs more time. Some of the chip equipment giants, incl Applied materials (deaden) And KLA Company (KLAC), also near potential points of purchase.

NOW stock rose 1.9%, to 578.87. This enabled an early entry from the 50-day retracement, clearing the short-term high and breaking the downward sloping trend line. But the volume was much lower than normal. Also, this week’s major software earnings, in particular Salesforce.com (Customer relationship managementOn Wednesday night, ServiceNow stock could move.

ORCL stock rose 3.3% to 120.65 on larger volume, rebounding from the 50-day line amid UBS’s upgrade on AI prospects. Investors could have noticed an early entry from a downtrend line or the short term high of Aug 23rd at 120.45, although resistance remains at 121.36. The official Oracle stock buy point is 127.54 from a flat base. In addition to this week’s major software earnings, Oracle’s earnings are due in two weeks.

Market rally analysis

The stock market rally showed real strength on Tuesday. All major indices have regained their 50-day moving averages and surpassed last Thursday’s highs, with volume well above normal. The Nasdaq in particular had a bullish session.

Market breadth was strong, even better than it was on Monday. This comes after weeks of deterioration in the extent of the disease.

Growth stocks were the clear winners on Tuesday. Many of them featured clear early entries, such as Li Auto. Other stocks closed near the entries, such as Tesla and Oracle. Many others had potential preparation days, such as Meta platforms (meta).

But many other sectors look interesting, even when Tuesday’s moves weren’t as exciting.

Housing stocks had a strong session with treasury yields lower, although home and building materials sellers had better blueprints than most builders.

Energy stocks continue to trade sideways after a strong run, along with crude energy prices. The industrial, construction, infrastructure and some steel sectors look good.

Volume was often thin in non-technology stocks that were flirting with buy signals.

Time the market with IBD’s ETF market strategy

What are you doing now

Tuesday was a clear bullish sign for the market rally. Investors probably should have added some exposure on Tuesday, and could continue to do so if market conditions remain favorable. But do it gradually.

Keep in mind that July job openings fueled the market rally on Tuesday. July personal consumption expenditures inflation data or the August jobs report could fuel further gains. But if these readings come in hot, stocks could fall as yields rebound.

profit From Salesforce, Broadcom (Avgo), MongoDB (mdb) and more also could swing major technology sectors in the next few days.

There was no avalanche of new buying opportunities on Tuesday, but there were plenty of them in the pipeline. Investors need to make sure their watchlists are up to date, with extra attention paid to stocks that are viable or nearly viable. Make sure your watchlists include leading stocks outside of the tech growth arena.

Read the big picture every day to stay on top of the market trend, leading stocks and sectors.

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

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