Dow Jones Futures: Market Rise to the Big Test; Intel plunge late

Dow futures fell slightly overnight, along with S&P 500 futures and Nasdaq futures, as key inflation data was released on Friday morning. Intel (INTC) And visa (Fifth) reported hours later using two other dow components, chevron (CVX) And American Express (AXP), an early appointment on Friday. Together with a gear chip maker KLA Corp. (KLAC), which are five stocks that closed close to overbought with dividends due before the opening bell.

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The stock market rally continued to advance Thursday amid a barrage of earnings reports and economic data. Major indices closed near highs for the fifth consecutive session and are about to breach some key resistance.

Tesla (TSLA) was a big dividend winner, high on CEO Elon Musk’s bullish comments about 2023. an Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN), nvidia (NVDA), a parent from Google the alphabet (The Google) and the parent Facebook Meta platforms (metaAll of them made solid to solid gains. None of these stocks are in position, with NVDA stock just above the 200-day line.

However, Thursday’s gains were broad.

Main earnings

KLA earnings topped views but the chip equipment maker slipped. KLAC stock fell nearly 6% after hours. Shares rose 1.45% to 428.76 on Thursday. That was still above the 419.67 handle Point purchase from a long-running merger, but KLAC stock is poised to undercut that Friday.

Intel profits fell The ailing chip giant headed into a sharp decline in the first quarter. INTC stock fell nearly 10% in the extended trade. Shares advanced 1.3% to 30.09 Thursday. INTC stock is trading at 30.48 Cup base with handle Mostly formed above the 50-day line, but the chip giant is well below the 200-day line. It’s been a while since Intel was a market leader.

Visa’s earnings exceeded fiscal expectations for the first quarter of the year. V stock rose 1% overnight. Shares fell 0.1 percent to 224.71 Thursday, after better-than-expected earnings from a strong competitor Master Card Credit Card (Master’s). Visa stock is still in the range from 220.08 buy points.

Chevron’s earnings on tap Friday morning, but CVX stock was already up 4.9% Thursday to 187.79, racing above an early entry at 182.65. It is not far from the official buy point of 189.78 from A Flat base. Late Wednesday, energy giant Dow Jones announced a $75 billion buyback plus a 6% increase in earnings.

AXP stock fell 0.6% to 155.88 on Thursday before earnings, and settled above the 200-day line. American Express has 161.65 points Buy from Low Base. Investors can use the move above Thursday’s high of 158.23 as an early entry.

PCE inflation rate

The December Personal Consumption Expenditure Price Index, the Fed’s preferred measure of inflation, is due at 8:30 a.m. ET as part of the Commerce Department’s Income and Spending Report. Economists expect the PCE price index to be flat versus November, with the PCE inflation rate falling to 5% from 5.5%. Core personal consumption expenditures prices are expected to rise 0.3%, with inflation declining to 4.4% from 4.7%.

Fed Chairman Jerome Powell recently stated that he is focusing on the prices of essential services, excluding housing.

Thursday’s GDP report showed that Basic personal consumption expenditures services less housing It increased at an annual rate of 4.7% in the fourth quarter. The 12-month core inflation rate rose to 4.4% from 4.2%.

Dow jones futures today

Dow futures fell about 0.1% against fair value. S&P 500 futures fell 0.3%. And Nasdaq 100 futures fell 0.5 percent. Intel stock is a constituent of the Dow Jones, the Standard & Poor’s 500 and the Nasdaq, although it doesn’t have the same weight as it used to. Visa, Chevron, and AXP stocks are components of the Dow Jones S&P 500.

The 10-year Treasury yield rose 2 basis points, to 3.51%.

Japan and the Netherlands will join US chip export controls against China, Bloomberg reported, with details finalized Thursday night. That could affect the Dutch chip equipment maker ASML (ASML).

Remember to work in overnight Dow Jones futures contracts and elsewhere that does not necessarily translate into actual trading in the next regular session Stock market session.

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Stock market rise

The stock market rally saw some volatility in the morning, but picked up steam again until the close.

The Dow Jones Industrial Average rose 0.6% on Thursday Stock market trading. The S&P 500 jumped 1.1%. The Nasdaq Composite Index jumped 1.7%. Small cap Russell 2000 rose 0.6%.

Apple stock rose 1.5% to its best level in more than a month. Microsoft stock rose 3.1% to 248, reclaiming the 50-day line after falling as low as 230.90 during the course of Wednesday. Google shares advanced 2.4%, Amazon 2.1%. Nvidia stock rose 2.5%, to its highest price since early May.

US crude oil prices rose 1.1% to $81.01.

The 10-year Treasury yield rose 3 basis points, to 3.49%.

Exchange Traded Funds

Among the growth exchange-traded funds, the Innovator IBD 50 ETF (fifty) advances 1.35%. iShares Expanded Technology and Software ETF (IGV) jumped 2.5%, with a large stake in MSFT shares. VanEck Vectors Semiconductor Corporation (SMH) advanced 1.8%, and Nvidia stock was a major component. Intel and KLAC are also notable SMH holdings.

Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(featured by 2% and ARK Genomics ETF)ARKG) increased by 0.15%. Tesla stock is a major holding across Ark Invest’s ETFs. Cathie Wood’s Ark has loaded TSLA inventory in recent weeks. Ark Invest also has a small outpost in China’s EV and battery giant BYD (BYDDF).

SPDR S&P Metals & Mining ETFs (XME(Increased 0.8% and the Global Infrastructure Development Fund (ETF) in the US)cradle) increased by 1.9%. US Global Gates Foundation ETF (Planes) decreased by 0.15%. SPDR S&P Homebuilders ETF (XHB) gained 0.3%. Energy Defined Fund SPDR ETF (xle) jumped 3.2%, with CVX a huge share carrying. SPDR Financial Selection Fund (XLF) offering 0.5%. AXP stock is a component of XLF. SPDR Health Care Sector Selection Fund (XLV) increased by 0.2%.

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Tesla stock

Tesla stock rose 11% to 160.27, crossing the 50-day and 10-week lines.

Tesla’s profits rose 40%, slightly outpacing the low number of views. Revenue grew 37%, missing some estimates and beating others. Tesla’s gross margins fell more than expected, and that was before big price cuts beginning in 2023. But what sent TSLA stock higher was the conference call. CEO Elon Musk was optimistic, saying production could reach 2 million electric vehicles in 2023. He said orders have been picking back up in recent weeks. But will this demand continue without further price cuts?

Tesla will discuss a new electric car at the March 1 event, perhaps a cheaper model that could compete with China’s BYD and others.

Tesla stock is up 57% from the bear market low of January 6 at 101.81. But it is still well below the 200-day line.

Meanwhile, BYD stock jumped 4.6%, crossing the 200-day line for the first time since the end of August. While still building the right side of a very deep cup base, BYD stock arguably offered a strong entry on Thursday.

Tesla vs. BYD: EV Giants Vy for the Crown, But Which One is a Better Buy?

Market rally analysis

The stock market rally continued to show strong moves on Thursday.

The Nasdaq Composite rose to the 200-day line with its best close since mid-September. Just above the 200-day line is the intraday high in December.

The S&P 500 is above Monday’s high and about 1% from its December peak. The indicator has crossed a long term downtrend line.

The Dow Jones index held support at the 50-day line. The Russell 2000 hit a five-month high during the day, surpassing its peaks in late 2022, before falling back.

Tesla stock has been a huge contributor to the Nasdaq’s advance, clearly, with Microsoft, Nvidia, and other giants doing well.

But it wasn’t just huge maps. Direxion Nasdaq-100 Weighted Equal Fund (QQQE) rose 1.6% on Thursday to its highest closing level in five months. Invesco S&P 500 Equal Weight Fund (RSP) rose 0.8%, hitting an intraday high in five months.

Losing investors advanced 2-to-1 on the New York Stock Exchange and 3-to-2 on the Nasdaq. New highs are easily outweighed by new lows.

Some of the blue-chips reversed lower while many others looked extended.

CVX stock was clearly actionable on Thursday, along with fellow major oil Exxon Mobil (xom) and many other names related to oil. Allegro Microsystems (ALGM) regained a point of purchase, while Tractor supply (TSCO) And wing stop (wingBuy signals flash.

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What are you doing now

The stock market has been rising since January 6th Follow-up day, it was a strong and healthy uptrend, with only modest retracements. The buy and breakout signals have had a much higher success rate than last year.

So investors should have gradually increased exposure. This could hold, although you can choose to hold off on new purchases until the major indices clear some areas of ultimate resistance, especially with a big earnings hike and the Federal Reserve meeting in the next week or so.

The Energy, Chips, E-commerce, Restaurants/Retail, Housing, Biotechnology, Industrial, Travel and Money sectors are showing positive actions, with stocks clearing buy or setup points. So make sure your watchlists are comprehensive.

Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.

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