S&P 500, Nasdaq Hit Highs Before Holiday, Jobs Report As Tesla, Nvidia Jump
Dow Jones futures edged lower Wednesday night, along with futures for the S&P 500 and Nasdaq 100 . The jobs report looms early Friday after the Fourth of July holiday.
The stock market rally saw the S&P 500 and Nasdaq hit record highs in Wednesday's half-day session.
Treasury yields tumbled as the June ISM services index signaled contraction, along with weaker-than-expected labor data. $Tesla (TSLA.US)$ continued its powerful run, running up to a major trendline. $NVIDIA (NVDA.US)$ had a solid session on a strong day for chips.
Fed minutes from the June meeting released after the market's early close, showed policymakers seeing risks "moving into better balance." However, they want "greater confidence" about inflation heading to the 2% goal before cutting interest rates.
$ASML Holding (ASML.US)$ , $Entegris (ENTG.US)$ , $monday.com (MNDY.US)$ , $Agnico Eagle (AEM.US)$ , $Southern Copper (SCCO.US)$ , $Tencent Music (TME.US)$ and $Vistra Energy (VST.US)$ all flashed buy signals Wednesday.
Jobs Report
The Labor Department will release the June jobs report at 8:30 a.m. ET Friday. Economists expect nonfarm payrolls to show a gain of 189,000, cooling from May's rise of 272,000. The jobless rate is forecast to remain at 4%. Average hourly earnings are seen rising 3.9% vs. a year earlier, down from 4.1% in May.
Stock Market Rally
The stock market rally technically was mixed Wednesday, but the action of the S&P 500, Nasdaq and leading stocks cast a clearly bullish tone.
The Dow Jones Industrial Average lost a fraction in Wednesday's stock market trading. The S&P 500 index climbed 0.5%. The Nasdaq composite rose 0.9%. The small-cap Russell 2000 edged up 0.1% but came off highs after briefly reclaiming the 50-day line.
$Invesco Exchange Traded Fd Tr S&P 500 Equal Weight Etf (RSP.US)$ lost a fraction. The $First Trust Nasdaq-100 Equal Weighted Index Fund (QQEW.US)$ advanced 0.15% to a record close.
The Nasdaq is now 7.6% above the 50-day line, increasingly extended. That raises the risks of a pullback, though it doesn't have to happen right away.
U.S. crude oil prices rose 1.3% to $83.88 a barrel.
The 10-year Treasury yield fell 9 basis points to 4.35%, down 13 basis points in two sessions.
The ADP Employment Report and initial jobless claims pointed to a slightly weaker-than-expected labor market. Meanwhile, the ISM services index unexpectedly tumbled back into contraction territory.
ETFs
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) popped 1.8% and ARK Genomics ETF (ARKG) climbed 1.2%. Tesla stock is the No. 1 holding across Ark Invest's ETFs. Cathie Wood sold some Tesla shares on Tuesday and again on Wednesday.
SPDR S&P Metals & Mining ETF (XME) rallied 1.8%. The Global X U.S. Infrastructure Development ETF (PAVE) added 0.85%. U.S. Global Jets ETF (JETS) gained 1.5%. SPDR S&P Homebuilders ETF (XHB) advanced 0.5%. The Energy Select SPDR ETF (XLE) rose 0.25% and the Health Care Select Sector SPDR Fund (XLV) fell 0.7%.
Nvidia Stock
Nvidia stock leapt 4.6% to 128.28, bouncing decisively above the 21-day line and above the 10-day line since June 20. An aggressive investor could have used Wednesday's action as a place to add a few more shares. But NVDA stock could use a longer pause.
Tesla Stock
Tesla stock jumped 6.5% to 246.39 Wednesday, extending its weekly gain to 24.6% after jumping 8.1% last week.
Shares are greatly extended from the 191.08 handle buy point. TSLA stock is coming up to a long-term trendline going back to its late 2021 all-time high. Ideally, Tesla would pause for a while. Earnings are due in two weeks.
Stocks In Buy Areas
$ASML Holding (ASML.US)$ stock rose 2.2% to 1,071.20, moving back above a 1,056.34 buy point, according to MarketSurge analysis. The chip-equipment giant recently found support at the 21-day line. ASML earnings are due on July 17.
$Entegris (ENTG.US)$ stock popped 3.1% to 140.81, moving above a handle buy point of 139.81.
Monday.com stock gained 2.65% to 243.31, back above a 239.54 entry as well as retaking a prior base buy point of 239.22.
$Agnico Eagle (AEM.US)$ stock popped 4% to 68.27, rebounding above the 50-day line and breaking a trendline. AEM stock has a 71.50 buy point from a flat base.
$Southern Copper (SCCO.US)$ stock leapt 5.5% to 116.03, bouncing above the 50-day line. SCCO stock has a consolidation pattern with a 120.79 official buy point.
$Tencent Music (TME.US)$ stock gained 3.5% to 14.94, breaking a trendline within a flat base. The official buy point is 15.77. TME stock is bouncing off the 50-day line.
$Vistra Energy (VST.US)$ stock popped 4.1% to 91.31, back above the 50-day line and short-term highs. The power generation company, an AI-adjacent play, may be starting to build the right side of a new base.
What To Do Now
The stock market rally is showing strength on the most important indexes. Market breadth could be better, but there are plenty of stocks that have been flashing buy signals from a variety of sectors.
That's why it's critical to run your screens consistently and cast a wide net.
The Nasdaq being increasingly extended is a reason to be cautious about adding exposure, but the broader bullish trend is well intact.
Start paying attention to earnings dates. Quarterly reports will start picking up in the next week or so.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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