Dow futures rose slightly in extended trading, along with S&P 500 futures and Nasdaq futures. Lululemon, Costco, and Broadcom reported earnings after the close.
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The stock market rebounded modestly Thursday, but it has recovered only a small fraction of the losses it has incurred in the past several days. Investors should remain cautious amid volatile market movements. The S&P 500 remains below the 200-day line as most of the indices are also hitting resistance at the 21-day moving average.
Semiconductor stocks did well, along with the chipmaker nvidia (NVDA) was among the top performers in the S&P 500 on Thursday. But chip equipment makers are generally in better shape, though KLA Corp. (KLAC), Axcelis Technologies (ACLS) And the Ultra-clean collectibles (UCTT) Flashing buy signals Thursday. ASML (ASML) And the Applied materials (AMAT) among the close ones Buy points.
Main earnings
Costco wholesale (cost), Lululemon Athletica (Lulu) And the from Broadcom (AVGO) reported late Thursday.
COST stock changed little overnight after Costco’s earnings and sales missed the views. Costco stock lost a bit in the regular Thursday session but is down nearly 11% so far this month.
LULU stock fell in extended trade after the yoga apparel retailer trended slightly lower during a critical holiday quarter. Lululemon earnings topped views in the third quarter slightly. Lululemon shares rose 0.6% to 374.11 Thursday, closing in a range of 370.56 cups with a buy point handle. But it is set to fall out of this buying zone.
AVGO stock rose modestly after hours as Broadcom’s earnings and guidance topped views, with the chip and software giant also increasing its earnings. Broadcom stock closed up 2.4% at 531.08, below the 200-day line. Last week’s high of 552.42 may provide a kind of entry.
LULU stock is on IBD Leaderboard Also play options earnings. KLAC stock is running Long-term leaders of IBD.
Dow jones futures today
Dow futures rose 0.1% against fair value. S&P 500 futures rose 0.15% and Nasdaq 100 futures rose 0.2%.
The 10-year Treasury yield fell 2 basis points, to 3.47%.
Crude oil futures rose 1%.
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 had a strong session, as indices moved largely sideways after the first hour of trading.
The Dow Jones Industrial Average rose 0.55% on Thursday Stock market trading. The S&P 500 rose 0.75%. The Nasdaq Composite Index rose 1.1%. Small Capital Russell 2000 rose 0.7%.
US crude oil prices fell 0.8% to $71.46 a barrel, with some significant fluctuations during the day. Crude oil futures have now reached levels that the Biden administration indicated would lead to a refill of the Strategic Petroleum Reserve, which has been drained to long-term lows this year to reduce energy costs.
The 10-year Treasury yield rose 8 basis points to 3.49%, but it was an inside day after falling to 3.41% on Wednesday.
Exchange Traded Funds
Among the growth ETFs is iShares Expanding Technology and Software Sector Fund (IGV) increased by 1.8%. VanEck Vectors Semiconductor Corporation (SMH) figured 2.55%. Nvidia shares, ASML, KLA, and AMAT are all SMH holdings. Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(gained 2.4% and ARK Genomics ETF)ARKG) 2.2%.
SPDR S&P Metals & Mining ETFs (XME) rose 0.3% and the Global Infrastructure Development Fund (ETF) in the USA (cradle) advanced 0.8%. US Global Gates Foundation ETF (Planes) decreased by 0.3%. SPDR S&P Homebuilders ETF (XHB) increased by 0.6%. Energy Defined Fund SPDR ETF (xle) and Financial Select SPDR ETF (XLF) increased by 0.1%. SPDR Health Care Sector Selection Fund (XLV) 0.9%.
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Stocks are graying near the points of purchase
Many chip equipment makers are located in or near the areas of purchase. In general, semiconductor equipment makers have some bleak forecasts for the coming year, but stocks of chip equipment often decline well before the business turns around.
KLAC rose 2% to 395.92, surpassing some buy points between 392.60 – 396.02. Trading was very light, but there were a number of large gains in higher volume as the KLA was bouncing back from the bear market lows of October and November. The line of relative strength It is at a record high, even with stocks far from their peak in January. KLA stock is a long-term leader, but a good time to buy a stock as an LTL is when it is closer to the 200 or 50 day lines.
ACLS stock rose 4.9% to 81.93, rising again above the 80.34 cup handle buy point, according to MarketSmith Analysis. The pivot is extending well from the 50-day streak, but the 21-day streak has been racing upwards. The RS line for ACLS stock is at a 15-year high.
UCTT stock rose 5.6% to 36.59, topping 36.10 mug with handle Buy point and reach its best level since April. The base formed just below, with no prior uptrend. However, the handle has formed largely above the 200 day line. RS line for UCTT stock is at an 8-month high.
ASML shares rose 0.9% to 606.89. Stocks rallied from the bear market lows of Oct. 13 through Nov. 15. Since then, the Dutch semiconductor equipment giant has consolidated comfortably above its 200-day line, at its best levels since April. The 21-day streak is about to catch up. A break above the recent highs could offer an early entry. Ideally, ASML will bounce off the 21-day streak or form a suitable base.
AMAT stock rose 2.4% to 108.61 on Thursday. Stocks are slightly above the 200-day line after Oct-Nov 13. 15 running. Applied materials have Tight three weeks Which offers 112.22 buying points. Investors can use a short trend line, perhaps with Thursday’s high of 109.43 as a trigger, as a slightly early entry.
Meanwhile, chip giant Nvidia stock rose 6.5% to 171.69, rebounding from a 21-day streak. NVDA stock is just below the 200 day line now. An aggressive trader can use a decisive clearing of the 200 day line as a buy signal. But it might be best to wait for Nvidia shares to clear 200 days and form some kind of consolidation, similar to ASML or AMAT, to spy out a safer entry.
Market rally analysis
The stock market rally snapped its recent losing streak with modest to solid gains. But it did not fundamentally change the artistic picture. Major indicators are moving sideways, finding support at key levels but also hitting resistance.
The S&P 500 managed to close back above its 21-day moving average. The benchmark needs to get back above its 200-day moving average and the December 1 high.
The Nasdaq Composite Index held support at the 50-day moving average, regaining the 11,000 level but closing near the 21-day mark. The Russell 2000 Index, which fell below the 200-day line and 21-day line earlier this week, is down 21 on the day.
The Dow, which closed above its 21-day average on Wednesday, rebounded modestly on Thursday.
The markets may not take any decisive action with the arrival of major news.
The Producer Price Index for November is due on Friday morning. Wholesale inflation should show continued steady deceleration. But the real concern is the pricing of the service. The November CPI report is set for December 13, with the Fed’s year-end meeting ending the next day.
These events can be a catalyst for large market moves up or down. Of course, over the past month, the indices have seen big moves around the October CPI, Fed Chair Powell’s speech and more, but choppy action continued on both sides.
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What are you doing now
Some stocks flashed buy signals on Wednesday, including KLAC, ACLS, and United Rentals (URI) And the dexcom (DXCM). Investors could have taken a bite out of some of this stuff – or not.
Overall exposure should be kept low. The current market trend is sideways and volatile. This is just a tough environment to make headway in stock trading. If you make new purchases and get good winnings, consider taking partial profits quickly. Several promising stocks have topped 5% and 10% gains over the past several weeks.
A number of stocks are generated from a variety of sectors. So keep your watchlists updated and stay tuned.
Read The Big Picture Every day to keep up with the market trend, stocks and leading sectors.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
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