Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures, following a strong stock market rally.
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The major indexes rallied on Wednesday. Bank fears continue to decrease while Micro technology (MU) offers some hope for a chip bottom despite a bleak report and short-term outlook.
Several stocks are sending buy signals, including Micron stock, Microsoft (MSFT), Shift4Payment (FOUR), Global Mobileye (MBLY), Electronic STMicro (STM), Wynn . Resort (WYNN), Draft Kings (DK), Rambus (yuan), skyline champion (SKY) And working day (DAY).
Shares of Microsoft, Rambus, Workday and STM are well above traditional buy points. MU, Shift4Payments, Wynn, DraftKings and Skyline stocks are recovering from key areas, breaking down sloping trendlines for early entries. MBLY stock has regained key levels.
SKY, Rambus and Wynn Resorts stocks are active IBD Rankings. WYNN and DraftKings stocks are on SwingTrader. MSFT stock is on Long-term leadership of IBD. STMicro, DraftKings, Shift4Payments and WDAY stocks available on IBD 50. MBLY stock is open IBD Large Hat 20. Skyline Champion is also Wednesday IBD shares of the daywhile stock FOUR is Tuesday.
Regional banks haven’t recovered much this week, but at least they haven’t tumbled. be enticed First Republic (FRC) was returned. Bigger banks like JPMorgan Chase (JPM) And american bank (NORTH) recovered this week after hitting a 2023 low on Friday.
Investors should look to increase their exposure, based on the actions of major indexes and leading stocks. But don’t rush in.
Dow Jones Futures Today
Dow Jones futures contract lost a fraction of its fair value. S&P 500 futures were flat and Nasdaq 100 futures were down 0.1%.
Remember that action overnight in future index and other places that don’t necessarily translate into actual transactions the next time stock market meeting.
Join IBD experts as they analyze stocks that could act in the stock market rally on IBD Live
Stock market recovers
The stock market rally opened solidly higher, with the major indexes adding more gains late in the afternoon.
The Dow Jones Industrial Average is up 1% on Wednesday stock market trading. The S&P 500 index rose 1.4%, with Micron stock being one of the best performers. Nasdaq composite rose 1.8%. The Russell 2000 small-cap index rose 1.1%.
US crude oil prices fell 0.3% to 72.97 USD/barrel.
The yield on the 10-year Treasury note was essentially unchanged at 3.565%.
ETFs
Among the growth ETFs, the Innovator IBD 50 ETF (FFTY) increased by 2.2%. iShares Expanded Tech-Soft Sector Sector ETF (IGV) rose 1.7%, with MSFT stock being the main holding and Workday also a component. VanEck Vectors Semiconductor ETF (SMH) rose 1.7%, with MU and STMicro stock both part of SMH.
Reflecting more speculative stocks, the ARK Innovation ETF (ARKK) rose 3.8% and the ARK Genomics ETF (ARKG) 3.2%.
SPDR S&P Metals & Mining ETF (XME) rose 1%, while the US Global Jets ETF (jet plane) increased by 2.15%. SPDR S&P Homebuilders ETF (XHB) increased by 0.8%. Energy Select SPDR ETF (XLE) increased by 1.5% and the Healthcare Sector SPDR Fund (XLV) up 0.3%
Financial Options SPDR ETF (XLF) recovered 1.5%, with JPM and Bank of America both holding substantial shares. SPDR S&P Regional Bank ETF (KRE) increased by 1.1%. FRC stock, a component of KRE, is up 5.6% Wednesday and 15.4% so far this week. It is still down 88% in March.
The five best Chinese stocks to watch right now
Analysis of market recovery
A day after the major indexes held key support levels, the equity market rally picked up speed, breaking through several notable levels.
The Nasdaq composite led with a strong recovery after approaching the 50-day line at its lowest on Tuesday. The 12,000 level looks to be the next challenger, with the market rally peak on Feb. 2 no further than that.
The S&P 500 has moved back above the 4,000 level and the 50-day moving average as well as breaking the downsloping trendline.
The Dow Jones closed above the 21-day line for the first time since March 6, but still below the 200-day line. The Russell 2000 index is bouncing up from Friday 2023 lows, but there is a definite gap with the 50-day and 200-day lines.
Nasdaq volume was higher on Tuesday. NYSE volume appears to be slightly up. Trading volume is below normal.
The advancers led the losers markedly on the NYSE and Nasdaq, with a slight increase in breadth this week. However, the market leadership position is still relatively narrow.
Chip stocks rallied Wednesday, after falling on Tuesday ahead of Micron’s earnings report. In addition to MU shares, Mobileye, Rambus and STM are stocks that are showing buy signals. Others show bullish price action.
Microsoft stock and WDAY are among the software names in the buy zone, while SKY stock is among a growing number of homebuilders. Investors are betting on games like Wynn Resorts and DKNG stock.
FOUR stocks are among the few paying stocks that perform well, including Flying power cord (FLY). MercadoLibre (MELI), which has some chart activity similar to Shift4, is an e-commerce giant with a booming payments business.
While bank fears are in the background, Treasury yields aren’t moving higher. Recent banking woes, even if the worst is over, will likely lead to less lending and often tighter financial conditions, slowing the economy and reducing the need to raise interest rates. Fed rate. For now, the markets are leaning towards the Fed halting interest rates in early May. Friday’s PCE inflation report, the Fed’s favorite price gauge, could change that dynamic.
Market Timing with IBD’s ETF Market Strategy
What to do now
The stock market is rallying as the banking crisis appears to have peaked while the Fed’s rate hikes are over, or so near. The major indexes have shown a combination of resilience and strength this week, while several stocks are sending buy signals.
So you should start adding some visibility — gradually. If the market is real, it won’t take long to build up gradually to be 100% invested. If the market soon reverses lower or descends, it will be a lot easier mechanically and psychologically to get out if you are not fully committed.
But it’s important to be ready by updating your watchlist and staying engaged.
Read Big picture every day to stay in sync with market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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