Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. Autodesk, Workday, Intuit and Ross Stores reported after the close.
The Supreme Court ruled late Thursday that President Donald Trump can fire the heads of federal agencies, but not the Federal Reserve. The U.S. and China have continued trade talks, Beijing said overnight.
The stock market rally rallied for much of Thursday's session, but faded to close mixed after the prior session's sharp sell-off. Treasury yields, which surged Wednesday, reversed lower on Thursday.
Carvana reclaimed a buy point, with Palantir Technologies and CrowdStrike right around an entry.
TSLA stock rose, nearing another aggressive entry, shrugging off a Trump tax bill that would eliminate the $7,500 electric vehicle tax credit and related benefits for Tesla.
CrowdStrike stock is on IBD Leaderboard. Palantir and Carvana stock are on SwingTrader. Palantir stock is on the IBD 50.
Supreme Court: Trump Can't Fire Fed Chief Powell
Late Thursday, the Supreme Court granted President Trump's bid to fire the heads of independent agencies such as the National Labor Relations Board without cause. But justices said that doesn't apply to the Federal Reserve, "a uniquely structured, quasi-private entity."
A few weeks ago, President Trump hinted that he wanted to fire Fed chief Jerome Powell for not cutting rates in the wake of his tariff hikes. Trump later said he would not do so. Powell's term ends in May 2026, letting Trump nominate his successor.
The Supreme Court's Fed carveout also means that the central bank's governors are safe.
Dow Jones Futures Today
Dow Jones futures rose 0.1% vs. fair value. S&P 500 advanced 0.1% and Nasdaq 100 futures edged higher.
The U.S. and China discussed key issues on a Thursday call between Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary Kurt Campbell, the Foreign Ministry said overnight, suggesting negotiations are making progress.
The 10-year Treasury yield dipped to 4.53%.
Crude oil futures edged lower.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Key Earnings
Autodesk, Workday, Intuit and Ross Stores reported Thursday night.
Intuit stock jumped and Autodesk rose slightly in late trading. Intuit could clear an early entry Friday and approach a traditional buy point. Autodesk stock is set to top a tiny handle buy point.
Workday stock fell overnight while Ross Stores tumbled, both from near potential entries.
Trump's Kinder Trade War Fuels Market. It Could Still Be A Bumpy Ride.
Stock Market Rally
The stock market rally tried to bounce back somewhat Thursday, but the major indexes faded in the final hour of trading.
The Dow Jones Industrial Average lost 1 point in Thursday's stock market trading, still below its 200-day line. The S&P 500 index lost a fraction. The Nasdaq composite rose 0.3%, but well off intraday highs. The small-cap Russell 2000 finished down a fraction.
The Invesco S&P 500 Equal Weight ETF, which tumbled below its 200-day line on Wednesday, fell 0.3% on Thursday. RSP did bounce off its 21-day line but later hit resistance just below its 200-day line.
The First Trust Nasdaq 100 Equal Weighted Index ETF dipped 0.3%.
It's positive that stocks didn't extended Wednesday's downside, though the weak finish wasn't inspiring. A longer pause could be helpful, so long as the S&P 500 and Nasdaq hold above their 200-day lines.
The 10-year Treasury yield fell four basis points to 4.55% on Thursday, reversing from a three-month high of 4.63% shortly after the House passed the Trump tax bill. The 10-year yield is on track for its fourth solid weekly gain. The 30-year yield slipped three basis points to 5.06% after early hitting 5.15%, the highest since late 2023.
If yields continue to trend higher, the market rally may struggle, especially growth stocks.
U.S. crude oil prices dipped 0.6% to $61.20 a barrel.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF edged up 0.2%. The iShares Expanded Tech-Software Sector ETF climbed 0.5%, with Palantir, CrowdStrike and Intuit stock all top-10 holdings. Autodesk and Workday stock also are key positions. The VanEck Vectors Semiconductor ETF fell 0.3%.
Reflecting more-speculative story stocks, ARK Innovation ETF gained 1.3% and ARK Genomics ETF rose 0.5%. Tesla stock is still the No. 1 position across ARK Invest's ETFs. Cathie Wood's ARK also owns a lot of Palantir, with a small CrowdStrike stake.
SPDR S&P Metals & Mining ETF fell 1%. The Energy Select SPDR ETF declined 0.4% and the Health Care Select Sector SPDR Fund sank 0.8%. The Financial Select SPDR ETF dipped 0.1%
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Stocks Near Buy Points
Palantir stock rose 1.4% to 122.29 after briefly reclaiming a 125.25 cup-with-handle buy point.
Carvana stock gained 3.5% to 302.25, back above a 292.84 cup-base buy point.
CrowdStrike stock advanced 2.15% to 444.07, back near a 451.15 alternate handle entry.
Tesla stock rose 1.9% to 341.04 continuing to trade in a recent range after surging well past the 200-day line and an aggressive entry. Clearing the recent high of 354.99 could offer another early entry. TSLA stock continues to shrug off weak sales and other bad news, with bulls focused on robotaxi hopes. The Trump tax bill that passed the House would scrap the $7,500 EV tax credit as well as other credits that Tesla relies on.
What To Do Now
The stock market rally tried to bounce Thursday, but that fizzled even to Treasury yields pulling back.
The current market pause is letting moving averages catch up and more handles form. So investors want to be building up watchlists.
A few stocks reclaimed or neared buy points. Investors could have nibbled, especially those with a swing trader focus, though many buying opportuntiies backed off.
Standing pat with significant-t0-heavy exposure was a sound strategy, too. That could continue until the market clears recent levels.
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