Dow Jones futures rose slightly early Friday, along with S&P 500 futures and Nasdaq futures. President Donald Trump and Chinese President Xi Jinping are expected to discuss key issues in a phone call that's underway.
The stock market rally had a solid day two reaction to the Fed meeting, with all the key indexes hitting record highs on Thursday.
Nvidia rebounded back above a key level after the AI chip giant announced a big stake and partnership with Intel. Intel skyrocketed, while several chip stocks had powerful gains.
Palantir Technologies, Howmet Aerospace, MasTec, Cadence Design Systems, Spotify, Emcor and Interactive Brokers flashed buy signals.
FedEx and Lennar reported late Thursday. FedEx reported strong results, but shares pared strong overnight gains and are still below a long-sliding 200-day moving average. Lennar stock fell modestly on mixed results and weak guidance after the homebuilder had pulled back after a strong advance.
Howmet stock and Palantir are on Leaderboard, with Emcor on the Leaderboard watchlist. Spotify stock and Palantir are on SwingTrader. Cadence Design stock is on IBD Long-Term Leaders. Palantir stock is on the IBD 50. Emcor stock is on the IBD Big Cap 20. Nvidia stock and Palantir are on IBD Sector Leaders. Spotify was Thursday's IBD Stock Of The Day.
The video embedded in the article reviews Thursday's strong market action and analyzes Palantir, Spotify and Interactive Brokers stock.
Dow Jones Futures Today
Dow Jones futures climbed 0.1% vs. fair value. S&P 500 futures and Nasdaq 100 futures rose 0.15%.
The 10-year Treasury yield advanced to 4.13%, continuing a rebound from just under 4% on Wednesday afternoon.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Trump-Xi Call
Presidents Trump and Xi have began a much-anticipated phone call, Chinese state media reported shortly after 8 a.m. ET. That follows days of high-level U.S.-China talks in Madrid. Trade, TikTok, Nvidia and more may be discussed. Trump has hinted that a TikTok deal could be in reach. Nvidia chip sales are at the mercy of geopolitics. And will the U.S. and China reach a more-lasting trade accord or agree to extend the truce yet again?
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally had a strong session Thursday, with the Dow Jones and S&P 500 up modestly while techs and small caps jumped.
The Dow Jones Industrial Average advanced 0.3% in Thursday's stock market trading. The S&P 500 index rose 0.5%. The Nasdaq composite popped 0.9%. The small-cap Russell 2000 jumped 2.5%. All hit record highs.
The First Trust Nasdaq 100 Equal Weighted Index ETF, which only retook its 50-day line a week ago, rallied 1.2% to hit an all-time best.
At 5.1% above the 50-day line, the Nasdaq composite is just starting to get extended. The S&P 500 is not stretched.
Leading stocks did well, especially in chip and AI space, with speculative names gaining more traction.
U.S. crude oil prices fell 0.75% to $63.57 a barrel.
The 10-year Treasury yield rose three basis points to 4.1%, as the Philly Fed manufacturing index and jobless claims join the recent spate of unexpectedly strong economic data.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF jumped 2.2%. The iShares Expanded Tech-Software Sector ETF 1.9%, with Palantir stock a major holding. The VanEck Vectors Semiconductor ETF leaped 3.8%, with Nvidia stock still the top holding. Cadence Design stock is in both SMH and IGV.
ARK Innovation ETF rallied 3.1% and ARK Genomics ETF soared 5%.
SPDR S&P Metals & Mining ETF climbed 1.5%. SPDR S&P Homebuilders ETF advanced 0.6%. The Energy Select SPDR ETF fell 0.3% and the Health Care Select Sector SPDR Fund inched up 0.2%.
The Industrial Select Sector SPDR Fund rose 1.1%, with Howmet stock in XLI.
The Financial Select SPDR ETF edged up 0.1%, with Interactive Brokers a small position.
Best Growth Stocks To Buy And Watch
Nvidia-Intel Deal Lifts Chips
Nvidia will buy a $5 billion stake in struggling Intel, with the two companies collaborating on data-center and PC chips.
On Thursday, Nvidia stock gained 3.5% to 176.32, back above the 50-day line. NVDA stock still has a 184.48 flat-base buy point, according to MarketSurge. Investors could use the short-term high of 180.28 as an early entry.
Intel stock gapped up 22.8% to a 52-week high.
Micron Technology, ASML, Lam Research were among the many big chip winners Thursday.
Palantir, Spotify Lead Stocks Flashing Buy Signals
Palantir stock jumped 5.1% to 176.97, clearing a short-term high after testing the 50-day line intraday Wednesday. That offers an early entry in what will soon be a new base with a 190 buy point.
Howmet stock rose 3.5% to 191.84, topping a 190.29 early entry. HWM stock has a cup base with a 193.26 buy point.
MasTec stock advanced 3.15% to 199.45, above a 194 consolidation buy point after trying to break out Wednesday. The heavy construction firm offered an early entry on Sept. 10, as AI-related plays jumped with Oracle.
Cadence Design stock popped 5.1% 364.88, rebounding from near the 50-day line, breaking a trendline and topping a short-term high of 362.71. The electronics design software maker has a 376.44 buy point from a flat base that formed right on top of a longer consolidation.
Spotify stock jumped 3.8% to 734.12, breaking a downtrend from the top of a cup-with-handle base and toping a short-term high. It's also close to the official 748.30 buy point.
Emcor stock gained 2% to 628.92, rebounding from the 10-week line, offering an early entry in a flat base with a 667.64. Investors could wait to see if EME stock clears the 640-648 area, moving past the bulk of the base.
Interactive Brokers stock rallied 4.1% to 64.92, running past the 50-day line and just topping short-term highs. IBKR stock has a 68.07 flat-base buy point.
What To Do Now
If the market rally keeps running and the Nasdaq grows more extended, the risks of a pullback would grow. For now, it's something to note.
It's a time to be heavily or fully invested. Aggressive traders could go on margin, but consider the risks as well as the potential reward.
Investors could still find stocks to buy, including Palantir and Spotify, though many leaders are greatly extended. Don't buy extended stocks.
Keep working on watchlists and reviewing your portfolio.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
