Dow Jones futures rose slightly early Friday, along with S&P 500 futures and Nasdaq futures. Rocket Lab, MP Materials and Sezzle led another night of big earnings movers.
Tesla reportedly is scrapping its Dojo supercomputer efforts after a big staff exodus.
The stock market rally was generally lower Thursday. The Nasdaq slashed gains after nearly hitting a record high thanks to chip stocks. The other key indexes reversed lower.
Still, AppLovin, Vistra, Robinhood Markets, Triple Flag Precious Metals and Uber Technologies all flashed buy signals.
Dow Jones Futures Today
Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures advanced 0.4% and Nasdaq 100 futures climbed 0.3%.
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
MP Materials, Expedia, Rocket Lab, Karman Holdings, Instacart parent Maplebear and Kratos reported earnings. So did Pinterest, FanDuel parent Flutter Entertainment, Sezzle, Twilio, Ouster and Square-parent Block.
Expedia, Instacart and Ouster stock soared overnight. MP Materials, Square and Karman jumped while Take-Two and Rocket Lab stock rose solidly. Square, Expedia, Ouster, Instacart, Rocket Lab and Take-Two stock are all near buy points.
Sezzle stock dived while Twilio and Pinterest plunged. Flutter Entertainment and Kratos fell slightly. Sezzle and Twilio had been near entries while FLUT closed in a buy zone.
Stock Market Rally
The stock market rally got a lift from Apple and chips but the key indexes had a disappointing reversal.
President Donald Trump said a coming 100% semiconductor tariff won't apply to companies manufacturing in the U.S. or planning to do so. Chips did well but most sectors struggled.
Fortinet dived, weighing on cybersecurity names, but software woes were broad-based outside earnings winners such as AppLovin.
The Dow Jones Industrial Average declined 0.5% in Thursday's stock market trading. The S&P 500 index dipped 0.1%. The Nasdaq composite rose 0.35%, after nearly setting a high near the open. The small-cap Russell 2000 fell 0.3%.
The Dow Jones and Russell hit resistance at their 21-day moving averages. So did the Invesco S&P 500 Equal Weight ETF and the First Trust Nasdaq 100 Equal Weighted Index ETF.
The indexes and key ETFs are all still in recent ranges.
U.S. crude oil prices fell 0.7% to $63.88 a barrel.
The 10-year Treasury yield rose one basis point to 4.24%, still near Tuesday's three-month low.
Growth ETFs
The Innovator IBD 50 ETF fell 1.2%. The iShares Expanded Tech-Software Sector ETF slumped 2%, even with AppLovin a notable position. The VanEck Vectors Semiconductor ETF gained 1.6%.
ARK Innovation ETF rose 0.3%. Tesla stock is the No. 1 holding across ARK Invest's ETFs while Cathie Wood has a significant position in Robinhood.
Best Growth Stocks To Buy And Watch
Stocks In Buy Zones
AppLovin stock opened lower but soon rebounded powerfully about 10-to-15 minutes into the session. Shares raced 12% higher to 437.94, clearing a 428.99 cup-base buy point. Nimble traders could have grabbed APP as it cleared short-term highs near 400. AppLovin reported booming earnings and the fourth straight quarter of accelerating revenue growth late Wednesday, while also guiding higher.
Vistra stock opened lower, but rebounded to rise 2.4% to 205.59, back above a 200.25 high-handle entry. The nuclear power utility play reported mixed results late Wednesday.
Triple Flag Precious Metals stock ran past a 25.45 flat-base buy point, jumping 7.5% to 26.62. The Canadian gold play reported strong earnings late Wednesday.
Robinhood stock jumped 5.3% to 111.23, clearing most of a short consolidation after a big run, offering an add-on entry.
Uber stock gained 3.9% to 92.67 in a day two reaction to earnings. Shares rebounded from the 50-day and 21-day lines and broke a trendline, offering an early entry.
Tesla Ending Dojo Efforts
Tesla is scrapping its Dojo supercomputer effort and disbanding the team, Bloomberg reported late Thursday. The company will now rely on Nvidia and AMD chips for compute and Samsung fore chip manufacturing, sources told Bloomberg.
That comes days after some 20 DOJO staffers left to form their own startup.
The Tesla-designed supercomputer was used to train self-driving systems, the Optimus robot and other AI efforts. Some analysts had cited Dojo as a key Tesla advantage.
Musk appeared to confirm the new approach on X a few hours later. He said next-generation AI chips going into Tesla EVs "will be excellent for inference and at least pretty good for training. All effort is focused on that."
Tesla stock lost a fraction early Friday. Shares have risen 6.5% so far this week, right at key moving averages. TSLA is near an aggressive entry within a consolidation.
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What To Do Now
The stock market rally is still near record highs, trading in a relatively narrow range. But the indexes and especially individual stocks have been prone to big reversals up or down, particularly on earnings.
So investors should be careful about new buys and probably shouldn't make purchases immediately at the open.
A lot of stocks are working on handles or pulling back bullishly, so build up those watchlists. AppLovin stock's move Thursday is a great example of why having up-to-date watchlists and staying engaged is important.
Vistra stock is on IBD Leaderboard, with Robinhood stock on the watchlist. AppLovin stock and Robinhood are on SwingTrader. Rocket Lab stock, Ouster, Robinhood and Triple Flag Precious Metals are on the IBD 50. TFPM stock is on IBD Sector Leaders. Robinhood was IBD Stock Of The Day.
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Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
