Dow Jones futures fell slightly early Friday, along with S&P 500 futures. Nasdaq futures tilted higher. Adobe reported earnings late Thursday.
The stock market rally had a solid, broad advance, with the major indexes hitting record highs.
Some AI-related plays were steady or pulled back after Wednesday's advance, but not all. Micron Technology and data storage plays kept flying.
Tesla, Hinge Health, Oklo, Blackstone and Kratos Defense & Security Solutions flashed buy signals.
In overnight trading, Adobe stock rose modestly on strong earnings and guidance. The software stock has been in a long downtrend.
Micron stock is on Leaderboard. Tesla stock joined SwingTrader. The video embedded in the article reviews Thursday's market action and analyzes Tesla, Kratos and Hinge Health stock.
Dow Jones Futures Today
Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures lost 0.1% and Nasdaq 100 futures edged higher.
The 10-year Treasury yield rose to 4.06%. Crude oil futures rallied nearly 2%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Rally
After Wednesday's mixed, AI-led session, the stock market rally had broad-based strength Thursday, with all the major indexes hitting all-time high levels and now clearly above recent ranges.
The CPI inflation report was largely in line. Jobless claims spiked, though that was due primarily to Texas flooding. Ultimately, the reports reinforced expectations for a quarter-point rate cut at next week's Fed meeting.
The Dow Jones Industrial Average jumped 1.4% in Thursday's stock market trading. The S&P 500 index gained 0.85%. The Nasdaq composite advanced 0.7%. The small-cap Russell 2000 leapt 1.8% to a nine-month high.
The Invesco S&P 500 Equal Weight ETF jumped 1.5%, hitting a record high.
The First Trust Nasdaq 100 Equal Weighted Index ETF popped 1.4%, rebounding above the 50-day line.
Financials were strong and homebuilders bounced after a couple of rough days. Industrials, materials and health care also were positive.
U.S. crude oil prices fell 2% to $62.37 a barrel.
The 10-year Treasury yield fell two basis points to 4.01%, briefly undercutting 4%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rallied 1.7%. The iShares Expanded Tech-Software Sector ETF edged up 0.1%, with Adobe stock a notable holding. The VanEck Vectors Semiconductor ETF climbed 1%, with Micron stock a big holding.
ARK Innovation ETF jumped 3.6% and ARK Genomics ETF soared 5.7%. Tesla stock is the No. 1 holding across the ARK Invest's ETFs.
SPDR S&P Metals & Mining ETF climbed 1.4%. SPDR S&P Homebuilders ETF bounced 2.6%. The Energy Select SPDR ETF edged higher and the Health Care Select Sector SPDR Fund rose 1.7%.
The Industrial Select Sector SPDR Fund rallied 0.95%. The Financial Select SPDR ETF advanced 1.6%. XLF owns some Blackstone stock.
Best Growth Stocks To Buy And Watch
Tesla Stock
Tesla stock jumped 6% to 368.81, breaking out past a 367.71 buy point from a consolidation going back late May, according to MarketSurge. The relative strength line isn't at a consolidation or 52-week high, but is trending higher.
Investors are betting on self-driving and Optimus robots, with the core business struggling amid Tesla brand woes and aging EV models.
Other Stocks In Buy Areas
Oklo stock surged 8.4% to 79.97, breaking a downtrend in an emerging consolidation and topping a short-term high. That offered an aggressive entry, but shares are 15% above the 50-day moving average. The nuclear energy startup is part of the broader AI theme.
Hinge Health stock popped 6.8% to 59.98, rallying off the 21-day moving average where it's been finding support and clearing a few weeks of trading. That offers an aggressive entry into the recent AI health care play, but shares are 16% above the 50-day line now.
Blackstone stock gained 3.2% to 183.92, breaking out from a cup-with-handle base with a 181.32 buy point. BX stock flashed an early entry earlier in the week as it broke the downtrend of the handle. The RS line isn't at a new high, but did top the handle high.
Kratos stock rose 3.1% to 67.67, moving further off the 21-day line and breaking the downtrend of a short consolidation. It bounced off the 10-week line to start the week. All of that offers an opportunity for the drone and defense play. Drone peer AeroVironment has made a bullish earnings move this week, while aerospace remains an area of strength.
What To Do Now
The stock market rally appears to be starting a new leg higher after several weeks of sideways action. AI is leading but market breadth appears to be strong, especially on Thursday.
Investors should be heavily invested and looking to add exposure or swap in new buys for laggards.
Definitely have your watchlists up to date. A number of leading stocks are trading right around buy points or setting up.
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.
