Dow Jones futures rose slightly early Friday, along with S&P 500 futures and Nasdaq futures. Netflix, online brokers Interactive Brokers and Charles Schwab reported overnight, along with Dow components 3M and American Express.
The stock market rose, with the Nasdaq and S&P 500 hitting fresh all-time highs. Positive economic data and strong earnings and guidance from Nvidia chipmaker Taiwan Semiconductor led the way.
AI plays Vertiv and Astera Labs made bullish moves, along with Toast, Construction Partners and Five Below.
Dow Jones Futures Today
Dow Jones futures rose about 0.1% vs. fair value, with 3M stock giving a small lift. S&P 500 futures climbed 0.1% and Nasdaq 100 futures advanced 0.1%.
The 10-year Treasury yield dipped to 4.43%.
Crude oil futures rose 1%.
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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Netflix Earnings
Netflix earnings topped second-quarter views. Revenue just edged past consensus, but the streaming giant also raised Q3 and full-year revenue guidance. Netflix no longer provides subscriber figures or guidance in its earnings reports.
Netflix stock fell modestly in premarket action. Shares rose 1.9% Thursday to 1,274.17, retaking the 21-day line as it bounces modestly this week from the 10-week moving average.
Other Earnings
Interactive Brokers rose solidly overnight after earnings beat Q2 views. IBKR stock closed near record highs, extended from a buy point.
Online broker rival Charles Schwab beat views, with shares rising modestly. SCHW stock closed extended from a base as well.
3M and American Express beat Q2 consensus before the open, though the former also raised EPS guidance. 3M climbed solidly and American Express stock rose slightly after both closed in buy zones.
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Stock Market Rally
The stock market rally had a solid, tech-led advance Thursday, buoyed by earnings and economic data.
The Dow Jones Industrial Average climbed 0.5% in Thursday's stock market trading. The S&P 500 index rose 0.5% and the Nasdaq composite advanced 0.7%, both hitting record highs. The small-cap Russell 2000 jumped 1.2%
The Nasdaq is now 6.8% above its 50-day line, an area where a pullback or pause starts to become more likely. The Nasdaq can and often does get more extended, but that would add to the risk of a pullback, and boost the odds that any such retreat would be sharper.
The S&P 500, 4.8% above the 50-day, is not yet extended.
The First Trust Nasdaq 100 Equal Weighted Index ETF is only 3.7% above its 50-day line, reflecting how Nvidia stock and other megacaps are driving the market.
U.S. crude oil prices climbed 1.75% to $67.54 a barrel.
The 10-year Treasury yield rose one basis point to 4.46%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rallied 1.4%. So did the iShares Expanded Tech-Software Sector ETF. The VanEck Vectors Semiconductor ETF advanced 0.8%. Nvidia and Taiwan Semiconductor, two huge weights in SMH, rose 1.1% and 3.4% respectively on Thursday, both hitting new highs.
ARK Innovation ETF gained 1.3% and ARK Genomics ETF fell 1.6%.
SPDR S&P Metals & Mining ETF was up 2.8%. The Energy Select SPDR ETF rose 0.6% and the Health Care Select Sector SPDR Fund fell 1.1%
The Industrial Select Sector SPDR Fund increased 0.9%. The Financial Select SPDR ETF popped 1%, with American Express stock a holding.
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Stocks In Buy Areas
Vertiv stock rose 4.6% to 131.12 after topping a 131.38 handle buy point intraday. VRT stock is in a very deep consolidation going back to late January. On Thursday, the AI infrastructure firm agreed to buy Great Lakes Data Racks & Cabinets for $200 million.
Astera Labs stock jumped 6.5% to 97.95, rebounding from the 21- and 50-day lines. That offered a potential entry in a range going back to late May. Investors also could use a decisive move above the 100 level as a place to start a position, but ALAB stock has hit resistance there several times.
Construction Partners stock climbed 3.3% to 112.81, clearing a 111.98 buy point from a flat base that formed near the top of a deeper cup base.
Five Below stock gained 2.4% to 139.67, topping a 137.30 buy point from a flat base forged after the discounter more than doubled in two months, according to MarketSmith analysis. The relative strength line hit a new 52-week high, reflecting FIVE stock's outperformance vs. the S&P 500.
Toast stock rose 3.3% to 46.62, closing above a 45.56 flat-base buy point for the first time. The restaurant software specialist jumped to 47.46 near the open and then briefly gave all of that back before rebounding again. For a 12%-deep base, TOST stock had a lot of downside reversals.
What To Do Now
The stock market continues to act well. The Nasdaq is getting somewhat elevated. It's not flashing red, but it's another reason to be cautious about making a lot of new buys in the short run.
Many breakouts have struggled even with the market pushing higher. If the major indexes pulled back, new buys' odds working would worsen.
If you are heavily or fully invested, you can afford to be choosy.
Keep working on watchlists so you can spot the best possible setups.
Nvidia, American Express, Veritv and Netflix stock are on IBD Leaderboard. Toast stock is on SwingTrader. Taiwan Semiconductor stock and Nvidia are on the IBD 50. Netflix and Interactive Brokers stock are on IBD Big Cap 20. Nvidia stock is on IBD Sector Leaders.
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Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
