Dow Jones futures rose modestly early Friday, along with S&P 500 and Nasdaq futures. Tesla stock rebounded while Nvidia rival Broadcom and Rubrik headlined a busy night of earnings. The May jobs report is due before the open.
Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures climbed 0.4%. Nasdaq 100 futures were up 0.45%.
At 8:30 a.m. ET, investors should get the May jobs report, with economists expecting a hiring slowdown.
Stock Market Rally Tumbles On Tesla
The stock market rally retreated Thursday while Tesla plummeted as the growing Elon Musk-President Donald Trump feud busted wide-open. The major indexes were up modestly Thursday morning after Trump cited a "very good" phone call with Chinese President Xi Jinping.
The Dow Jones Industrial Average fell 0.3% in Thursday's stock market trading, hitting resistance at the 200-day moving average. The S&P 500 index gave up 0.5% and Nasdaq composite lost 0.8%, back into their recent ranges. The small-cap Russell 2000 fell by a fraction.
The 10-year Treasury yield rose three basis points to 4.39%.
Palantir stock tumbled 7.8%, knifing below a buy point and closing below the 21-day line. Red-hot IPO CoreWeave dived 17.2% Thursday — after the Nvidia-backed data center play skyrocketed 397% from its April 21 low. Early Friday, Palantir rose modestly while CoreWeave jumped.
Broadcom stock and Rubrik are on IBD Leaderboard. Palantir and CoreWeave stock are on the IBD 50 list. Broadcom stock and Palantir stock are on the IBD Big Cap 20. Nvidia stock and Palantir are on IBD Sector Leaders.
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Tesla Bounces After Diving On Musk-Trump War
Tesla stock popped more than 4% premarket amid a Politico report that White House aides have scheduled a Trump-Musk call on Friday to defuse tensions, while Musk made conciliatory comments overnight.
On Thursday, TSLA stock dived 14.3% to 284.68, tumbling below the 21-day, 200-day and 50-day lines and erasing all of the gain from the 294.86 aggressive entry cleared on May 9.
In the wake of Musk's increasingly vocal opposition to the Trump budget bill, Trump said Thursday that the Tesla CEO was upset about losing EV tax credits, as well as the Trump administration withdrawing his pick to be NASA administrator.
Musk quickly responded on his social site X that the president showed "such ingratitude," adding that "Without me, Trump would have lost the election."
Trump followed on Truth Social, saying Musk went "CRAZY!" and suggesting cutting government subsidies and contracts for his companies.
In response, Musk said SpaceX would "immediately" decommission the Dragon spacecraft, which is used to go to and from the International Space Station.
But later Thursday night he said he would not. Musk separately agreed that making peace with Trump would be in the country's best interests.
All of this upended the postelection thesis that the Musk-Trump alliance would be good news for Tesla and SpaceX.
Musk, a huge Trump supporter in 2024, only left the White House on May 30.
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Broadcom Earnings
AVGO stock fell modestly in premarket action despite Broadcom earnings and guidance topping views. Broadcom stock hit a record high Thursday before closing slightly lower, extended from a 235.28 handle buy point.
Nvidia stock gained less than 1% overnight, still within a buy zone. Taiwan Semiconductor, which makes chips for Broadcom, Nvidia and more, edged lower, holding above a buy point.
Rubrik, Other Key Earnings
Rubrik stock rose solidly early Friday. The cybersecurity leader reported a smaller-than-expected quarterly loss with revenue also topping. Shares hit a new high Thursday before edging lower. RBRK stock is greatly extended.
Docusign, Samsara, Lululemon Athletica, ServiceTitan also reported.
Docusign, Samsara, ServiceTitan and Lululemon plunged overnight on earnings. All had been showing some interesting technical action.
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What To Do Now
The stock market rally fell Thursday, with the S&P 500 and Nasdaq falling back into recent ranges. The Trump-Musk feud was the catalyst even though the real-world fallout is limited to Tesla.
Some new buying opportunities wobbled Thursday, while highly valued growth leaders CoreWeave and Palantir sold off.
Investors may have chosen to cut recent buys or take some other profits. But having heavy exposure still makes sense for now.
If the market quickly rebounds, investors could add exposure. But significant further losses may require more-substantial portfolio cuts. So have your watchlists and exit plans ready.
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