Apple, Amazon, Nvidia Rally Is Mixed Bag ; AMAT Stock Leads Bénéfices Movers – .

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Apple, Amazon, Nvidia Rally Is Mixed Bag ; AMAT Stock Leads Bénéfices Movers – .


Dow Jones futures rose Thursday night, as did S&P 500 and Nasdaq futures, with Applied materials (AMAT) et Palo Alto Networks (PANW) at a glance on the benefits.



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The stock rally was mixed on Thursday, but it was a good day for the tech giants. Nvidia (NVDA) surged on profits, also lifting rival Advanced micro-systems (AMD) and providing tailwind for chip names. Amazon.com (AMZN) and Google parent Alphabet (GOOGL) issued buy signals, joining Apple stock, which extended Wednesday’s breakout amid the new Apple Car buzz.

With Apple, Amazon, Nvidia and other megacaps in the lead, the Nasdaq 100 has hit an all-time high. It appears once again prolonged from the 50 day line, increasing the risk of further decline.

Meanwhile, several retailers exploded on profits. Macy’s (M) climbed 21% to a three-year high. Kohl’s (KSS) jumped nearly 11%, coming out of a basic double bottom grip entry. Bath and Body (BBWI) rose 5%, perhaps providing additional entry. Former sister company Victoria’s Secret (VSCO) jumped 14%, breaking a trendline and breaking its 50 day line.

EV share loss charge

Rivien (RIVN) and Lucid (LCID) sold for a second consecutive session, down 15.5% and 10.5%, respectively. At 123.38, Rivian stock is still up 58% from its IPO price of $ 78, but is 31% from Tuesday’s intraday high. Lucid stock is 18.5% off Wednesday’s intraday high.

Tesla stock edged up 0.7% to 1,096.38. A report that Apple (AAPL) is ramping up automotive efforts, targeting the 2025 launch of a fully autonomous electric car that has seen Tesla briefly go into the red in one day. TSLA stock is up 6.1% for the week.

Other actions of electric vehicles, startups such as Fisker (FSR) to China plays like Xpeng (XPEV), fell significantly.

Key gains

Applied materials, Palo Alto networks, Working day (JOURD’HUI), Williams-Sonoma (WSM) et intuition (INTU) were key gains Thursday night.

AMAT stock fell 5% overnight, back to its point of purchase, after Applied Materials missed EPS and sales. The smart equipment giant blamed the supply chain problems.

WDAY and Williams-Sonoma stock fell sharply despite battered views, signaling a return to or below recent buy points.

PANW stock, initially slightly lower, edged up slightly overnight after positive earnings and forecasts. Stocks are signaling a new high after finding support near their 50 day line. INTU stock has jumped on strong earnings from Intuit.

IBD Watchlist Actions

Tesla, Google, Nvidia and AMD are listed in the IBD rankings. Apple stock is on SwingTrader. Google stock is on IBD Long-Term Leaders. Tesla, AMD, Nvidia and Williams-Sonoma shares are on the IBD 50.

The video embedded in this article analyzed market action as well as Amazon, Kohl’s and Service now (NOW).

Dow Jones Futures Today

Futures contracts on Dow Jones increased approximately 0.1% from fair value. S&P 500 and Nasdaq 100 futures were up 0.1%.

Keep in mind that overnight action on futures contracts on Dow and elsewhere doesn’t necessarily translate into actual trades in the next regular trading session.


Join the IBD experts as they analyze the exploitable stocks in the stock market rally on IBD Live


Stock exchange rally

The market recovery has had a mixed session, with mega-capitalization technologies increasing.

The Dow Jones Industrial Average fell 0.2% in Thursday’s stock trading. The S&P 500 Index climbed 0.3%. The Nasdaq composite rose 0.45%, the Nasdaq 100 up 1%, fueled by shares of Apple, Amazon and Nvidia. The small cap Russell 2000 plunged 0.4%.

Nvidia stock jumped 8.25% to 316.75 even though it closed on intraday highs. With a market capitalization approaching $ 800 billion, NVDA stock is definitely a powerhouse of the Nasdaq.

Apple stock rose 2.85% to 157.87, hitting an all-time high and still in the range of a 153.26 handle-cup buy point, according to MarketSmith analysis. Volume was strong after above-average trading on Wednesday. The relative strength line, while not reaching consolidation highs or all-time highs, has peaked in the near term. The RS line, the blue line in the charts provided, tracks a stock’s performance against the S&P 500 Index.

Amazon stock jumped 4.1% to 3,696.06, passing above a 3,605.55-year buy point in significant volume. The RS line for AMZN stock has increased over the past two weeks, but has been trending down since July 2020. Amazon’s stock has been limited during this time, with a series of failures.

Google stock climbed 1.2% to 2,996.77, hitting a new intraday high. The shares are in the range of a flat-based buy point of 2,925.17, consolidating around this entry in recent weeks. In fact, GOOGL stock formed a tight three-week pattern, with an entry of 3,012.40. This could give investors a bit more confidence in buying Google stocks higher in the buy zone of the flat base.

ETF

Among the top ETFs, the Innovator IBD 50 ETF (FFTY) climbed 0.8%, while the Innovator IBD Breakout Opportunities ETF (BOUT) edged up 0.2%. The iShares Expanded Tech-Software Sector (IGV) ETF fell 0.9%. The VanEck Vectors Semiconductor (SMH) ETF jumped 2.5%, with shares of Nvidia and major components AMD, as well as AMAT.

The SPDR S&P Metals & Mining ETF (XME) was just above breakeven and the Global X US Infrastructure Development ETF (PAVE) edged up 0.2%. The US Global Jets ETF (JETS) fell 1.6%. The SPDR S&P Homebuilders ETF (XHB) rose 0.3%. WSM stock is a big XHB holding.

The Energy Select SPDR ETF (XLE) fell 0.6% but hit lows as crude oil futures reversed higher. The ETF Financial Select SPDR (XLF) lost 0.5%.

Reflecting more speculative stocks, ARK Innovation ETF (ARKK) slipped 2.5% and ARK Genomics ETF (ARKG) fell 3.4%, with ARKG at a 52-week low. Tesla shares remain ARK Invest’s main position among its ETFs.


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Market rally analysis

The stock market rally becomes heavy again. The large-cap Nasdaq 100, led by Apple, Google, Amazon, Nvidia and Tesla, hit a new high, up 1.8% this week. The Nasdaq composite and the S&P 500, with more modest gains, are just below all-time highs. The Dow Jones is slightly lower this week, while the Russell 2000 is down 1.9%, with both trading near the 21-day lines

The Nasdaq is now 5.5% above its 50-day line, not quite at the 6% level that raises fears of a pullback. But the Nasdaq 100 is 6.7% over 50 days.

If Apple, Google and Amazon walk higher, join Microsoft (MSFT), it will be difficult to prevent the Nasdaq and especially the Nasdaq 100 from expanding significantly. This is true even if Nvidia and Tesla take a break.

If so, the market rally may not have much leeway before reaching resistance.

Meanwhile, many leaders are stretched out. Some continue to function, like Nvidia, while others fall back, like Lucid stock. The electric vehicle sector, which was overheating in the midst of Rivian’s IPO, appears to be recovering. TSLA shares hold up better than most four-wheeled competitors, although this is after last week’s sale.

Some stocks lack profits, but the spreads have been tricky.

Megacap technologies and retail names aside, shipping inventories still seem intriguing. Housing-related actions are doing well.

But Apple et al. mask weakness. The losers led the winners by two to one on the Nasdaq on Thursday.


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What to do now

It may look like a broken record (What’s a record, Webby?), but investors can do much worse than just let their positions work. Yes, the market rally looks a bit prolonged so now is not the perfect time to add a lot of exposure. But stocks are generally doing well, so investors don’t need to reduce their exposure.

Consider taking partial profits on stocks when they are significantly extended from their 10 or 50 day moving averages. This is especially true with recent IPOs. The chances of a major pullback, or even wiping out all your gains – see Dutch brothers (BROS) – are just too high.

Investors should work on their watchlists, keeping an eye out for stocks that build short handles and consolidations. There are a few decent basics out there, but the market rally may require a few weeks of sideways action or pullback for better setups.

Read The Big Picture every day to stay in tune with the market direction and major stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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