Dow Jones Futures Rise On China Stimulus: Nvidia Leads Earnings Movers; Tesla Rallies After Stock Split

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Dow Jones futures rose Thursday morning, along with S&P 500 futures and Nasdaq futures, with new China stimulus giving a boost ahead of Friday’s speech from Federal Reserve Chairman Jerome Powell. Nvidia (NVDA), Salesforce.com (CRM), Snowflake (To snow Dollar General (DG) headlined overnight gains as Tesla shares rose after a 3-for-1 split.




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The stock market rally rose slightly on Wednesday, as major indices regained resistance to their 21-day moving averages. Investors don’t want to get too wrapped up in Friday’s speech from Fed chief Jerome Powell. The Jackson Hole symposium on monetary policy begins today.

In the meantime, Apple (AAPL), Warren Buffett’s largest investment holding company Berkshire Hathaway (BRKB), scored higher on Wednesday. AAPL stocks now have a valid hold on a daily chart.

Tesla (TSLA) rose modestly early Thursday, testing key levels after hitting resistance on Wednesday. A 3-for-1 TSLA stock split happened overnight.

Main income

Nvidia earnings provide insight into semiconductors, especially the data center and gaming sectors. Salesforce revenue points to the demand for business software. So does analytics firm Snowflake, while the SNOW stock response provides an indication of investor demand for highly regarded former technology leaders.

Nvidia’s revenues were roughly in line with lowered expectations, as gaming revenues fell by a third, but data center revenues were up 61%. The chip giant led lower on third-quarter sales. NVDA stock fell 3% in premarket trading. Nvidia shares rose 0.2% to 172.22 on Wednesday.

Salesforce’s revenue topped the list, but the software giant was low for the current quarter. Despite a new $10 billion buyback program, CRM inventory fell 8% in prolonged action. Shares of Salesforce.com rose 2.3% to 180.01 on Wednesday.

Snowflake reported a larger-than-expected loss in the second quarter, but beat the 83% sales increase. SNOW stock rose 19% on Thursday. Snowflake shares rose 4.2% to 160.28 on Wednesday and bounced back from the 50-day line after pulling back in recent weeks.

In the meantime, splunk (SPLK), Box (BOX) and Autodesk (ADSK) added to a busy software lineup after the shutdown, with storage giant NetApp (NTAP) and retailer of household goods and furniture Williams-Sonoma (WSM) also report. Autodesk, NetApp and WSM stocks rose overnight. Splunk and Box fell.

early thursday, Dollar General (DG) reported better-than-expected second-quarter results, with competitor money tree (DLTR) Reduce EPS conductivity. Shares of DG fell modestly after Dollar Tree reported threatening to undercut a buy point. DLTR stock tumbled, set to knife below the 50-day line.

Dow Jones Futures Today

Dow Jones futures were up 0.3% versus fair value, with CRM stocks holding back the blue chips. S&P 500 futures were up 0.6% and Nasdaq 100 futures were up 0.7%.

China unveiled $44 billion in new stimulus to support an ailing economy pressured by Covid and power restrictions.

Copper futures rose 1%. Crude oil rose higher.

Keep in mind that an overnight action in Dow futures and elsewhere does not necessarily lead to actual trading in the next regular trading session.


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stock market rally

The stock market rally posted small to modest gains on Thursday, but major indices returned to resistance.

The Dow Jones Industrial Average rose 0.2% in stock market trading on Wednesday. The S&P 500 index rose 0.3%. The Nasdaq composite gained 0.4%. The small-cap Russell 2000 climbed 0.8%.

The price of crude oil in the US rose by 1.2 percent to $ 94.89 a barrel. The US rejected Iran’s terms for a revived nuclear deal, meaning there is not yet an agreement that would release Iranian crude oil into the global market.

Natural gas prices rose by 1.5%. Natgas futures fell 5% on Tuesday, pulling back from a 14-year high.

Ten-year government bond yields rose 5 basis points to 3.11%, the highest point since June 29. It is up 24 basis points in four sessions. Markets are leaning towards a third consecutive Fed rate hike of 75 basis points on Sept. 21. Of course, Fed chief Powell will speak on Friday, and a slew of economic data will be released ahead of the Fed’s next rate decision.


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ETFs

Among the top ETFs, the Innovator IBD 50 ETF (FFTY) was up 1.4%, while the Innovator IBD Breakout Opportunities ETF (BOUT) was up 0.4%. The iShares Expanded Tech-Software Sector ETF (IGV) gained 0.6%. CRM stock is an important IGV component. The VanEck Vectors Semiconductor ETF (SMH) fell 0.1%. Nvidia stocks are a major SMH holding company.

SPDR S&P Metals & Mining ETF (XME) was up 2.1% and the Global X US Infrastructure Development ETF (PAVE) was up 0.6%. SPDR S&P Homebuilders ETF (XHB) climbed 0.75%. The Energy Select SPDR ETF (XLE) gained 1.2%. The Health Care Select Sector SPDR Fund (XLV) rose 0.1%

As a result of more speculative story stocks, ARK Innovation ETF (ARKK) recovered 2.6% and ARK Genomics ETF (ARKG) 3.5%. Tesla stocks are a major holding in Ark Invest’s ETFs.


Five best Chinese stocks to watch right now


apple stock

Apple shares rose 0.2% to 167.53 and found support outside the 21-day line. The Dow Jones technical titan now has a buy point of 176.25 on a daily chart, with that entry already on a weekly chart. Apple has officially sent out invites to an event on September 7, where the unveiling of the iPhone 14 is expected.

The relative strength line has reached new highs, reflecting the AAPL stock’s outperformance against the S&P 500 index.

Berkshire Hathaway bought 3.9 million additional shares in the second quarter for a total of nearly 895 million shares.

That stake in the iPhone maker was worth $122.3 billion as of June 30, but Apple’s shares have risen significantly since then. AAPL shares accounted for 41% of Berkshire’s portfolio at the end of the second quarter.

Tesla stock

Tesla shares rose 0.2% to 297.10 on Wednesday, but pulled back after regaining the 200-day moving average over the course of the day. TSLA stock is aggressive in entry at 314.87, just above short-term highs. The EV giant is a long way from the official buy point of 402.87.

Tesla stock prices have been adjusted for a 3-for-1 stock split that happened overnight.

TSLA shares were up 2% before the opening, suggesting fresh move above the 200-day line.

Market rally analysis

After falling below the 21-day moving average on Monday, major indices are now hitting resistance at that short-term level. The small-cap Russell 2000 moved above its 21-day line again.

While major indices could fluctuate on Nvidia, Salesforce, Snowflake and other big gains on Thursday, the market rally appears to be waiting for Fed chief Powell’s speech.

Stocks that broke out or recovered on bullish signals in recent days continue to do well. But many are extensive.

Meanwhile, the recent downturn in the market is giving many stocks, such as Apple, handles.


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What to do now

There are stocks that have given buy signals in recent days, particularly in the energy and EV vendor areas. However, the market rally is in decline and hitting resistance in the near term. Powell’s speech is likely to be a market catalyst. So investors should be careful about adding a lot of exposure until then.

But be ready. If the market rally moves higher based on Fed chief Powell’s comments, a number of buying opportunities could come to life. An up-to-date watchlist is therefore essential. If the market slides down, investors should be prepared to scale down.

Read The Big Picture every day to stay up to date on market direction and leading stocks and sectors.

Follow Ed Carson on Twitter at @IBD_ECarson for stock updates and more.

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The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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