Dow Jones futures tilted lower Thursday night, along with S&P 500 futures and Nasdaq futures. The stock market rally had a strong session Thursday as Treasury yields tumbled despite a slew of robust economic reports.
Tech titans led the way, with Nvidia (NVDA), Adobe (ADBE) and Facebook (FB) making bullish moves around entry points. Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN) and Google parent Alphabet (GOOGL) also had solid advances.
All of those stocks fell Wednesday, as the market that day favored cyclical stocks such as Freeport McMoRan (FCX).
S&P 500 Steady Ascent
The mini-rotations have made the market rally challenging, despite the general uptrend. But look at a chart of the Dow Jones and especially the S&P 500, and you’d struggle to see much volatility. While Apple stock, Facebook, Microsoft, Google, Amazon, Adobe and Nvidia are big weights in the S&P 500, the benchmark index also boasts non-tech giants such as Goldman Sachs (GS), General Motors (GM), Deere (DE), Home Depot (HD), Target (TGT), FCX stock and many more. So while some of these names and sectors will lead or lag on any given day, the broad-based S&P 500 has been rising modestly most days.
In the current market rally, investors should strive for sector balance like the S&P 500 does, but focus on leading stocks. In addition to Nvidia, Adobe and Facebook stock, Goldman Sachs, GM, Freeport McMoRan, Deere and Target arguably are all actionable now, with Amazon nearing an early entry. Home Depot is extended.
In overnight news, DraftKings (DKNG) rose after announcing it’ll be the NFL’s exclusive sports betting partner. It’ll also remain the NFL’s fantasy football partner.
Alcoa (AA) easily beat quarterly profit views, also topping on revenue. The aluminum giant climbed overnight.
Dow Jones Futures Today
Dow Jones futures were slightly below fair value. S&P 500 futures lost a fraction and Nasdaq 100 futures fell 0.1%.
In addition to the hot U.S. economic data Thursday, China is set to release key reports Friday morning local time, including Q1 GDP growth that should easily top 10%.
Coronavirus cases worldwide reached 139.65 million. Covid-19 deaths topped 2.99 million.
Coronavirus cases in the U.S. have hit 32.22 million, with deaths above 578,000.
Stock Market Rally
The stock market rally rebounded solidly Thursday, with the Dow Jones, S&P 500 and Nasdaq 100 all setting record highs.
The Dow Jones Industrial Average rose 0.9% in Thursday’s stock market trading, crossing 34,000 for the first time. The S&P 500 index climbed 1.1%. The Nasdaq composite jumped 1.3%. The Nasdaq 100 popped 1.5%. The Russell 2000 edged up 0.4% after rebounding 1% on Wednesday.
The 10-year Treasury yield plunged 11 basis points to 1.53%, the lowest in several weeks, though it pared gains in late afternoon trade to about 1.57%. That’s despite retail sales and jobless claims that were much better than expected, while other reports also showed strong growth. On Tuesday, the 10-year yield fell despite consumer prices rising more than views.
Accelerating economic growth and falling Treasury yields are a recipe for a broad-based advance, aside from rate-sensitive financials. But even those charts generally look fine.
Trillion-Dollar Stocks Rally
The major indexes are likely to fare well when Apple, Microsoft, Amazon and Google are up more than 1%. Apple stock has a market cap north of $2.2 trillion, while the other titans are worth more than $1.5 trillion. All are on the S&P 500 and Nasdaq composite, with Apple and Microsoft…