Dow Jones Futures Rise After Market Rallies Above Key Levels; Tesla, Meta Lead 12 New Buys

Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures. Nvidia chipmaker Taiwan Semiconductor (TSM), UnitedHealth (UNH), Bank of America (BAC) and Morgan Stanley (MS) are on tap early Thursday.

The stock market rally had a strong session, fueled by a surprise drop in core CPI inflation and positive bank earnings. The Nasdaq composite reclaimed its 50-day moving average with the S&P 500 flirting with that key level.

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Indexes Jump On Inflation Data; Intuitive Surgical, Goldman Sachs, Spotify Flash Buy Signals

Meta Platforms (META) and Tesla (TSLA) flashed buy signals, while Nvidia (NVDA) and other megacaps had solid or strong sessions.

Intuitive Surgical (ISRG), Goldman Sachs (GS), JPMorgan Chase (JPM) and Wells Fargo (WFC) triggered earnings-related buy signals. Spotify (SPOT), SAP (SAP), American Express (AXP), Pegasystems (PEGA), Semtech (SMTC) and Vertex Inc. (VERX) were among other actionable stocks.

Nvidia, Meta stock and Spotify are on IBD Leaderboard, with Tesla stock on the Leaderboard watchlist. Intuitive Surgical, Goldman Sachs and Spotify stock are on SwingTrader.

Taiwan Semiconductor stock and Vertex are on the IBD 50. Intuitive Surgical stock is on the IBD Big Cap 20.

The video embedded in the article reviewed the market action and analyzed Intuitive Surgical, Spotify and Goldman stock.

Dow Jones Futures Today

Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed 0.1% and Nasdaq 100 futures edged higher.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze leading stocks and the market on IBD Live

Earnings

Taiwan Semiconductor, UnitedHealth, Bank of America and Morgan Stanley are on tap Thursday morning.

Taiwan Semiconductor earnings and guidance will be key for the chip and AI sector. It makes chips for Nvidia, Broadcom (AVGO), Apple (AAPL) and more, while it’s one of the biggest buyers of semiconductor equipment.

Taiwan Semi stock climbed 2.7% on Wednesday to 206.80, back above a 205.63 cup-with-handle buy point.

Nvidia stock popped 3.4% on Wednesday, snapping a five-day losing streak. But NVDA stock is still below its 50-day line.

UnitedHealth kicks off health insurer results, following the December slaying of the head of the main UnitedHealthcare unit. UNH stock has rebounded in the past few weeks to just above the 200-day, but is below the 50-day.

Bank of America and Morgan Stanley continue this week’s big bank results. Both BAC stock and Morgan Stanley flashed early buy signals Wednesday within bases.

Stock Market Rally

The stock market rally surged Wednesday, fueled by the surprise drop in core CPI inflation after several months of sticky price readings. Bank earnings contributed. Megacaps were strong performers but winners trounced losers overall.

The Dow Jones Industrial Average leapt 1.65% in Wednesday’s stock market trading, back above its 21-day line and closing in on its 50-day.

The S&P 500 index jumped 1.8%, briefly peeking above its 50-day before pulling back slightly.

The Nasdaq composite ran past its 50-day and 21-day lines for a 2.45% gain.

The small-cap Russell 2000 popped 2%, while the Invesco S&P 500 Equal Weight ETF (RSP) gained x% and the First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) rallied. All reclaimed their 21-day lines and closing in on their 50-day lines.

A lot of stocks flashed buy signals Wednesday following Tuesday’s solid crop of actionable names. Many others are setting up.

U.S. crude oil prices leapt 3.3% to $80.04 a barrel, a new five-month best.

The 10-year Treasury yield tumbled 13 basis points to 4.65%, falling back from 52-week highs.

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) leapt 3.2%. The iShares Expanded Tech-Software Sector ETF (IGV) gained 1.8%. The VanEck Vectors Semiconductor ETF (SMH) popped 2.35%. Nvidia and Taiwan Semiconductor stock are huge SMH holdings.

ARK Innovation ETF (ARKK) jumped 4% and ARK Genomics ETF (ARKG) gained 3.5%. Tesla stock is a major holding across Ark Invest’s ETFs.

SPDR S&P Metals & Mining ETF (XME) advanced 1.6%. SPDR S&P Homebuilders ETF (XHB) climbed 2.3%. The Energy Select SPDR ETF (XLE) rose 1.5% and the Health Care Select Sector SPDR Fund (XLV) added 0.4%, with ISRG stock a key holding.

The Industrial Select Sector SPDR Fund (XLI) gained 0.6%. The Financial Select SPDR ETF (XLF) popped 2.55%, with JPMorgan, Goldman Sachs, Wells Fargo and American Express all major holdings.

Time The Market With IBD’s ETF Market Strategy

Tesla Stock, Meta Stock

Tesla stock spiked 8% to 428.22, moving above Tuesday’s high, offering an aggressive entry from a steep trendline. Shares are also still just in range of a 10-week line bounce.

Meta stock popped 3.85% to 617.12, rebounding from the 50-day line to reclaim a 602.95 buy point. At the end of the week, Meta will have a new flat base with a 638.40 entry.

What To Do Now

The stock market rally made impressive gains Wednesday with the Nasdaq retaking the 50-day line. A large number of leading stocks flashed buy signals after several did earlier in the week amid mixed action on the indexes.

Investors probably should have added some exposure on Wednesday. But there’s no need to rush i.

If your new buys and the overall market act well, you can keep adding.

If the Nasdaq extends gains and the S&P 500 retakes its 50-day line, that would be a positive sign. The Dow Jones, Russell 2000, RSP and QQEW also aren’t that far away from their 50-day averages.

But if the Nasdaq can’t hold the 50-day line and starts heading toward lows, that would be a big negative.

Have your watchlists and exit strategies in place.

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

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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