The futures of the Joneses rose, with Nvidia leading the new buys and Musk moving past resistance

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Dow Jones futures rose slightly Monday morning, along with S&P 500 futures and Nasdaq futures, after a big week for the Nasdaq and leading stocks.
The stock market rebounded strongly last week, fueled by big-cap earnings even amid an alarming inflation report.
Nvidia, Novo Nordisk, Generac, KLA and Cava stock are on IBD Leaderboard, with Eli Lilly stock on the Leaderboard watchlist.
Nvidia stock is on SwingTrader.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
The Dow Jones Industrial Average advanced 0.7% in last week’s stock market trading.
Time The Market With IBD’s ETF Market Strategy Nvidia, AI Chip Stocks Flash Buy Signals Nvidia stock jumped 15.2% last week to 876.90.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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After a strong week for the Nasdaq and leading stocks, Monday morning saw a small increase in Dow Jones futures, SandP 500 futures, and Nasdaq futures.

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This week’s report cards include those from Advanced Micro Devices (AMD), Novo Nordisk (NVO), Apple (AAPL), Super Micro Computer (SMCI), Eli Lilly (LLY), and Amazon.com (AMZN). Also scheduled are the most recent Federal Reserve meeting and the monthly jobs report.

Notwithstanding a concerning report on inflation, the stock market bounced back last week thanks to big-cap profits. Among the highlights were the Nasdaq and top-performing stocks. as tech giants promised significant investments in AI while delivering solid growth.

AI chipmakers Nvidia (NVDA), Broadcom (AVGO) and Astera Labs (ALAB) flashed buy signals, along with AppLovin (APP), KLA (KLAC), Cava Group (CAVA) and Embraer (ERJ).

Hubbell (HUBB), Wingstop (WING), Texas Roadhouse (TXRH), and Generac (GNRC) are among the other stocks that flashed buy signals and have earnings this week.

Investors need to be aware of the shift in the market’s nature. However, each of the main indices is now trading below its 50-day moving average. Super Micro and AMD are crucial for hardware plays in artificial intelligence, and the market and sectors could still be impacted by the busy earnings calendar. Even though it is lagging behind, Apple is still a massive tech giant with a massive iPhone ecosystem. Any indications from AI could benefit or hurt a number of stocks.

Important economic data and the Fed meeting could also scuttle the emerging market rally.

Early on Monday, Tesla’s stock surged as it prepared to break above resistance at its 10-week moving average. Elon Musk, the CEO of Tesla (TSLA), reportedly received preliminary approval to roll out full self-driving in China during his surprise visit there on Sunday.

IBD Leaderboard stocks include Nvidia, Novo Nordisk, Generac, KLA, and Cava; Eli Lilly stock is on the Leaderboard watchlist. SwingTrader is where you can purchase Nvidia stock. The IBD Long-Term Leaders list includes KLA shares. Texas Roadhouse, Hubbell, and Wingstop are included in the IBD 50. The stocks of Hubbell, Super Micro, and Broadcom are listed on the IBD Big Cap 20. Cava was Friday’s IBD Stock Of The Day.

Futures for Dow Jones Today.

Futures on the Dow Jones increased 0.2 percent versus. reasonable value. With TSLA stock supporting them, S&P 500 futures increased by 0 points 25% and Nasdaq 100 futures increased by 0 points 4%.

The yield on the 10-year Treasury note dropped to 4.62%.

Recall that trading activity during the overnight period in Dow futures and other markets may not correspond with actual trading during the following regular session of the stock market.

Come watch IBD Live experts analyze top stocks and the market.

Rise in the Stock Market.

This week was a great one for the stock market rally, particularly on the Nasdaq and leading names. During the stock market trading of the previous week, the Dow Jones Industrial Average increased by 0.7 percent. The S&P 500 index leapt 2.7 percent. The Nasdaq composite saw a 4 percent increase. The small-cap Russell 2000 saw a 2:8% increase.

The bounce to start the week wasn’t a real surprise after a long string of losses. With hot inflation data and Meta Platforms (META) plunging on guidance, the rally attempt looked doomed on Thursday morning. Nvidia, Broadcom, and AI hardware were helped by Meta’s sell-off on excessive AI spending, which reduced losses for the major indexes.

Strong earnings and spending plans from Google parent Alphabet (GOOGL) and Microsoft (MSFT) propelled the rally higher on Friday.

In spite of a slight decrease in volume, the Nasdaq rose 2 percent on Friday. Thursday, thus it was not considered a follow-through day. But many top stocks displayed prolonged moves or buy signals.

The 50-day line may provide resistance for the major indexes, and the Nasdaq and S&P 500 are almost at the crucial level. For investors, the upcoming week will be packed with economic and earnings news.

After rising 48 basis points in just four weeks, the yield on the 10-year Treasury increased by 5 basis points this week to 4 point67 percent. The 10-year Treasury yield almost reached 4p.74 percent on Thursday, the highest level since November. 1.

The first Fed rate cut is now expected by markets in September, though that is not guaranteed. Regarding the number of cuts that will occur in 2024—one or two, or perhaps none at all—investors are essentially divided.

Rate-cut possibilities and Treasury yields should be influenced by the Fed meeting statement, Fed Chair Jerome Powell, the April jobs report, and other important data.

You. s. At $83.85 per barrel, crude oil futures increased by 2%.

Fed Meeting Is Due: Rate-Cut Probabilities Are Here.

ETFs.

The iShares Expanded Tech-Software Sector ETF (IGV), a growth ETF, increased by 3.3% last week. SMH, the VanEck Vectors Semiconductor ETF, surged by 9.25%. Nvidia holds the top spot. 1 holding, of which Broadcom stock is a crucial part.

The SPDR S&P Metals & Mining ETF (XME) dipped 0.1 percent last week. The X U. Global. S. 2.3 percent was gained by the Infrastructure Development ETF (PAVE). 3 and a half percent was gained by the SPDR S&P Homebuilders ETF (XHB). Eli Lilly stock was one of the key holdings in the Health Care Select Sector SPDR Fund (XLV), which gained 0.7 percent, and the Energy Select SPDR ETF (XLE), which advanced 0.8 percent.

A 1.8% increase was made by the Industrial Select Sector SPDR Fund (XLI). Gains of 1.1 percent were made by the Financial Select SPDR ETF (XLF).

ARK Innovation ETF (ARKK) surged 4 points9%, while ARK Genomics ETF (ARKG) fell 0.6 points%, reflecting more speculative story stocks. Tesla holds the No. 1 investment in all of Ark Invest’s ETFs.

IBD’s ETF Market Strategy Can Help You Time The Market.

Flash Buy Signals for Nvidia and AI Chip Stocks.

Last week, Nvidia’s stock increased by 15.2 percent to 876 points. The NVDA stock presented an early entry opportunity as it rose by 6.1 percent on Friday, pushing it back above the 50-day line and slightly above a trendline that slopes downward. The buy point for Nvidia’s stock is 974.

The share price of Broadcom increased by 11.6 percent last week and by 3.8% on Friday, crossing the 50-day line and reaching 1,344 points. That might present a forceful entrance. With a double-bottom base, the AVGO stock has a 1,403.98 buy point.

The stock of Astera Labs surged 31.8 percent for the week to 85, matching a record close. The March AI chip IPO was pushed above resistance at 75 points by Friday’s 18% spike, providing an entry. However, shares now appear prolonged. ALAB stock has an official IPO base buy point of 95.21. On May 7, Astera’s earnings are due.

The heavy spending of tech titans has led to a surge in AI chip plays.

Super Micro and AMD results on Tuesday night could swing the group, along with Amazon comments on AI spending. Super Micro had a good week, but AMD and SMCI stock are still significantly below their 50-day lines. Back above the 50-day moving average, Amazon’s stock surged.

AI Investments Along With Four More Forecasts For The Upcoming Decade.

Other Stocks Reaching Buy Points Clear.

KLA’s stock increased by 12.4 percent to close at 706 points per week. After reporting strong earnings, the maker of chip equipment spiked almost 5% on Friday, breaking a trendline and clearing the 50-day mark. That gave a head start. KLAC stock has 729.15 buy point from a flat base.

Cava stock recovered the 50-day line on Thursday and then continued to rise on Friday, rising 16 points, or 69.61 percent, to the close. Cava’s performance against was indicated by the relative strength line reaching a new high. the S&P 500 Index. The Mediterranean-themed restaurant made a bold entrance on Friday morning, clearing a trendline. However, Cava stock had been extended by the conclusion. Investors could wait for a pullback or a for a proper base to form.

After breaking out of the 50-day and 10-week lines for the first time since late January, AppLovin increased by 10 points, or 5%, to 73 points in the last week. APP stock broke a short trendline and rebounded above the 21-day line on Friday after gaining 6.7 percent.

Embaer stock recovered this past week, rising 9 points, or 25%, to 25 points, after gently retreating over the previous four weeks to the 10-week line. That offered a buying opportunity in the Brazilian jet maker. It now has a new flat base with a 27.25 buy point, according to MarketSurge analysis.

Eli Lilly, Novo Nordisk.

Eli Lilly reports early Tuesday while Novo Nordisk is on tap before Thursday’s open. Expect strong growth thanks to booming demand for the weight-loss drugs. Investors will be watching both the development of next-generation obesity statistics and production guidelines.

Eli Lilly and Novo Nordisk stock are in flat bases, but Lilly has fallen below the 50-day line while Novo is right around that key level.

What Should Be Done Right Now.

An excellent illustration of the need for investors to remain vigilant and prepare their watchlists is Friday.

With the Nasdaq roaring higher, a bevy of stocks ran past buy points. While many are still in range, it’s helpful to buy as close to the entry as possible. If you didn’t take advantage of the stocks on Friday morning, they quickly became extended in certain cases (like Cava and Astera Labs).

It was a good idea to consider buying something on Friday. But there are reasons not to increase exposure dramatically this coming week, including the S&P 500 and Nasdaq’s 50-day line tests, as well as the weighty earnings and economic news.

When more stocks trigger entries, you can increase your exposure if the market rally and your holdings keep going higher.

For this reason, confirm that your watchlists are current. Stocks that looked damaged on Thursday morning may be actionable or setting up. And while Nvidia and AI names are standing out again, market leadership is broad.

It should be reflected in your watchlists and portfolio.

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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