Dow futures fell overnight, along with those for the S&P 500 and Nasdaq futures, with Boeing sliding on a 737 crisis. c. B. Morgan Chase (JPM), Citigroup and UnitedHealth reported big earnings on Friday.
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The stock market rebounded strongly after another slower-than-expected inflation reading, along with a rise in jobless claims. Major indices have more or less recovered Wednesday’s losses. The S&P 500 reached its best level in nearly two months, joining the Dow. The Nasdaq held a follow-up day later.
The blue-chips posted strong gains, but there weren’t many flashing buy signals.
Megacap shares had a strong session. apple (AAPL), Amazon.com (AMZN), a parent from Google the alphabet (Google), Meta platforms (meta), Microsoft (MSFT) Tesla stock rose more than 2%. Google stock rose again above the buy point. Apple and Microsoft stocks rose within buy zones. Tesla (TSLAAmazon stock rose within the bases that formed just below the 200-day moving average. Meta shares hit an 11-month high.
The e-commerce and cloud computing giant said Thursday that Amazon is joining Microsoft and Google in the field of generative artificial intelligence.
Metadata stock is running IBD Leaderboard and SwingTrader. MSFT stock is at IBD Long-Term Leaders.
Investors should participate in this bullish trend of the market. But the profits of the big banks loom large.
Dow jones futures today
Dow futures fell 0.1% against fair value. S&P 500 futures tilted lower and Nasdaq 100 futures fell 0.1%.
late Thursday, Boeing (Bachelor’s) warned of a decline in 737 Max production and deliveries in the short term, citing a problem with spare parts from a supplier. BA stock fell 5%, which affected Dow Jones futures.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Bank profits
JPMorgan, Citigroup (c) And Wells Fargo (WFC) along with supraregional PNC Financial Services (PNC) All report Friday morning.
Amid the banking crisis, investors are likely to be most concerned about the balance sheet: deposits, lending, and more. They will be very interested in the bank executives’ guidance going forward.
Bank deposits have fallen for 10 straight weeks, according to Fed data, though smaller banks saw a slight increase in the latest week. The new weekly numbers will be released late Friday. Fears of bank failure have faded, but deposit rates – especially in big banks – are still well below money market funds and short-term treasury bills.
If banks had to start paying exponentially more for deposits, net interest margins would come under pressure. This is especially true of small banks, where depositors are still looking for a safe haven in too-big-to-fail giants. Lower and more expensive deposits are likely to affect lending and, in turn, the economy. Bank loans have started to decline in the past few weeks.
Fed staff experienced a “moderate recession” later this year due to banking stress, according to minutes from the March 21-22 Fed policy meeting released on Wednesday.
This all explains why the broader market is paying close attention to the banks’ results on Friday and earnings calls.
Bank stocks are clearly lagging behind. JPM stock rose 0.4% on Thursday, above the 200-day line but held below the 21-day line and well below the 50-day line. Citi stock is down modestly below 50 days and 200 days. WFC stock is well below those key levels, but it recently recovered the 21-day streak.
PNC stock rose 1.4% on Thursday, but after hitting its worst level since November 2020 during the day.
Several other major financial releases are due next week, including American bank (Buck), Charles Schwab (SCHW), Goldman Sachs (p) And Morgan Stanley (Ms), as well as several sub-regions and supra-territories.
United Health earnings
Report also before opening, United Health Group (United nations) is a Dow Jones giant like JPMorgan.
UnitedHealth earnings for health insurance companies begin. UN stock jumped nearly 1% to 526.21 on Thursday, heading for 558.20 to buy. Stocks have risen over the past two weeks, as Medicare payments are expected to rise. UN stock has 558.20 buy points but is not far from a potential trend line entry. A stop around the trend line might be welcome.
UN stock has returned to long-term leaders.
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Stock market rise
The stock market rebounded again from a bearish reversal on Wednesday, with major indexes gaining momentum during Thursday’s session, closing near their highs for the day.
The Dow Jones Industrial Average rose 1.1% in stock market trading Thursday. The S&P 500 jumped 1.3%. The Nasdaq Composite jumped 2%. Small cap Russell 2000 rose 1.3%.
US crude oil prices fell 1.1% to $82.16 a barrel, retreating from their best levels in nearly five months.
The 10-year Treasury yield rose 3 basis points to 3.45%.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty) increased by 1.55%. iShares Expanded Technology and Software ETF (IGV) rebounded 1.9%, with large holdings of ServiceNow and MSFT shares. VanEck Vectors Semiconductor Corporation (SMH) advanced 0.8%.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(featured by 4% and ARK Genomics ETF)ARKG) 5.6%. Tesla stock is a major holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETFs (XME) was up 2.2%, with FCX shares notably holding. Global Infrastructure Development Fund X US (cradle) increased by 0.3%. US Global Gates Foundation ETF (Planes) increased by 0.2%. SPDR S&P Homebuilders ETF (XHB) increased by 0.4%. Energy Defined Fund SPDR ETF (xle(jumping 0.6% and the SPDR Fund)XLV) rose 1.3%.
SPDR Financial Selection Fund (XLF) closed up 0.9%. Shares of JPM, Wells Fargo, and Citigroup are all large holdings of XLF. SPDR S&P Regional Banking ETF (KRE) gained 1.5%. PNC stock is a component of KRE.
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Market rally analysis
The stock market rebounded from Wednesday’s bearish reversal with stronger gains.
The Nasdaq led the way on Thursday. The heavy tech index has rebounded back above 12,000. It’s close to its March 31 high, with the 2023 peak just above that. Volume rose slightly on the Nasdaq, giving the high-tech index an accumulation day after three distribution days in the previous five sessions.
The strong gain in the price higher was a follow-up day for the Nasdaq.
Trading volume decreased on the New York Stock Exchange on Wednesday. However, the S&P 500 rose above early-April highs to its best level since mid-February, not from its 2023 highs. The Dow Jones reclaimed the 34,000 level with a 2023 high above that. The Russell 2000 moved above the 21-day line but is well below the 50-day and 200-day lines.
The winners beat the losers by nearly 5 to 2 on the NYSE and NASDAQ
But despite the wide range and strong price gains for the major indexes, there weren’t many stocks flashing buy signals.
southern copper (SCCO) And Freeport McMoRan (FCX) showed an upward movement, while service now (now) flirting with penetration. STMicroelectronics (STM), HubSpot (interlocutor) And Flying wire (FLYW) All purchase points redeemed.
Invesco S&P 500 Equal Weight Fund (RSP) rose 0.8%, which was a nice gain but definitely lagged behind the S&P 500. The RSP is still below its 50-day low.
Megacap shares were a strong performer Thursday and have been throughout 2023. AMZN stock jumped 4.7%, regaining its 50-day streak. Apple stock rose 3.4% while Meta stock rose 3%. Google stock advanced 2.7% as the tech giant moved back above its buy point. Tesla stock rebounded 3%, but it was an inside day for the EV giant, below all of its moving averages. Microsoft stock trailed, advancing 2.2%.
A breakout to the highs in 2023 would be a huge move higher for the market. Ideally, bandwidth will continue to improve, with RSP gaining some ground over SPY.
Friday’s earnings reports, especially JPMorgan and other banks, can be a big mover up or down for the market.
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What are you doing now
Thursday’s actions were a positive move for the stock market rally, despite the relatively few buying opportunities.
Investors can add exposure gradually, assuming market trends are higher. It won’t take long for the major indices and blue chips to look battered again.
The market is still in a sideways pattern, with sectors and individual names subject to huge swings at times. Try to build a portfolio with positions in leading stocks from a variety of sectors or topics.
Be prepared to take profits and cut losses quickly. Investors should always remain flexible, but this is definitely not the time to stay in a bullish or bearish mindset.
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
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