Dow Jones futures rose Thursday morning, along with S&P 500 and Nasdaq futures. Nvidia and fellow AI plays Palantir and Super Micro continued to rise.
↑X Stocks Hold Near Highs; ELF Beauty, Goldman Sachs, Granite Construction In Focus See All Videos
The major indexes tilted higher Tuesday in a quiet session for the stock market rally. U.S. stock markets were closed Wednesday for the Juneteenth holiday.
Nvidia (NVDA) rose along with other AI chip and server plays, and it moved above the market caps of Apple (AAPL) and Microsoft (MSFT). Nvidia stock continue to run up early Thursday.
Both the Nasdaq and Nvidia stock are close to being extremely extended.
Meanwhile,ELF Beauty (ELF) broke out while Palantir Technologies (PLTR), Super Micro Computer (SMCI) moved higher but still actionable. Goldman Sachs (GS) and Granite Construction (GVA) were arguably actionable or on the cusp of early entries.
Late Tuesday, KB Home (KBH) earnings topped views. The homebuilder stock rose modestly early Thursday, signaling a bounce from the 50-day line.
Nvidia stock and ELF are on IBD Leaderboard. Goldman stock is on SwingTrader. Microsoft stock is on IBD Long-Term Leaders.Nvidia, ELF and Palantir stock are on the IBD 50. Nvidia and Super Micro stock are on the IBD Big Cap 20. Granite Construction was Tuesday's IBD Stock Of The Day.
The video embedded in this article discusses Tuesday's market action and analyzes ELF Beauty, Granite Construction stock and Goldman Sachs.
Dow Jones Futures Today
Dow Jones futures rose 0.1% vs. fair value. S&P 500 gained 0.4% and Nasdaq 100 futures rallied 0.5%.
The 10-year Treasury yield rose to 4.25%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
Retail sales were weaker than expected while industrial production was above forecasts.
The Dow Jones Industrial Average climbed 0.15% in Tuesday's stock market trading. The S&P 500 index rose 0.25%. The Nasdaq composite edged higher. The small-cap Russell 2000 advanced 0.2% but stuck below its 50-day.
The Invesco S&P 500 Equal Weight ETF (RSP) climbed 0.25%, slightly above its 50-day line.
A market pause, at least in megacaps, would be welcome.
The Nasdaq is 8.2% above its 50-day line. It can go higher, but the more extended it gets the higher risk of a pullback, and that the pullback would be more significant.
U.S. crude oil prices rose 1.5% to $81.57 a barrel, up 4% in two days.
The 10-year Treasury yield fell 6 basis points to 4.22%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.4%. The iShares Expanded Tech-Software Sector ETF (IGV) advanced 0.3%, with Palantir stock a member. The VanEck Vectors Semiconductor ETF (SMH) popped 1.6%. Nvidia stock is the No. 1 holding in SMH.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) fell 1% and ARK Genomics ETF (ARKG) edged down 0.2%.
SPDR S&P Metals & Mining ETF (XME) gained 0.3%. The Global X U.S. Infrastructure Development ETF (PAVE) advanced 0.6%, with GVA stock a member. The SPDR S&P Homebuilders ETF (XHB) dipped 0.1%. The Energy Select SPDR ETF (XLE) climbed 0.4% and the Health Care Select Sector SPDR Fund (XLV) edged up 0.1%.
The Industrial Select Sector SPDR Fund (XLI) rose 0.5%. The Financial Select SPDR ETF (XLF) climbed 0.6%, with Goldman Sachs a key holding.
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Nvidia Keeps Soaring On Stock Market Today
Nvidia rose 3.5% to 135.58, hitting a new high Tuesday. That gave it a market cap of $3.342 trillion.
Apple stock fell 1.1%, bringing its valuation down to $3.286 trillion. Microsoft edged down 0.45%, still within buy range, for a $3.316 trillion market cap.
Nvidia stock is 36.6% above its 50-day line, a key contributor to the Nasdaq's run. Nvidia stock has briefly gotten 40% above its 50-day a couple of times in the past year, but that bears watching.
Nvidia gained nearly 3% early Thursday.
Stocks Near Buy Points
Elf Beauty stock jumped 9.4% to 213.73, clearing a 202.58 cup-with-handle buy point following an analyst upgrade. ELF stock is now slightly extended from the 5% chase zone.
Shares rose slightly early Thursday.
Palantir stock climbed 3.2% to 25.82 after jumping 6.2% on Monday, decisively clearing a downward-sloping trendline. PLTR stock is getting a little extended from that entry, but investors also could use the May 6 high of 25.36 as another trigger point. The data-analytics stock has a 27.50 consolidation buy point.
Palantir climbed modestly before the open.
Super Micro stock advanced 3.7% to 920.01, now decisively above a downward-sloping trendline. The AI server maker and Nvidia partner popped 5.1% on Monday, bouncing from the 50-day line and briefly crossing the trendline. The official consolidation buy point is 1,229.
SMCI stock gained solidly before the open.
Best Growth Stocks To Buy And Watch
Goldman stock rose 1.6% to 457.43, moving above the 21-day line and continuing a bounce from the 50-day. The Dow Jones financial giant is actionable now. However, investors might want to wait for a move above the June 12 high of 457.62, which would roughly coincide with breaking a downtrend. GS stock is on track to have a flat base at the end of the week with a 471.48 buy point. It already has a three-weeks-tight with that entry.
Granite Construction stock climbed 1.4% to 62.85. Shares are working on a flat base, base-on-base formation with a 64.33 buy point. GVA stock rebounded from the 50-day line last week. The infrastructure play is arguably actionable as well. Investors also could use the June 12 high of 63.06 as an early entry.
Granite Construction edged higher early Thursday.
What To Do In The Stock Market Today
The stock market rally continues to act well. A Nasdaq pause with small caps and some non-AI sectors coming up would be positive.
With the Nasdaq extended, investors should be cautious about adding much exposure. There are still AI plays like Palantir and Super Micro that are flashing buy signals, but such volatile names could suffer sharp losses if Nvidia retreats.
Keep an eye on stocks like Goldman and Granite Construction as well, with an eye for market rotation away from AI.
Cast a wide net with your screens while having your game plan in place for trimming winners and exiting losers.
ReadThe Big Pictureevery 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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