Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, were higher early Thursday following Wednesday’s tech strength, as Treasury yields fell from recent highs. EV leaders Nio, Xpeng and Tesla stock were set to jump at the open, while Boeing and Microsoft are in or near buy zones.
Among the Dow Jones leaders, Apple (AAPL) rallied 1% premarket Thursday, while Microsoft (MSFT) also moved up about 1% in today’s stock market. Boeing (BA) remains in buy range following Monday’s bullish move and edged higher in morning trade.
Tesla (TSLA) moved up over 2% premarket Thursday, on pace to add to Wednesday’s 5% rise. China EV leaders Nio (NIO) and Xpeng (XPEV) reported delivery figures overnight and were set to jump at the stock market open.
Micron Technology (MU) reported earnings after the close Wednesday.
Dow Jones Futures Today
Ahead of the stock market open Thursday, Dow Jones futures rose 0.1% vs. fair value, while S&P 500 futures moved up 0.4%. Nasdaq 100 futures rallied 1.1% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Early Thursday, the 10-year Treasury yield dropped to 1.697% after hitting a 14-month high on Tuesday at 1.765%.
Stock Market Rally: Nasdaq Set For Another Test?
Amid the current stock market rally, the Dow Jones Industrial Average eased from all-time highs Wednesday, while the S&P 500 index rose.
Meanwhile, the tech-heavy Nasdaq remains below its key 50-day moving average. The Nasdaq will need to overcome this key hurdle in order to maintain its upward trajectory. The 50-day line is a critical potential resistance level. If the Nasdaq decisively clears it, then new highs could be on the horizon.
Wednesday’s Big Picture commented, “The tech-heavy Nasdaq composite stormed higher Wednesday, triggering a bullish stock market signal. The S&P 500 hit a record high, while the Dow Jones Industrial Average reversed lower.”
Despite a resumed uptrend, the stock market’s choppiness has made it hard to make progress. Given such difficulty, it’s best to maintain a more conservative stance until the market proves its recent strength isn’t fleeting.
Bitcoin hit its high-water mark on March 13, topping out at $61,556. The price of Bitcoin rallied about 1% Thursday to trade around $58,300, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) looked to continue its rebound from the 50-day moving average following Wednesday’s 1.5% fall.
Dow Jones Stocks: Boeing
Inside the Dow Jones Industrial Average, IBD Leaderboard stock Boeing is still in the 5% buy area past a 244.18 buy point in a cup base. The buy zone ends at 256.39. Shares closed at 254.48 amid Wednesday’s 1.1% rise.
Per Leaderboard commentary, “The latest base showed a much shallower drop than the huge consolidation resulting from the 2020 coronavirus crash. At the same time, Boeing could afford to keep building the right side of the mega-cup pattern and offer new entry points.”
Boeing was featured as Monday’s IBD Stock Of The Day.
Stocks Near Buy Zones: Alphabet, Facebook
IBD Leaderboard stock Alphabet continues to form a flat base with a new buy point at 2,145.24, according to IBD MarketSmith chart analysis. Shares are about 5% away from the new entry amid Tuesday’s slight gain. The stock moved up nearly 1% Thursday.
Fellow FANG stock leader Facebook is tracing a cup with handle with a 299.81 buy point. Early Thursday, Facebook stock rose about 1%.
According to IBD Stock Checkup, FB stock shows a solid 92 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Stock Market Earnings: Micron Beats
Late Wednesday, Micron Technology reported strong fiscal-Q2 results and upbeat guidance. The company earned an adjusted 98 cents a share on sales of $6.24 billion in the quarter ended March 4. Analysts expected Micron earnings of 95 cents a share on sales of $6.21 billion.
The stock rallied about 3% in premarket trade Thursday. Shares closed just above their 50-day line Wednesday.
Nio, Xpeng Report Deliveries
Nio deliveries for March were 7,257, up 373% vs. a year earlier and 30% vs. February. Meanwhile, Q1 sales were 20,060, topping a downwardly revised target.
Nio stock jumped nearly 6% premarket Thursday, on pace to extend a win streak to three sessions. Shares are still about 40% off their 52-week high.
Xpeng deliveries measured 5,102, up 384% vs a year earlier and 130% vs. February. Q1 sales were 13,340.
Xpeng stock raced 5.5% higher in premarket trade Thursday. Shares closed Wednesday about 50% from their high.
Tesla stock rallied over 2% premarket Thursday, on pace to add to Wednesday’s 5.1% gain.
Shares of Tesla ended Wednesday about 25% off their 52-week high. Tesla stock could be forming a new base, but it is too early for a new risk-optimal buy point.
On Feb. 22, Tesla broke down through its key 10-week moving average line, a critical support level. On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple rallied about 1% premarket Thursday, on pace to add to Wednesday’s 1.9% gain. Apple stock is rebounding from its 40-week line and could soon again try to reclaim its 10-week line.
On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.
Meanwhile, software giant Microsoft moved up 1% premarket Thursday. Microsoft is trying to decisively reclaim its 50-day line and is just 4% away from a flat base’s 246.23 buy point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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