Dow Jones futures fell slightly early Friday, along with S&P 500 futures and Nasdaq futures. Tesla's new Model Y is in focus along with several earnings reports and preliminary reports.
The stock market rally saw further gains Thursday. The Dow Jones led and the S&P 500 hit a fresh high. The Nasdaq rose slightly after Wednesday's big move.
President Donald Trump, speaking at the World Economic Forum in Davos, demanded lower interest rates. He also called on Saudi Arabia and OPEC to bring down oil prices, in part to pressure Russia. He also reiterated plans for tax cuts and tariff hikes.
In a Thursday night interview on Fox News, Trump said he would "rather not" impose tariffs on China, days after threatening to do just that on Feb. 1.
Several AI chipmakers are near key levels. Arm Holdings fell back to a buy point while Astera Labs fought back to hold support. Nvidia and Broadcom edged lower, but near entries. Marvell Technology is teasing a consolidation buy point.
Tesla also is testing support as it builds a base before earnings next week. Late Thursday, Tesla launched the new Model Y in the U.S. and Europe, after unveiling the refreshed crossover in China earlier this month.
Nvidia stock is on IBD Leaderboard, with Tesla stock and Astera Labs on the Leaderboard watchlist. Intuitive Surgical stock is on SwingTrader. Nvidia, Broadcom and Astera Labs stock are on the IBD 50. Broadcom stock, Nvidia and Intuitive Surgical are on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures declined 0.15% and Nasdaq 100 futures retreated 0.1%.
The Bank of Japan raised its overnight rate by a quarter point to 0.5%, as expected.
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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Key Earnings, News
Intuitive Surgical beat views after the close. So did Texas Instruments, but it cut guidance. Intuitive Surgical fell modestly and TI retreated solidly before the open.
Meanwhile, Twilio surged out of a base early Friday after reporting strong preliminary Q4 figures, bullish long-term targets and a $2 billion buyback.
Boeing fell slightly after the Dow aerospace giant preannounced a big loss and weak revenue for the fourth quarter, which included a two-month strike.
Dow Jones giants American Express reportedly largely in-line results early Friday while Verizon Communications edged past views. American Express stock and Verizon stock were little changed..
Novo Nordisk jumped Friday on strong early-stage results for its once-a-week obesity drug, with a 22% average weight loss for patients after 36 weeks.
Stock Market Rally
The stock market rally rose Thursday, with blue chips taking the lead. President Trump's Davos 11 a.m. ET speech didn't appear to have much impact at the time, but ultimately the indexes closed around session highs.
The Dow Jones Industrial Average climbed 0.9% in Thursday's stock market trading. The S&P 500 index rose 0.5%, to a fresh all-time high. The Nasdaq composite gained 0.2% after trading lower until the final minutes. The small-cap Russell 2000 advanced 0.4% to just below its 50-day line.
The Invesco S&P 500 Equal Weight ETF rose 0.5% after finding support at the 50-day line intraday.
The First Trust Nasdaq 100 Equal Weighted Index ETF lost a fraction.
All these indexes and equal-weight ETFs are up more than 1% so far this week, with the Dow Jones up 2.3%.
Leading stocks generally acted well, holding recent gains or rising modestly.
A few more broke out Thursday, including GE Aerospace, TKO Group, KKR and Raymond James. But dozens are in or near buy zones with many others extended.
U.S. crude oil prices fell 1.1% to $74.62 a barrel, following Trump's push for more OPEC output. Crude futures have tumbled 6.8% in the last five sessions.
The 10-year Treasury yield rose four basis points to 4.64%. Trump's call for lower rates — signaling pressure on the Federal Reserve — didn't seem to move the 10-year yield. The yield is up a full percentage point since the Fed began cutting rates by 100 basis points in September.
Bitcoin fell 0.9% to $103,320.10. Trump issued a cryptocurrency executive order Thursday, creating a working group tasked with developing pro-crypto regulation and mulling the creation of a digital assets stockpile. That was largely expected.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rose 0.7%. The iShares Expanded Tech-Software Sector ETF climbed 0.2%. The VanEck Vectors Semiconductor ETF edged down 0.1%. Nvidia stock and Broadcom are big members, with Marvell and Texas Instruments also in the ETF.
ARK Innovation ETF advanced 1.55% and ARK Genomics ETF was up 0.35%. Tesla stock is the No. 1 holding across Ark Invest's ETFs.
SPDR S&P Metals & Mining ETF gained 0.65%. The Energy Select SPDR ETF rose 0.5% and the Health Care Select Sector SPDR Fund popped 1.3%, with Intuitive Surgical stock in XLV.
The Industrial Select Sector SPDR Fund rallied 1%. The Financial Select SPDR ETF advanced 0.6%, with American Express a notable holding.
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AI Chip Stocks
Arm stock tumbled 7.4% to 166.56 but held a 164.16 buy point from a six-month cup-with-handle base. That's after surging 15.9% on Wednesday following President Trump's announcement of the $100 billion-to-$500 billion "Stargate" AI infrastructure project.
Astera Labs stock dived as low as 112.18 intraday but roared back to close up 0.6% to 123.73 in a bullish shakeout. The 2024 IPO is down 7.2% for the week. Unlike most of its peers, ALAB stock fell Wednesday and tumbled Tuesday. Shares are modestly below their 10-week line.
Nvidia stock edged up 0.1% to 147.22 after trading lower for most of the session. Shares leapt 4.4% on Wednesday. On Tuesday, NVDA stock reclaimed the 50-day line, offering an early entry in a messy pattern. At this point, investors might use a clear move above 150 as a place to enter Nvidia.
Broadcom stock edged down 0.3% to 240.28, snapping a five-session win streak. AVGO stock has a flat base with a 251.88 buy point forged after a huge earnings move in December. Wednesday's high of 246.99 offers an early entry.
Marvell stock reversed higher to close up 0.7% to 126.06. For a second straight session, MRVL stock intraday topped a 126.15 buy point from a short consolidation.
Arm Holdings will report fiscal Q3 earnings on Feb. 5. But all of these AI chip plays may swing on next week's earnings and capital spending plans from Microsoft and Meta Platforms.
Tesla Earnings: Four Keys That Could Move The Stock
New Tesla Model Y Launches In U.S., Europe
Late Thursday, Tesla launched the new Model Y in the U.S. and Europe, after being unveiled in China earlier this month.
In the U.S. and Europe, Tesla will start with a limited-edition Model Y Launch Series, which will carry a premium, much like the Cybertruck Foundation Series.
In the U.S. the Model Y Launch series will cost $59,990, with the $8,000 Full Self-Driving included. The Model Y Launch is a Long Range All-Wheel Drive. The current Model Y LR AWD goes for $47,990.
Tesla Model Y deliveries will begin in March in China, the U.S. and Europe. That's a change from the Model 3 refresh, which started in China and soon Europe in late 2023, followed by a slow U.S. rollout in early 2024.
Tesla Stock
Tesla stock was less than 1% higher early Friday.
In Thursday's trading, shares fell 0.7% to 412.38, a third straight low-volume decline, but again finding support at the 21-day line. Shares are still holding above a rising 10-week line. TSLA stock is on track to have a new base after Friday, with a 488.54 buy point. Investors could use the Jan. 17 high of 439.74 as an early entry, or a downward-sloping trendline for an even-lower entry. But Tesla earnings are due Jan. 29.
What To Do Now
The stock market rally continues to show strength. AI stocks took a breather while other sectors came on. But the general trend is a broad advance with diverse leadership.
Investors can continue to add exposure, but if you're close to fully invested you might consider cutting some laggards if you're adding new positions. Also, upcoming earnings mean investors could consider taking partial profits if they don't have much cushion.
Keep working on watchlists and stay engaged.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
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