Dow Jones futures fell modestly early Thursday amid mixed UnitedHealth results while S&P 500 futures and Nasdaq futures rose slightly as Nvidia chipmaker Taiwan Semiconductor lifted techs.
Bank of America and Morgan Stanley topped views.
The stock market rally had a strong Wednesday, fueled by a surprise drop in core CPI inflation and positive bank earnings. The Nasdaq composite reclaimed its 50-day moving average with the S&P 500 flirting with that key level.
Meta Platforms and Tesla were among many stocks flashing buy signals, while Nvidia and other megacaps had solid or strong sessions.
The video embedded in the article reviewed the market action and analyzed Intuitive Surgical, Spotify and Goldman stock.
Dow Jones Futures Today
Dow Jones futures fell 0.25% vs. fair value. S&P 500 futures tilted higher and Nasdaq 100 futures rose 0.25%.
The 10-year Treasury yield rose a few basis points to 4.69%.
Crude oil fell slightly.
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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Earnings
Taiwan Semiconductor earnings slightly beat fourth-quarter views as revenue boomed on AI chip demand. The world largest's foundry, which makes chips for Nvidia, Broadcom, Apple and more, was bullish on Q1 2025. while it's one of the biggest buyers of semiconductor equipment.
Taiwan Semi stock popped early Thursday, signaling a move to the edge of a buy zone. Shares climbed 2.7% on Wednesday to 206.80, back above a 205.63 cup-with-handle buy point. Nvidia stock rose slightly before the open, nearing the 50-day line. Shares popped 3.4% on Wednesday, snapping a five-day losing streak.
UnitedHealth kicked off health insurer results, following the December slaying of the head of the main UnitedHealthcare unit. Earnings beat but revenue fell short. UnitedHealth also guided lower. UNH stock fell modestly, signaling a move back below the 200-day line. Shares.
Bank of America edged lower before the open after reporting better-than-expected results. BAC stock flashed an early entry Wednesday.
Morgan Stanley comfortably beat views. Shares tilted higher early Thursday after triggering a buy signal Wednesday within a base.
Stock Market Rally
The stock market rally surged Wednesday, fueled by the surprise drop in core CPI inflation after several months of sticky price readings. Bank earnings contributed. Megacaps were strong performers but the gains were definitely broad-based.
The Dow Jones Industrial Average leapt 1.65% in Wednesday's stock market trading, back above its 21-day line and closing in on its 50-day.
The S&P 500 index jumped 1.8%, briefly peeking above its 50-day before pulling back slightly.
The Nasdaq composite ran past its 50-day and 21-day lines for a 2.45% gain.
The small-cap Russell 2000 popped 2%, while the Invesco S&P 500 Equal Weight ETF gained x% and the First Trust Nasdaq 100 Equal Weighted Index ETF rallied. All reclaimed their 21-day lines and closing in on their 50-day lines.
A lot of stocks flashed buy signals Wednesday following Tuesday's solid crop of actionable names.
In addition to Tesla and Meta, Intuitive Surgical, Goldman Sachs, JPMorgan Chase and Wells Fargo triggered earnings-related buy signals. Spotify, SAP, American Express, Pegasystems, Semtech and Vertex Inc. were in buy areas Wednesday.
U.S. crude oil prices leapt 3.3% to $80.04 a barrel, a new five-month best.
The 10-year Treasury yield tumbled 13 basis points to 4.65%, falling back from 52-week highs.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF leapt 3.2%. The iShares Expanded Tech-Software Sector ETF gained 1.8%. The VanEck Vectors Semiconductor ETF popped 2.35%. Nvidia and Taiwan Semiconductor stock are huge SMH holdings.
ARK Innovation ETF jumped 4% and ARK Genomics ETF gained 3.5%. Tesla stock is a major holding across Ark Invest's ETFs.
SPDR S&P Metals & Mining ETF advanced 1.6%. SPDR S&P Homebuilders ETF climbed 2.3%. The Energy Select SPDR ETF rose 1.5% and the Health Care Select Sector SPDR Fund added 0.4%, with ISRG stock a key holding.
The Industrial Select Sector SPDR Fund gained 0.6%. The Financial Select SPDR ETF popped 2.55%, with JPMorgan, Goldman Sachs, Wells Fargo and American Express all major holdings.
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Tesla Stock, Meta Stock
Tesla stock spiked 8% to 428.22, moving above Tuesday's high, offering an aggressive entry from a steep trendline. Shares are also still just in range of a 10-week line bounce.
Meta stock popped 3.85% to 617.12, rebounding from the 50-day line to reclaim a 602.95 buy point. At the end of the week, Meta will have a new flat base with a 638.40 entry.
Both Tesla and Meta fell slightly early Thursday.
What To Do Now
The stock market rally made impressive gains Wednesday with the Nasdaq retaking the 50-day line. A large number of leading stocks flashed buy signals after several did earlier in the week amid mixed action on the indexes.
Investors probably should have added some exposure on Wednesday. But there's no need to rush.
If your new buys and the overall market act well, you can keep adding.
If the Nasdaq extends gains and the S&P 500 retakes its 50-day line, that would be a positive sign. The Dow Jones, Russell 2000, RSP and QQEW also aren't that far away from their 50-day averages.
But if the Nasdaq can't hold the 50-day line and starts heading toward lows, that would be a big negative.
Have your watchlists and exit strategies in place.
Nvidia, Meta stock and Spotify are on IBD Leaderboard, with Tesla stock on the Leaderboard watchlist. Intuitive Surgical, Goldman Sachs and Spotify stock are on SwingTrader. Taiwan Semiconductor stock and Vertex are on the IBD 50. Intuitive Surgical stock is on the IBD Big Cap 20.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
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