Dow Jones futures rose slightly Thursday morning, along with S&P 500 futures and Nasdaq futures. Disney, ARM Holdings and Affirm headlined after-hours earnings, with a hot Tesla rival due before Thursday's open.
The stock market rally had a mixed session Wednesday. The S&P 500 and Nasdaq rebounded from modest losses to eke out tiny gains, extending long winning streaks. The Dow Jones edged lower for the first time in eight sessions.
Market breadth was weak, with the Russell 2000 slumping again.
Nvidia is flashing a buy signal, but volume remains a concern. Shares kept rising early Thursday.
Earnings
After the close, Duolingo, U.K. chip giant Arm Holdings, AppLovin, Walt Disney, Take-Two Interactive, Affirm Holdings and Fair Isaac reported quarterly results.
Tesla China rival Li Auto and aerospace parts giant TransDigm reported early Thursday.
DUOL stock and Fair Isaac closed in buy range, as ARM stock, AppLovin, Take-Two Interactive and Affirm all settled Wednesday near buy points. Both LI stock and TransDigm recently broke above their 50-day lines. Those would have offered early entries if it weren't for their upcoming earnings.
DIS stock has been in a slide since March 2021.
Winners: DUOL stock, Affirm and AppLovin were big earnings winners overnight. Duolingo is set to hit a two-year high. APP stock is gapping above an official buy point while AFRM stock clears an early entry. TTWO stock rose modestly, despite missing quarterly consensus.
LI stock climbed modestly early Thursday on strong earnings and guidance. TDG stock rose slightly on strong earnings, a $35 special dividend and a big takeover.
DIS stock rose solidly in premarket trade as the entertainment giant beat views for EPS and Disney+ subscribers, though revenue was a little light.
Losers: ARM stock tumbled overnight on weak guidance after a Q3 beat. FICO stock fell on mixed results, threatening to fall back below a buy point.
Meanwhile, Tesla stock fell slightly Thursday morning, right around the 50-day line. The EV giant, as planned, raised China prices on the long range Model 3 and Y variants, but by tiny amounts. HSBC initiated TSLA stock at "reduce."
Nvidia stock is on IBD Leaderboard. FICO stock is on IBD Long-Term Leaders. Li Auto, Nvidia and DUOL stock are on the IBD 50.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value, with Disney stock offering a slight lift. S&P 500 futures climbed 0.2% and Nasdaq 100 futures edged higher.
The 10-year Treasury yield climbed a few basis points to 4.56%.
Crude oil futures rose 1%.
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
The stock market rally closed narrowly mixed on the major indexes.
The Dow Jones Industrial Average fell 0.1% in Wednesday's stock market trading. The S&P 500 index and Nasdaq composite rose 0.1%
Market breadth was once again weaker than the major indexes would indicate.
The small-cap Russell 2000 slumped 1.1%. The Invesco S&P 500 Equal Weight ETF dipped 0.2%. The First Trust Nasdaq 100 Equal Weighted Index ETF declined 0.5%.
While breadth has been poor, leading stocks have acted well.
The S&P 500 and Nasdaq are just below their October highs, modestly above their 50-day lines. It's a natural place for the indexes to hit resistance and find support in the short term. Wednesday's action could be deemed a pause, but it wasn't much of one.
U.S. crude oil prices fell 2.65% to $75.33 a barrel, continuing a sharp slide from late October.
The 10-year Treasury yield fell 5 basis points to 4.52%, closing below the 50-day line for the first time since mid-May.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF rose 0.65%. The VanEck Vectors Semiconductor ETF climbed 0.4%, with Nvidia stock the No. 1 holding.
Reflecting more-speculative story stocks, ARK Innovation ETF fell 1.4% and ARK Genomics ETF tumbled 4.1%. Tesla stock is a major holding across Ark Invest's ETFs.
SPDR S&P Metals & Mining ETF declined 0.15%. SPDR S&P Homebuilders ETF close essentially flat. The Energy Select SPDR ETF retreated 1.25% and the Health Care Select Sector SPDR Fund slipped 0.1%.
The Industrial Select Sector SPDR Fund edged up 0.2% and the Financial Select SPDR ETF gained 0.1%.
Five Best Chinese Stocks To Watch Now
Nvidia Stock
Nvidia stock rose 1.35% to 465.76 on Wednesday, now clearly above a downward-sloping trendline, offering an early entry. NVDA stock is just below the official 476.09 double-bottom buy point. The relative strength line is already almost at new highs.
Nvidia earnings loom on Nov. 21, though there's still time to try to build a cushion and make a decision.
But there is one glaring issue: volume. Nvidia stock hasn't risen in above-average volume for more than two months, suggesting a lack of institutional support in the latest base.
Nvidia stock rose slightly Thursday morning.
Local China media reported Thursday that the AI chip leader will release new chips for the China market, after some high-end semiconductors were banned by U.S. curbs.
What To Do Now
The stock market rally continues to do well.
After adding exposure following last week's follow-through days and early this week, investors may want to see a modest pullback before making significant new buys.
A pullback would spur a lot of stocks to forge handles and let moving averages catch up.
Keep your watchlists up to date.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
