Dow Jones futures edged lower early Friday, while S&P 500 futures and Nasdaq futures rose modestly. Netflix and Intuitive Surgical jumped on strong earnings overnight, while Apple rose on iPhone 16 sales in China. All three flashed buy signals.
Chinese stocks jumped after the central bank came in to support markets after GDP growth slowed to a six-quarter low.
The Dow Jones and S&P 500 both hit record highs near Thursday's open, but the stock market rally slashed gains, closing mixed.
Taiwan Semiconductor gapped up on strong earnings and guidance, fueled by AI chip demand. Nvidia, Broadcom and Arm Holdings rose, though they came off early highs.
Dow giant Travelers gapped up on earnings, lifting some insurers, including Thursday's IBD Stock Of The Day, Chubb.
Nvidia stock is on IBD Leaderboard and the IBD 50. Nvidia and Broadcom stock are on SwingTrader. Broadcom stock is on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures fell 0.1% vs. fair value. Apple stock offered a slight lift, but American Express slumped and Procter & Gamble edged lower after their earnings reports.
S&P 500 futures climbed 0.2% and Nasdaq 100 futures rose 0.5%. Netflix and Intuitive Surgical are S&P 500 and Nasdaq 100 components, along with Apple.
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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China Stocks Rebound
Chinese stocks rallied Friday, with Hong Kong's Hang Seng up 3.6%. The central bank offered details of its efforts to boost financial markets while Gov. Pan Gongsheng said real estate and the stock market are key economic challenges that need policy support.
Those came on the heels of a slew of economic data.
China's economy grew 4.6% in the third quarter vs. a year earlier, in line with views but down slightly from Q2's 4.7%. September retail sales rose 3.2%, beating forecasts for 2.5% and up from August's 2.1%. Industrial production climbed 5.4%, up from estimates for a steady 4.5%.
Stock Market Rally Thursday
The stock market rally opened solidly higher Thursday but quickly gave up gains.
The Dow Jones Industrial Average rose 0.4% in Thursday's stock market trading, as Travelers stock gapped up 9%. The S&P 500 index lost a fraction. Both indexes hit fresh near the open. The Nasdaq rose a fraction but suffering a stalling day. The small-cap Russell 2000 dipped 0.25%.
Despite Thursday's fade, the major indexes are on track for a sixth straight weekly advance. More broadly, the stock market is up significantly from early September, with the S&P 500 and Nasdaq both in power trends.
There were few new buying opportunities, but leading stocks are acting well.
U.S. crude oil prices rose 0.4% to $70.67 a barrel.
The 10-year Treasury yield jumped eight basis points to 4.095%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF fell 0.3%. The iShares Expanded Tech-Software Sector ETF edged up 0.1%. The VanEck Vectors Semiconductor ETF popped 1.7%. Nvidia is the No. 1 holding in SMH, with Taiwan Semi and Broadcom big weights as well.
SPDR S&P Metals & Mining ETF rose 0.3%. SPDR S&P Homebuilders ETF declined 0.7%. The Energy Select SPDR ETF advanced 0.5% and the Health Care Select Sector SPDR Fund declined 0.6%, with ISRG stock a notable component.
The Industrial Select Sector SPDR Fund fell 0.3%. The Financial Select SPDR ETF was up 0.3%, with Travelers and American Express both members.
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Netflix Earnings
Netflix earnings and revenue topped views while subscribers grew by 5.07 million, also beating. Revenue climbed 15%, ending a four-quarter string of accelerating growth.
Netflix stock rose more than 6% in extended trade, signaling a move back above the 50-day line and a 697.39 cup-base buy point initially cleared in late August, according to MarketSurge analysis. NFLX fell 2% to 687.65 in Thursday's session, undercutting the buy point and 50-day. Shares have fallen 5.8% over five sessions.
Intuitive Surgical Earnings
Intuitive Surgical earnings and revenue beat Q3 consensus. Procedures using the da Vinci robotic surgical system rose 18% vs. a year earlier.
Intuitive Surgical stock jumped 6% in overnight action. Shares are set to decisively clear the 50-day line as well as several weeks of tight action that could treated as a de facto flat base with a 496.48 buy point.
Apple iPhone 16 Sales
Apple iPhone 16 sales in China jumped 20% in their first three weeks vs. the iPhone 15 launch a year earlier, Bloomberg reported, citing Counterpoint Research data. Chinese buyers are opting more for the higher-end Pro and Pro Max variants.
China is a huge market for Apple, which has come under pressure amid revived local competition from Huawei and others.
Apple stock rose nearly 2% in premarket trade to nearly 237. That would push shares back above a 233.09 handle buy point. AAPL stock did hit resistance at the top of the base on Tuesday, when it set an intraday all-time high of 237.49. That could offer another entry.
What To Do Now
The stock market rally had a disappointing fade, especially given Taiwan Semi's bullish results and guidance fueling AI optimism. Still, the major indexes are at or near record highs. Leading stocks have been acting well.
If you're heavily invested, you don't need to be making big moves. You can make incremental buys or add-ons, perhaps trimming or exiting some positions that are lagging.
Keep working on watchlists. A number of stocks are in or near buy points from a variety of sectors. Pay attention to the market, ready to take advantage of opportunities but also to react to negative action in your portfolio or overall market.
Read The Big Picture every 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.
