Dow Jones futures were little changed early Thursday, along with S&P 500 futures and Nasdaq futures, a day after the S&P 500 hit an all-time high and the Dow Jones set a record close. The CPI inflation report is due before the open, with the "game changing" Tesla robotaxi event looming Thursday night.
Hurricane Milton made landfall in Florida as a Category 3 storm Wednesday night. Insurance stocks were generally slightly higher early Thursday after rising for a second straight session following Monday's tumble. But the storm damage may not be clear for some time.
Dow Jones Futures Today
Dow Jones futures were even vs. fair value. S&P 500 futures and Nasdaq 100 futures lost a fraction.
The 10-year Treasury yield rose to 4.08%. Crude oil futures climbed 1%.
Hong Kong's Hang Seng rebounded 3% Thursday on hopes that Beijing will announce fiscal stimulus on Saturday. A huge rally in Chinese stocks turned into sharp losses as expected fiscal stimulus failed to materialize Tuesday.
Remember that premarket action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
CPI Inflation Report
The Labor Department will release the September consumer price index at 8:30 a.m. ET. The CPI should rise 0.1% vs. August, with core CPI up 0.2%. Overall CPI inflation should cool to 2.3% vs. a year earlier, while core inflation holds at 3.2%.
The PPI inflation report is due Friday.
Barring a big surprise, the CPI inflation report may not have a big market impact, or alter expectations for gradual Fed rate cuts ahead. Inflation is trending lower while economic data has been firming up.
Delta Earnings
Delta Air Lines earnings fell slightly more than expected for Q3, with the carrier guiding slightly lower for the current quarter at the midpoint.
Delta stock stock fell solidly early Thursday after nearing a 52.45 cup-with-handle buy point.
Other airline stocks retreated with Delta kicking off results for the group.
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Stock Market Rally Wednesday
The stock market rally had notable gains after Tuesday's solid rebound.
The Dow Jones Industrial Average ran up 1% in Wednesday's stock market trading, setting an all-time closing best. The S&P 500 index gained 0.7%, marking a record high. The Nasdaq composite advanced 0.6%, hitting its best close in two-months and breaking a downtrend. The small-cap Russell 2000 edged up 0.2%, rising slightly from its 21-day line.
Nvidia stock edged lower, snapping a five-session run, but remains actionable from multiple entries. Nvidia chipmaker Taiwan Semiconductor reported strong sales early Wednesday.
After a period of relatively few actionable stocks, a flurry of buy signals have come in the past couple of sessions from a variety of groups.
Cruise lines were big winners, with Carnival, Viking Holdings flashing buy signals and peers sailing higher.
Nvidia and Viking stock are on IBD Leaderboard. Nvidia stock is on SwingTrader and the IBD 50. Carnival was Wednesday's IBD Stock Of The Day.
U.S. crude oil prices dipped 0.45% to $73.24 a barrel, but came well off lows.
The 10-year Treasury yield rose three basis points to 4.065%, reaching its highest level since the end of July.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF advanced 0.7%. The iShares Expanded Tech-Software Sector ETF rose 1.3%. The VanEck Vectors Semiconductor ETF climbed 1%, with Nvidia stock the No. 1 holding.
Reflecting more-speculative story stocks, ARK Innovation ETF rose a fraction and ARK Genomics ETF fell 2%. Tesla stock is a major holding across Ark Invest's ETFs. Cathie Wood also has built up a big stake in Nvidia.
SPDR S&P Metals & Mining ETF climbed 0.6%. U.S. Global Jets ETF dipped 0.3%, with Delta stock a big member. SPDR S&P Homebuilders ETF edged up 0.2%. The Energy Select SPDR ETF rose 0.6% and the Health Care Select Sector SPDR Fund gained 1%.
The Industrial Select Sector SPDR Fund and Financial Select SPDR ETF were up 0.9%.
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Cruise Line Stocks Cruising
Cruise lines soared Wednesday as Citigroup raised price targets on Carnival and Norwegian Cruise Line and made generally bullish comments about the industry.
Carnival stock jumped just over 7%, running right through the buy zone of a cup-with-handle base.
Viking Holding stock gained 2.6%, back in a buy zone.
Norwegian Cruise Line stock leapt 10.9%, exiting a buy zone.
Royal Caribbean, already extended, sailed 5.3% to a new high.
Tesla Robotaxi Event: The Real Test
The "We, Robot" Tesla robotaxi event takes place at the Warner Bros. studio lot at 7 p.m. PT Thursday.
Elon Musk is expected to show off a robotaxi, which a rising number of reports say will be a two-seat car with butterfly-wing doors. It's possible he'll also unveil an autonomous van.
Wedbush's Dan Ives, a longtime Tesla and Full Self-Driving bull, said the robotaxi event will be a "seminal and historical day for Musk and Tesla and marks a new chapter of growth around autonomous," expecting "game changing" autonomous technology.
Musk will surely tout Tesla's self-driving efforts broadly and express optimism that full autonomy is coming soon. But he's said that for years.
Musk will likely wow the true believers Thursday night but will win over skeptics?
Meanwhile, Tesla could also show off a long-awaited "affordable" vehicle, which is supposed to be in production by the first half of next year.
The latest Optimus robot may make an appearance.
Tesla stock fell 1.4% to 241.05, just below its 21-day line. The EV giant has a 264.86 cup-with-handle buy point, according to MarketSurge. The 250 area offers an early entry. But buying before the robotaxi event would be highly risky.
Shares rose slightly early Thursday.
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What To Do Now
The stock market rally is looking strong. The S&P 500 is at record highs while the Dow Jones and Nasdaq look poised to clear recent tight areas. Buying opportunities have picked up, with market leadership broad.
Investors could choose to add exposure. How much exposure, including going on margin, depends on your risk tolerance and ability to act quickly. Alternatively, you could offset new buys by paring some weaker holdings.
A number of setups are developing, so make sure your watchlists are up to date. Have your game plan ready before the trading day, because it's harder to control emotions when trading starts.
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