Dow Jones futures rose slightly early Thursday, along with S&P 500 futures and Nasdaq futures. Snowflake and Zoom Video headlined earnings overnight.
The stock market rally rose modestly on Wednesday as the Federal Reserve signaled that a September rate cut is "likely." Earnings from Target, TJX Cos. and Toll Brothers also helped lift retail and consumer plays.
TJX stock, Toll Brothers cleared buy points Wednesday, along with On Holding and Dick's Sporting Goods.
Nvidia rose slightly, pausing with its earnings report due next Wednesday.
Nvidia stock is on Leaderboard and the IBD 50. On Holding was Wednesday's IBD Stock Of The Day.
Fed Minutes Signal Rate Cut
Meanwhile, Fed minutes from the July 30-31 policy meeting stated that a "vast majority" of policymakers said that if "the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting."
Markets are pricing in a quarter-point rate cut on Sept. 18, with a solid chance of 50 basis points. Investors largely expect 100 basis points by year-end.
Earlier, the Labor Department estimated it will revise down nonfarm payrolls by a larger-than-expected 818,000 in the 12 months ended March 2024.
Fed chief Jerome Powell is expected to make the case for rate cuts in Friday's Jackson Hole speech. Next Wednesday, Nvidia earnings are due.
Dow Jones Futures Today
Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures climbed 0.35%, with Nvidia among the modest gainers lifting those indexes.
The 10-year Treasury yield rose several basis points to 3.84%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Key Earnings
Snowflake, Zoom Video Communications, Urban Outfitters and Synopsys reported Wednesday night. Viking Holdings released results before Thursday's open.
Snowflake stock tumbled in overnight action despite better-than-expected Q2 EPS and a raised buyback. SNOW stock had trended higher since a record low on Aug. 5 but is in a steep downtrend.
Zoom Video stock rose modestly before the open after the video conferencing giant topped views. ZM stock hit a record low on Aug. 12.
Urban Outfitters earnings beat while revenue met and same-store sales fell short. URBN stock plunged in premarket trade. The young adult apparel retailer rose modestly Wednesday, back above the 200-day line but below the 50-day.
Synopsys stock rose slightly in extended action after earnings topped and sales eked past consensus. The chip design firm rose slightly on Wednesday, between its 200-day and 50-day line. SNPS stock has a 624.80 double-bottom buy point, according to MarketSurge.
Viking stock fell solidly before the open. Q2 earnings appeared to come in well below views, but there were special items for the 2024 cruise line IPO. VIK stock is trading near the top of a short, V-shaped consolidation.
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Stock Market Rally
The stock market rally wavered in a narrow range Wednesday, ultimately rising modestly.
The Dow Jones Industrial Average edged up 0.1% in Wednesday's stock market trading. The S&P 500 index climbed 0.4%. The Nasdaq composite rose 0.6%. The small-cap Russell 2000 jumped 1.3%.
The indexes generally recouped Tuesday's losses and perhaps a little more. The market rally is willing to pause with Fed chief Powell and Nvidia earnings coming up, but doesn't want to pull back much at all.
U.S. crude oil prices fell 1.7% to $71.93 a barrel, down 8% over the last four sessions.
The 10-year Treasury yield declined four basis points to 3.78%, the lowest close since July 2023. The yield has tumbled nearly 15 basis points in the past four sessions.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF rose 0.9%. The iShares Expanded Tech-Software Sector ETF gained 0.6%, with Zoom stock in the ETF. The VanEck Vectors Semiconductor ETF advanced 1%, with Nvidia stock the No. 1 holding. SNPS stock is in both IGV and SMH.
Reflecting more-speculative story stocks, ARK Innovation ETF bounced 2.4% and ARK Genomics ETF jumped 3%
SPDR S&P Metals & Mining ETF rebounded 1.7%. The SPDR S&P Homebuilders ETF popped 2.9%, with TOL stock a member. The Energy Select SPDR ETF and the Health Care Select Sector SPDR Fund gained 0.2%.
The Industrial Select Sector SPDR Fund was up 0.6%. The Financial Select SPDR ETF fell 0.2%.
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Nvidia Stock
Nvidia stock rose 1% on Wednesday 128.50, trading within Tuesday's range after a strong six-session advance through Monday. The AI chip giant has a cup base with a 140.76 buy point, though investors could treat 136.15 as an early entry. Ideally, NVDA stock would forge a handle heading into earnings on Aug. 28.
However, Nvidia rose slightly early Thursday, suggesting a possible move above Monday's high.
Stocks In Buy Zones
On Holding stock rose 4.15% to 43.46, clearing a 43.20 handle buy point on a two-month consolidation. ONON stock hit a 52-week high of 44.58 intraday. The Swiss athletic shoemaker has had a strong 2024, but is volatile.
Dick's Sporting Goods stock climbed 4.8% to 235.45, clearing a 227.25 buy point from a two-month double-bottom base. DKS stock has been going sideways for five months. Dick's earnings are due in early September.
TJX stock gapped up 6.1% to 120.23, in range of a 115.34 flat-base buy point. The relative strength line hit a new high, a bullish sign on a breakout. Before Wednesday's open, the off-price retail giant beat fiscal Q2 views and raised guidance, though the Q3 and full-year EPS outlooks are still below consensus.
Toll Brothers stock popped 5.6% to 141.03, back above a prior 135.37 buy point that investors could still use. Toll earnings beat views, while still-falling Treasury yields are another tailwind. Several homebuilder stocks showed bullish action Wednesday.
What To Do Now
The stock market rally continues to act well even as big news looms.
Investors can keep making buys, but be judicious. Fed chief Jerome Powell's Jackson Hole speech is almost here, while Nvidia earnings are a week away.
This is a good time to patiently prepare. Have your watchlists and your exit plans up to date.
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