Dow Jones futures rose slightly early Thursday, along with S&P 500 futures and Nasdaq futures, ahead of another inflation report. Dow giants Cisco and Disney diverged on earnings. Bitcoin rebounded.
The stock market rally was narrowly mixed Wednesday on the major indexes after pulling back slightly in the prior session. Small caps reversed lower.
FanDuel parent Flutter Entertainment, Heico, Confluent, Burlington Stores and TJX Cos. broke out or flashed buy signals.
Cisco Systems topped views late Wednesday. Cisco stock fell modestly in premarket trade after closing in a buy zone, around multiyear highs. Fellow Dow Jones giant Walt Disney surged after slightly beating forecasts early Thursday.
China plays JD.com, Bilibili and Zeekr also reported overnight. JD stock rose while Bilibili fell and Zeekr tumbled.
Heico stock is on IBD Leaderboard and on SwingTrader. Flutter Entertainment was Wednesday's IBD Stock Of The Day. Heico was Tuesday's selection.
Dow Jones Futures Today
Dow Jones futures rose 0.25% vs. fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures climbed 0.1%. Cisco stock is a Dow Jones, S&P 500 and Nasdaq 100 component. Disney stock is a Dow and S&P 500 member.
Bitcoin rebounded back above $91,000. The cryptocurrency topped $93,000 on Wednesday before slashing gains amid a huge Trump run.
The producer price index is due at 8:30 a.m. ET after Wednesday's October consumer price index was in line with forecasts. Investors also will get weekly jobless claims.
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 saw continued tight trading on the major indexes Wednesday, while small caps gave up more ground.
The Dow Jones Industrial Average rose 0.1% in Wednesday's stock market trading. The S&P 500 index edged higher. The Nasdaq composite fell 0.3%.
The small-cap Russell 2000 reversed from solid morning gains to finish down 0.9%. The Russell slumped 1.8% on Tuesday but after surging 9.7% over the prior five sessions.
The Nasdaq and S&P 500 are trading very tightly over the past few days, holding the initial Trump rally.
Leading stocks are still acting well, though some such as Cava and CyberArk slashed or erased strong early earnings gains.
U.S. crude oil prices rose 0.5% to $68.43 a barrel.
The 10-year Treasury yield rose two basis points to 4.45%, reversing higher from an early low of 4.36% to set a four-month closing high. But the two-year Treasury yield, more closely tied to the Fed rate outlook, fell 6 basis points to 4.28% The odds of a December rate cut rose to 82.3% from Tuesday's 58.7%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF fell 1.3%. The iShares Expanded Tech-Software Sector ETF rose 0.3%, with Confluent a small holding. The VanEck Vectors Semiconductor ETF slumped 1.7%. ARK Innovation ETF declined 1.7%.
SPDR S&P Metals & Mining ETF gave up 1.6%. SPDR S&P Homebuilders ETF climbed 0.2%. The Energy Select SPDR ETF added 0.8% while the Health Care Select Sector SPDR Fund lost 0.3%.
The Industrial Select Sector SPDR Fund advanced 0.2%. The Financial Select SPDR ETF rose a fraction.
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Stocks In Buy Zones
Flutter Entertainment stock gapped up 7% to 265.52 on Wednesday, breaking out of a flat base, base-on-base pattern with a 252.48 buy point. The relative strength line, which tracks a stock's performance vs. the S&P 500, hit a 52-week high on the breakout, a bullish sign. The FanDuel sports betting parent reported strong earnings and guidance.
Heico stock popped 3.95% to 273.92, clearing a 269.38 flat-base buy point. Early Wednesday, the jet engine and defense components supplier cleared a trendline, offering a slightly early entry.
Confluent stock jumped 4.6% to 28.98, just closing above a 28.95 handle buy point from a 49%-deep, eight-month consolidation. The RS line is running up but is still well off highs.
Burlington Stores stock climbed 1.5% to 267.52, clearing a trendline and short-term highs slightly above the 50-day line. The off-price apparel retailer has a 282.49 flat-base buy point. But Burlington earnings are due Nov. 19.
TJX stock topped a 121.73 flat-base buy point intraday, according to MarketSurge, but closed just below that level, up 1.1% to 121.13. However, the off-price apparel and home goods retailer, on an eight-session win streak, remains actionable from early entries triggered last week. TJX earnings are on Nov. 20.
What To Do Now
The stock market rally has held its Trump gains and is pausing constructively. Some stocks are getting more extended, a few more are flashing buy signals.
The overall picture is strongly bullish. However, a more-significant pullback in the overall market or individual stocks would not be a shock, especially if Treasury yields punch higher.
Investors can make incremental buys to add exposure or rebalance portfolios into stronger areas. But generally holding winning stocks makes a lot of sense.
Keep working on your watchlists to spot potential setups and get a feel for which sectors are leading or lagging.
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.
