Dow Jones futures fell modestly early Friday, along with S&P 500 futures and Nasdaq futures. Micron Technology, FedEx and Nike reported earnings after the close.
The major indexes tried to move higher Thursday, but fell back for slight losses. That came a day after the S&P 500 and Nasdaq nearly confirmed their stock market rally attempts following the Federal Reserve meeting.
With the stock market showing some positive signs but not yet in a confirmed rally, investors can try a small position or two. But the key is to be patient and to prepare for the next uptrend.
Palantir Technologies, DoorDash, Uber Technologies and Boston Scientific are growth stocks to watch. All made bullish moves Thursday morning, but backed off as the market reversed lower.
Meanwhile, Allstate and Bowhead Specialty triggered buy points in the market-leading insurance space.
Quantum computing stocks such D-Wave Quantum, Ionq and Rigetti Computing fell sharply as Nvidia held Quantum Day at its GTC event, with CEO Jensen Huang tempering his past quantum-skeptic comments. Nvidia stock edged higher, but again hit resistance at its 21-day while its 50-day line crossed below its 200-day.
DoorDash stock is on the IBD 50.
Dow Jones Futures Today
Dow Jones futures lost 0.3% vs. fair value, with NKE stock a Dow component. S&P 500 futures and Nasdaq 100 futures fell 0.3%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Earnings
After the close, memory-chip giant Micron beat views and guided higher. Micron stock fell modestly early Friday after initially rising solidly Thursday evening. Shares are below their 200-day line, where they've hit resistance over the past several months.
Nike earnings topped forecasts, but guidance was weak. Nike stock retreated solidly in extended trade, below its 50-day and 200-day lines.
FedEx earnings missed while revenue topped and the shipping giant guided lower. FDX stock fell sharply overnight, below key moving averages after hitting a 52-week low last week.
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Stock Market Rally
The stock market rally attempt opened lower, reversed solidly higher, then fell back for small declines. It was an up-and-down day two reaction to the Federal Reserve meeting, in which policymakers see two rate cuts in 2025 and Fed chief Jerome Powell downplayed risks from Trump tariffs.
The Dow Jones Industrial Average lost a fraction in Thursday's stock market trading after hitting resistance at its 200-day line for a second straight session. The S&P 500 index gave up 0.2%. The Nasdaq composite declined 0.3%. The small-cap Russell 2000 declined 0.65%.
The stock market is still looking for a follow-through day on one or more of the major indexes after volume just fell short in Wednesday's session.
More leading stocks showing interesting action Thursday, especially in the morning. Palantir, DoorDash, Uber and Boston Scientific are trying to regain or rebound from their 50-day lines, when many growth peers are still below their 200-day lines. But it's hard to make progress without the overall market.
Insurance plays Allstate and Bowhead broke out Thursday, though ALL stock closed just its buy point.
U.S. crude oil prices rose 1.6% to $68.26 a barrel.
The 10-year Treasury yield fell two basis points to 4.23%, off session lows of 4.17%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF declined 0.9%. The iShares Expanded Tech-Software Sector ETF fell 0.4%, with Palantir stock is a notable holding. The VanEck Vectors Semiconductor ETF 0.2%. Nvidia stock is the No. 1 component in SMH, with Micron stock also a key holding.
ARK Innovation ETF lost a fraction and ARK Genomics ETF dropped 1%.
SPDR S&P Metals & Mining ETF shed 0.7%. The Energy Select SPDR ETF climbed 0.4% and the Health Care Select Sector SPDR Fund edged up 0.1%.
The Industrial Select Sector SPDR Fund sank 0.5%, with Uber stock a key holding.
The Financial Select SPDR ETF advanced 0.1%, with Allstate stock and Brown & Brown in the ETF.
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What To Do Now
The stock market rally attempt is underway and almost staged a follow-through day Wednesday. But this isn't horseshoes. Close isn't good enough. For now it's still a market correction.
Nimble traders could try out a position or two, either a growth name such as DoorDash or more-defensive play such as Allstate. But the market is such a driving force. Especially with the growth names, stocks that looked intriguing Thursday morning, such as Palantir, tempered gains as the overall market faded to slim losses.
So if you want to try some positions, make them small and know your exit strategy before you enter.
Waiting nearly or entirely in cash remains a sound strategy. Patience is key.
Either way, keep your watchlists up to date, so you're ready to go when a confirmed rally takes hold. Cast a wide net to include stocks from a wide variety of sectors, especially when leadership may be in flux. Relative strength is key.
Remember, even if the market triggers a follow-through day, don't rush in. The risks of a failed FTD are high given the sharp sell-off and headlines whipsawing markets.
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.
