Dow Jones futures edged higher early Friday, while S&P 500 futures and Nasdaq futures fell slightly. Dell Technologies and several software makers headlined overnight earnings, while Tesla stock continued to slide after its Cybertruck delivery event.
The stock market rally had a split session Thursday. The Dow Jones soared to a 52-week high, buoyed by Salesforce and UnitedHealth Group. Meanwhile, the Nasdaq retreated, extending Wednesday's downside reversal, but closed well off lows. Nvidia and Meta Platforms undercut buy points while a number of growth stocks tumbled, including Super Micro Computer.
Shortly before the close, Tesla held its long-awaited Cybertruck event. CEO Elon Musk handed over a dozen Cybertrucks. Tesla revealed prices and battery range, though the prices aren't locked in. Tesla stock fell Thursday, adding to losses after hours.
Key Earnings
Dell Technologies, Elastic, Samsara, Marvell Technology, UiPath and Ulta Beauty reported after the close.
DELL stock fell sharply in premarket trade on weak sales. MRVL stock slumped on weak guidance. But Elastic, UiPath and IOT stock — which had already flashed buy signals before results — surged well over 10% in early Friday trade. ULTA stock also jumped.
Tesla China EV rivals Li Auto, XPeng and Nio reported November deliveries early Friday, with Li Auto and Xpeng setting new records. LI stock rose slightly, paring weekly losses, while XPeng and Nio fell slightly.
EV and battery giant BYD releases monthly sales soon, but has been offering bigger discounts amid an intensifying China EV price war.
Fed chief Jerome Powell will speak Friday, while investors also will get manufacturing and construction data soon after the open.
NVDA stock and Meta are on IBD Leaderboard. Nvidia, IOT, LI and CRM are on the IBD 50. UNH stock is on IBD Long-Term Leaders. UnitedHealth was Thursday's IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures rose a fraction vs. fair value. S&P 500 futures lost 0.2% and Nasdaq 100 futures fell 0.25%.
The 10-year Treasury yield edged lower to 4.32%.
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 diverged, with the Dow Jones leading most indexes higher.
The Dow Jones Industrial Average jumped 1.5% in Thursday's stock market trading, hitting its highest level since January 2021.
CRM stock led the Dow Jones with a 9.4% gain, gapping out of a base. UNH stock rallied 3.4%, clearing a handle entry after finding support at the 10-week line on Wednesday. But the Dow's gain was broad-based, with medical, industrial and financial names climbing.
The S&P 500 index rose 0.4%. The Nasdaq composite fell 0.2%, but came well off intraday lows.
Market breadth was decent, with winners outpacing losers on the NYSE while the Nasdaq was roughly even.
The small-cap Russell 2000 climbed 0.3%, though it once again hit resistance at the 200-day line.
The Invesco S&P 500 Equal Weight ETF gained 0.85%, doubling the S&P 500's gain.
The First Trust Nasdaq 100 Equal Weighted Index ETF edged up. The Nasdaq 100 dipped 0.25%, weighed down by Meta, Nvidia, Tesla stock and more.
After big November gains pushed the Nasdaq up toward 52-week highs, a modest pullback would be normal and healthy. It would let the Nasdaq take a breather while growth stocks forge some decent handles. But the pullback could end up being more serious, especially if Treasury yields bounce back sharply.
The 10-year Treasury yield rose eight basis points to 4.35%, rebounding despite cooling inflation figures. The benchmark Treasury bond rate is still down 12 basis points this week.
U.S. crude oil prices fell 2.4% to $75.96 a barrel. Saudi Arabia will extend its voluntary production cuts and several members agreed to voluntary cuts as well. But OPEC+ left official production quotas steady, raising doubts as to how much actual output will be cut.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF rose 0.8%. Salesforce stock is a huge IGV holding. UiPath, Elastic and IOT stock also are in the ETF. The VanEck Vectors Semiconductor ETF fell 1.1%. Nvidia is a major holding with MRVL stock also a component.
Reflecting more-speculative story stocks, ARK Innovation ETF sank 1.7% and ARK Genomics ETF declined 1.4%. Tesla stock is a major holding across Ark Invest's ETFs.
SPDR S&P Metals & Mining ETF climbed 1.6%. SPDR S&P Homebuilders ETF edged up 0.2%. The Energy Select SPDR ETF advanced 0.7%. The Health Care Select Sector SPDR Fund gained 1.3%. UNH stock is a big XLV holding.
The Industrial Select Sector SPDR Fund and Financial Select SPDR ETF were up 1.1%.
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Tesla Cybertruck Deliveries Begin
Elon Musk handed over 12 Tesla Cybertrucks Thursday afternoon to its first customers. It's unclear if these were paying customers or employees. If it's the latter, Tesla can hold off on recognizing certain expenses until 2024.
Musk touted the Cybertruck's acceleration and other qualities. Musk himself made no mention of Cybertruck prices or battery range, but Tesla shows estimated prices and range on its website.
Tesla says the all-wheel drive and "Cyberbeast" versions will be available in 2024.
The AWD Cybertruck is "estimated" to start at $79,900 before IRA tax credits, with an estimated range of 340 miles.
The Cyberbeast variant is expected to start $99,990, with a range of 320 miles. It will not be eligible for IRA tax credits.
The base, real-wheel drive Cybertruck won't be available until 2025. It's "estimated" to start at $60,900 before tax credits. The range will be just 250 miles.
When the Cybertruck was first unveiled in 2019, Tesla said it would start at $39,900 with a top-variant range of 500 miles.
Tesla will offer a "range extender" battery that would take up much of the truck bed.
Musk gave no indication of production or delivery expectations for the Tesla Cybertruck. He was notably upbeat on the new EV, after he earlier warned that Tesla dug its own "grave" with the difficult-to-produce design.
Tesla Stock
Tesla stock fell 1.7% to 240.08 in Thursday's trade, though it didn't move much during the actual Cybertruck delivery event.
Shares declined modestly early Friday, signaling a possible 50-day test as investors digest the estimated Cybertruck prices, specs and other details.
The official TSLA stock buy point is 278.98 from a double-bottom base, according to MarketSmith analysis. Investors could use Wednesday's high of 252.75 as an early entry via a downward-sloping trendline.
Growth Stocks
Nvidia stock fell 2.85% on Thursday to 467.70, undercutting the 476.09 double-bottom buy point. Meta stock fell 1.5% to 327.15, but recovered to close above the 21-day line and a 326.20 buy point.
Super Micro Computer, which briefly flashed an early entry Wednesday as it hit 306.52, tumbled 4.9% to 273.47, through the 21-day and testing the 50-day line. Overnight, SMCI stock fell solidly on a share offering.
Market Rally Analysis
Thursday's divergent action makes it hard to tell if the market rally is ready to rev higher, pull back or perhaps rotate away from tech growth stocks.
Investors could choose to take some partial profits, or exit recent buys that are faltering. Ultimately, a pullback could create a new round of buying opportunities. But you don't know how far the market might slide. Some individual stocks will suffer fierce losses, and may not bounce back.
Some high-beta growth stocks like SMCI have fallen sharply from Wednesday's highs. Imagine the potential losses if the Nasdaq merely retreated 5%, let alone 10% or more from Wednesday's highs.
So rather than jumping the gun, wait for a pullback to play out while tracking leading stocks that are setting up. Look for stocks holding key levels and showing relative strength.
In short, be prepared, stay engaged and remain flexible.
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