Dow Jones futures were little changed early Friday, along with S&P 500 futures and Nasdaq futures, with the May jobs report due before the open. GameStop is in focus amid big news and wild stock action.
The stock market rally showed relatively quiet action Thursday after the Nasdaq and S&P 500 ran to record highs in the prior session.
Nvidia reversed from highs Thursday as CEO Jensen Huang filed to sell shares over time and with an NVDA stock split imminent. Chipotle Mexican Grill, Pinterest, Amazon.com and Elastic flashed buy signals.
However, "AI plays" in the cooling and power generation space had sharp losses. Vertiv tumbled 9.3%, closing below its 50-day line for the first time since October.
GameStop skyrocketed Thursday as meme investor "Roaring Kitty" announced a YouTube event. GME stock surged early Friday, but then reversed sharply lower in volatile trade as the mall-based retailer reported weak first-quarter results and announced plans for a big share offering.
Early Friday, Nvidia chipmaker Taiwan Semiconductor reported May sales jumped 30.1% vs. a year earlier in local currency, down down 2.7% vs. April. TSM stock edged higher near the open.
Nvidia and Pinterest stock are on IBD Leaderboard and the IBD Big Cap 20. Chipotle stock and Pinterest are on SwingTrader. Nvidia stock is on the IBD 50.
Chipotle was Thursday's IBD Stock Of The Day.
Just Two Magnificent Seven Stocks Clear This Bar
Dow Jones Futures Today
Dow Jones futures were roughly flat vs. fair value. S&P 500 futures tilted higher and Nasdaq 100 futures rose 0.15%.
The 10-year Treasury yield edged up to 4.3%.
Crude oil futures rose slightly. Copper futures fell 2%.
The jobs report will be sure to swing Dow Jones futures and Treasury yields.
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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Jobs Report
The Labor Department will release the May jobs report at 8:30 a.m. ET. Economists expect nonfarm payrolls to increase by 188,000, picking up from April's 175,000. The jobless rate should hold at 3.9% while average hourly earnings continue to rise 3.9% vs. a year earlier.
Various labor market indicators this week have pointed to easing labor markets.
Stock Market Rally
The stock market rally had a quiet session, with the major indexes closing narrowly mixed.
The Dow Jones Industrial Average rose 0.2% in Wednesday's stock market trading. The S&P 500 index lost a fraction. The Nasdaq composite lost 0.1%.
The small-cap Russell 2000 fell 0.7%, giving up much of Wednesday's 1.5% gain but holding the 50-day line.
U.S. crude oil prices rose 2% to $75.55 a barrel.
The 10-year Treasury yield dipped 1 basis point to 4.28%, down 34 basis points in a six-session losing streak.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF climbed 0.3%. DocuSign and IOT stock are both small holdings in IGV. The VanEck Vectors Semiconductor ETF fell 0.8%, with Nvidia stock its top member.
Reflecting more-speculative story stocks, ARK Innovation ETF climbed 1.3%, just below its 50-day and 200-day lines. ARK Genomics ETF edged down 0.1%.
SPDR S&P Metals & Mining ETF climbed 1.1% and the SPDR S&P Homebuilders ETF fell 1.2%. The Energy Select SPDR ETF added 0.5% and the Health Care Select Sector SPDR Fund advanced 0.3%.
The Industrial Select Sector SPDR Fund fell 0.6%. The Financial Select SPDR ETF edged lower.
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Nvidia Stock
Nvidia stock fell 1.1% to 1,210.45 Thursday after hitting a fresh record of 1,255.87 intraday. Nvidia stock had been on a huge run since the May 22 earnings report, and from the April 19 low.
Nvidia stock closed with a $3.026 trillion market cap.
Apple fell 0.7% to 194.47, dipping to a $2.98 trillion market cap. Microsoft remains No. 1 with a $3.154 trillion valuation, edging up 0.1% to 424.54 on Thursday.
Nvidia CEO Jensen Huang filed a Rule 10b5-1 trading plan to sell up to 600,000 shares through March 31, 2025. Such plans execute trades when preset conditions, such as price and volume, are met.
Also, Nvidia splits 10-for-1 after Friday's close.
Stocks In Buy Zones
Chipotle stock rose 2% to 3,210.10, decisively breaking a trendline as it bounces from the 50-day/10-week line. CMG stock is on track to have a flat base with a 3,260 buy point after Friday. Chipotle shareholders on Thursday OK'd a 50-for-1 stock split first proposed back in March.
Pinterest stock climbed 3.7% to 42.72, bouncing from the 21-day moving average to retake a 41.60 cup-base buy point.
Amazon stock rose just over 2% to 185, retaking the 50-day line and breaking a short downtrend. That could offer an early entry as AMZN stock works on its latest base.
Elastic stock popped 5.55% to 113.16 after Wednesday's bounce from the 50-day line. ESTC stock broke a trendline Thursday and cleared a short-term high, offering an early entry. The official buy point is 136.06, according to MarketSurge analysis. The database software maker is up 21% since reporting earnings on May 30.
GameStop Stock Whipsaws Lower
GameStop spiked 47% to 46.46 on Thursday, after "Roaring Kitty," whose real name is Keith Gill, set a noon ET Friday livestream on YouTube. Gill hosted livestreams in August 2020 making the bull case for GameStop, which skyrocketed in early 2021 in the meme stock craze.
Roaring Kitty revived interest in GME stock with vague memes in early May, with shares peaking at 64.83 on May 14. In early June, Gill shared a screenshot suggesting he has a huge GameStop stake.
Early Friday, GameStop reported Q1 results a few days early, with the mall-based video-game retailer disclosing a wider-than-expected loss and revenue down 27% to $882 million, far below views.
Minutes later, GameStop announced an offering of up to 75 million shares. The current GME float is about 303 million shares.
GME stock, up more than 30% early Friday, reversed sharply lower on the share offering but the price action is volatile..
Market Rally Analysis
Calm market action after a big move is healthy, especially given the jobs report coming on Friday.
Leading stocks were mixed, generally with modest moves, though a few like Vertiv suffered more-serious losses.
Others are setting up. If the market continues to act well you can keep adding exposure. But that means doing the work ahead of time, having a target list ready to go.
If the market stumbles on the jobs report, the Nvidia stock split or some other reasons, then you may need to scale out of some recent purchases.
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