Dow Jones futures fell Friday morning, while S&P 500 futures and Nasdaq futures fell. JPMorgan Chase and Wells Fargo and Citigroup reported early Friday.
The stock market rallied generally as investors shrugged off a mixed March PPI inflation report following Wednesday's hot CPI inflation reading.
The Nasdaq powered to a record close as Nvidia led again, flashing a buy signal after Wednesday's bullish rebound.
Fellow AI chip and hardware stocks Broadcom, Astera Labs, Arista Networks and Super Micro Computer had strong sessions as well. In the software sphere, Datadog triggered an early entry while Microsoft moved higher in a buy range.
Thursday offered opportunities to make some buys, but don't ramp up exposure quickly. This might be the start of a new run, but it might be a false signal. The indexes, even the Nasdaq, are still in a sideways pattern.
Nvidia stock is on IBD Leaderboard. Nvidia, Microsoft and Broadcom stock are on SwingTrader. Microsoft stock is on IBD Long-Term Leaders. Nvidia, Microsoft, Citigroup and Arista stock are on the IBD 50. Nvidia, Datadog, Broadcom, Arista, Networks and Super Micro stock are on the IBD Big Cap 20.
Microsoft was Thursday's IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures fell 0.25% vs. fair value. S&P 500 futures sank 0.3% and Nasdaq 100 futures declined 0.45%.
The 10-year Treasury yield fell to 4.52%.
Crude oil prices rose more than 1%. Copper prices jumped more than 2%.
Chinese exports fell 7.5% in dollar terms in March vs. a year earlier, while imports sank 1.9%. Both were much weaker than expected after several encouraging reports, including for exports.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze leading stocks and the market rally on IBD Live
Bank Earnings
Early Friday, JPMorgan, Wells Fargo and Citigroup reported better-than-expected first-quarter results, kicking off bank earnings.
However, JPMorgan kept its full-year guidance for net interest income below consensus.
JPMorgan stock fell modestly, paring initial losses. Wells Fargo edged lower. Citigroup rose slightly.
All three stocks have been finding support at their 21-day lines, pulling back after a strong advance. Wells Fargo stock has a five-weeks-tight entry of 58.44.
Asset manager giant BlackRock reported Q1 earnings above views with revenue slightly beating. BlackRock stock rose modestly before the open, trying to get back to its 50-day line.
Stock Market Rally
The stock market rally rebounded Thursday in relief that the PPI inflation report wasn't worse. Investors piled into AI stocks.
The Dow Jones Industrial Average closed fractionally lower in Thursday's stock market trading, after hitting its worst levels in nearly two months intraday. The S&P 500 index climbed 0.7%, back above its 21-day line. The Nasdaq composite jumped 1.7% to a record close.
Once again, Nvidia led the Nasdaq and S&P 500, which both have rebounded from the 10-week line this week.
In addition to the other AI plays discussed in this article, Google parent Alphabet and Amazon.com rose 2.1% and 1.7%, respectively, both to new highs and nearing $2 trillion market caps. Apple rebounded from 2024 lows, up 4.3% as JPMorgan talked up an AI-powered iPhone expected this fall.
But while megacaps and AI plays shined, volume was significantly lighter on both exchanges vs. Wednesday. Market breadth was positive, but lackluster given the Nasdaq's gain.
The small-cap Russell 2000 climbed 0.7% to just above its 50-day line.
The Invesco S&P 500 Equal Weight ETF dipped 0.1% after falling to the 10-week line intraday.
The First Trust Nasdaq 100 Equal Weighted Index ETF rose 1%, lagging the Nasdaq 100's 1.6% gain but just retaking the 50-day.
The Nasdaq composite cleared a trendline as it set a record close. It's still within the ugly downside reversal of April 4. Getting above that level, and the March 21 intraday peak, would decisively signal a positive bent.
Ideally, that would coincide with broader market participation.
U.S. crude oil prices fell 1.4% to $85.02 a barrel.
The 10-year Treasury yield rose 2 basis points to 4.575%, a five-month high and up 20 basis points for the week.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF advanced 0.7%, with Microsoft stock the No. 1 holding. The VanEck Vectors Semiconductor ETF jumped 2.3%, with Nvidia the No. 1 component and Broadcom stock a key member.
Reflecting more-speculative story stocks, ARK Innovation ETF climbed 1.5% and ARK Genomics ETF climbed 0.5%.
SPDR S&P Metals & Mining ETF rose 0.35%. The SPDR S&P Homebuilders ETF advanced 0.4%. The Energy Select SPDR ETF dipped 0.2% and the Health Care Select Sector SPDR Fund fell 0.4%.
The Industrial Select Sector SPDR Fund edged up 0.1%. The Financial Select SPDR ETF fell 0.6%, with JPMorgan, Wells Fargo and Citigroup stock all notable holdings.
Time The Market With IBD's ETF Market Strategy
Nvidia Stock
Nvidia stock popped 4.1% on Thursday to 906.16, moving above the 21-day line and breaking a short downtrend. That offered an early entry, a day after a bullish rebound from the 10-week line. NVDA stock is set to have a flat base with a 974 buy point after Friday's close.
Raymond James on Thursday raised its Nvidia price target to 1,100 from 850.
Other AI Stocks
Broadcom stock gained 4.5% to 1,382.56, bouncing from the 21-day and 10-week lines to the highest close in a month. The chip-and-software giant is on track to have a new consolidation after Friday. Investors could use the April 4 high of 1,403.28 as a handle buy point.
Astera Labs gained 6% to 75.59, clearing key resistance at the 75 level, offering a first-ever buy signal. The AI networking chipmaker, which came public in March, has an IPO base with a 95.21 official buy point. As a brand-new IPO, ALAB stock is highly volatile.
Super Micro stock advanced 3.2% to 937.28, bouncing off the 50-day line in light volume. Investors could use that as a place to start a position. Ideally, SMCI stock would reclaim its 21-day line and break a downward-sloping trendline, currently around the 1,000 level. This is a volatile stock.
Arista Networks stock climbed 2.9% on Thursday to 296.58, back above the 21-day line and a 292.66 flat-base buy point, according to MarketSurge. Shares have traded around that entry for a few weeks. However, Arista fell nearly 4% early Friday after Rosenblatt Securities downgraded it to a sell.
Datadog stock popped 4% on Thursday to 130.80, closing above the 50-day line for the first time since early March. That offered an early entry into a flat base, base-on-base pattern.
Microsoft stock rose 1.1% to 427.93, bouncing from the 21-day line and clearing some short-term levels.
On Thursday, Morgan Stanley raised its price target to 520 from 465, citing the Dow tech titan's generative AI leadership. Shares are in range of a 420.86 buy point from a short consolidation cleared in mid-March. MSFT stock could be working on a three-weeks-tight pattern, with a 430.82 potential entry.
Microsoft reports earnings on April 23, with big implications for Nvidia, Arista and the entire tech sector.
What To Do Now
There were some encouraging signs Thursday. Perhaps the market rally is starting to turn the corner and begin another leg higher. Or this could be another head fake.
Investors could have and perhaps should have nibbled on some names Thursday given the strength in the Nasdaq and leading stocks such as Nvidia.
But be careful about getting too excited and ramping up exposure aggressively. Be ready to pull back if Thursday's gains don't hold.
Whether or not you took any action Thursday, you may want to wait to see the Nasdaq hit an intraday all-time high before making new purchases. Better overall breadth would be a big plus.
It's a time to be engaged and with your watchlists up to date. A lot of interesting stocks are setting up, with some looking actionable.
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.
