Dow Jones futures rose modestly Thursday morning, along with S&P 500 and Nasdaq futures.
Nvidia reported strong earnings while also guiding higher, but perhaps not enough. The artificial intelligence chip leader fell overnight, but has reversed slightly higher.
AI chip IPO Astera Labs is eyeing a breakout. Taiwan Semiconductor, Broadcom and others were little changed.
Palo Alto Networks and Snowflake also reported.
The major indexes closed narrowly mixed Wednesday with a strong finish after testing and holding key levels.
Nvidia stock is on IBD Leaderboard, with Astera Labs on the Leaderboard watchlist. Nvidia is on SwingTrader. Astera Labs stock and Nvidia are on the IBD 50.
Dow Jones Futures Today
Dow Jones futures rose 0.4% vs. fair value, with Nvidia the newest Dow member. S&P 500 futures climbed 0.3%. Nasdaq 100 futures advanced 0.3%. Nvidia and Palo Alto are S&P 500 and Nasdaq 100 members.
The 10-year Treasury yield dipped to 4.4%.
Crude oil futures rose 2%, back above $70 a barrel.
Bitcoin is back below $98,000 after surging above that level overnight as its post-election run shows no sign of slowing down.
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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Nvidia Earnings
Nvidia earnings beat views. Fiscal Q3 EPS 102%, a triple-digit year-over-year gain for a sixth straight quarter. Revenue soared 94%. The AI chip giant guided up on revenue for the January-ended quarter, but only slightly.
"The age of AI is in full steam, propelling a global shift to Nvidia computing," said CEO and founder Jensen Huang. "Demand for Hopper and anticipation for Blackwell — in full production — are incredible."
Nvidia stock turned fractionally higher in premarket trade, reversed from modest-to-solidy overnight lows. It's set to open in range of a 140.76 consolidation buy point, according to MarketSurge. Shares pared losses Wednesday to dip 0.8% to 145.89, after leaping 4.9% on Tuesday.
Other AI Chip Stocks
Recent IPO Astera Labs jumped early Thursday, signaling a move above a 100.09 high-handle entry. ALAB stock rose 2.35% to 97.42 Wednesday after the prior session's 5.3% jump.
Nvidia chipmaker Taiwan Semiconductor declined slightly, while Broadcom, Arm Holdings and Advanced Micro Devices turned higher. TSM stock closed just above the 50-day line, while the other three are below that key level.
Arista Networks, a networking play, edged higher. ANET stock rose 1.1% Wednesday. Shares have fallen below the 50-day line, but have been finding support around the top of a prior base.
Other Earnings
Palo Alto earnings beat views, though revenue just topped. PANW stock fell modestly before the open, off overnight lows but set to test buy points of 380.84 and 384. Shares climbed 1.2% to 392.61 on Wednesday.
Snowflake earnings comfortably topped consensus. Shares surged in extended trade, signaling a move back above the 200-day.
Stock Market Rally
The stock market rally on Wednesday again came well off morning lows. All the key indexes tested and held their 21-day moving averages once again and improved into the close.
The Dow Jones Industrial Average rose 0.3% in Wednesday's stock market trading. The S&P 500 index finished a fraction higher. The Nasdaq composite dipped 0.1%. The small-cap Russell 2000 edged higher.
Target and Powell Industries were big earnings losers Wednesday. Wix.com and Williams-Sonoma soared.
Leading stocks generally held up well, giving up a portion of Tuesday's gains.
U.S. crude oil prices fell 0.75% to $68.87 a barrel.
The 10-year Treasury yield rose three basis points to 4.41%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF dipped 0.2%. The iShares Expanded Tech-Software Sector ETF rose 0.8%, with Palo Alto stock a significant holding. The VanEck Vectors Semiconductor ETF slipped 0.7%. Nvidia stock is the dominant holding in SMH, with Taiwan Semiconductor and Broadcom also key members.
ARK Innovation ETF fell 1.1% and ARK Genomics ETF edged up 0.4%.
SPDR S&P Metals & Mining ETF 0.2%. The SPDR S&P Homebuilders ETF climbed 1%. The Energy Select SPDR ETF advanced 1% and the Health Care Select Sector SPDR Fund gained 1.2%.
The Industrial Select Sector SPDR Fund edged up 0.1%. The Financial Select SPDR ETF dipped 0.3%.
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What To Do Now
The stock market rally has shown healthy action, with the major indexes holding key levels.
If stocks react well to Nvidia earnings, a number of stocks could flash buy signals. But a negative reaction could signal trouble for the market rally.
So be prepared with up-to-date watchlists and exit strategies.
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.
