Dow Jones futures rose slightly early Monday, along with S&P 500 futures and Nasdaq futures. Magnificent Seven stocks Apple, Google-parent Alphabet, Microsoft, Nvidia and Tesla are in focus.
The stock market rally is near record highs with the major indexes all rising solidly last week. But a pair of big inflation reports loom.
Apple reportedly is moving close to a part with OpenAI, using the latter's technology for its upcoming Apple iOS 18. Google had been in talks to do. Apple stock rose slightly while Google fell modestly. Microsoft, a major OpenAI investors rose slightly.
Tesla stock rose a fraction after tumbling last week. The EV giant announced a new low-rate financing offer for the Model Y.
Nvidia stock edged higher as HSBC raised its price target and Jefferies assumed coverage. Nvidia could forge a handle on Monday.
Meanwhile, Arm Holdings rose on a report that it will unveil its first artificial intelligence chip designs next year.
Nvidia stock is on IBD Leaderboard, SwingTrader and the IBD 50. Microsoft stock is on the IBD Long-Term Leaders.
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Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed 0.2% and Nasdaq 100 futures advanced 0.3%. Apple stock and Microsoft are on the Dow Jones, S&P 500 and Nasdaq 100. Google, Nvidia and Tesla stock are all S&P 500 and Nasdaq components.
The 10-year Treasury yield edged down to 4.48%.
Crude oil futures rose slightly.
Remember that premarket action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
The Dow Jones Industrial Average jumped 2.2% in last week's stock market trading, extending a win streak to eight sessions. The S&P 500 index leapt 1.85%. The Nasdaq composite rallied 1.1% and small-cap Russell 2000 gained 1.2%.
Inflation Reports
The producer price index is due Tuesday, with the consumer price index on Wednesday. Key PPI components feed straight into the core PCE price index, the Fed's favorite inflation gauge.
Inflation data has been sticky or even picking up in recent months, spurring the Fed to push back expectations for rate cuts.
Apple OpenAI Report Nicks Google
Apple is finalizing terms to integrate OpenAI's ChatGPT into iOS 18, adding AI features to its next iPhone operating system, Bloomberg reported Friday night. The Dow tech giant is still in talks with Google to use its Gemini AI chatbot, but OpenAI appears to have the edge.
Apple could unveil AI-related features at June's annual Worldwide Developers Conference.
Apple stock rose more than 1% in premarket trade. Shares rebounded back above their 200-day moving average earlier this month. Shares are working on a 199.62 consolidation buy point. Investors could the May 3 high of 187 as an aggressive entry, which would be above a trendline. AAPL stock has lagged the S&P 500 for some time.
Google stock fell nearly 2% early Monday. Shares are extended from a 153.78 buy point.
Google will show off a variety of AI functions at its Google I/O event on Tuesday.
Microsoft stock rose a fraction before the open. Shares just reclaimed the 50-day line on Friday. MSFT stock has a 430.82 flat-base buy point, but a strong move could offer an early entry.
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Tesla Stock
On Friday night, Tesla offered 0.99% financing on U.S. Model Y sales through May, a quiet but hefty incentive to boost sales.
TSLA stock rose a fraction before the open. Tesla stock skidded 7% last week to 168.47, tumbling back below the 50-day. Shares round-tripped the 15% spike on April 29 after Tesla cleared key hurdles toward introducing Full Self-Driving in China.
Nvidia Stock Price Target
Early Monday, HSBC raised its NVDA stock price target to 1,350 from 1,050. Jefferies assumed coverage with a buy rating and a 1,200 target
Nvidia stock rose about 1%.
The AI chip leader has a 974 consolidation buy point, according to MarketSurge. Nvidia stock is on track to have a handle after Monday, offering a lower buy point of 922.20.
Arm AI Chips
Wireless giant Arm Holdings will unveil its first AI chip designs next spring, Japan's Nikkei reported Monday. Arm's designs are used by a myriad of companies, including Apple. Its designs use low power. That's especially important for AI, which has enormous power and cooling needs.
Arm stock rose 3% early Monday. Shares popped 5.1% on Friday and 7% for the week, but are still working their way back to the 50-day line after plunging in mid-April.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
