Dow Jones futures fell early Friday, along with S&P 500 futures and Nasdaq futures. Tesla shareholders approved a massive pay deal for Elon Musk, who teased future EVs. Meanwhile Adobe soared on earnings.
The stock market rally showed mixed action Thursday despite another tame inflation report. The Nasdaq set a fresh all-time high while the S&P 500 marked a closing best, buoyed by Broadcom, Nvidia, Tesla stock and a few others like Arista Networks. There was weakness elsewhere, but the market broadly came off lows starting in the early afternoon.
Chipotle Mexican Grill and ELF Beauty were actionable Thursday. But GE Aerospace fell clearly below its 50-day line.
Nvidia stock and ELF Beauty are on IBD Leaderboard. Chipotle stock is on SwingTrader. Nvidia and Arista stock are on the IBD 50. Nvidia, Arista and Broadcom stock are on the IBD Big Cap 20. ELF Beauty was Thursday's IBD Stock Of The Day.
The video embedded in the article discussed Thursday's market action and analyzed Chipotle, Universal Health and GE stock.
Dow Jones Futures Today
Dow Jones futures sank 0.6% vs. fair value. S&P 500 futures declined 0.3%. Nasdaq 100 futures lost 0.1%. Adobe stock offered an overnight lift to the S&P 500 and Nasdaq 100.
Uncertainty following a Bank of Japan meeting weighed on markets overnight. There are also concerns about France's political unrest, following President Macron's recent call for snap elections following a weak showing in elections for European Parliament.
The 10-year Treasury yield declined to 4.2%.
Crude oil prices rose slightly.
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 on IBD Live
Adobe Earnings
After the close, Adobe earnings topped views, with the software giant guiding up slightly on EPS and slightly lower on Q3 revenue. ADBE stock shot up more than 10% in extended trade, signaling a move above the 50-day line for the first time since February. The software giant edged down 0.25% to 458.74 in Thursday's trading.
Stock Market Rally
The stock market rally showed mixed action, but did steadily improve from early afternoon lows.
The Nasdaq composite advanced to close up 0.34% to 17,668 in Thursday's stock market trading, hitting a record high. The S&P 500 index rose 0.23% to 5,334, setting a record close.
Broadcom stock leapt 12.2% Thursday on strong earnings, guidance and plans for a 10-for-1 split. Nvidia stock rose 3.5%. Tesla stock popped 2.9%. Arista, which uses a lot of Broadcom gear, ran up 6.5%, though it has a market cap of "only" $104 billion. Broadcom, Nvidia and ANET stock are all at highs and extended.
The Dow Jones Industrial Average dipped 0.2%, just below its 50-day line.
The small-cap Russell 2000 fell 0.9%, but recovered to close just above its 50-day. The S&P MidCap 400 slipped 0.6%, below its key level.
The Invesco S&P 500 Equal Weight ETF sank 0.3%, but came off lows to hold its 50-day line.
The First Trust Nasdaq 100 Equal Weighted Index ETF fell 0.4%, but not far from record highs.
The Nasdaq is 7.6% above its 50-day line, which is somewhat extended thanks to a handful of megacaps. Indeed, Nvidia stock is now 34.3% above its 50-day, approaching very high levels even for the AI leader. But other parts of the market are fighting to hold the 50-day line. It's an odd mix that bears watching.
U.S. crude oil prices rose 12 cents to $78.62 a barrel, up 4.1% this week. Copper futures sank 1.6%, down nearly 12% since May 21.
The 10-year Treasury yield fell 5.5 basis points to 4.24%, the lowest since late March.
While the Treasury yield continues to trend lower, the dollar has held up well, reversing higher Thursday to near 2024 highs.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF lost 1.05%, with Adobe stock a notable IGV holding. The VanEck Vectors Semiconductor ETF climbed 1.6%, with Nvidia and Broadcom stock major components.
Reflecting more-speculative story stocks, ARK Innovation ETF retreated 1.6% and ARK Genomics ETF lost 1.6%. Tesla stock is the No. 1 holding across Ark Invest's ETFs. Cathie Wood's Ark set a $2,600 price target on TSLA stock earlier this week.
SPDR S&P Metals & Mining ETF gave up 1.2%. The SPDR S&P Homebuilders ETF edged up 0.35%. The Energy Select SPDR ETF gave up 0.9%.
The Health Care Select Sector SPDR Fund dipped 0.1%, with UHS stock a component. The Industrial Select Sector SPDR Fund declined 0.6% with GE stock the No. 1 holding.
The Financial Select SPDR ETF edged down 0.1%.
Time The Market With IBD's ETF Market Strategy
Stocks In Buy Areas
Chipotle stock rose 3% to 3,266.60, clearing a short consolidation that was just shy of being a flat base. Thursday's move is also the continuation of a 50-day line bounce and is still in range of that level.
ELF stock climbed 1.6% to 200.44, again hitting resistance at its 202.58 cup-with-handle buy point. It's actionable from breaking the downtrend of the handle on Wednesday.
As Restaurants Struggle, A Few Exceptions Are Sizzling.
GE Stock
GE stock fell 3.3% to 155.69, clearly undercutting the 50-day and 10-week lines as well as the low of its 8%-deep flat base, according to MarketSurge. This could be just a shakeout, but longer-term investors might consider taking at least partial profits if GE Aerospace ends the week more than 2% below its 10-week line.
Tesla Shareholders OK Elon Musk Pay Deal
Tesla shareholders approved a massive Elon Musk pay deal and backed reincorporating the EV giant in Texas from Delaware. The company announced the outcome during the annual Tesla shareholder meeting Thursday night.
Late Wednesday, Musk wrote on his social site X that both votes were winning with "wide margins."
There had been concern that Elon Musk would leave Tesla, or step up moves to shift AI resources, efforts and staff to his privately held companies, if he didn't win the pay deal.
The Delaware court that struck down Musk's compensation deal earlier this year could still block the package.
Musk Teases Future Tesla EVs
During the shareholder meeting, Musk teased three vehicles illustrated under covers. One appeared to be a van and another a compact car. A third could be a robotaxi prototype that might be unveiled at an Aug. 8 event.
Musk also said that Tesla will end Cybertruck Foundation Series production soon. Regular Cybertrucks, without the $20,000 surcharge, start in the third quarter.
Tesla Stock
Shares rose slightly early Friday.
Tesla stock rose 2.9% to 182.47 Thursday on Musk's post, though it came off intraday highs of 191.08. TSLA stock is above the 50-day line, but is in a long downtrend and some distance from the 200-day line.
Tesla Vs. BYD: EV Giants Vie For Crown, But Which Is The Better Buy?
What To Do Now
The Nasdaq is looking at risk for a pullback while much of the market is fighting around key levels. This could all turn out well, with leading stocks forging handles, pullbacks or bases followed by a broad advance.
So, as always, you want to keep your watchlists updated.
Right now, there's no real need to be ramping up exposure, especially for investors who are already heavily invested. If you make new buys, you might offset that by selling some laggards or losers.
Overall, holding onto winning stocks is a sound strategy for now.
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.
