Dow Jones futures rose a few hours later, along with S&P 500 futures and Nasdaq futures.
X
The stock market closed technically higher on Thursday. The Nasdaq rose higher, hitting new highs in 2023 as a parent of Google the alphabet (Google) And Amazon.com (AMZN) led the charge. TSLA stock popped up shortly before the close Tesla (TeslaCEO Elon Musk has said he is stepping down as CEO of Twitter.
But the S&P 500, Dow Jones and most stocks fell modestly.
Backwest Bancorp (PACWA large deposit trip has been reported that occurred last week. PACW stock fell while regional banks declined in general. Western Alliance Bancorp (WAL) was detained.
Shockwave Medical (SWAT) into the buying zone, and its continuation of its advance after earnings.
SWAV stock is located in IBD Leaderboard Watchlist as well List 50 IBD. Shockwave Medical was IBD Thursday’s stock.
The video embedded in this article discussed the megacap-led market action, while also analyzing the Meta, Shockwave Medical, and AMZN platforms.
Dow jones futures today
Dow futures rose 0.1% against fair value. S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.25%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Tesla shares rise as Elon Musk finds the CEO of Twitter
Tesla CEO Elon Musk tweeted shortly before the market close Thursday that he had found a new leader for his social site: “Excited to announce I have a new CEO of X/Twitter. Starting in about 6 weeks! My role will transition! Being CEO & CTO To supervise products, software, and computers.”
Musk did not say who the new leader will be.
the Wall Street Journal It reported Thursday night that NBCUniversal’s chief advertising officer, Linda Iaccarino, is in talks to be Twitter’s CEO. Yaccarino played a major role in launching the Peacock streaming service. Ads Manager can help drive Twitter Ads revenue.
Yaccarino was a rare major media executive who publicly backed Musk in the weeks following his takeover of Twitter late last year.
Musk previously vowed to step down as CEO of Twitter. Many Tesla stock investors worry that Musk has been distracted by Twitter, with his time already split between Tesla, SpaceX and other projects. Twitter’s new CEO won’t stop Musk from making polarizing tweets.
Tesla stock rose 2.1% to 172.08 Thursday, with nearly all of the gains coming after Musk’s late-afternoon tweet. TSLA stock is back above the 21-day moving average, but it is still below the 50-day and 200-day moving averages. Tesla has a potential double base buy point at 207.89, which would be just above the 200-day line.
TSLA stock added more than 1% in active after-hours trading.
Meanwhile, Tesla’s arch-rival BYD (I will) is currently in the Buy area. China EV startup Lee Otto (L.I) has crossed a buy zone this week amid booming earnings and strong delivery guidance.
Delayed talks on the debt ceiling
A meeting on the debt ceiling between President Joe Biden and congressional leaders will be postponed from Friday to next week. This comes after initial debt ceiling talks on Tuesday.
The White House and congressional staff continue to meet to reach an agreement.
The United States could default on its debt around June 1 if there is no agreement to raise the debt limit by then.
House Republicans want spending cuts as part of increasing the debt ceiling and recently passed a plan to do just that. Former President Donald Trump said at a CNN town hall event Wednesday night that the GOP should “default” if Biden and the Democrats don’t agree to cut spending.
JPMorgan Chase CEO Jamie Dimon shredded Trump’s hypothetical stance. “It’s another thing that very little is known about,” Dimon told Bloomberg Television on Thursday. “Anyone who knows anyone would have the potential to be disastrous.”
Most economists say a debt default would cause major turbulence in financial markets and the economy, which is already in danger of falling into recession.
Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live
Stock market rise
The stock market rally eased for the first hour or so of trading on Thursday, weighed down by bank concerns. But the main indicators gradually improved after that.
The Dow Jones Industrial Average fell 0.7% in stock market trading Thursday, b Disney (dis) down nearly 9%. The S&P 500 fell 0.2%. The Nasdaq Composite Index rose 0.2%. The small-cap Russell 2000 sank 0.8%.
US crude oil prices fell 2.3 percent to $70.87 a barrel. Copper prices fell 3.4% to their lowest closing level since late November. Gold futures fell 0.8%, while silver fell 4.7%.
The 10-year Treasury yield fell 3 basis points, to 3.4%.
Initial jobless claims reached their highest level since October 2021, as the labor market finally began to soften. Wholesale inflation was also slightly lower than expected in April. Meanwhile, concerns about China’s economic recovery are growing. All of this has led to lower commodity prices and yields, along with a higher US dollar.
Markets continue to expect the Fed’s rate cuts to kick in in September, if not in July.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty) decreased by 0.3%. iShares Expanded Technology and Software ETF (IGV) lost 0.5%. VanEck Vectors Semiconductor Corporation (SMH) decreased by 0.9%.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(up 0.2% and ARK Genomics ETF)ARKG) decreased by 1.8%. Tesla stock is the number one stock ETF held by Ark Invest. Ark also owns a small stake in BYD stock.
SPDR S&P Metals & Mining ETFs (XME) decreased by 2.8%. US Global Gates Foundation ETF (Planes) fell 0.7%. SPDR S&P Homebuilders ETF (XHB) step down 0.1%. Energy Defined Fund SPDR ETF (xle(waived 1.2% and the SPDR Fund to choose the healthcare sector)XLV) decreased 0.3%
Bank stocks
PacWest revealed early Thursday that its deposits fell 9.5% in the week ending May 5, with most of them arriving on May 4-5. This followed news reports on May 3 that PacWest was exploring strategic options, including a possible sale. California-based PacWest pledged another $5.1 billion in loans to the Federal Reserve to get $3.9 billion in additional loans to boost its balance sheet.
But PACW stock fell 23% to 4.70. Shares hit a record low of 2.48 on May 4.
Western Alliance revealed, shortly after Thursday’s opening, that deposits through May 9 had increased slightly from the previous week. WAL stock fell just 0.8%.
SPDR Financial Selection Fund (45) fell by nearly 0.2%. SPDR S&P Regional Banking ETF (Creates) fell 2.4%, just above a multi-year closing low. KRE stock is down 5.7% so far this week. PACW stock and Western Alliance are among the many components of KRE.
Top five Chinese stocks to watch now
SWAV stock
Shockwave Medical stock jumped 4.7% to 302.68, its third consecutive high volume advance since reporting strong first-quarter earnings Monday night. SWAV stock cleared 300.10 cups with a buy point handle, according to MarketSmith analysis.
The SWAV stock relative strength line is already above the rising handle of the six-month best. The RS line, the blue line in the provided charts, tracks the stock’s performance against the S&P 500.
Market rally analysis
The stock market rally returned to the “confirmed uptrend” on Wednesday with the Nasdaq index hitting 2023 highs. But there were plenty of reasons to dampen your enthusiasm.
Market variance, generally poor showing, and too few stocks to buy remain issues. The Nasdaq rose slightly.
The S&P 500 fell although it found support at the 21-day line. The Dow tested the 50-day line before cutting losses.
Even Nasdaq’s gains were driven by the outperformance of the massive chart, specifically shares of Google, Amazon and Tesla on Thursday.
Google shares jumped 4.3%, after jumping 4.1% in the previous session. On Wednesday, Google promoted its AI efforts, explaining how AI search will still drive ads. GOOGL stock is now extended after flashing buy signals on Wednesday. Amazon stock rose 1.8%, clearing 110.96 cups with a buy point bottom handle.
The Nasdaq 100 rose 0.3%, nearing its August high. But the First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) fell by 0.15%, although it found support at 50 days.
Invesco S&P 500 Equal Weight Fund (RSP) fell 0.5%, below all of its moving averages. The RSP is down 1.1% this week after falling 1.45% last week.
Losers were significantly outnumbered by the losers, including the Nasdaq. New lows are also easily outperformed by new highs again.
With all these signs of market breadth weakening, it is not surprising that buying opportunities are scarce, and some of them are even dipping. Yes, there were some nice winners on Thursday, but there are also negative spins like Trade office (TTD). Catalyst Pharmaceuticals (CPRX), which were created, up 19% on Thursday.
Fresh remains (latestIt might work fine, but stocks are down slightly on Thursday, back below the entry level of the trend line just cleared on Wednesday.
Market concerns about inflation and a Fed rate hike turned into recession risks. Meanwhile, PacWest has revived the banking concerns.
Debt default concerns are likely to mount. They haven’t taken over the financial markets yet, but as June 1 approaches, that could suddenly change. As Jamie Dimon said on Thursday, “The closer you get to it, the more you panic.” The cost of insuring against a US sovereign debt default has risen to its highest level since 2009.
It’s time to market with IBD’s ETF Market Strategy
What are you doing now
While the market rally is in a confirmed uptrend, the market leadership and breadth are narrow. With so few buying opportunities, investors shouldn’t be hard pressed to add exposure.
If you want to take a bite out of a stock flashing buy signals, you can. But definitely have your own exit strategy when entering a trade.
Again, there is nothing wrong with standing in foreclosure, almost all in cash.
But if the market rally shows broad strength, you’ll want to be ready. So have your watchlists ready.
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
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