Dow Jones futures rose slightly late Thursday, along with S&P 500 futures and Nasdaq futures. Chip giant Intel (INTC) plunged following earnings, though that was good news for AMD stock. The stock market rally ended Thursday with a slight positive reversal for the major indexes, leading stocks were definitely a mixed bag.
PayPal stock fell back below its buy point, while D.R. Horton (DHI) and several homebuilders now have failed breakouts.
Tesla (TSLA) rose following strong earnings, but closed near session lows even as the broader markets perked up.
Meanwhile, Apple (AAPL) and Amazon.com (AMZN) fell a little further below their 50-day lines, while Adobe stock undercut that key level. Microsoft (MSFT) tested its 50-day before closing a fraction higher.
On the upside, a trio of new IPOs made big moves. Snowflake (SNOW) soared above yet another early entry. Unity Software (U) leapt to just below buy points while Array Technologies (ARRY) surged to record highs with barely more than a pause.
Still, the mixed action in leading stocks and the fairly lackluster upside reversal in the major indexes don't inspire a lot of of confidence. The stock market rally is still in a confirmed uptrend, but its very recent action has been weak.
Tesla stock, LGI Homes and PayPal are on IBD Leaderboard. PayPal stock is on SwingTrader. Microsoft stock and Adobe are on IBD Long-Term Leaders. Advanced Micro Devices (AMD), PayPal, Adobe, Microsoft and Amazon are on the IBD 50.
Dow Jones Futures Today
Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures climbed 0.3%. Nasdaq 100 futures advanced 0.2%. Intel stock is a member of the Dow Jones, S&P 500 index and Nasdaq composite, but has a far smaller weight than the likes of Apple and Microsoft.
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Stock Market Rally Thursday
The stock market rally had an odd session. The major indexes sold off in late morning but rebounded as House Speaker Nancy Pelosi said a stimulus deal was "just about there."
It's positive that the major indexes rallied back above their 21-day moving averages after fading toward thei5 0-day lines. But the index gains were slim, failing to break a short downward sloping trend line.
The Dow Jones Industrial Average rose 0.5% in Thursday's stock market trading. The S&P 500 index also climbed 0.5%. The Nasdaq composite eked out a 0.2% gain.
Tech giants look sluggish. Apple stock fell 1%, Amazon 0.3% and Adobe 2.5%. Microsoft stock rallied for a gain of .... 4 cents.
PayPal stock tumbled 4.2% to 203.93 on Thursday, back below the 209.12 cup-with-handle buy point after Wednesday's 5.5% gain. D.R. Horton stock fell 3.45%, trigger the 7%-8% automatic sell rule after undercutting the key 50-day line.
Tesla stock closed up 0.75% to 425.78, near session lows. An attempt to break a short trend line in its new handle quickly fizzled, but TSLA stock didn't reverse lower or undercut its 10-week moving average. The official buy point is 466, just above the top of the handle. Aggressive investors could use 445.33, just above Thursday's intraday high, as an early entry.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) retreated 1.1%. The iShares Expanded Tech-Software Sector ETF (IGV) lost 0.45%, with Microsoft and Adobe stock . The VanEck Vectors Semiconductor ETF (SMH) closed down just a fraction. AMD and Intel stock are major components.
Intel earnings fell 22% to $1.11 a share, in line or just a penny above views, depending on the consensus. Sales fell 4% to $18.3 billion. But the real negative was a shortfall in data center chips.
Intel Stock Dives, AMD Thrives
Intel stock plunged nearly 10% in overnight trading. Shares rose 0.75% to 53.90 on Thursday, but have been below their 200-day line since the Q2 Intel earnings report. INTC stock hasn't been a leader for quite some time.
Intel's data center weakness could be good news for AMD. AMD stock rose less than 1% in extended trade. Shares edged up 0.3% on Thursday to 79.42. Investors could view 88.92 as a entry point, but that handle is flawed because its midpoint is now below the midpoint of the base.
One of the facets of Thursday's action is that brand-new IPO stocks were big winners. Usually when growth stocks come under pressure, IPOs are among the hardest hit.
Snowflake stock surged 9.8% to 297.09. The IPO base official buy point is 319.10 from the SNOW stock debut on Sept. 16. Investors could have used 278.36 as an early entry today, or even 252.60 on Wednesday.
Unity stock surged almost 11% to 100.96. That came up just short of a 101.10 early entry and the 102.73 official buy point.
Array Technologies stock spiked nearly 12% to 43.94, hitting a new high. But that's after a two or three-day pause. IPO bases can be short, but not that short.
Stock Market Rally Analysis
Is the stock market rally better off for closing higher Thursday? Sure but it's not a game-changer. Until the major indexes decisively break their current short downtrends, investors should be cautious about expanding exposure.
This isn't a time to put all your chips into the market.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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