With the imminent release of the November employment report on Friday night, there were minor adjustments in Dow Jones futures, S&P 500, and Nasdaq potentials overnight. After the market closure, Broadcom (LULU) emerged as the top earner in terms of profits.
On Thursday, the real estate sector witnessed a resurgence driven by significant advancements in big-cap tech stocks, bringing the major indexes close to their 52-week highs.
Advanced Micro Devices (AMD) and Google’s parent company, Alphabet (GOOGL), experienced a surge in their stock prices on Thursday following major artificial intelligence announcements. These AI initiatives position them well to compete with Microsoft (MSFT) and Nvidia (NVDA) in their respective domains.
While Google explored an earlier opportunity, AMD’s stock surged past various buying points. NVDA’s stock also observed an increase around crucial levels, while Microsoft’s stock ascended within a buy area.
Tech giants like Apple (AAPL), Amazon.com (AMZN), Meta Platforms (META), and Tesla (TSLA) all regained buy points alongside AMD. Tesla’s stock continued its upward trend from the 50-day mark, approaching another buy point.
Amazon, Meta, Microsoft, and Nvidia stocks are featured on the IBD Leaderboard. Apple and Nvidia stocks are listed on SwingTrader. Microsoft’s stock is included in the IBD Long-Word Leaders list. The IBD 50 highlights stocks from Microsoft, Meta Platforms, Nvidia, Google, and LULU. AMD was recognized as the IBD Stock of the Day on Thursday.
Dow Jones Futures
Dow Jones futures witnessed a 0.1% rise from fair value. Nasdaq 100 futures experienced a slight dip, while S&P 500 futures edged higher.
The ten-year Treasury yield saw a marginal uptick to 4.17%.
Crude oil futures saw a 1% increase.
The Labor Department is scheduled to release the November employment report at 8:30 a.m. ET, expected to impact Dow Jones futures and Treasury yields. Investors anticipate a job report that balances avoiding inflation fears from being too strong and recession concerns from being too weak.
It’s crucial to recognize that trading in Dow futures and other markets overnight may not directly translate to the subsequent regular stock market session.
Earnings
On Thursday night, Broadcom, Lululemon, Smartsheet (SMAR), and Guidewire Software (GWRE) disclosed their earnings.
Broadcom’s stock (AVGO) experienced a decline in after-hours trading as its earnings slightly missed Q4 projections. Despite this, the company provided optimistic guidance for fiscal 2024 and raised its dividend by 14%. The stock rebounded to 922.26, up 2.1% from the 50-day mark after a period of decline. Lululemon (LULU) surpassed earnings expectations but offered holiday guidance slightly below consensus, leading to a modest decline in its stock price. Smartsheet (SMAR) stock surged overnight after surpassing earnings estimates. Guidewire Software (GWRE) saw minimal movement despite defying expectations of a loss, with its stock finding support near the 21-day mark.
Preview of Jobs Report
The November nonfarm payrolls are expected to increase by 180,000, rebounding from the impact of the UAW car strike in October.
The unemployment rate is projected to remain steady at 3.9%, with hourly earnings expected to rise by 0.3%, while the annual gain is forecasted to slightly cool to 4%.
Stock Market Rally
The stock market rallied on Thursday, with significant gains led by big-cap tech companies.
The Dow Jones Industrial Average rose by 0.2%, while AMD stood out on the S&P 500, gaining 0.8%. The Nasdaq composite surged by 1.4%, and the Russell 2000 small-cap index increased by 0.9%.
Despite the AI-driven gains in AMD and Google, other speculative AI plays saw mixed results. C3.ai (AI) stock, for instance, declined by 10.77% due to weak revenue and guidance.
Chips performed well, even without AMD and Nvidia leading the charge. Booking Holdings (BKNG) benefited from the strength in travel stocks.
Crude oil prices in the US attempted to rebound but closed slightly lower at $69.34 per barrel. The 10-year Treasury yield edged up by 1 basis point to 4.13%, remaining near its three-month low.
ETFs
Among growth equity funds, the iShares Expanded Tech-Software Sector ETF (IGV) rose by 0.5%, with significant investments in Microsoft. The VanEck Vector Semiconductor ETF (SMH) increased by 2.3%, with substantial holdings in Broadcom, Nvidia, and AMD.
The ARK Innovation ETF (ARKK) rose by 0.5%, reflecting the performance of more speculative story stocks, while the ARK Genomic ETF (ARKG) increased by 0.2%. Tesla remains a significant holding in Ark Invest’s ETFs.
Other ETFs that saw gains include the Global X US Infrastructure Development ETF (PAVE), SPDR S&P Metals & Mining ETF (XME), US Global Jets ETF (JETS), SPDR S&P Homebuilders ETF (XHB), and Industrial Select Sector SPDR Fund (XLI).
AMD Stock
AMD’s stock surged by 9.9% to 128.37, surpassing key buy points. The company unveiled a new AI device series to compete with Nvidia, receiving positive feedback from researchers. Microsoft, Meta Platforms, and OpenAI announced plans to purchase AMD’s AI technology, boosting investor confidence.
Nvidia’s stock rose by 2.4% to 465.96, bouncing back from a recent low. The stock is still below the 21-day mark but remains above the 50-day level, with the 476.09 buy point still valid.
Google Stock
Google’s stock climbed by 5.3% to 136.93, closing above the 50-day mark and nearing a key buy point. The company introduced its Gemini big language model to compete with industry rivals, receiving positive assessments from analysts.
Microsoft, Apple, Amazon, Meta Platforms, and Tesla also saw gains in their stock prices, with each company making strategic moves to maintain their competitive edge in the market.
Investors are advised to stay informed about market trends and potential investment opportunities as they navigate the current market conditions.
