Dow Jones Futures: Market Rallies As Nvidia, AMD Lead Chip Surge; Nio Earnings Mixed

On Mar 7, 2023

Dow Jones futures tilted higher early Friday, along with S&P 500 futures and Nasdaq futures. The stock market rally bounced back Thursday from the prior day’s retreat.

Nvidia (NVDA) and Advanced Micro Devices (AMD) were big winners on a strong day for semiconductors. Nvidia and AMD stock cleared some resistance levels, offering aggressive add-on entries for existing long-term holders.

Fellow chipmaker Broadcom (AVGO) cleared a buy point, while commodity plays Marathon Petroleum (MPC) and BHP (BHP) broke out, at least intraday. Google parent Alphabet (GOOGL) flashed a fresh buy signal. Anthem (ANTM) moved back into a buy zone as health insurers and service providers act well.

Nio Earnings

After the close, Tesla (TSLA) EV rival Nio (NIO) reported a wider-than-expected loss while revenue narrowly topped.

Earlier Thursday, the first luxury ET7 sedans rolled off the assembly line. On March 28, Nio ET7 deliveries begin, with two more new EVs set to debut later this year. Xpeng (XPEV) reports earnings on Monday, with EV giant BYD (BYDDF) also likely due that week, along with March China EV sales.

Very late Thursday night, Nio gave more details on its cheaper ET7 sedan and a newer ES7 due out in the third quarter. It also said work is advanced on a new, lower-priced EV brand.

Nio stock fell 2% late Thursday, but traded halted before the company’s 9 p.m. ET conference call. Shares rose 0.5% in Thursday’s session. XPEV stock and BYD stock also rose a fraction. Tesla stock climbed 1.5% to 1,013.92.

Stocks On IBD Lists

Nvidia stock, Tesla and Anthem are on IBD Leaderboard. AMD stock was added to SwingTrader. Google stock is on IBD Long-Term Leaders. Tesla, Nvidia and AVGO stock are on the IBD 50.

The video embedded in the story discusses Thursday’s market rebound and analyzes Nvidia, AMD and AVGO stock.

Dow Jones Futures Today

Dow Jones futures rose 0.25% vs. fair value. S&P 500 futures climbed 0.25% and Nasdaq 100 futures advanced 0.25%.

The 10-year Treasury yield rose 2 basis points to 2.36%.

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 actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally bounced back from Wednesday’s retreat, gaining steam after a NATO meeting without any surprises.

The Dow Jones Industrial Average rose 1% in Thursday’s stock market trading. The S&P 500 index popped 1.4%, with Nvidia stock and other chipmakers among the best performers. The Nasdaq composite jumped 1.9%. The small-cap Russell 2000 advanced 1.1%.

U.S. crude oil prices fell 2.3% to $112.34 a barrel, continuing to drift lower in electronic trading while stocks continued trading.

The 10-year Treasury yield rose 2 basis points to 2.34%, though off session highs.

ETFs

Among the best ETFs, Innovator IBD 50 (FFTY) rallied 2.2%, while Innovator IBD Breakout Opportunities (BOUT) climbed 0.8%. The iShares Expanded Tech-Software Sector ETF (IGV) retreated 0.7%. VanEck Vectors Semiconductor (SMH) leapt 4.9%. NVDA and AMD stock are major SMH holdings, with Broadcom a significant holding.

The SPDR S&P Metals & Mining ETF (XME) gained 2.7%, The Global X U.S. Infrastructure Development ETF (PAVE) advanced 1.2%. U.S. Global Jets (JETS) ascended 2.1%. SPDR S&P Homebuilders (XHB) slumped 1.1%. The Energy Select SPDR ETF (XLE) edged up 0.25%, and the Financial Select SPDR ETF (XLF) rose 0.8%. The Health Care Select Sector SPDR Fund (XLV) added 1.2%.

Reflecting stocks with more speculative stories, the ARK Innovation ETF (ARKK) rose 1.1% and ARK Genomics (ARKG) tacked on 1.2%, with both trading between their 21-day and 50-day lines. Tesla stock remains the No. 1 holding across Ark Invest’s ETFs. Ark Invest also owns some BYD and XPEV shares.

Five Best Chinese Stocks To Watch Now

Nvidia Stock

Nvidia stock jumped 9.8% to 281.50 in heavy volume after pausing for a few days. A trader could have used Thursday’s move above this week’s highs — roughly coinciding with the early-February peak — to start a new position, but the risks are elevated. Thursday’s move was better suited for an add-on buy, if anything.

AMD Stock

AMD stock popped 5.8% to 120.53, moving above the 50-day and 200-day lines. An aggressive trader could have used this as an opportunity to take an early position, but there is a lot of overhead resistance.

AVGO Stock

Broadcom stock advanced 4.5% to 626.43, clearing a 614.74 early entry. AVGO stock is moving up toward the consolidation buy point of 677.86. The relative strength line, the blue line in the charts provided, is close to highs already.

BHP Stock

BHP stock rose 1.8% to 74.27, clearing a cup-with-handle buy point of 73.68. Investors could have taken a position on March 18, as the mining giant broke a downtrend in the handle.

Mining and metal plays have been trending higher, but they are prone to significant pullbacks.