Stock Market Rally, Tesla Stock Soar, But Flash Warning Signs; Micron Earnings,

On Apr 10, 2023

Dow Jones futures rose modestly late Thursday, along with S&P 500 futures and Nasdaq futures, ahead of Friday’s jobs report. Micron Technology (MU) earnings a Boeing 737 Max settlement and a new, lower-price Tesla Model Y were in focus. The stock market rally had a powerful session, with the Dow Jones, S&P 500 index, Nasdaq composite and Russell 2000 all hitting record highs.

But there are signs that the market rally is getting extended.

Meanwhile, Tesla (TSLA) continued to soar Thursday on yet another price-target hike, making Elon Musk the richest man in the world. But is Tesla stock getting extended?

Late Thursday, Tesla listed a Model Y Standard Range option, something CEO Elon Musk said would never be offered. A seven-seat Model Y option is now available as well.

Micron earnings topped views, while the memory-chip maker also guided high. After rallying to its best levels since 2000, Micron stock rose modestly overnight.

Micron earnings should be good news for other memory plays, including equipment giants Lam Research (LRCX), Applied Materials (AMAT) and KLA Corp. (KLAC). LRCX stock, AMAT and KLA have been surging this week, perhaps in anticipation of bullish Micron earnings.

Taiwan Semiconductor — a major customer for Lam Research, Applied Materials and KLA — reports December sales on Friday. Next week, earnings are on tap. Taiwan Semi is expected to announce heavy capital spending. TSM stock rallied 5% on Thursday, hitting a fresh high.

Boeing 737 Max Settlement

Boeing (BA) will pay more than $2.5 billion to settle a Justice Department criminal charge that the Dow Jones aerospace giant concealed key information from the Federal Aviation Administration regulators investigating the two 737 Max crashes. It’ll pay a criminal penalty of $243.6 million, compensation payments to Boeing customers of $1.77 billion, and $500 million for a crash victim beneficiaries fund.

Boeing stock fell a fraction in overnight trading. The muted reaction suggests investors are happy to move forward, with the Boeing 737 Max flying again. BA stock edged up 0.8% to 212.71 on Thursday.

Sarepta Therapeutics (SRPT) announced mixed results for its gene therapy targeting a form of muscular dystrophy. The gene therapy produced a key protein, but no improved muscle function after one year. Sarepta stock plummeted overnight.

Tesla stock and TSM are on IBD Leaderboard. TSM stock, LRCX and AMAT are on IBD 50.

Dow Jones Futures Today

Dow Jones futures rose 0.4% vs. fair value. S&P 500 futures climbed 0.4% and Nasdaq 100 futures advanced 0.2%.

Dow Jones futures will likely move on the December jobs report, due out at 8:30 a.m. ET on Friday. The consensus is for a gain of just 65,000 jobs as coronavirus shutdowns stall the economic recovery. An outright jobs decline would be a bad sign, though it could also spur a bigger, faster stimulus package.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

That’s been true for the past several days. Dow Jones futures have not foreshadowed regular-session

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 88.49 million. Covid-19 deaths topped 1.90 million.

Coronavirus cases in the U.S. have hit 22.15 million, with deaths above 374,000. On Thursday, the U.S. hit daily records for new Covid cases and coronavirus deaths for a second straight day.

The U.K. has added more than 50,000 cases for 10 straight days. England recently went on lockdown.

Election 2020 Is Finally Over

A day after pro-Trump rioters stormed the Capitol building, there is now relevant clarity from Washington. With the Georgia runoffs and the Electoral College certification count now out of the way, the Election 2020 appears to finally be over. Joe Biden will become president on Jan. 20, with Democrats also holding the House and Senate, albeit with wafer-thin majorities.

Stock and bond investors are pricing in expectations for bigger stimulus and other spending measures in the coming months, with policies that boost alternative-energy and marijuana plays. Expect greater involvement in health care, but the changes could help health insurers and hospitals.