Dow Jones futures edged higher overnight, along with S&P 500 futures and Nasdaq futures. The stock market fell slightly Thursday amid talk of a Fed rate-cut “pause.” Nvidia (NVDA) resumed its strong run, with several tech plays making bullish moves.
All eyes will be on Elon Musk and the Tesla robotaxi event tonight, with big implications for Tesla (TSLA) perhaps ride-hailing giants Uber Technologies (UBER) and Lyft (LYFT).
JPMorgan Chase (JPM) kicks off bank earnings Friday morning.
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Indexes Dip, Small Caps Lag After Inflation Data: DVA, ALNY, UTHR In Focus
Dow Jones Futures Today
Dow Jones futures were just above fair value. S&P 500 futures and Nasdaq 100 futures rose 0.1%.
The 10-year Treasury yield fell to 4.06%.
Crude oil futures fell slightly.
Overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
CPI inflation came in hot and Atlanta Fed President Raphael Bostic raised the possibility of a November rate-cut “pause.” But the major stock indexes barely dipped.
The Dow Jones Industrial Average fell 0.1% in Thursday’s stock market trading. The S&P 500 index slipped 0.2% after hitting a record high Wednesday. The Nasdaq lost a fraction. The small-cap Russell 2000 declined 0.55%, but rebounded off its 50-day line.
Many leading stocks made bullish moves, including AI play Samsara (IOT) and cybersecurity stocks such as Palo Alto Networks (PANW) and Fortinet (FTNT). Meanwhile, some techs are racing up from the bottom, including AI IPO Astera Labs (ALAB), Cloudflare (NET) and Datadog (DDOG).
ADMA Biologics (ADMA) dived 16%, knifing through its 50-day line. The big 2024 winner announced that its auditor is resigning.
Insurers, including Brown & Brown (BRO), reversed lower Thursday. Insurance stocks have had some swings this week due to Hurricane Milton, which hit Florida Wednesday night.
U.S. crude oil prices popped 3.6% to $75.85 a barrel.
The 10-year Treasury yield climbed three basis points to 4.09%, continuing a big run. Investors are still pricing in strong odds of a November cut, despite Bostic’s comment.
Nvidia stock is on IBD Leaderboard and SwingTrader. Samsara stock, Fortinet and Nvidia are on the IBD 50. Samsara was Thursday’s IBD Stock Of The Day.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.3%, hit by ADMA stock. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 0.7%. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.2%, even with Nvidia stock the dominant holding.
ARK Innovation ETF (ARKK) retreated 1%. Tesla stock remains a major holding across Ark Invest’s ETFs. Cathie Wood also owns a lot of Nvidia.
SPDR S&P Metals & Mining ETF (XME) rose 1%. U.S. Global Jets ETF (JETS) advanced 0.4%. SPDR S&P Homebuilders ETF (XHB) slumped 1.6%. The Energy Select SPDR ETF (XLE) was up 0.7% and the Health Care Select Sector SPDR Fund (XLV) dropped 0.4%.
The Industrial Select Sector SPDR Fund (XLI) fell 0.5%. Uber stock is a big XLI holding.
The Financial Select SPDR ETF (XLF) closed down 0.35%. JPMorgan stock is a big XLF component.
Tesla Robotaxi Event: Live Coverage
Tesla Robotaxi Event
The Tesla robotaxi event is set to begin at 10 p.m. ET at the Warner Bros studio lot. Elon Musk will unveil a robotaxi, with expectations that the Cybercab will be a two-seat EV with butterfly doors.
Of course, the robotaxi won’t be on the market until Tesla Full Self-Driving achieves true self driving. Musk will likely say that Tesla is close to autonomous driving, but he’s said that for years. So will the Tesla event change anyone’s minds on that issue?
Tesla’s “affordable” vehicle could finally make an appearance. So could the latest version of the Optimus robot.
Tesla is pushing hard to boost sales and FSD take rates in Q4. On Thursday, Tesla will again let owners transfer FSD to a new Model 3, Y, S or X through Dec. 31. That comes on the heels of 0% financing for Model 3 and Y buys that include buying FSD.
Tesla Stock
The Tesla robotaxi event will start well after after-hours trading wraps, so investors won’t see official TSLA stock reaction until early Friday.
Robinhood will have Tesla trades on its app all night.
Shares fell nearly 1% to 238.77 in Thursday’s session after dropping to 232.34 intraday.
The EV giant has a 264.86 cup-with-handle buy point, according to MarketSurge. The 250 area offers an early entry.
Be ready for big Tesla stock swings Friday.
Uber and Lyft Stock
A Tesla robotaxi, or even a human ride-hailing service, could be a challenge for Uber and Lyft. But if Tesla isn’t seen as a real threat near-term, that could lift an overhang on the ride-hailing giants.
Uber stock edged up three cents to 77.90 on Thursday, its 6th straight advance. Shares are closing in on a 78.45 handle buy point in a seven-month consolidation.
Lyft stock dipped 0.8% on Thursday, stuck between its 200-day and 50-day lines.
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Nvidia AI Chips Sold Out
Nvidia stock rose 1.6% to 134.81, still in buy range from various entries, including the Aug. 26 high of 131.26. Since testing its 50-day line on Oct. 1, NVDA stock has jumped 15.2%.
Nvidia executives told Morgan Stanley analysts that production of Blackwell artificial intelligence processors is in full swing, with the next-generation AI chips sold out for the next 12 months.
Advanced Micro Devices (AMD) on Thursday unveiled its upcoming Blackwell rival, with Instinct MI325X production starting by year-end. CEO Lisa Su predicted a $500 billion market for AI accelerators by 2028. AMD stock, which has lagged Nvidia and many other AI chip names, fell 4% Thursday.
What To Do Now
The stock market rally continues to act well. You can keep making incremental buys. If you already have heavy exposure, you might offset new buys by trimming or exiting relative laggards.
But if you’ve built up your portfolio and those stocks are working, let those positions work for the most part.
Keep updating your watchlists, reviewing your holdings and staying engaged.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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