After hours, Dow Jones futures, S&P 500 and Nasdaq were all little changed. Broadcom (AVGO) and MongoDB(MDB), the two biggest overnight earnings, are due to be released Friday morning. Tesla (TSLA), according to reports, will launch the long-awaited Model 3 update in China over night.
Stocks opened higher as the relatively low PCE inflation rate continued a string of Fed-friendly economic data. The major indexes, however, pared their modest gains and closed mixed ahead of the August employment figures.
After the close, Broadcom, MongoDB (NTNX), Lululemon Athletica(LULU), Samsara IOT, Dell Technologies (DELL), Broadcom, MongoDB (NTNX), Lululemon Athletica(LULU), Nutanix, Nutanix, (NTNX), Dell Technologies (DELL), reported. MDB, Nutanix, and Dell Technologies were the big winners. LULU also rose, while Samsara stock and AVGO stock fell.
Tesla (TSLA), the EV giant, is hovering near an early purchase point amid Chinese media reporting that it will be putting its "Highland Model 3" on sale in China this Friday.
Li Auto, Nio and XPeng, Tesla China's rivals Li Auto (LI), Nio(NIO) will release their August deliveries on Friday morning. BYD, the EV and battery company, will release its August sales report on either Friday or Saturday. Li Auto is close to a possible entry. It holds above its 21-day level.
SwingTrader is home to Li Auto and AMZN. IOT and LI stock are listed on the IBD 50. LULU is listed on the IBD Big Cap 20. IBD's Stock of the Day for Thursday was Amazon.
Meta Platforms and General Electric (GE)
Economists predict that non-farm payrolls will rise by 170,000 compared to July's 187,000. The unemployment rate remains at 3.5%. The average hourly wage should increase 4.4% from a year ago, which is the same as July.
Wall Street is expecting the ISM Manufacturing Index for August to rise 0.4 points, but remain below 50.
Dow Jones Futures Today
Dow Jones futures increased 0.1% in comparison to fair value. S&P 500 and Nasdaq futures remained unchanged.
Keep in mind that overnight trading in Dow futures or elsewhere may not necessarily translate to actual trading during the next regular session of the stock market.
AVGO shares fell slightly overnight after Broadcom's earnings and sales were slightly better than expected. The chip and software company gave a similar guidance. Broadcom's stock rose by 3.4% on Wednesday to 922.89, just below 923.18 buy-point. The relative strength line reached a new high on Wednesday, which is a bullish signal.
MDB shares rose strongly in extended trading after MongoDB's earnings surpassed expectations and the database software company guided higher. MongoDB rose 1.5% to 381.30 Thursday. Investors could take advantage of the 439 buy-point, or a move decisively above the 50 day line.
NTNX surged in the after-hours, signaling that a gap had opened up from a base dating back to December last year. Nutanix announced a $350-million buyback after beating expectations. Nutanix's stock rose by 0.9% on Thursday to 31.14.
IOT shares fell overnight as Samsara surprised investors by generating a profit of 1 cent per share. The Internet of Things (IoT) and AI company gained 2.2% on Thursday to reach 27.36. The stock of Samsara has a double-bottom buying point at 29.79. Investors can use the break of a trendline just above 28 to make an early entry.
The DELL stock rose after Dell's earnings were easily beaten, signaling a 18-month high. Shares rose 1% to 56.24 on Thursday.
LULU shares rose slightly on Thursday after Lululemon's earnings beat expectations and yoga apparel sales were in line with forecasts. The stock of Lululemon rose 1.2% to 381.26, regaining the 50-day line. Investors can use a move over the 394-area as a buying area. However, LULU's stock has seen some wild movements in recent months.
Stock Market Rally
Stock market rallies had a mixed session with growth stocks leading.
In Thursday's stock exchange trading, the Dow Jones Industrial Average dropped 0.5%. S&P 500 index fell 0.2%. The Nasdaq composite managed a tiny 0.1% gain.
The Russell 2000 small-cap index fell 0.2% after briefly crossing the 50-day line.
More names like AMZN stocks offered buy signals. Leadership also continues to expand, with growth and energy doing well but the housing sector rebounding, a variety of industrial/construction/metals plays looking good and even travel shoring up.
On Thursday, U.S. crude prices rose 2.45% to $83.63 per barrel. Oil futures are up 23% over the last three months.
Copper futures fell by 5.6% in the last month, but only 0.3% on Friday.
The yield on the 10-year Treasury fell by 3 basis points, to 4.09%. This week, the 10-year yield has fallen 15 basis points.
The Treasury yields will be impacted by Friday's employment report and other economic indicators.
The Innovator IBD ETF (FFTY), which is a growth ETF, rose by 0.55%. The iShares Expanded Tech Software Sector ETF (IGV), a growth ETF, gained 0.8%. IGV is made up of Nutanix and IOT stock. VanEck Vectors Semiconductor ETF SMH advanced by 0.4%. SMH holds a large amount of AVGO.
ARK Innovation ETF climbed by 0.5%, while ARK Genomics ETF remained just above break-even. Tesla stock is No. Ark Invest ETFs have a top-ranking holding in Tesla stock. SHOP is also a top-10 holding.
Global Jets (JETS) fell 0.3%. SPDR S&P homebuilders ETF XHB grew by 0.3%. Energy Select SPDR ETF XLE grew by 0.1%, while the Health Care Select Sector SPDR Fund XLV fell 1.2%.
The Industrial Select Sector SPDR Fund XLI has declined by 0.45%.
The Financial Select SPDR ETF XLF (XLF) fell by 0.4%. The SPDR S&P Regional Banking ETF KRE rose by 0.5%.
Tesla Model 3 Upgrade?
Local media reported that Tesla will be selling its Model 3 in China this Friday. Shanghai's plant has apparently been slowly ramping up production of the "Highland Model 3" over the last few weeks. Dealers also took reservations over the last few weeks.
The leaked photos of the Model 3 suggest that the exterior changes are minimal.
The big question is if Tesla will maintain Model 3 prices or cut them in order to increase demand. According to reports, the upgraded EV has lower production costs. This gives Tesla more room to increase sales or margins with its pricing.
Tesla China is likely to start exporting its new Model 3 in Europe and other important markets later this year. The new Model 3 will not be produced in the U.S. until Tesla's Fremont factory begins production.
Tesla is reportedly increasing its North America inventory discount on the Model 3 & Model Y as margin pressure continues. Federal prosecutors are also reportedly investigating Tesla for misusing funds and inflating the battery ranges. Investors didn't seem concerned about these issues for the time being.
Tesla's stock rose by 0.5% on Thursday to 258.08, continuing to remain above the 50-day moving average after Tuesday's huge surge. Investors can use the high of Thursday, 261.18, as an entry point. According to MarketSmith's analysis, the EV giant is at a official buy point of 299.29.
China EV Sales
Li Auto, Nio, and XPeng report August deliveries on Friday morning.
Li Auto is likely to report a delivery number of comfortably over 30,000, despite the fact that production capacity is limited. Li announced an insurance subsidy Wednesday, marking the first time that it has joined China's price wars for EVs. Li's stock fell 0.8%, to 41.65. It held the 21-day line.
The EV startup Nio has given a subdued sales forecast for August to September earlier this week. Nio's stock dropped 3.75% between its 50-day line and 200-day line on Thursday.
XPeng's deliveries will likely surpass 10,000 once again as production of the new G6 crossover picks up. XPEV shares fell 5.8% as they consolidate after recent big moves.
BYD could release its August sales on Friday or Saturday. The Chinese EV and Battery giant is yet to announce August sales. Exports are increasing. BYD's stock fell 0.3% Thursday, a modest drop below the 50-day line. After a major sell-off at the beginning of this month, shares have increased by 9.2% in this week.
What to Do Now
Stock market rallies paused on Thursday, but continue to perform well. The major indexes had a great week and held on to the gains made Tuesday. Many stocks offer buying opportunities.
Investors can gradually increase their exposure to the market as long as it continues to perform well. It doesn't take much time to become fully or significantly invested if you add 5%, 10% per day.
Keep your watchlists updated to ensure you are prepared. You can get the best stocks by doing extra work now.
The reaction of Friday to the August employment report is important.
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