Dow Jones futures changed slightly overnight, along with S&P 500 futures and Nasdaq futures. The stock market rise rose on Wednesday, but in lower volume than the previous session. The major indices fall during the week and fall sharply in April.
FTNT stock, Marriott International (MAR), Raymond James Financial (RJF), Merck (MRK) and Ulta beauty (ULTA) are five non-commodity plays to watch. Fortinet (FTNT), Marriott and RJF stocks are working on handles, just around aggressive entrances. Merck stock could form a handle while ULTA stock broke out past a buy point.
Among megacaps, Apple (AAPL) and Tesla shares are trying to rise within handles.
UnitedHealth (UNH) reports before opening, and starts health insurance earnings. The UNH share has been slightly expanded from a buying zone along with the rival Anthem (ANTM). Hundreds (CNC) and Molina Health (MOH) is in purchase zones.
Goldman Sachs (GS), Wells Fargo (WFC) and Citigroup (C) report early Thursday. All three were slightly changed the Wednesday after JPMorgan Chase (JPM) reported mixed results for Q1.
Tesla (TSLA) and ANTM shares are on the IBD Leaderboard. FTNT shares are on IBD Long-Term Leaders. Tesla and Fortinet shares are at IBD 50. Raymond James Financial was Wednesday’s IBD Stock Of The Day and added to SwingTrader.
The video embedded in this article discussed Wednesday’s market rally and analyzed Lululemon Athletica (LULU), Raymond James and MAR shares.
Join IBD experts as they analyze powerful stocks in the stock market rally on IBD Live
Dow Jones Futures today
Dow Jones futures were flat relative to fair value. The S&P 500 futures and Nasdaq 100 futures fell lower.
Keep in mind that overnight trading in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Stock market rally
The stock market rally started Wednesday slightly changed, but was steadily improving through the session.
The Dow Jones Industrial Average rose 1% in Wednesday’s stock market trading. The S&P 500 index rose 1.1 per cent. Nasdaq composition rose 2 percent. Small-cap Russell 2000 jumped 1.9%.
The producer price index showed that wholesale inflation rose 11.2% in March compared to a year earlier, a new record. It follows Tuesday’s report, which shows that consumer inflation hits a 40-year high of 8.5%.
But the 10-year government interest rate fell for the second day in a row, down 4 basis points to 2.69%.
US crude oil prices rose 3.6% to $ 104.25 per barrel. barrel.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 2.4%, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 1.4%. iShares Expanded Tech-Software Sector ETF (IGV) rose 2.2 percent. VanEck Vectors Semiconductor ETF (SMH) rose 2.4%.
The SPDR S&P Metals & Mining ETF (XME) rose 4.5% and the Global X US Infrastructure Development ETF (PAVE) rose 1.8%.
US Global Jets ETF (JETS) rose 5.3 percent. Airlines and other travel stocks continued to rise Delta Air Lines (DAL) earnings results and guidance. DAL stock and American Airlines (AAL) moved back over their 200-day lines.
SPDR S&P Homebuilders ETF (XHB) rose 1.7 percent. Energy Select SPDR ETF (XLE) rose 1.5% and Financial Select SPDR ETF (XLF) was flat. Health Care Select Sector SPDR Fund (XLV) rose 0.5 pct. UNH shares and Merck are large XLV holdings.
As an expression of more speculative history stocks, the ARK Innovation ETF (ARKK) rose by 3.2% and the ARK Genomics ETF (ARKG) by 2.6%. The Tesla stock is number 1 across Ark Invest’s ETFs.
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Shares to see
FTNT shares rose 3.3% to 340.86, returning from a 21-day moving average. The cybersecurity firm has a buying point of 353.08. On Wednesday, stocks came all the way up to a short downward trend line in the handle. Moving over it would provide an early access. The Fortinet stock has had wild movements in its consolidation, but has traded close in the past few weeks. While growth stocks have struggled, cybersecurity is an area that has fared reasonably well. Palo Alto Networks (PANW) and Qualys (QLYS) breaks out and private equity continues to acquire various players.
The MAR stock rose 7.5% to 175.54 in volume above average, rising back above its 50-day line as travel shares rose on Delta earnings. Marriott stocks and a few other hotel games made bullish moves in late March, but then fell sharply. MAR shares now have a buy point of 179.40 cup-with-handle. Equities have already broken the downward trend in the handle, offering an early entry.
The RJF stock rose 3.2% to 111.64, returning from its 50-day line and breaking a downward trend in its handle, offering an early entry. Raymond James has an official cup-with-handle buy point of 114.10 according to MarketSmith analysis.
The MRK stock rose 0.6% to 86.13 after two fall sessions. Monday’s downward turn ended a steady rise from the end of February for the Dow Jones component. The Merck stock has a cup bottom with a buy point of 91.50, but appears to be working on a handle.
The ULTA stock rose 2.4% to 415.50, closing above a buy point of 408.83 cup-with-handles after trying to break out in the previous two sessions. The relative strength line has risen sharply this month and has hit 52-week highs in recent sessions.
Apple, Tesla Stock
Apple stock rose 1.6% to 170.40, returning from its 50-day line and reaching around its 21-day line. The iPhone giant has a buying point of 179.71. The AAPL stock will probably break a downward trend in that handle, but investors may want to see a little more strength.
Tesla stock rose 3.6% to 1,022.37, moving above its 21-day line. Shares are trading at a buy point of 1,152.97 cup-with-handles. With 10.7% above its 50-day line, this is not an attractive early entry for TSLA shares. Highly valued growth stocks had a strong jump on Wednesday, but are still struggling overall. Meanwhile, Tesla Shanghai has been closed since March 28 due to Covid restrictions and may be on hold for several weeks.
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Analysis of market rally
The stock market rally returned Wednesday, offsetting weekly losses. The Dow Jones and S&P 500 index regained their 50-day lines, but are below their 200-day average.
Nasdaq and Russell 2000 are still below their 50-day limits, although the small-cap index is approaching.
Even with their 2% gains, Nasdaq and Russell had 2000 indoor days compared to Tuesday’s interval. Meanwhile, volume on the NYSE and Nasdaq fell relative to Tuesday after two days of distribution in a row.
Growth stocks had a strong session, but with a few exceptions such as FTNT stocks, Apple and Tesla, they generally struggle with damaged charts.
Even more than with the major indices, growth stocks must show sustained gains before investors get excited.
The commodities sector remains strong along with defense stocks and drugs such as UnitedHealth and MRK stocks. Travel games are trying to regain momentum and MAR stocks are flashing early.
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What should I do now
Once the major indices have a solid gain, even if these features do not change the charts, investors will start speculating on possible gains. But a strong day in a bad or choppy market is neither surprising nor particularly encouraging.
Market growth is still under pressure.
Investors should have at most modest overall exposure, largely or entirely focused on commodity, medical and defense stocks. Apart from these strong sectors, there is very little broad strength.
If you go beyond these areas, keep your positions very small, and certainly do not become too concentrated in these areas.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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