Overnight, Dow Jones futures, S&P 500 futures, and Nasdaq futures remained relatively unchanged. The September jobs report is expected to be released today. Aehr Test Systems reported their earnings late. Exxon Mobil is reportedly close to finalizing a large takeover deal.
The stock market experienced a slight rebound from earlier losses. The 10-year Treasury yield decreased slightly, while crude oil prices continued to decline.
The stock market is still in a correction phase. Although there have been attempts at a rally, there has been no confirmation of an uptrend. It is crucial to monitor stocks with strong relative strength lines that indicate strong performance compared to the S&P 500.
Stocks such as Nvidia, Tesla, Meta Platforms, Arista Networks, Qualys, Eli Lilly, and Vertex Pharmaceuticals are currently holding or regaining key levels with strong RS lines. However, these stocks are not currently actionable.
Nvidia, Arista Networks, and Meta Platforms are already on IBD Leaderboard, while Tesla is on the Leaderboard watchlist. Tesla is also on SwingTrader. Meta stock, Nvidia, Qualys, Arista Networks, Tesla, and Eli Lilly are on the IBD 50. Nvidia, Tesla, and ANET stock are on the IBD Big Cap 20.
Exxon Mobil is reportedly close to acquiring Pioneer Natural Resources for approximately $60 billion.
The September jobs report, set to be released at 8:30 a.m. ET, is expected to show an increase in nonfarm payrolls by 160,000, a decrease in the jobless rate to 3.7%, and a 0.3% increase in average hourly earnings compared to August. The report is expected to be modest but still solid. The Federal Reserve would prefer to see more weakness in the job market. Recent jobs data has been mixed but generally positive. However, there are indications that job growth may slow down as the year comes to an end.
Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures experienced minimal changes.
The Aehr Test Systems stock plunged after reporting their fiscal Q1 results. Although they slightly exceeded expectations, they did not raise their full-year guidance. The company manufactures test gear for silicon carbide chips used in electric vehicles.
The stock market rally attempt saw major indexes recover from significant intraday losses but still closed slightly down. The Dow Jones Industrial Average remained virtually flat, while the S&P 500 and Nasdaq composite fell slightly. The small-cap Russell 2000 saw a slight increase.
The Nasdaq and S&P 500 experienced an inside day compared to Wednesday's inside day.
The Nasdaq has been in a market rally attempt for seven days, indicating that a follow-through day could occur at any time. The S&P 500 and Dow Jones are only on their second day of a rally attempt after falling below late September lows earlier this week.
Crude oil prices dropped by 2.3% to $82.31 per barrel, extending a recent decline due to concerns about demand. Gasoline futures also decreased by 0.4% after reaching a low for 2023 on Wednesday. Copper fell by 1% to an 11-month low.
The 10-year Treasury yield decreased by 2 basis points to 4.715%, marking a nearly 9 basis point decrease in the past two days.
Among growth ETFs, the Innovator IBD 50 ETF rose by 0.7%, while the iShares Expanded Tech-Software Sector ETF decreased by 0.1%. The VanEck Vectors Semiconductor ETF remained unchanged. Nvidia stock is the top holding in the Semiconductor ETF.
The ARK Innovation ETF was slightly above break-even, while the ARK Genomics ETF increased by 1.1%. Tesla stock is the top holding in Ark Invest's ETFs, despite Cathie Wood's ongoing sale of TSLA shares.
Other ETFs, such as SPDR S&P Metals & Mining ETF, U.S. Global Jets ETF, SPDR S&P Homebuilders ETF, Energy Select SPDR ETF, and Industrial Select Sector SPDR Fund, experienced slight decreases.
The Health Care Select Sector SPDR Fund increased by 0.55%. Eli Lilly stock and Vertex Pharmaceuticals are members of the Health Care Select Sector SPDR Fund.
Nvidia stock rose by 1.5% to $446.88, just below the 50-day line but above the 10-week line. The stock has seen light volume during its rebound, similar to the overall light volume during September's decline. A strong move above the 50-day line could provide an early entry point for Nvidia stock. At the end of the week, the stock will have a new base with a $502.66 buy point.
Tesla stock remained relatively stable, decreasing by 0.45% to $259.98. The stock showed a strong buy signal on Wednesday, surpassing the 50-day line with higher volume. It is currently near another early entry point from a downtrend in the handle. The official buy point for Tesla stock is $278.98 from a cup-with-handle base.
Meta stock decreased by 0.3% to $304.79 after testing the 50-day line once again. The stock has been trading tightly around the 50-day line for several weeks and now has a small handle on its cup base, providing a new official buy point of $310.94. Investors may prefer to wait for Meta to clear $312.87.
ANET stock tested its 50-day line but reversed and closed higher at $188.03, increasing by 1.1%. However, volume remained light. Arista stock is expected to form a flat base after Friday, with a buy point of $198.70. Investors could use Monday's high of $189.90 as an early entry point. The RS line for ANET stock is currently at record highs.
QLYS stock increased by 2 cents to $154.78. The stock has a buy point of $157.88 from a de facto flat base near the top of a large consolidation. Shares have rallied this week from their 10-week line. Qualys stock is currently attempting to clear resistance just above $155.
Eli Lilly stock rose by 1.9% to $541.48, regaining the 50-day line but with light volume. The stock fell below the 50-day line on Tuesday with heavy volume. Investors could consider a decisive move above the 50-day line or potentially the 21-day line as a buying opportunity. The RS line for Eli Lilly stock has fallen slightly in recent weeks but remains near its highs.
VRTX stock increased by 0.6% to $355.14 on Thursday after bouncing back above the 50-day line on Wednesday. The biotech giant has a flat-base buy point of $367. Investors could use $358.59 or a downward-sloping trendline as an early entry point. The RS line for Vertex stock is currently at consolidation highs, not far from its longer-term highs.
Currently, investors should remain mostly or entirely in cash until the market shows real strength. Although a follow-through day may occur soon, it would not take much for the indexes to decline again. Investors should exercise "patient attention" at this time.
It is important to stay engaged and work on watchlists. Some stocks may be close to being ready for action, while others may require some repair work despite having decent relative strength.
Reading The Big Picture daily can help investors stay informed about market direction, leading stocks, and sectors.