Dow Jones futures fell modestly late Wednesday, along with S&P 500 futures and Nasdaq futures. The coronavirus stock market rally rebounded Wednesday, with crude oil prices rising and the Nasdaq retaking key levels.
XApple stock, AMD stock, Tesla stock, Microsoft stock and Intel stock are all near buy points or about to have new entries. But Apple (AAPL), Advanced Micro Devices (AMD), Tesla (TSLA), Microsoft (MSFT) and Intel (INTC) all have earnings on tap. Buying a stock just before earnings can be highly risky, with coronavirus shutdowns adding to uncertainty.
Meanwhile, Domino's Pizza (DPZ), Eli Lilly (LLY) and Citrix Systems (CTXS) all report earnings early Thursday. Domino's stock, LLY stock and CTXS stock are all slightly extended from recent breakouts.
AMD stock, Microsoft stock and Domino's stock are all on IBD Leaderboard. MSFT stock and Domino's stock are on IBD Long-Term Leaders list. Microsoft stock and AMD stock also are on the IBD 50. Apple stock has been added to SwingTrader.
Dow Jones Futures Today
Dow Jones futures sank 0.5% vs. fair value. S&P 500 futures fell 0.5%. Nasdaq 100 futures retreated 0.75%. After a couple weeks of modest overnight action, Dow Jones futures have shown bigger moves this week. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Coronavirus News
Coronavirus cases worldwide are at least 2.63 million. Covid-19 deaths are above 184,000.
Coronavirus cases in the U.S. are above 848,000. Covid-19 deaths have topped 47,000.
A growing number of U.S. states and European nations are starting to gradually ease coronavirus shutdowns. Can they reopen the economy without sparking a big wave of new infections? And even if businesses reopen, will consumers hit the malls or buy cars in anything approaching pre-coronavirus levels?
President Donald Trump, who has repeatedly signaled he wants to reopen the economy as soon as possible, said Wednesday night that "it's just too soon" for Georgia to be reopening businesses. He said he "strongly" disagrees with Gov. Brian Kemp's plan to reopen businesses such as bars, spas, beauty parlors and tattoo shops and bowling alleys. Kemp said he's going forward with easing coronavirus business closures.
The House is expected to pass a $484 billion coronavirus stimulus bill with more funding for small business loans and aid for hospitals. The Senate OK'd the measure late Tuesday.
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Coronavirus Stock Market Rally
The coronavirus stock market rally showed resilience Thursday, helped by crude oil prices rising after crashing the prior two days. U.S. crude oil futures rose 19% to $13.78 per barrel.
The Dow Jones Industrial Average rose 2%, the S&P 500 index 2.3% and the Nasdaq composite 2.8%. The Nasdaq reclaimed its 21-day, 50-day and 200-day moving averages after undercutting those levels on Wednesday. The S&P 500 index is making another move toward its 50-day line after a brief trip over that line. The S&P 500 did reclaim its 10-week line. The Dow Jones is nearing its 50-day again.
Apple rose 2.75%, Microsoft stock 3.4% and Intel stock 6.6%. All three tech giants are on the Dow Jones, S&P 500 and Nasdaq composite.
Among the best ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) climbed 3.4%, with Microsoft stock the biggest weight. The VanEck Vectors Semiconductor ETF (SMH) jumped 5.7%. Intel stock, AMD stock and Nvidia (NVDA), a rival to both, are all notable components. Both the IGV and SMH ETFs bounced back above their 50-day and 200-day lines.
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Apple Stock
Apple stock rose 2.75% to 275.76, retaking its 50-day line. AAPL stock now has a 288.35 cup-with-handle buy point, according to MarketSmith analysis. That handle is just above the midpoint of the base, so there could be overhead resistance. Apple earnings are due April 30.
If Apple stock broke out before then, that would give little time to build up a cushion ahead of earnings. Investors could choose to wait to buy Apple stock on a post-earnings gap-up. Or you could use IBD's earnings options strategy to capture most of the earnings gain while limiting the downside risk.
Tesla Stock
Tesla stock popped 6.6% to 732.11 on Wednesday. TSLA stock is working on a handle on a very deep V-shaped cup base. Assuming TSLA stock stays in its current range through Thursday, it'll have a handle with a 775.05 buy point. Tesla earnings are due April 29. Tesla stock investors will want to get some clarity on future production and demand. That may be hard to come by. Tesla's Shanghai plant is operating, serving solid demand in China. But the Tesla plant in Fremont, California, is shut down indefinitely for the coronavirus crisis. Future demand in the U.S. and Europe may be hard to gauge even when output resumes.
AMD Stock
AMD stock sold off sharply on Tuesday, rebounding 5.7% to 55.92 on Wednesday. It could be starting to form a handle near the top of its cup base. For now, the AMD stock buy point is 59.37. AMD earnings are due April 28.
Meanwhile, AMD rival Nvidia's stock jumped 6.2% to 286.15 on Wednesday, retaking a 275.50 buy point. Nvidia stock could be forming a new handle that would provide an alternate entry. While Nvidia earnings aren't on tap in the near future, AMD earnings will likely move NVDA stock.
Microsoft Stock
Microsoft stock climbed 3.4% to 173.52 after a 4.1% loss Tuesday. MSFT stock moved back above a 170.10 early entry, but is still below a 175.10 double-bottom buy point. Investors might want to wait for MSFT stock to move above its short-term high of 180. That could become a handle after Thursday.
Microsoft earnings are due April 29.
Intel Stock
Intel earnings are on tap Thursday night, so get ready. On Wednesday, Intel stock rallied 6.6% to 60.10, ending a three-day slide. INTC stock cleared a 61.59 cup-with-handle buy point on Friday, but failed to close above that level. Investors could treat the 61.59 entry as still valid, though they might wait to see Intel stock clear Friday's peak of 62.13.
A bigger concern for Intel stock is that it hasn't been a sector leader like AMD stock and Nvidia stock. Why buy INTC stock when NVDA stock is in buy range and AMD stock setting up? Still, Intel earnings and guidance will be important for the sector, including AMD and Nvidia. Intel's results and guidance also may move Microsoft.
Coronavirus Stock Market Rally Can Rally From Setbacks
Even in a bullish stock market trend, the major indexes won't rise every day, and there will be tests along the way. During the coronavirus stock market rally, there have several sessions with bad action for the major indexes and growth stocks. But so far, the bullish stock market trend has quickly resumed. Wednesday's rebound was a solid response to the selling in the prior two sessions.
Seeing growth stocks such as Nvidia reclaim buy points while AMD stock, Apple stock and others close in on buy points is a positive trend.
One common element for all the stocks mentioned here, from Domino's stock to Intel stock, Microsoft stock and Tesla stock, is that they all boast strong relative strength lines. The RS line tracks a stock's performance vs. the S&P 500 index.
Part of the art of growth investing is being nimble, reacting to daily events and moves, while also understanding longer-term stock market trends. That's one reason to look at daily and weekly charts, as well as monthly charts.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors. IBD Live analyzes stock market trends in depth as well.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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