Dow Jones futures rose slightly early Friday, along with S&P 500 futures and Nasdaq futures. The September jobs report is on tap. Late Thursday, dockworkers and employers reached a tentative wage deal, ending the East Coast port strike.
The stock market rally saw slim-to-modest losses, with the Nasdaq almost breaking even. The major indexes held key levels. Crude oil spiked as President Joe Biden said he was “discussing” Israeli strikes on Iranian oil facilities.
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Nvidia (NVDA) bounced after CEO Jensen Huang cited “insane” demand for its upcoming Blackwell AI chips. Nvidia chipmaker Taiwan Semiconductor (TSM) rose in a buy zone.
Tesla (TSLA) extended losses, but may be carving a new handle ahead of next week’s robotaxi event. Thursday night, a cheaper Cybertruck went on sale.
Nvidia stock is on IBD Leaderboard, SwingTrader and the IBD 50.
Dow Jones futures were 0.15% above fair value. S&P 500 futures rose 0.3%. Nasdaq 100 futures climbed 0.35%.
Crude oil rose more than 1% to nearly $75 a barrel, extending huge weekly gains.
The 10-year Treasury yield edged to 3.86%.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
U.S. dockworkers will return to work Friday, ending a three-day strike that shut down ports from Texas to Maine. Port employers offered a 62% wage increase over six years, The Wall Street Journal reported, up from a prior proposal for a 50% pay hike.
The East Coast ports and longshoremen extended their current deal, which had expired, through Jan. 15, 2025. That’ll give both sides time to discuss other issues, including automation.
The quick end to the strike should mean limited disruption to the U.S. economy.
ZIM Integrated Shipping (ZIM), a container shipping firm, sold off. ZIM stock had jumped heading into the strike, but had pulled back sharply in the recent days.
The Labor Department will release the September jobs report at 8:30 a.m. ET. Economists expect nonfarm payrolls to rise by 132,500, down from August’s 142,500. The jobless rate should hold at 4.2% while average hourly earnings climb 3.7% vs. a year earlier, down a tick from August.
A solid jobs report would bolster confidence in a soft landing but would also suggest a slower pace of Fed rate cuts.
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The stock market rally had another quiet session, holding within recent ranges amid Mideast fears and ahead of the jobs report.
The Dow Jones Industrial Average fell 0.2% in Thursday’s stock market trading, closing above the 42,000 level. The S&P 500 index also declined 0.2%. Both are above their 21-day lines and near record highs. The Nasdaq composite lost a fraction, still above the 21-day but below the 18,000 level. Nvidia, along with Taiwan Semi and some other AI hardware and software plays, once again provided support.
The small-cap Russell 2000 fell 0.7%, dropping below the 21-day and nearing its 50-day.
A number of restaurants are setting up, including Cava (CAVA). Defense device and systems makers have had a strong week. So have oil producers, utilities and other energy plays.
U.S. crude oil prices leapt 5.15% to $73.71 a barrel on Mideast tensions.
The 10-year Treasury yield climbed nearly 7 basis points to 3.85%, a one-month high.
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) edged up 0.1%. The VanEck Vectors Semiconductor ETF (SMH) advanced 0.9%. Nvidia is the top holding in SMH, with Taiwan Semiconductor stock also a key member.
ARK Innovation ETF (ARKK) slipped 1.1% and ARK Genomics ETF (ARKG) fell 1.8%. Tesla stock is still a big holding across Ark Invest’s ETFs. Cathie Wood also has built up a sizable Nvidia stock stake.
SPDR S&P Metals & Mining ETF (XME) declined 0.9%. SPDR S&P Homebuilders ETF (XHB) dropped 0.3%. The Energy Select SPDR ETF (XLE) bounced 1.8%.
The Industrial Select Sector SPDR Fund (XLI) and the Financial Select SPDR ETF (XLF) fell 0.5%.
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Nvidia stock popped 3.3% to 122.83, extending Wednesday’s bounce from the 50-day. Investors could use the Sept. 26 high of 127.67 as a trendline entry or handle buy point. The Aug. 26 high of 131.26 also could serve as a buy point.
NVDA stock rose Thursday after CEO Jensen Huang told CNBC late Wednesday that “Blackwell is in full production, and demand for Blackwell is insane and on schedule. Everyone wants to be the first to get their hands on it.”
Taiwan Semiconductor stock climbed 2.1% to 179.48, rising in a buy zone. On Wednesday, TSM stock just reclaimed the 175.45 cup-with-handle entry, according to MarketSurge analysis. The Nvidia chipmaker broke out strongly last week, but then tumbled back in the prior three sessions. Taiwan Semi will report Q3 sales next week and Q3 earnings the following week.
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Tesla stock fell 3.35% to 240.67, slightly below the 21-day line. TSLA stock may be working on a handle, which could give it a lower buy point of 264.86. The recent retreat also is letting moving averages catch up.
The Oct. 10 robotaxi event and Q3 earnings on Oct. 23 will likely have a big impact on the share price.
Shares sank 3.5% Wednesday after Tesla deliveries largely were in line for Q3, but below some whisper numbers.
Chief Information Officer Nagesh Saldi is leaving Tesla, just ahead of the robotaxi event, Bloomberg reported Thursday, citing sources. Saldi led the rollout of data centers for Tesla’s AI ambitions.
Tesla shares rose slightly early Friday.
As of Thursday night, Tesla opened non-Foundation Series Cybertrucks to order. The dual-motor Cybertruck is now available for $79,990, down from $100,000 for the Foundation Series variant, which did come with Full Self-Driving. The tri-motor Cyberbeast will start at $99,990. The dual-motor version will be eligible for the $7,500 tax credit.
Tesla may be aiming to ramp up production.
With the major indexes rangebound, either at highs or in the upper half of recent consolidations, a number of leading stocks are forging handles or pullbacks.
That could lead to a number of buying opportunities in the near future, so you want to have your watchlists fresh. But the market rally will need to break out of its recent pause.
On the flip side, it wouldn’t take much for small caps and the Nasdaq to break below key levels, damaging many leading stocks. So don’t jump the gun and be ready to scale out somewhat.
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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