Dow Jones Futures: Powell Speech In Focus; Nvidia Leads AI Stocks Near Buy Points

Dow Jones futures were small changed Monday morning, on with S&P 500 futures and Nasdaq futures. Federal Reserve main Jerome Powell's yearly Jackson Hole code looms large.

Palo Alto Networks (PANW), Cava Group (CAVA) and TJX Cos. (TJX) are cardinal net connected pat with the stocks astir bargain areas.

↑ X NOW PLAYING Can This Cybersecurity Stock Benefit From CrowdStrike Debacle? Upcoming Earnings May Tell.

The banal marketplace rally had its champion week of 2024, buoyed by affirmative ostentation and economical data. The large indexes staged a follow-through day connected Tuesday with a consequent FTD connected Thursday.

Nvidia (NVDA) made a immense determination past week, offering an aboriginal entry. Meta Platforms (META) and Arista Networks (ANET), besides AI plays, person forged caller bases and are adjacent to bargain points.

Meanwhile, Tesla (TSLA) had a beardown determination successful the latest week, regaining cardinal levels. But its illustration has flaws.

Nvidia banal is connected Leaderboard, with Cava connected the Leaderboard watchlist. Cava banal is connected SwingTrader. Nvidia and Arista banal are connected the IBD 50.

Dow Jones Futures Today

Dow Jones futures were dependable vs. just value. S&P 500 futures and Nasdaq 100 futures roseate a fraction.

The 10-year Treasury output fell to 3.86%. Crude lipid futures fell little than 1%.

Remember that overnight enactment successful Dow futures and elsewhere doesn't needfully construe into existent trading successful the adjacent regular stock market session.

AMD Buys Server Maker ZT Systems

Early Monday, Advanced Micro Devices (AMD) said it would bargain server shaper ZT Systems for $4.9 cardinal to grow its information halfway AI capabilities. AMD banal roseate modestly earlier the open. Nvidia banal turned fractionally higher portion AI server shaper Super Micro Computer (SMCI) fell slightly.

Fed Chief Powell At Jackson Hole

Federal Reserve main Jerome Powell volition talk connected 10 a.m. ET Friday astatine the Kansas City Fed's Jackson Hole Economic Policy Symposium. The keynote code volition screen the economical outlook.

Powell is apt to springiness signals that the cardinal slope is poised to statesman Fed complaint cuts successful a gradual way. With caller economical information erstwhile again favoring a brushed landing scenario, markets are pricing successful a quarter-point complaint chopped connected Sept. 18, with 75-100 ground points for the afloat year.

If Powell surprises and hints that Fed complaint cuts are not a done deal, the marketplace absorption could beryllium significant.

Join IBD experts arsenic they analyse starring stocks and the marketplace connected IBD Live

Stock Market Rally

The banal marketplace rally continued its comeback from the Aug. 5 lows, with the Dow, S&P 500 and Nasdaq each boasting their champion play gains of 2024.

The Dow Jones Industrial Average gained 2.9% successful past week's stock marketplace trading. The S&P 500 scale leapt 3.9%. The Nasdaq composite soared 5.3%. The small-cap Russell 2000 popped 2.9%.

All these indexes are supra their 50-day moving averages.

A marketplace intermission wouldn't beryllium a surprise. After beardown gains from the Aug. 5 low, a intermission oregon pullback would beryllium mean from a method standpoint. On the quality front, markets whitethorn beryllium hesitant up of Fed main Powell's Jackson Hole speech. Nvidia net volition soon follow.

A intermission successful the indexes besides would fto galore stocks capable retired bases and forge handles.

The 10-year Treasury output fell 5 ground points to 3.89%, portion the two-year output climbed 10 ground points to 4.06%. Recession fears person eased, reducing assertive Fed rate-cut bets, but cooling ostentation is continuing the wide downtrend successful semipermanent Treasury yields.

U.S. crude lipid futures fell 19 cents to $76.65 a tube past week.

ETFs

Among maturation ETFs, the Innovator IBD 50 ETF (FFTY) roseate 2.4% past week. The iShares Expanded Tech-Software Sector ETF (IGV) popped 3.7%. The VanEck Vectors Semiconductor ETF (SMH) sprinted 9.7%. Nvidia banal is the No. 1 holding successful SMH.

Reflecting more-speculative communicative stocks, ARK Innovation ETF (ARKK) jumped 6.3% past week and ARK Genomics ETF (ARKG) rebounded 7.1%. Tesla banal is simply a important holding crossed Ark Invest's ETFs, but Meta banal is an even-bigger holding. Cathie Wood besides has built up a important Nvidia stake.

SPDR S&P Metals & Mining ETF (XME) and the SPDR S&P Homebuilders ETF (XHB) precocious 2%. The Energy Select SPDR ETF (XLE) gained 1.2% and the Health Care Select Sector SPDR Fund (XLV) was up 1.9%. The Industrial Select Sector SPDR Fund (XLI) rebounded 2.2%. The Financial Select SPDR ETF (XLF) rallied 3.2%.

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Palo Alto Earnings

Palo Alto net are owed Monday night. EPS is seen falling 2%, with gross maturation slowing for a 4th consecutive quarter.

PANW roseate 0.8% to 334.11 past week, pulling backmost somewhat Friday. That followed the anterior week's 8.5% summation successful an upside reverse. Palo Alto banal has a 380.84 buy point, but investors could usage the June 28 precocious of 345.90 arsenic an aboriginal entry.

Palo Alto's net and guidance volition cardinal for different cybersecurity plays, with Fortinet (FTNT) and CyberArk Software (CYBR) adjacent bargain points.

TJX Earnings

TJX net are acceptable for aboriginal Wednesday. The off-price retailer's EPS and income maturation are acceptable to dilatory for a 2nd consecutive quarter. TJX banal has a caller flat base with a 115.34 bargain point, edging up 0.7% to 111.45 past week. A beardown determination disconnected the 50-day enactment would connection an aboriginal entry.

TJX net and guidance volition beryllium important for discount retailers, including adjacent Ross Stores (ROST), which reports Thursday night.

Cava Earnings

Cava net are owed Thursday night, with EPS seen tumbling vs. a twelvemonth earlier. Traffic and same-store income are key. CAVA banal jumped 9.6% past week to 98.96, aft the anterior week's large 11% upside reversal gain. The Mediterranean-themed eatery connected Friday cleared a abbreviated consolidation that was 1 time from being a cup base. Investors could inactive usage 98.69 arsenic a bargain point, though looming net rise the risks.

Nvidia Stock

Nvidia banal spiked 18.9% to 124.58, its champion play summation since May 2023. The AI spot person moved backmost supra a $3 trillion marketplace cap.

Shares reclaimed the 50-day enactment precocious successful the week, offering an aboriginal entry. NVDA banal has an authoritative bargain constituent of 136.15 oregon 140.76. Keep successful caput that Nvidia net are owed connected Aug. 28.

Nvidia banal is the No. 1 performer successful the S&P 500 scale this year, up 152%.

Meta Stock

Meta banal gained 1.9% to 527.42, adjacent the July 8 grounds high. The Facebook and Instagram genitor present has a cupful basal with a 542.81 bargain point, according to MarketSurge analysis. Shares had already flashed immoderate aboriginal entries recently.

Meta banal is up 49% successful 2024, besides a starring S&P 500 banal this year.

Arista Stock

Arista banal leapt 5.4% to 353.89, rising from the 50-day line, though connected airy volume. The networking elephantine was the archetypal notable AI hardware play to regain its 50-day aft the market's aboriginal August sell-off. ANET banal present has consolidation with a 376.50 bargain point. Investors could usage a trendline arsenic an aboriginal entry, utilizing Thursday's precocious of 358.68 arsenic a circumstantial trigger.

Arista banal is up 50% this year.

Tesla Stock

Tesla banal surged 8.1% to 216.12 past week, regaining the 21-day, 50-day and 200-day lines and clearing a steep downtrend. Investors could person utilized that arsenic an aboriginal entry, but mostly due to the fact that this is TSLA stock. The EV elephantine could surely spell connected different run, but galore different stocks person better-looking charts and stronger fundamentals close now.

What To Do Now

The banal marketplace rally has made a large comeback and offered a fig of buying opportunities successful the past week. Investors should beryllium taking advantage, adding vulnerability gradually arsenic agelong arsenic the marketplace continues to enactment well.

The marketplace whitethorn beryllium "due" for a intermission oregon pullback, particularly with Fed main Jerome Powell connected the horizon, truthful you don't privation to abruptly leap from lightly to afloat invested.

Take the play to physique up your watchlists and determination are batch of stocks to watch.

While maturation stocks specified arsenic Nvidia and Meta are shaping up again, antiaircraft maturation and adjacent accepted antiaircraft plays are inactive acting well. Beyond chips and software, medicals broadly, aerospace, banks, insurers and golden stocks are each showing strength.

Read The Big Picture every time to enactment successful sync with the marketplace absorption and starring stocks and sectors.

Please travel Ed Carson connected Threads astatine @edcarson1971 and X/Twitter astatine @IBD_ECarson for banal marketplace updates and more.

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