Stock futures traded higher amid mixed global action Wednesday, as Bitcoin bounced and bond yields continued their two-week decline. China based names rallied atop the Nasdaq. Cruise lines jumped as the CDC opened a new travel window. And Boeing faced a key technical test on the Dow Jones today.
Nasdaq 100 futures led the early advance, rising 0.4% on the stock market today. Dow Jones futures gained 0.2%. S&P 500 futures traded 0.3% above fair value.
Agilent (A) jumped 2.5%, leading the S&P 500, as analysts raised price targets on the stock following a positive fiscal second-quarter report late Tuesday. The medical research equipment maker is in a buy range on a rebound from 10-week support. It is also working on the fifth week of a possible flat base pattern.
Dick’s Sporting Goods (DKS) rallied 6.6%, after turning in above-forecasts results for its first quarter. The advance, if it holds trhough the open, would place the IBD Leaderboard stock in a buy range on a rebound from support at its 10-week moving average.
Cruise lines traded high among S&P 500 stocks. Norwegian Cruise Line Holdings (NCLR) added steamed ahead 1.9%, Royal Caribbean (RCL) rose 1.5%, Carnival (CCL) added 1.2%. Royal Caribbean on Tuesday received approval from the Centers for Disease Prevention and Control for one of its ships to begin mock test voyages in June. Norwegian Cruise is an IBD SwingTrader stock.
China-based stocks dominated the Nasdaq 100 in premarket action. Mobile e-commerce platform provider Pinduoduo (PDD) rallied 3.6%, preparing to take another shot at breaking resistance at its 50-day moving average.
Online gaming leader NetEase (NTES) gained 2.2%, rising after announcing plans to spin off its Cloud Village music streaming service in an initial public offering on the Hong Kong Stock Exchange.
Dow Jones Today: Boeing Tests Resistance
The mood was positive on the Dow Jones today, with Boeing (BA) in the lead as more than half of the 30 industrials moved higher. Boeing stock clocked in with a 0.6% gain, boosted by a commercial jet order and an Air Force contract win on Tuesday.
A four-day advance has pressed Boeing shares against the underside of its 50-day moving average. A move above that line would also mean a move above resistance at a prior buy point around 244. Shares remain far below a cup base buy point at 278.67.
Ford, Nielsen Buy Points
Ford Motor (F) climbed 1.7%, ahead of an investors day event in which it is expected to outline an electric vehicle strategy to include two EV platforms, one for cars, one for trucks. Ford shares fell back below a 13.09 buy point in a double-bottom base after a strong-volume breakout on Friday.
Stocks To Watch: Cowen, Avery Dennison
IBD 50 List: 360 Digitech, CrowdStrike Rising
China-based 360 Digitech (QFIN) jumped 1.9%, aiming to add a ninth day to its rally ahead of its first-quarter results, due late Thursday. Shares are in a buy range, above a 28.61 buy point in a double-bottom base.
CrowdStrike Holdings (CRWD) added 1.6% in early trade, after snapping a five-day run up with a 0.7% slip on Tuesday. The stock is well below a 251.38 buy point in what IBD MarketSmith analysis charts as a 15-week consolidation. The pattern also offers aggressive investors an early entry at 227.30.
Vital Signs: Bitcoin, Oil, Copper, Bond Yields
Bitcoin continued to rebound, trading briefly back above $40,000 early Wednesday, according to Coindesk. The crytpocurrency had dropped below $32,000 on Sunday, narrowing its gain for the year to less than 10%. Bitcoin had run up to a record high above $64,800 on April 14.
Oil prices and copper prices, strong factors in the market’s recent volatility, held largely steady early Wednesday. West Texas Intermediate oil price futures dipped 0.3% but held well above $65 a barrel. WTI notched a 33-month high at $67.98 posted on March 8.
Copper futures gained 0.4% to $4.52 a pound. The metal had scaled up to a record peak for the first time in more than 10-years, rising above $4.78, in early May.
Bond yields eased, extending their two-week decline. The 10-year yield traded at 1.56% early Wednesday, narrowly below its settle at just above 1.56% on Tuesday, according to CBOE data. Yields had skirted pre-pandemic levels in late March, climbing to almost 1.76%, the highest mark since January 2020.
Dow Jones Today: May Closeout Specials
As May rolls towards a close, the Dow Jones today continues to lead the big benchmarks. The Dow had a 1.3% gain for the month at the end of Tuesday session, vs. a 0.2% increase for the S&P 500 and a 2.2% decline for the Nasdaq Composite.
Specialty chemicals maker Dow (DOW) continues to be the month’s hottest item among the Dow industrials, up 10.5% for the month through Tuesday. JPMorgan (JPM) and Goldman Sachs (GS) are up 5.2% and 4.6%, respectively. Dow and Goldman Sachs are currently SwingTrader stocks.
Dow is in a buy range above a 67.37 entry in a seven week flat base. Shares pulled back just below that buy point, then rebounded from a quick test of support at the 21-day exponential moving average.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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