Dow Jones futures fell modestly Thursday morning, along with S&P 500 futures and Nasdaq futures. The coronavirus stock market rally continued to broaden out and move higher on economic recovery hopes. The Dow Jones and S&P 500 led amid a shift to economic recovery plays, with Boeing surging. Meanwhile, the Nasdaq moved within 2% of its pre-coronavirus peak.
XSmartsheet (SMAR) and Cloudera (CLDR) reported better-than-expected results after the close. But Smartsheet stock and Cloudera stock tumbled overnight below buy points on weak guidance.
KLA Corp. (KLAC) Trade Desk (TTD) and Tesla (TSLA) rival Nio (NIO) cleared buy points during Wednesday's session.
The Nasdaq composite has led the coronavirus stock market rally, with gains concentrated among some big cap and megacap techs and medicals. The index was getting extended from the Dow and S&P 500. It wouldn't have been a shock to see the Nasdaq move sideways or pull back for a few weeks in a sector rotation toward "real economy" stocks in the Dow Jones and S&P 500. But while the Dow and S&P are outperforming, the Nasdaq keeps marching toward record highs.
Trade Desk stock is on SwingTrader. Tesla stock, which is in buy range, is on IBD Leaderboard. Both TTD stock and TSLA stock are volatile growth names that have rallied back from very deep bases.
Dow Jones Futures Today
Dow Jones futures fell 0.45% vs. fair value, off overnight lows. S&P 500 futures retreated 0.5%. Nasdaq 100 futures sank 0.4%. In the coronavirus stock market rally, Dow Jones futures have been less volatile than during the market crash, but are still prone to big overnight moves.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Dow futures will likely react to the latest jobless claims data at 8:30 a.m. ET, with economists predicting 1.79 million new claims for the week ended May 30. On Friday, the Labor Department will release the May employment report.
Coronavirus News
Coronavirus cases worldwide have topped 6.59 million. Covid-19 deaths are at least 388,000.
Coronavirus cases in the U.S. have reached 1.90 million, with deaths hitting 109,000.
Once again, Brazil surpassed the U.S. in terms of new coronavrius cases and deaths on Wednesday. The Latin American giant has over 583,000 cases with minimal testing.
Coronavirus Stock Market Rally
The coroanvirus stock market rally had another strong session, fueled by upbeat economic news. The ADP Employment Survey estimated that private employers cut payrolls by 2.76 million. But that's far below estimates for a loss of 8.66 million jobs and April's revised decline of 19.56 million. Along with some other economic data, the ADP report suggests that the U.S. economy is bottoming out.
Meanwhile, just before Wednesday's close, Bloomberg reported that Germany's government has reached a deal on a big stimulus package there.
The Dow Jones Industrial Average popped 2.05% to just below its 200-day moving average. The S&P 500 index rose 1.4%. Boeing stock spiked 13%, giving a lift to the Dow Jones and S&P 500.
The Nasdaq composite added 0.8%, now less than 2% off its all-time high.
Growth stocks lagged. Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.3%. The iShares Expanded Tech-Software Sector ETF (IGV) just edged higher. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.3%, even with KLA stock and other chip-gear names doing well.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
KLA Stock
KLA stock rose 4.9% to 186.05 on Wednesday, clearing resistance near 180 and its old high of 184.50. The relative strength line on KLA stock isn't quite at highs, but has trended higher over the past year. The RS line, the blue line in the charts provided, reflects a stock's performance vs. the S&P 500 index.
Trade Desk Stock
Trade Desk stock vaulted 11.5% to 354.98 on Wednesday, soaring past a 327.45 cup-with-handle buy point. TTD stock is now beyond the 5% chase zone. Trade Desk stock plunged 56% in the market crash on fears online advertising fears, but it's raced to record highs o economic recovery hopes.
Nio Stock
if Trade Desk stock isn't volatile enough, why not try Nio stock. Goldman Sachs upgraded the Chinese luxury electric vehicle maker, touting a strong cash position, improving sales trends, "quality" products and a path to profitability. Nio stock vaulted 19% to 5.60, clearing a 5.29 buy point. Intraday, shares hit a 52-week high.
Needless to say, a money-losing Chinese automaker amid a weak economy and increasing competition is a risky bet.
Early Thursday, Nio reported that it delivered 3,436 electric vehicles in May, up 215.5% vs. a year earlier. That's up modestly from 3,155 in April. But higher-margin ES8 vehicles jumped to 751 from April's 248.
Nio stock rose 5% before the open.
Tesla stock edged higher early Thursday after climbing 0.2% to 882.96 on Wednesday. TSLA stock is still in buy range from an 869.92 buy point from a 64%-deep cup-with-handle base.
Smartsheet Earnings
The business software maker lost 11 cents a share, beating views for a 19-cent loss. Revenue grew 52% to $85.5 million, also topping. But Smartsheet guidance for Q2 was light, as well as its full-year revenue target.
Smartsheet stock tumbled 19% to 48.05 in the premarket, signaling a move below recent buy points. SMAR stock had climbed 1.3% to 59.08 on Wednesday. Smartsheet stock in recent weeks cleared a 52.39 buy point from a double-bottom base, according to MarketSmith analysis. This week it cleared short-term resistance around 58.
Cloudera Earnings
Cloudera earnings came in at 5 cents a share vs. a 13-cent loss a year earlier. Revenue grew 12% to $210.3 million. Analysts expected Cloudera earnings of 1 cent a share on revenue of nearly $205 million.
But the software maker guided low on Q2 revenue.
Cloudera stock plunged 11% to 11 early Thursday, back below a 12.32 buy point. CLDR stock surged 10% to 12.40 in massive volume heading into earnings. But buying right before earnings is highly risky, especially with Cloudera stock running up into results.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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