Market Rally Revs Higher; 17 Leaders Flash Buy Signals

Dow Jones futures were little changed Thursday night, along with S&P 500 futures and Nasdaq futures, with Nike (NKE) and Costco earnings in focus. The stock market rally had another strong session, with the S&P 500 joining the Nasdaq in reclaiming key support while leading stocks showed strong action.


Another big batch of top stocks offered buying opportunities Thursday.

Atkore (ATKR), (CRM), Dell (DELL), Darden Restaurants (DRI), Accenture (ACN), Devon Energy (DVN), Square (SQ), Denbury (DEN), O’Reilly Auto (ORLY), Moderna (MRNA), MGM Resorts (MGM), Bank of America (BAC), Advanced Micro Devices (AMD), Idexx Labs (IDXX), SVB Financial (SIVB), Microsoft (MSFT) and Google parent Alphabet (GOOGL) were all actionable, following several others on Wednesday.

CRM stock, Dell, Darden Restaurants, Devon Energy, Denbury, O’Reilly, MGM and SVB Financial were breakouts or reclaiming traditional buy points. AMD stock, Bank of America, Square, Atkore, Moderna and Idexx Labs were early entries, from rebounds above the 50-day/10-week or trend line breaks — or both. Accenture, Microsoft and Google stock are rebounding from first tests of their 10-week lines.

Costco, Nike Earnings

Costco Wholesale (COST) and Nike earnings headlined key overnight news. Costco and Nike earnings both beat views, with the former topping sales forecasts and the latter just missing.

Costco stock edged higher in overnight trade. COST stock potentially be yet another buying opportunity as it bounces of its 10-week line for the first time since a June breakout.

Nike stock fell slightly in extended action.

Microsoft stock and Google are on IBD Leaderboard. Microsoft and Google stock also are on IBD Long-Term Leaders, along with IDXX stock. Square stock and Dell are on SwingTrader. Google, Atkore and MRNA stock are on the IBD 50. Dell stock was Thursday’s IBD Stock Of The Day.

The video embedded in this article analysts the stock market rally as well as reviewing CRM stock, Atkore and Denbury.

Dow Jones Futures Today

Dow Jones futures were steady vs. fair value. S&P 500 futures and Nasdaq 100 futures were little changed.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally started with modest gains Thursday and quickly gained steam, delivering strong gains for a second straight session.

The Dow Jones Industrial Average rose 1.5% in Thursday’s stock market trading. The S&P 500 index gained 1.2%. CRM stock was easily the top Dow performer and a leading S&P 500 component, second only to Devon Energy.

The Nasdaq composite climbed 1%. The small-cap Russell 2000 popped 1.8%.

This is an important day to read The Big Picture.

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Among the best ETFs, the Innovator IBD 50 ETF (FFTY) jumped 2.6%, hitting a record high. The Innovator IBD Breakout Opportunities ETF (BOUT) gained 1.9%.  The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.6%. MSFT stock and Salesforce are major IGV components. The VanEck Vectors Semiconductor ETF (SMH) rallied 1.3%, with AMD stock a key holding.

SPDR S&P Metals & Mining ETF (XME) advanced 1.2% and the Global X U.S. Infrastructure Development ETF (PAVE) rebounded 1.8%. U.S. Global Jets ETF (JETS) popped 2.75%. SPDR S&P Homebuilders ETF (XHB) edged up 0.3%. The Energy Select SPDR ETF (XLE) shot up 3.5%, with DVN stock a holding. The Financial Select SPDR ETF (XLF) moved 2.45% higher, with BAC stock a notable component.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 1% and ARK Genomics ETF (ARKG) 0.7%. SQ stock is a top ARK Invest holding.

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Market Rally Analysis

The stock market rally took another big step Thursday toward regaining full strength. The Nasdaq, which reclaimed its 50-day line on Wednesday, moved above its 21-day line. The S&P 500 and Russell 2000 regained their 50-day lines, while the Dow Jones moved close to that level. Arguably all of these indexes are at or above downward-sloping trend lines, suggesting that the market is breaking its downtrend over the past few weeks.

A market rally is judged by the action of the major indexes and leading stocks. And leaders look robust. Leaders held up reasonably well during the pullback, and there have been a slew of bullish moves off key support levels, breaking trend lines or outright breakouts, with CRM stock, Dell, Atkore, Accenture and Devon Energy just a few examples. The breadth of leadership also is impressive, including chips, energy, building materials, banks and software.

FFTY hitting a record high reflects the mix of bullish moves and highfliers that barely paused.

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What To Do Now

This has been a good time to take advantage and buy top stocks from a variety of groups from bullish entries, especially if you pared exposure substantially during the recent pullback. Of course, just because this article listed 17 actionable names, that doesn’t mean taking full positions in everything from AMD stock to Square.

The market rally has had a couple good sessions, gaining momentum on the major indexes and leading stocks. But this rebound could run out of steam. If you’re going to be nimble with your buys, stay alert and ready to be exit quickly as well.

Keep building those watch lists, focusing on leaders on the cusp of buy signals.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.


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