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    Stock Market Today: Dow Jones futures edge higher, Nvidia extends rally

    Source Fxstreet
    Feb 23, 2024 12:55
    • Dow Jones futures cling to modest gains ahead of the opening bell.
    • Nvidia shares continue to push higher following Thursday's upsurge.
    • S&P 500 closed at a new record high on Thursday.

    S&P 500 futures are unchanged, Dow Jones futures climb 0.18%, and Nasdaq futures are unchanged..

    S&P 500 (SPX), Dow Jones (DJIA), and Nasdaq (IXIC) indexes closed on Thursday with a 2.11% gain, a 1.18% increase, and a 2.96% rise, respectively.

    What to know before stock market opens

    • The Technology sector was the best-performing major S&P 500 sector on Thursday, rising 4.35% on the day. On the downside, the Utilities sector fell 0.77%.
    • Nvidia Corp. (NVDA) stock climbed 16.4%, ending at $785.38, becoming the biggest gainer in the S&P 500. In premarket trading on Friday, Nvidia is up nearly 2% at around $799. The chipmaker had reported on Wednesday that earnings per share topped $5.16 versus the $4.64 forecast, while revenue climbed to $22.10 billion compared to the expected $20.62 billion. The company also said that it forecasts the current-quarter revenue of $24 billion, plus or minus 2%. 
    • Mizuho has raised the target price for Nvidia stock to $850 from $825, HSBC lifted its target to $880 from $835 and Citigroup revised its expectation to $820 from $575.
    • ETSY Inc. (ETSY) tumbled 8.44% to close at $70.62 as the worst-performing S&P 500 stock on Thursday.
    • The US Department of Labor reported that there were 201,000 Initial Jobless Claims in the week ending February 17, a 12,000 decrease from the previous week's reading of 213,000.
    • Federal Reserve (Fed) Vice Chair Philip Jefferson said on Thursday that he wants to move in a way that would not lead to stops and starts in policy and increase policy uncertainty. Later in the day, Governor Christopher Waller argued that there is no rush to begin cutting interest rates, citing the need to see further evidence that inflation is cooling.
    • The Fed said in the Minutes of the January policy meeting released Wednesday that most policymakers noted the risks associated with moving too quickly to ease the policy. Furthermore, the publication showed that officials highlighted uncertainty around how long the restrictive policy stance would be needed.
    • Retailer giant Walmart Inc. (WMT) reported an adjusted earning per share of $1.8 ahead of the opening bell on Tuesday. The company said that it expects consolidated net sales to rise in the range of 3%-4% and announced that it will buy smart TV producer Vizio (VZIO) for about $2.3 billion.
    • Home Depot Inc. (HD) said net income in Q4 was $2.8 billion, and the adjusted earnings per share was $2.82. The company, however, said that it projects sales for the fiscal year 2024 to be below estimates, citing slowing demand for discretionary items such as flooring, furniture and kitchen, per Reuters.
       

    Dow Jones FAQs

    What is the Dow Jones?

    The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.

    What factors impact the Dow Jones Industrial Average?

    Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.

    What is Dow Theory?

    Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. Dow’s theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.

    How can I trade the DJIA?

    There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
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    Fed's Goolsbee: Makes sense to wait to get more clarity before movingFederal Reserve Bank of Chicago President Austan Goolsbee argued on Friday that it would make sense to wait to get more clarity on the inflation outlook before taking a policy step.
    Source  Fxstreet
    Federal Reserve Bank of Chicago President Austan Goolsbee argued on Friday that it would make sense to wait to get more clarity on the inflation outlook before taking a policy step.
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    US Retail Sales rise 0.7% in March vs. 0.3% expectedRetail Sales in the US rose 0.7% in March to $709.6 billion, the US Census Bureau reported on Monday.
    Source  Fxstreet
    Retail Sales in the US rose 0.7% in March to $709.6 billion, the US Census Bureau reported on Monday.
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    ECB gave some strong hints that a June cut is forthcoming – RabobankReviewing the European Central Bank's (ECB) monetary policy announcements following the April meeting, Rabobank analysts noted that the ECB gave some strong hints that there will be a reduction in the policy rate in June.
    Source  Fxstreet
    Reviewing the European Central Bank's (ECB) monetary policy announcements following the April meeting, Rabobank analysts noted that the ECB gave some strong hints that there will be a reduction in the policy rate in June.
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