Dow Jones futures rose slightly Thursday morning, along with S&P 500 futures and Nasdaq futures, with U.S. markets closed for the Thanksgiving Day holiday.
The stock market rally was positive for a second straight session on Wednesday. Fed officials see slower rate hikes coming “soon,” according to Fed minutes from the November meeting released Wednesday afternoon.
Investors should be cautious about adding exposure given key technical resistance and notable economic reports up ahead.
Dow Jones Futures Today
Dow Jones futures edged higher vs. fair value. S&P 500 futures advanced 0.15% and Nasdaq 100 futures climbed 0.3%.
Mainland China reported more than 31,000 Covid cases, including those without symptoms, topping the mid-April levels during the Shanghai lockdown. Covid infections with symptoms are still below April peaks.
U.S. stock exchanges will be closed Thursday for the Thanksgiving Day holiday. On Friday, U.S. exchanges will close early at 1 p.m. ET. But other exchanges around the world are open normally on Thursday and Friday.
Stock Market Rally
The stock market rally had some wobbles Wednesday, but extended gains, led by techs.
Initial jobless claims rose to a three-month high while continuing claims hit an eight-month best. S&P Global’s purchasing managers indexes for U.S. manufacturing and services both signaled contraction.
The Fed minutes reinforced expectations of a 50-basis point rate hike at the Dec. 14 meeting. Markets still favor another half-point move in February, but there’s a decent chance of a quarter-point hike.
The Dow Jones Industrial Average rose 0.3% in Wednesday’s stock market trading. The S&P 500 index climbed 0.6%, led by TSLA stock. The Nasdaq composite popped 1%. The small-cap Russell 2000 edged up 0.1%.
U.S. crude oil prices tumbled 3.7% to $77.94 a barrel. Natural gas futures jumped 7.2%.
The 10-year Treasury yield sank 5 basis points to 3.71%. The two-year Treasury yield, more closely tied to the Fed rate hike outlook, dipped below 4.5%.
The U.S. dollar fell significantly for a second straight session, back near recent lows.
SPDR S&P Metals & Mining ETF (XME) edged up 0.3%. U.S. Global Jets ETF (JETS) nudged 0.1% higher. SPDR S&P Homebuilders ETF (XHB) climbed 0.5%. The Energy Select SPDR ETF (XLE) fell 1.1%. The Health Care Select Sector SPDR Fund (XLV) rose 0.4%. Dow Jones giant UNH stock is the top holding in XLV.
Tesla stock jumped 7.8% to 183.20 on Wednesday, rebounding from Tuesday’s bear market lows as Citigroup upgraded the EV giant from a sell to a hold. TSLA stock is still down 19.5% so far this month and has roughly halved in 2022.
Stocks To Watch
Dexcom stock advanced 1.7% to 112.92, finding support at the 21-day moving average. DXCM stock has been pausing this month after gapping up on earnings on Oct. 28. Dexcom stock arguably has a long handle with a 123.46 buy point from a seven-month consolidation. Investors could buy DXCM stock from an early entry off the 21-day line, perhaps using Tuesday’s high of 113.88 as a specific buy point.
Medpace stock fell 1.3% to 218.81 on Wednesday. Shares have been consolidating near record highs since skyrocketing 38% on Oct. 25 following earnings. Since then, MEDP stock has been forging a messy handle on a deep, yearlong cup base. While shares have had some big intraday…