May 24, 2024

Dow Jones futures fell solidly early Friday, along with those of the S&P 500 and Nasdaq, amid fears that Iran will attack Israel, triggering a wider Mideast conflict. JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) earnings also are in focus on the stock market today..

Meanwhile, Tesla fell slightly as a long-time bull warned that Chief Executive Elon Musk must move quickly to avoid a robotaxi “debacle.”


Also in the market, South Korean e-commerce giant Coupang (CPNG) jumped early Friday, signaling a breakout on a big membership fee increase.

Further, China has ordered telecoms to phase out key foreign chips, hitting Intel (INTC) and Advanced Micro Devices (AMD) the hardest, The Wall Street Journal reported Friday morning. Intel and AMD stock fell modestly early Friday.

And Nvidia (NVDA) stock edged lower after strong moves in the prior two sessions. Nvidia stock is on IBD Leaderboard and SwingTrader. Nvidia and Citigroup stock are on the IBD 50.

Dow Jones Futures Extend Losses

Dow Jones futures fell 0.6% vs. fair value, with JPMorgan and Intel stock putting a drag on the index. S&P 500 futures retreated 0.7%. Nasdaq 100 futures slipped 0.8%.

The 10-year Treasury yield tumbled to 4.5%.

Israel reportedly expects a potential direct attack from Iran within a few days or even hours, hitting Dow futures and knocking yields.

Crude oil prices rose 2%, partly on Mideast tensions.

Copper prices jumped nearly 2%, with gold up 1% and silver soaring over 3%.

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

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Stock Market Rallies, With Nvidia’s Help

The Nasdaq ran to a record close in Thursday’s stock market trading, led by Nvidia and artificial intelligence stocks. The S&P 500 reclaimed the 21-day moving average. But the Dow Jones closed fractionally lower, below the 50-day moving average.

Techs led as the Nasdaq composite leapt 1.7%. And the S&P 500 index rose 0.7%.

U.S. crude oil futures declined 1.4% to $85.02 a barrel.

The 10-year Treasury yield climbed 2 basis points to 4.575%, a five-month high.

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Bank Earnings

Early on the stock market today, JPMorgan, Wells Fargo, Citigroup and BlackRock (BLK) reported results, kicking off the bank earnings season.

JPMorgan beat first-quarter views, but kept its full-year outlook for net interest income below analyst forecasts. Wells Fargo beat on the top and bottom line.

JPMorgan stock fell solidly. Wells Fargo was down fractionally, while Citigroup ticked higher. JPMorgan stock, Wells Fargo and Citigroup had been finding support around their 21-day lines following strong advances.

Wells Fargo stock could set to test its 10-week line on Friday. Wells has a five-weeks-tight entry of 58.44.

Also, Blackrock earnings beat with the asset management giant slightly topping first-quarter revenue views. BlackRock stock rose modestly before the open, trying to get back to its 50-day line.

Stock Market Today: Nvidia Stock Holds Gains

Nvidia stock lost a fraction on Friday morning, still on track for a solid weekly gain. On Thursday, shares jumped 4.1% to 906.16, moving above the 21-day line and breaking a short downtrend.

That offered an early entry in to Nvidia stock, a day after a bullish rebound from the 10-week line.

Nvidia’s Thursday gain buoyed other AI chipmakers and the broader market.

Nvidia stock is set to have a flat base with a 974 buy point after Friday’s close.

Coupang Jumps On Fee Increase

Korean e-commerce giant Coupang will hike its monthly membership fee by 58%. That equals $5.72 in U.S. dollars.

The higher fee starts April 13 for new members, with existing members paying the higher fee in August. Coupang cited increased discounts a free delivery for Coupang Eats.

Coupang stock jumped over 8% to 20.67 in premarket action on the stock market today. If it holds, that would clear a 19.78 buy point from a cup-with-handle base.

Tesla Robotaxi Is Not ‘The Answer’

Wedbush’s Dan Ives, in a note to clients released shortly before Thursday’s close, signaled his concern that Tesla’s planned Aug. 8 robotaxi unveiling could mean a long-anticipated cheap electric vehicle would be shelved for years.

Ives said the so-called Model 2, which had been expected in late 2025 or early 2026, would drive some 60% of Tesla’s growth. He believes full autonomy is unlikely before 2030.

“If robotaxis is viewed as the ‘magic model’ to replace Model 2 we would view this as a debacle negative for the Tesla story. It would be a risky gamble if Tesla moved away from the Model 2 and went straight to robotaxis,” Ives wrote. He added CEO Musk must regain investor confidence quickly, starting with the conference call after first-quarter earnings on April 23.

Ives kept his Tesla stock outperform rating and 300 price target.

Separately, there is social media chatter that Tesla will cut its monthly Full Self-Driving subscription to just $99 from $199. That could spur more subscriptions, but also reduce $12,000 FSD purchases.

Tesla stock fell slightly on the stock market today. Shares are up strongly so far this week on robotaxi buzz, even as Tesla analysts raise concerns. TSLA stock remains below its 10-week moving average, which has been a key resistance area this year.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on  Threads at @edcarson1971 and X/Twitter at @IBD_ECarson  for stock market updates and more.


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