Dow Jones futures edged lower Friday morning, with the November jobs report due before the open. S&P 500 and Nasdaq futures fell slightly.
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Tesla (TSLA) , Microsoft (MSFT), Apple (AAPL), are trading around buy points with key news. and are signaling buying opportunities after strong earnings overnight.
The stock market rally is trading near 2023 highs on the Dow Jones, S&P 500 and Nasdaq composite, after Advanced Micro Devices (AMD), Google parent Alphabet (GOOGL) and other tech giants led Thursday’s advance.
The November jobs report is due at 8:30 a.m. ET. Economists expect nonfarm payrolls to rise by 180,000, up from October’s 150,000, which was affected by the UAW auto strike. The jobless rate should hold at 3.9%. The annual rise in average hourly earnings should cool slightly to 4%. At this point, investors want a jobs report that’s not too hot, but also not too cold.
Tesla China sales rebounded in November, but an analyst touted TSLA stock as a top short idea. The U.K.’s antitrust regulator will review Microsoft’s relationship with artificial intelligence startup OpenAI. Apple aims to produce 25% of its iPhone handsets in India by the end of the decade, The Wall Street Journal reported.
AVGO stock was little changed early Friday after Broadcom (AVGO) slightly beat views Thursday night. Even a fractional gain would push the chip giant back above a 923.67 buy point. SMAR stock rose solidly in premarket trading on Smartsheet (SMAR) earnings. A move above Tuesday’s high of 45.96 would provide an aggressive entry.
Microsoft is on IBD Leaderboard, IBD Long-Term Leaders and the IBD 50. Apple stock is on SwingTrader.
Dow Jones Futures Today
Dow Jones futures were slightly below fair value. S&P 500 futures tilted lower and Nasdaq 100 futures declined 0.2%.
The 10-year Treasury yield rose slightly to 4.18% from Thursday’s close of 4.13%.
Crude oil futures climbed 2%, back above $70 a barrel.
The November jobs report at 8:30 a.m. ET will swing Dow futures and Treasury yields.
Remember that premarket action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Stock Market Rally
The Dow Jones Industrial Average rose 0.2% in Thursday’s stock market trading. The S&P 500 index gained 0.8%. The Nasdaq composite jumped 1.4%. The small-cap Russell 2000 climbed 0.9%.
Tesla China Sales
Tesla sold 65,504 vehicles in China in November, up 4.8% vs. a year earlier and 128.8% vs. October, according to the China Passenger Car Association reported Friday. But Tesla Shanghai exports came in at 16,928, down 55.2% vs. a year earlier and 61.1% vs. October. That’s the lowest level since March, perhaps reflecting some weakness in Europe.
Tesla Shanghai traditionally produces electric vehicles for export in the first half of the quarter, then focuses on domestic sales in the second half.
A China EV price war continues to intensify, with XPeng (XPEV) the latest to announce hefty discounts. Tesla is offering some incentives.
Tesla Stock
Meanwhile, Bernstein is touting shorting Tesla stock as its best idea for 2024. Analyst Toni Sacconaghi rates TSLA at underweight with a $150 price target. He noted 2023 EPS will be roughly half what consensus forecasts were at the start of the year, but shares have nearly doubled.
Tesla stock rose 1.4% to 242.64 on Thursday, its third straight gradual advance from the 50-day line. The EV giant has a 278.98 double-bottom buy point. But investors could use the Nov. 29 high of 252.75 or a trendline just below 250 as aggressive entries.
TSLA stock nudged down 0.6% in premarket trade.
Microsoft-OpenAI Probe
The U.K.’s Competition and Markets Authority is looking into whether the Microsoft-OpenAI partnership has given the Dow Jones giant de facto control. The CMA is conducting an initial review before deciding on any formal investigation.
Microsoft said its OpenAI partnership, which includes sizable investments, “has fostered more AI innovation and competition, while preserving independence for both companies.” The company recently got a non-voting seat on OpenAI’s revamped board. But that’s “very different from an acquisition,” Microsoft President Brad Smith said.
MSFT stock rose 0.6% to 370.95 in Thursday’s trading, moving off the 21-day line within a buy zone.
Early Friday, shares edged down 0.4%, still above the 366.78 cup-base buy point.
Apple iPhone India Push
Apple and suppliers including Foxconn aim to make 50 million-60 million iPhones in India over the next two-to-three years, the Wall Street Journal reported. If that target is reached, the Dow Jones tech titan could make 25% of its iPhone handsets in the country by the end of the decade. Apple is trying to diversify its production and supply chain.
Apple stock rose 1% to 194.27 on Thursday, back above a 192.93 buy point from a cup-with-handle base, according to MarketSmith analysis.
AAPL stock dipped 0.1% early Friday, testing the buy point once again.
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
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Source: investors.com
