Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.
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The stock market rally had decent gains inside the holiday-shortened week. The essential indexes have had an infinite November so far, approaching their 2023 highs. Many leading stocks are prolonged, but there are some buying opportunities and setups to take a look at.
Nevertheless, the market fear gauge is at its lowest levels since before the Covid crash. One other measures also suggest the market is “due” for a pullback. So bear that in mind.
Stocks To Watch
Nvidia (NVDA) fell from record highs this past week, but stays in a buy zone following earnings and a number of China concerns. Amazon.com (AMZN) may also be holding in a buy zone. as the holiday season officially gets underway.
Novo Nordisk (NVO) broke out on Friday, while Affirm Holdings (AFRM) reclaimed a buy point.
Taiwan Semiconductor (TSM), which makes chips for Nvidia, Apple (AAPL) and lots of others, is barely below a buy point. Warren Buffett-backed Nu Holdings (NU) is moving back toward a buy point.
Booking Holdings (BKNG) and Carpenter Technology (CRS) are also organising.
Nvidia, Novo Nordisk and AMZN stock are inside the IBD Leaderboard lineup, with BKNG stock on the Leaderboard watchlist. Nvidia stock, Novo Nordisk and Carpenter Technology are on the IBD 50.
The video embedded inside the article highlighted the market’s weekly motion and analyzed NVO stock, Taiwan Semiconductor and First Residents Bancshares (FCNCA).
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight motion 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 leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally had a solid performance in a holiday-shortened trading week.
The Dow Jones Industrial Average rose 1.3% in last week’s stock market trading. The S&P 500 index advanced 1%. The Nasdaq composite advanced 0.9%.
So far this month, the Dow is up 7.1%, the S&P 500 8.7% and the Nasdaq 10.9%. All of the essential indexes have cleared several key levels with little resistance. The summer 2023 highs offer the next big hurdle.
The Nasdaq 100, up 0.9% last week, set a 2023 high on Wednesday.
Meanwhile, the small-cap Russell 2000 advanced 0.5% for the week, barely below the 200-day moving average.
The ten-year Treasury yield rose 4 basis points to 4.48%, rebounding Friday from two-month lows.
U.S. crude oil futures dipped 0.7% to $75.54 a barrel last week, amid some big intraday swings. It was the fifth straight weekly decline.
Market Fear Fades
Instantly, the market rally is looking healthy, with a whole lot of reasons to feel bullish. Perhaps crucial concern is the shortage of market fear. The CBOE Volatility Index, or VIX, fell sharply last week, the fifth straight weekly decline. The market fear gauge finished Friday at the underside levels since January 2020.
Excessive bullishness or complacency could foreshadow some style of pullback. So do other measures signaling the market is getting overbought.
But a pullback doesn’t should occur immediately and it doesn’t must be sharp or last long.
ETFs
Amongst growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) gained 1.8% to its best levels in nearly two years. The VanEck Vectors Semiconductor ETF (SMH) fell 0.5% after hitting record highs earlier inside the week. Nvidia and TSM stock are major SMH holdings.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) gained 2.7% last week and ARK Genomics ETF (ARKG) rose 1.6%.
SPDR S&P Metals & Mining ETF (XME) climbed 1.85% last week to barely below a seven-month best. The SPDR S&P Homebuilders ETF (XHB) dipped 0.2% but continues to be up 14.8% this month. The Energy Select SPDR ETF (XLE) edged up 0.3%. The Health Care Select Sector SPDR Fund (XLV) gained 2.25%, reclaiming its 200-day line.
The Industrial Select Sector SPDR Fund (XLI) advanced 0.7% and the Financial Select SPDR ETF (XLF) added 0.9%, the fourth straight weekly gains for every.
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Stocks In Buy Zones
Nvidia stock hit a record 505.48 on Monday, but fell 3.1% to 477.49 for the week. That’s just above a 476.09 buy point from a double-bottom base. The 21-day line is barely below that level. Investors could buy NVDA stock here, or wait to see if it shows renewed strength.
Nvidia earnings crushed views with a 593% per share spike vs. a 12 months earlier. Sales leapt 206%. The AI chip leader also guided revenue well above consensus for Q4, nonetheless the $20 billion goal was below some whisper numbers. Nvidia did say U.S. export curbs on advanced chips will hurt sales this quarter. On Friday, Reuters reported that Nvidia is delaying an AI chip for China into early next 12 months.
NVO stock rose 2.3% on Friday and 4.15% for the week to 105.60, clearing a 104 flat-base buy point. Novo Nordisk’s weight-loss drug Wegovy will enter Japan in February, while also planning expansions to several other markets next 12 months.
Amazon stock rose 1.1% to 146.74 for the week, reclaiming a 145.86 consolidation buy point, according to MarketSmith evaluation. Black Friday kicked off the official holiday shopping season, but gift buying has been going for weeks.
Affirm stock popped 5.9% last week to 26.25, reclaiming a 25.63 cup-base buy point on Friday. AFRM stock has been moving above and below the buy point since its fiscal Q1 earnings on Nov. 8. Revenue growth is picking up with the buy now, pay later specialist set to point out profitable in fiscal 2024.
Stocks Near Buy Points
Taiwan Semiconductor stock has a 100.70 cup-with-handle buy point. Shares fell 1.7% to 97.88 last week. Earlier this month, TSM stock jumped since the foundry giant reported October revenue rose vs. a 12 months earlier, fueled by AI chips from the likes of Nvidia. That signals a long-awaited business turnaround is underway for Taiwan Semi.
BKNG stock is organising in a consolidation, with a recent handle offering a 3,207.32 buy point. Shares of the web travel site dipped 0.6% to 3,115.59 for the week.
CRS stock has a 71.30 buy point from a transient cup-with-handle base. Carpenter Technology edged up 0.3% to 68.56 for the week.
NU stock rose 1.5% to eight.19 this past week, nearly reclaiming an 8.29 buy point. Shares tumbled from a 52-week high following Q3 results that showed huge EPS growth but didn’t wow vs. expectations. But Nu Holdings rebounded from near the 50-day line. Warren Buffett’s Berkshire Hathaway (BRKB) has owned a stake for about two years, and started buying it around Nu’s December 2021 IPO.
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What To Do Now
The market rally continues to act well, entering an influence trend on Nov. 20. Investors can still add exposure.
Buying opportunities aren’t as plentiful, with many leaders already prolonged. Some stocks are organising, but are they leftovers at this point? Do you goal stocks that are just breaking out, perhaps with weaker relative strength, or wait to see if the rally’s leaders offer recent probabilities to buy?
Various indicators suggest the possibilities of a market pullback are rising. But a modest pullback would probably be constructive, letting stocks forge handles and other entries.
Keep working on watchlists. Solid that wide net to capture emerging leadership while also focusing in on a select number that you simply simply’re seriously considering buying.
Earnings season shouldn’t be over. Zscaler (ZS), CrowdStrike (CRWD), UiPath (PATH), Samsara (IOT), Elastic (ESTC), Workday (WDAY), PDD Holdings (PDD) and Salesforce.com (CRM) are only quite a lot of the notable names on tap this coming week.
Read The Big Picture on each day basis to stay in sync with the market direction and leading stocks and sectors.
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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