Dow Jones futures rose slightly early Monday, along with S&P 500 futures and Nasdaq futures. Nvidia CEO Jensen Huang and Tesla (TSLA) China EV rivals made news over the weekend, with the jobs report due this coming week.
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The stock market rally suffered losses last week, with the major indexes breaking or testing key levels, but there was a bullish thrust Friday. Software stocks sold off hard for the week, with many leaders generally suffering damage.
Nvidia (NVDA) CEO Huang gave a speech on the eve of Taiwan’s electronics showcase event, Computex 2024, teasing future artificial chips.
Advanced Micro Devices (AMD) CEO Lisa Su laid out AMD’s roadmap for AI accelerator chips as well in a Computex keynote speech on Monday. She also showed off upcoming AI mobile processors.
Intel (INTC) and Qualcomm (QCOM) also will give keynote speeches during Computex, which will run through Friday. The CEOs of chip design giant Arm Holdings (ARM) and data center specialist Super Micro Computer (SMCI) will present as well.
China EV makers Li Auto (LI), Nio (NIO), XPeng (XPEV), Zeekr (ZK) EV and battery giant BYD (BYDDF) reported rising deliveries in May, with new monthly bests for Nio and newly public Zeekr.
Meanwhile, Tesla shareholders outside the U.S. may not be able to vote for the EV giant’s upcoming annual meeting due to technical issues, the Financial Times reported Sunday. Some $17 billion, or roughly 3% of shares, are at stake. That could affect the outcome for CEO Elon Musk’s $56 billion pay deal and a plan to reincorporate Tesla in Texas, from Delaware.
CrowdStrike (CRWD) earnings Tuesday night also will be important for cybersecurity and the software sector in general.
Meanwhile, investors will have a busy earnings calendar, capped by the May jobs report on Friday.
Nvidia stock is on IBD Leaderboard. Nvidia and ARM stock are on the IBD 50. Nvidia and Super Micro stock are on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures climbed 0.3% and Nasdaq 100 futures advanced 0.3%.
The 10-year Treasury yield edged down to 4.49%.
Crude oil futures were little changed. OPEC+ on Sunday extended production cuts into 2025.
The private Caxin manufacturing index rose 0.3 point in May to a two-year high of 51.7, just above forecasts. That came a few days after the official manufacturing index showed a surprise contraction.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally started the short week in decent shape. The Nasdaq topped 17,000 for the first time on Tuesday, even as the laggard Dow Jones undercut its 50-day line. But then Salesforce.com (CRM), Nutanix (NTNX), Dell Technologies (DELL) and other earnings losers hit techs hard. The S&P 500 nearly tested its 10-week line Friday before the market’s afternoon rebound.
The Dow Jones Industrial Average fell 1% in last week’s stock market trading, though Friday’s 1.5% bounce was its best gain of 2024. The S&P 500 index lost 0.5% and the Nasdaq composite 1.1%, both dropping below their 21-day moving averages intraday Friday before bouncing strongly at the close.
The small-cap Russell 2000 rose a fraction for the week, climbing back from Wednesday’s close below its 50-day line.
The Invesco S&P 500 Equal Weight ETF (RSP) roared back Friday to reclaim its 50-day line, down just 0.1% for the week. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) tumbled 2%, finishing just below its 50-day despite a Friday bounce.
The 10-year Treasury yield rose 4 basis points to 4.51% after being up 15 basis points as of Wednesday. The 10-year Treasury yield fell 17 basis points for the month.
U.S. crude oil futures fell 0.9% to $76.99 a barrel last week, down 6% for May.
Copper futures sank 2.9%, a second straight weekly decline but still up 1% for May.
Nvidia Wants To Topple Apple. But Apple Takes Aim At Microsoft.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) plunged 5.8%, with CrowdStrike a member. The VanEck Vectors Semiconductor ETF (SMH) fell 1.55%. Nvidia stock is the No. 1 holding in SMH. AMD, Qualcomm and Intel also are in the ETF.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) tumbled 4.35% last week and ARK Genomics ETF (ARKG) lost 4.4%. Tesla stock is major holding across Ark Invest’s ETFs. Cathie Wood’s Ark also holds a small position in BYD.
SPDR S&P Metals & Mining ETF (XME) rose 1.7% last week. The Global X U.S. Infrastructure Development ETF (PAVE) gave up 1.05%. U.S. Global Jets ETF (JETS) shed 1.2%, but came well off lows. SPDR S&P Homebuilders ETF (XHB) edged up 0.1%. The Energy Select SPDR ETF (XLE) gained 2% and the Health Care Select Sector SPDR Fund (XLV) declined 0.5%.
The Industrial Select Sector SPDR Fund (XLI) sank 0.8%. The Financial Select SPDR ETF (XLF) edged up 0.1%.
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Nvidia CEO Jensen Huang
Nvidia CEO Jensen Huang, speaking Sunday on the eve of Taiwan’s Computex event, touted the massive data center gains from adding advanced GPUs to data centers or PCs: “The more you buy, the more you save. This is CEO’s math. It is not accurate but it is correct!”
With Nvidia rolling out Blackwell AI chips this year, Huang announced plans for Blackwell Ultra chip in 2025 and a next-generation Rubin platform for 2026.
Huang also announced a number of new AI tools and features.
AMD CEO Lisa Su, speaking at Computex, also gave an AI roadmap for the next two years. She said the MI325X accelerator for data centers will be available in the fourth quarter. The MI350, based on new architecture, will come out in 2025 with the MI400 for 2026.
In the near term, AMD’s Su highlighted the chipmaker’s latest AI mobile processors for AI PCs. The Ryzen AI 300 series will launch in July with hardware partners such as Lenovo and HP (HPQ).
The CEOs of Arm Holdings and Qualcomm will speak Monday at Computex, with the heads of Intel and Super Micro due Tuesday and Wednesday, respectively.
The chip CEOs will likely tout their own AI capabilities as well as new collaborations.
Nvidia and ARM stock rose last week, but pared gains. AMD and Intel edged higher. Qualcomm reversed lower while Super Micro stock plunged. Many AI plays, including megacaps, had a rough week, so Huang’s comments and his colleagues’ upcoming speeches could be key for the AI-led market rally.
China EV Sales
Li Auto delivered 35,020 EVs in May, up 35.8% vs. April’s 25,787 and 23.85% vs. a year earlier.
Nio delivered 20,544 EVs in May, up 31.5% vs. April’s 15,620 and 233.8% above a year earlier. That exceeded Nio’s sales record from July 2023. Nio had announced Friday that monthly sales topped 20,000.
Geely unit Zeekr reported record deliveries for a second straight month. May’s 18,616 was 15.7% above April deliveries and 114.5% higher than in May 2023.
XPeng delivered 10,146 EVs in May, up 8% vs. April and 35.2% vs. a year earlier. That’s a 2024 high.
BYD sold 331,817 EVs in May, up 5.9% vs. April and 38.1% vs. a year earlier. That’s still below December’s record 341,043. Excluding 1,329 commercial EVs, BYD sold a record 184,093 plug-in hybrids (PHEVs) and 146,395 fully battery electric vehicles (BEVs).
Last Tuesday, the EV and battery giant unveiled a fifth-generation hybrid system that can go 1,300 miles or more on a single charge and tank of gas. It’s already begun deliveries of two affordable sedans that have hybrid tech, along with the all-electric Sea Lion 07, a Tesla Model Y rival.
Li Auto stock closed Friday just above a 52-week low. Nio and XPeng have rebounded over the past month, but are still down sharply in 2024. Zeekr stock is off highs, but still above its IPO price.
BYD stock has reclaimed its 50-day and 200-day lines, working on a fresh base near 2024 highs.
Tesla stock is holding its 50-day line, but is still one of the S&P 500’s worst performers this year, down 28.3%.
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What To Do Now
Despite Friday’s afternoon bounce, the stock market rally enters June in a weaker state than the broad advance for much of May. The indexes are at least testing key levels while a number of leading stocks have come under pressure or worse.
There were some big earnings winners last week, but the market is showing no mercy for companies falling short on results or guidance.
Discount retailers and various medicals are still looking healthy, though seeing defensive growth stand out isn’t a great sign for the broader market.
Investors may want to wait for more market clarity before making new buys, except perhaps as swing trades. If you didn’t cut losers this past week, take action soon.
Perhaps Nvidia will buoy the market heading into the new week, or the jobs report will offer a bullish tailwind on Friday. But they could also be negative catalysts.
So have your watchlists up to date, but also be ready to step back.
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