The stock market recovery showed some quiet action on Thursday, a calm follow-up to the Nasdaq and S&P 500 hitting record highs on Wednesday. There were some noteworthy movements among key players. Nvidia (NVDA) saw a reversal from its highs as CEO Jensen Huang filed for timed stock sales, and with an NVDA stock split on the horizon. Meanwhile, Chipotle Mexican Grill (CMG), Pinterest (PINS), Amazon.com (AMZN), and Elastic (ESTC) flashed buy signals, catching investors’ attention.
QQQ
GameStop (GME) had a remarkable surge on Thursday thanks to meme investor “Roaring Kitty” announcing a YouTube event. This excitement carried GME stock into overnight trading. On the flip side, the “AI play” in cooling and power production took a hit. Vertiv (VRT) tumbled 9.3%, closing below its 50-day moving average for the first time since October.
GME
EARNINGS
In the after-hours scene, Samsara (IOT) and DocuSign (DOCU) reported strong quarterly results and offered in-line guidance. Despite this, both stocks took a hit overnight, with DocuSign’s announcement of a $1 billion buyback failing to spark investor enthusiasm.
Upcoming Jobs Report
All eyes are on the Labor Department as it prepares to release the May jobs report at 8:30 a.m. ET. Economists are predicting a rise in nonfarm payrolls by 188,000, up from April’s 175,000. The unemployment rate is expected to hold steady at 3.9%, and average hourly earnings are anticipated to continue their 3.9% year-over-year growth.
This week, various labor market indicators have hinted at a loosening job market, adding another layer of anticipation to the upcoming report.
Stocks with Potential Buy Points
PINS
IRM
CCAP
What to do now
The chip sector continues to lead, with stocks showing strong setups. The market’s calm behavior after significant volatility is a healthy sign, especially with the upcoming jobs report on Friday.
Leading stocks exhibited mixed performances with generally modest movements, though some, like Vertiv, experienced more substantial losses.
Others are setting up nicely. If the market maintains its positive trajectory, it could be a good time to gradually increase your exposure. However, this requires doing your homework ahead of time and having a ready watchlist.
Be prepared for potential market reactions to the jobs report, Nvidia’s stock split, or other unexpected events. If the market stumbles, you might need to trim some of your recent purchases.