Dow Jones Futures Rise: Beware The Megacap Rally; AMAT Stock Leads 5

Dow Jones futures rose modestly early Friday morning, along with S&P 500 futures and Nasdaq futures, with a House vote on a huge reconciliation bill as well as Applied Materials (AMAT) and Palo Alto Networks (PANW) earnings in focus.

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The stock market rally was mixed Thursday, but it was a strong day for tech giants. Nvidia (NVDA) surged on earnings, also lifting up rival Advanced Micro Devices (AMD) and providing a tailwind for chip names. Amazon.com (AMZN) and Google parent Alphabet (GOOGL) flashed buy signals, joining Apple stock, which extended Wednesday’s breakout amid fresh Apple Car buzz.

With Apple, Amazon, Nvidia and other megacaps leading the charge, the Nasdaq 100 hit a record high. It’s looking extended from the 50-day line once again, raising the risk of another pullback. Those tech titans also are masking some weakness beneath the surface.

Meanwhile, several retailers boomed on earnings. Macy’s (M) shot up 21% to a three-year high. Kohl’s (KSS) jumped nearly 11%, breaking out of a double-bottom base handle entry. Bath & Body Works (BBWI) popped 5%, perhaps offering an add-on entry. Former sister company Victoria’s Secret (VSCO) leapt 14%, breaking a trend line and gapping above its 50-day line.

EV Stocks Losing Charge

Rivian (RIVN) and Lucid (LCID) sold off for a second straight session, down 15.5% and 10.5%, respectively. At 123.38, Rivian stock is still up 58% from its $78 IPO price, but it’s 31% off Tuesday’s intraday high. Lucid stock is 18.5% off Wednesday’s intraday high.

Tesla stock edged up 0.7% to 1,096.38. A report that Apple (AAPL) is accelerating car efforts, aiming for a 2025 launch of a fully-autonomous electric car helped push Tesla into the red briefly intraday. TSLA stock is up 6.1% for the week.

Other EV stocks, from startups such as Fisker (FSR) to China plays like Xpeng (XPEV), retreated significantly. Overnight, Xpeng unveiled the G9 SUV, with a fast-charging battery system.

Key Earnings

Applied Materials, Palo Alto Networks, Workday (WDAY), Williams-Sonoma (WSM) and Intuit (INTU) were key earnings late Thursday.

AMAT stock fell 5% overnight, back toward its buy point, after Applied Materials missed on EPS and sales. The chip-equipment giant blamed supply-chain issues.

WDAY stock and Williams-Sonoma fell hard despite beating views, signaling moves back toward or below recent buy points.

PANW stock, initially down slightly, rose modestly overnight following positive earnings and guidance. Shares are signaling a new high after finding support near their 50-day line. INTU stock jumped on strong Intuit earnings.

IBD Watchlist Stocks

Tesla, Google, Nvidia and AMD are on IBD Leaderboard. Apple stock is on SwingTrader. Google stock is on IBD Long-Term Leaders. Tesla stock, AMD, Nvidia and Williams-Sonoma are on the IBD 50.

The video embedded in this article analyzed the market action as well as Amazon stock, Kohl’s and ServiceNow (NOW).

House Vote On Reconciliation Spending Bill

The House is moving toward…