Dow Jones futures tilted higher Thursday morning, while S&P 500 futures rose modestly and Nasdaq futures climbed solidly. The stock market rally marked time for a second straight session on Wednesday, as the Treasury detailed Biden tax hike plans.
But Apple stock reclaimed its 50-day moving average while Amazon.com (AMZN), Nvidia (NVDA) rose further above their 50-day lines. Microsoft (MSFT), Facebook (FB), and Google-parent Alphabet (GOOGL) continued to advance.
Apple stock rose 1.3% to 127.90, reclaiming its 50-day line. Amazon stock rallied 1.7%, moving up the right side of its consolidation after retaking its 50-day line on Monday. Nvidia stock climbed 2%, moving up the right side of a cup base after moving above its 50-day last week. Microsoft climbed 0.8%, Google 1.35% and Facebook stock 2.2%, all still in buy range from Monday’s breakouts.
The global chip shortage is affecting some MacBooks and iPads, the Nikkei reported Thursday. But AAPL stock rose about 1% in the premarket, along with all of these tech megacaps.
Meanwhile, Tesla stock, which had been eyeing upside resistance in recent days, fell back to a key support area on Wednesday. Tesla (TSLA) is pushing back deliveries of its revamped Model S and Model X further, after failing to produce any of the luxury electric vehicles in the first quarter.
The stock market rally showed little movement in the major indexes, with tech giants providing some support. However, the small-cap Russell 2000 undercut key levels.
Microsoft, Nvidia and Google stock are on IBD Leaderboard. GOOGL stock is on SwingTrader. Microsoft stock is on IBD Long-Term Leaders. Tesla stock is on the IBD 50.
Biden Tax Plan Details
The Treasury Department released more details about the Biden tax plan. President Joe Biden is still calling for a hike in the federal corporate income tax rate to 28% from 21%. But a proposed 15% minimum tax on corporations, intended to make sure companies like Amazon pay some tax, will apply to companies with more than $2 billion in annual income, up from $100 million. That will limit the affected companies to just 45, the Treasury estimated, vs. 1,100 …….