Dow Jones Futures Jump As Market Rally Gains Momentum On McConnell Debt-Limit Offer – Investor’s Business Daily
Dow Jones futures rose sharply Thursday morning, along with S&P 500 futures and Nasdaq futures. The major indexes finished modestly higher Wednesday, rebounding from sharp morning lows amid a McConnell debt-limit offer.
The stock market rally attempt is gaining momentum, with a number of growth names looking promising. But it’s still a market correction for now.
Senate Minority Leader Mitch McConnell said Wednesday that Republicans would let Democrats pass a short-term debt-limit extension, helping to avoid a looming default that could come as soon as Oct. 18. Democratic senators signaled they would accept the offer.
Affirm Holdings (AFRM) surged yet again on Wednesday, this time on a new “buy now, pay later” partnership with Target (TGT). AFRM stock spiked, flashing multiple buy signals and hitting its highest levels since February.
After the close, Twitter (TWTR) agreed to sell its MoPub mobile ad network to AppLovin (APP) for $1.05 billion. TWTR stock rose modestly in extended trading, trying to get above its 200-day and 50-day lines. APP stock surged 10% overnight, signaling a strong move past a handle buy point.
Software Stocks Advance
SNOW stock, Fortinet (FTNT), Palo Alto Networks (PANW), Zscaler (ZS), Salesforce.com (CRM), Microsoft (MSFT) and Bill.com (BILL) are showing strength. Software makers are relatively insulated from supply-chain woes plaguing much of the economy.
Snowflake (SNOW), Fortinet, Palo Alto and ZS stock all rebounded from or reclaimed their 50-day moving averages, while Bill.com has bounced from its 10-week line. CRM stock rallied off its 21-day moving average, on the verge of reclaiming a breakout buy point. In a stronger market, aggressive investors could take advantage of all these names.
Meanwhile, MSFT stock rose to the cusp of its 50-day line. A flat-base buy point isn’t far above that key level, according to MarketSmith analysis.
The price of Bitcoin pulled back overnight after racing higher Tuesday and Wednesday. Bitcoin- and crypto-related plays also rallied, including Marathon Digital (MARA), Grayscale Bitcoin Trust (GBTC) …….