Dow Jones Futures Rise As Key Economic Signal Rebounds; Tesla Rivals In Buy

Dow Jones futures rose slightly Thursday morning, along with S&P 500 futures and Nasdaq futures. The Treasury yield curve is becoming more inverted. But copper futures jumped, a positive economic signal, as China reportedly eyes new infrastructure spending.

X

The stock market rally closed modestly higher Wednesday in an up-and-down session as hawkish Fed minutes held few surprises. Treasury yields rebounded, still flashing a recession warning. Crude oil prices fell again, but came off lows.

Microsoft stock and Google parent Alphabet (GOOGL) reclaimed their 50-day moving averages. Amazon.com (AMZN) and Apple (AAPL) moved above their 10-week lines. Microsoft (MSFT) and Google stock are IBD Long-Term Leaders.

Tesla rivals BYD (BYDDF) and Li Auto (LI) are in buy zones. BYD stock rose modestly within a buy zone while Li Auto fell back into range. Tesla stock edged lower.

GME Stock Split

After Wednesday’s close, original meme stock GameStop (GME) announced plans for a 4-for-1 stock split. GME stock popped 7% early Thursday after closing down 2.4% to 117.30.

Stock splits have come back in favor. Amazon stock split 20-for-1 in early June. Google stock will split 10-for-1 on July 15 while Tesla has proposed a 3-for-1 split. But those tech titans have or had high share prices, making it difficult to trade, say, AMZN stock options. That’s not the case with GME stock.

In other news, Merck (MRK) is close to a $40 billion deal for cancer biotech Seagen (SGEN), according to The Wall Street Journal. The two companies have been in talks for a few weeks, lifting SGEN stock. Seagen rose solidly before the open while Merck fell slightly.

Dow Jones Futures Today

Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures climbed 0.3%.

Crude oil prices advanced less than 1%.

Copper futures jumped nearly 4%. Copper, a key industry metal, has raised the alarm over recession with its sharp decline in recent months. Hard-hit mining and metal stocks are bouncing Friday.

A likely catalyst for copper today? China is considering letting local governments sell up to $220 billion in bonds for infrastructure spending, Bloomberg reported.

The 10-year Treasury yield rose 3 basis points at 2.93%. The 2-year yield climbed 4 basis points to 3%, meaning the yield curve is becoming slightly more inverted.

U.K. Prime Minister Boris Johnson is expected to resign Thursday, amid key resignations from his government and growing calls from his Conservative Party to step down.

At 8:15 a.m. ET, ADP will release its June estimate of private-sector hiring. At 8:30 a.m. ET, the Labor Department issues its weekly jobless claims report. Those come ahead of Friday’s June jobs report.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Fed Minutes, Economic Data

Fed minutes from the June 14-15 policy meeting revealed that policymakers said a “restrictive policy” was needed, and might need to become “more restrictive,” fearing that inflation could become…