Dow Jones futures rose modestly early Friday morning, along with S&P 500 futures and Nasdaq futures, ahead of Friday’s jobs report. Micron Technology (MU) earnings a Boeing 737 Max settlement and a new, lower-price Tesla Model Y were in focus. The stock market rally had a powerful session, with the Dow Jones, S&P 500 index, Nasdaq composite and Russell 2000 all hitting record highs.
But there are signs that the market rally is getting extended.
Meanwhile, Tesla (TSLA) continued to soar Thursday on yet another price-target hike, making Elon Musk the richest man in the world. But is Tesla stock getting extended?
Late Thursday, Tesla listed a Model Y Standard Range option, something CEO Elon Musk said would never be offered. A seven-seat Model Y option is now available as well.
Micron earnings topped views, while the memory-chip maker also guided high. After rallying to its best levels since 2000, Micron stock rose modestly overnight.
Micron earnings should be good news for other memory plays, including equipment giants Lam Research (LRCX), Applied Materials (AMAT) and KLA Corp. (KLAC). LRCX stock, AMAT and KLA have been surging this week, perhaps in anticipation of bullish Micron earnings.
Taiwan Semiconductor — a major customer for Lam Research, Applied Materials and KLA — reports December sales on Friday. Next week, earnings are on tap. Taiwan Semi is expected to announce heavy capital spending. TSM stock rallied 5% on Thursday, hitting a fresh high.
Boeing 737 Max Settlement
Boeing (BA) will pay more than $2.5 billion to settle a Justice Department criminal charge that the Dow Jones aerospace giant concealed key information from the Federal Aviation Administration regulators investigating the two 737 Max crashes. It’ll pay a criminal penalty of $243.6 million, compensation payments to Boeing customers of $1.77 billion, and $500 million for a crash victim beneficiaries fund.
Boeing stock fell a fraction in overnight trading. The muted reaction suggests investors are happy to move forward, with the Boeing 737 Max flying again. BA stock edged up 0.8% to 212.71 on Thursday.
Sarepta Therapeutics (SRPT) announced mixed results for its gene therapy targeting a form of muscular dystrophy. The gene therapy produced a key protein, but no improved muscle function after one year. Sarepta stock plummeted overnight.
Dow Jones Futures Today
Dow Jones futures rose 0.6% vs. fair value. S&P 500 futures climbed 0.5% and Nasdaq 100 futures advanced 0.3%.
Dow Jones futures will likely move on the December jobs report, due out at 8:30 a.m. ET on Friday. The consensus is for a gain of just 65,000 jobs as coronavirus shutdowns stall the economic recovery. An outright jobs decline would be a bad sign, though it could also spur a bigger, faster stimulus package.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into…
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