Dow Jones Hits New High, 5 Stocks Flash Buy Signals As Shutdown Nears End; Cisco Jumps On Earnings
Dow Jones futures were little changed after hours, along with S&P 500 futures and Nasdaq futures. Dow component Cisco Systems (CSCO) jumped on earnings late.
The stock market rally was mixed Wednesday, with the Dow Jones hitting a record high on expectations that the government shutdown is about to end. The Nasdaq fell, even as Advanced Micro Devices (AMD) jumped on bullish AI guidance.
Dow banking giants Goldman Sachs (GS) and JPMorgan Chase (JPM) also broke out. Meanwhile, Citigroup (C) cleared an early buy point and Morgan Stanley (MS) topped a tight entry. Charles Schwab (SCHW) topped multiple early entries.
Goldman Sachs stock is on SwingTrader.
The video embedded in this article reviews Wednesday's market action and analyzes BeOne Medicines (ONC), Goldman Sachs and Interactive Brokers (IBKR).
Dow Jones Futures Today
Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures were flat. Nasdaq 100 futures edged higher.
A House vote to end the government shutdown is expected to pass Wednesday night, following Senate approval earlier this week. The short-term funding bill will then go to the White House for President Donald Trump's signature.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Cisco Earnings
CSCO stock jumped in overnight action after Cisco earnings and guidance topped consensus amid strong AI orders. Cisco stock rose 3.1% to 73.96 in Wednesday's session, reclaiming a 72.55 cup-base buy point.
Stock Market Rally
The stock market rally had another Dow-led session with the Nasdaq falling slightly.
The Dow Jones Industrial Average rose 0.65% in Wednesday's stock market trading, hitting a record high, led by UnitedHealth (UNH), Goldman Sachs and Cisco. The S&P 500 index edged higher. The Nasdaq composite declined 0.3%, but held that 21-day moving average. The small-cap Russell 2000 fell 0.3%, near session lows and just holding the 50-day.
The Invesco S&P 500 Equal Weight ETF (RSP) climbed 0.2% after retaking the 50-day line Tuesday.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) edged up 0.2%, still just below the 21-dday line.
AMD surged in a day-two reaction to its bullish guidance for AI data centers and its own chip sales. But AI valuation concerns lingered, with Palantir (PLTR) falling 3.6%, below a buy point and back near its 50-day line.
AI compute providers sank on profit and execution concerns, with Oracle (ORCL) down 3.9%, and 33.1% from its Sept. 10 peak. CoreWeave (CRWV) lost 3.35% and Nebius (NBIS) 7.7%, bringing their weekly sell-offs to 17.9% and 15.2%, respectively. Nebius has more than tripled in 2025.
U.S. crude oil prices tumbled 4.2% to $58.49 a barrel.
The 10-year Treasury yield fell four basis points to 4.07%.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 1%, still well above last Friday's intraday low but marking its worst close in two months. The iShares Expanded Tech-Software Sector ETF (IGV) sank 1.1%, with Palantir and Oracle huge holdings. The VanEck Vectors Semiconductor ETF (SMH) climb 1.3%, with AMD stock a big piece of SMH.
ARK Innovation ETF (ARKK) declined 0.7% and ARK Genomics ETF (ARKG) lost 1.8%.
SPDR S&P Metals & Mining ETF (XME) popped 2.5%. The Energy Select SPDR ETF (XLE) retreated 1.4% and the Health Care Select Sector SPDR Fund (XLV) gained 1.4%.
The Industrial Select Sector SPDR Fund (XLI) edged up 0.1%.
The Financial Select SPDR ETF (XLF) rose 0.9%. JPMorgan, Goldman Sachs, Citigroup, Morgan Stanley and Schwab are all major holdings.
Stocks In Buy Zones
JPMorgan stock rose 1.5% to 320.41, clearing a 318.01 flat-base buy point.
Goldman Sachs stock popped 3.5% to 838.97, topping an 825.25 flat-base buy point, according to MarketSurge. The RS line hit a new high.
Citigroup stock climbed 2.1% to 102.88, clearing short-term highs within a flat base while still being near the 50-day line. The official buy point is 105.59.
Morgan Stanley stock gained 2.05% to 169.91 above a 167.13 three-weeks-tight entry, an add-on buying opportunity. MS stock rebounded off the 50-day line on Friday, but has tested that area several times since clearing a prior base.
Charles Schwab stock advanced 1.65% to 97.71, above several short-term levels and breaking a downtrend line. SCHW stock is still close to the 50-day line, regained last week. Schwab rival Interactive Brokers has performed better over the last several months and is close to a flat-base buy point, but not actionable currently.
What To Do Now
The stock market rally continues to do well, though leadership has shifted somewhat. There has been a shift away from many speculative and high-octane AI-related names and toward banks as well as biotechs and drug giants. Gold has resumed its leadership.
Investors need to be aware of the sector and stock trends as well as the overall market direction. It's a time to be significantly invested, but your portfolio and watchlists could be in transition.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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