Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.
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Nasdaq Reverses After Hitting 18,000; Uber, JPMorgan, Hilton In Focus
The stock market rally gave some mixed signals during the past week. Still, on a weekly basis the major indexes are showing tight action, with the Nasdaq power trend intact.
Meta Platforms (META), Amazon.com (AMZN) and Tesla (TSLA) broke out during the week, though they hit some resistance on Friday. Nvidia (NVDA) and other chip leaders retreated but generally found their footing.
Software came on strong, even on Friday, with AppLovin (APP), Monday.com (MNDY) and ServiceNow (NOW) among those flashing buy signals.
Nvidia stock, Amazon and Meta are on IBD Leaderboard. Amazon and Meta stock are on SwingTrader. Nvidia, Monday.com and ServiceNow stock are on the IBD 50. AppLovin was Friday’s IBD Stock Of The Day while Amazon stock was Thursday’s pick.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
China EV Sales
Investors will get June and second-quarter sales from China EV makers Nio (NIO), Li Auto (LI), XPeng (XPEV) and Zeekr (ZK) early Monday and perhaps EV and battery giant BYD (BYDDF).
Tesla and Rivian (RIVN) should release figures early Tuesday.
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Stock Market Rally
The stock market rally had some wobbles, ultimately closing narrowly mixed. The Dow Jones Industrial Average edged down 0.1% in last week’s stock market trading after a solid start to the week. The S&P 500 index dipped 0.1% and the Nasdaq composite edged up 0.2% after both reversed from record highs Friday morning.
The small-cap Russell 2000 popped 1.3%, reclaiming its 50-day line.
The Invesco S&P 500 Equal Weight ETF (RSP) fell 0.8% for the week, finishing just below its 50-day.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) fell 0.6%, still just below record highs.
Friday was a rough day for many growth names, but software continued to do well. Financials and industrials generally faded after looking interesting to start the week, though JPMorgan Chase (JPM) flashed an early entry Friday.
Looking on a weekly chart, the Nasdaq hasn’t shown any real weakness, rising for the past four weeks and nine out of the last 10.
The Nasdaq is 5.9% above its 50-day line, slightly extended even with sideways action over the past couple of weeks. A longer pause or mild pullback would likely be constructive, letting stocks set up and giving more room for the next advance.
Getting the Russell 2000, RSP and some key non-tech sectors decisively above their 50-day lines would be a positive.
The 10-year Treasury yield rose nine basis points to 4.34%. U.S. crude oil futures rose 1% to $81.84 a barrel last week, extending a recent uptrend.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 0.4% last week.
The iShares Expanded Tech-Software Sector ETF (IGV) jumped 2.4%, its fourth straight strong weekly advance. ServiceNow stock and AppLovin are IGV holdings. The VanEck Vectors Semiconductor ETF (SMH) sank 1.6%, but came off lows somewhat. Nvidia stock is the dominant SMH holding.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 1.4% last week and ARK Genomics ETF (ARKG) tumbled 3.5%, back toward the April lows. Tesla stock is the No. 1 holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) climbed 0.5% last week. The Global X U.S. Infrastructure Development ETF (PAVE) fell 1.1%. U.S. Global Jets ETF (JETS) dipped 0.25%. SPDR S&P Homebuilders ETF (XHB) declined 1.7%.
The Energy Select SPDR ETF (XLE) bounced 1.6% and the Health Care Select Sector SPDR Fund (XLV) retreated 0.7%.
The Industrial Select Sector SPDR Fund (XLI) dropped 0.85%. The Financial Select SPDR ETF (XLF) shed 0.6%.
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Megacap Stocks
Nvidia stock fell 2.4% for the week to 123.54. But after tumbling 6.7% on Monday, capping a three-day sell-off, the AI chip leader rebounded and steadied above the 21-day moving average. NVDA stock could use a longer break, forging a new base and letting the 50-day line catch up.
Meta stock rose 1.9% to 504.22. Shares cleared a 514.01 cup-with-handle buy point on Thursday, but fell nearly 3% on Friday. However, it’s still around some early entries within the handle.
Amazon stock gained 2.2% to 193.25, moving past a 191.70 flat-base buy point. Shares fell 2.3% on Friday.
Tesla stock jumped 8.1% to 197.88, breaking out from a 191.08 handle buy point. The buy range extends to 200.63….
Read More: Dow Jones Futures: Market Gives Mixed Signals, But This Remains; Tesla, Amazon