Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. JPMorgan Chase (JPM) and other banks kick off earnings season this coming week.
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Banking Giants Kick Off Earnings Season Next Week
The stock market rally last week saw the S&P 500 and Nasdaq hit fresh highs, though the latter is increasingly extended. On the flip side, small caps retreated below a key level.
Still, more stocks flashed buy signals. Meta Platforms (META), Palantir Technologies (PLTR) and ASML (ASML) are in buy zones. Meanwhile, Tesla (TSLA) skyrocketed. Nvidia (NVDA) had a modest weekly gain, continuing to act well after pulling back from record highs.
Biden Interview A Must-Win
President Biden’s Friday interview with ABC News’ George Stephanopoulos could be a last chance to save his reelection effort following the disastrous June 27 debate and subsequent media stories detailing his struggles over the past several months. The interview, taped in the afternoon, began airing in its entirety at 8:30 p.m. ET.
In the interview, Biden said the debate was a “bad episode” but there is “no indication of any serious condition.”
Biden, in a Friday campaign event, insisted, “I’m staying in the race.” If he bows out, Vice President Kamala Harris is heavily favored to be the Democratic nominee.
Friday evening, Biden had just a 37% chance of being the nominee, according to PredictIt. Harris was at 46%.
The political drama could have a big market impact, with some sectors already affected.
Earnings, Powell, Inflation Ahead
JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) report earnings on Friday. All are near buy points or early entries.
Fed chief Jerome Powell will testify before Congress on Tuesday and Wednesday.
The June CPI inflation report is due on Thursday, following the soft jobs report on June 5. PPI inflation data is on Friday.
Nvidia and ASML stock are on the IBD Leaderboard. Meta stock is on SwingTrader. Nvidia stock, Palantir and Citigroup are on the IBD 50. Palantir stock is on the IBD Big Cap 20.
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.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally showed positive action on the major indexes. The Dow Jones Industrial Average climbed 0.7% in last week’s stock market trading. The S&P 500 index popped 1.95%. The Nasdaq composite jumped 3.5%.
However, the small-cap Russell 2000 sank 1%, sinking below the 50-day line.
The Invesco S&P 500 Equal Weight ETF (RSP) dipped 0.4% to 163.38, falling further below the 50-day line.
In contrast, the First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) climbed 1.6% to a record high. That reflects strength in growth stocks, especially tech growth names, beyond the megacaps. That significantly lagged the Nasdaq 100’s 3.6% spike.
The Nasdaq is now 8.3% above its 50-day line, increasingly extended. That’s how extended the tech-heavy index was on June 17, setting stage for two weeks of sideways action. The odds of a pause or pullback are elevated again. It doesn’t have to happen right away and it doesn’t have to be that large, but those risks are growing.
The 10-year Treasury yield fell seven basis points to 4.27% after spiking to 4.49% early in the week.
U.S. crude oil futures rose 2% to $83.16 a barrel for the week, up 10.1% in the last four weeks.
Copper futures jumped 6.1% for the week. Gold prices climbed 2.6% while silver leapt 7.4%.
Bitcoin plunged 10.7% to $56,458.26, but rebounded from a multimonth low of $53,700 early Friday.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.4% last week. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 2.3% to just below its late 2021 peak. PLTR stock is a member. The VanEck Vectors Semiconductor ETF (SMH) popped 3.5%. Nvidia stock is the largest SMH holding by far while ASML is also a key component.
Reflecting more-speculative stocks, ARK Innovation ETF (ARKK) rallied 4.55% last week and ARK Genomics ETF (ARKG) fell 1.1%. Tesla stock is the No. 1 holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) popped 3.25% last week, buoyed by rising metal and coal prices. The Financial Select SPDR ETF (XLF) rose 1%. JPMorgan stock, Citigroup and Wells Fargo are all big members.
But elsewhere there was weakness.
The Global X U.S. Infrastructure Development ETF (PAVE) declined 1.1%. U.S. Global Jets ETF (JETS) descended 2.6%. SPDR S&P Homebuilders ETF (XHB) skidded 3.1%. The Energy Select SPDR ETF (XLE) retreated 1.15% and the…
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