Dow Jones futures rose modestly Monday morning, along with S&P 500 futures and Nasdaq futures. Crude oil plunged after Israel’s “precise” airstrikes on Iran while the yen weakened after Japanese elections.
Apple (AAPL), Microsoft (MSFT), Google-parent Alphabet (GOOGL), Amazon.com (AMZN) and Meta Platforms (META) all report this coming week, with enormous implications for the tech sector and broader market.
Big economic reports also are on tap, including the October jobs report. Election Day and the next Federal Reserve meeting are next week.
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S&P 500 Giants Report Earnings. Will Megacap Results Sustain The Tech Rally?
Boeing (BA), seeking cash amid a punishing strike, announced plans to sell 90 million shares — worth nearly $14 at current prices — plus $5 billion worth of depositary shares. The Dow giant had recently filed to sell up to $25 billion in shares and debt. Shares fell slightly early Monday.
The stock market was mixed last week, but the Nasdaq hit a record high. A number of stocks flashed buy signals Friday, including Tesla (TSLA), Nvidia (NVDA) and AI chip IPO Astera Labs (ALAB).
Nvidia and Meta stock are on IBD Leaderboard and the IBD 50. Nvidia stock is on SwingTrader. Microsoft stock is on IBD Long-Term Leaders.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value. S&P 500 futures climbed 0.4% and Nasdaq 100 futures advanced 0.5%. Futures are off early morning highs.
The 10-year Treasury yield edged up to 4.26%.
Crude oil futures dived 6% amid hopes that Mideast violence won’t escalate. Israel launched “precise strikes on military targets in Iran” on Saturday, in response to an Iranian missile attack earlier this month, but didn’t target oil and nuclear facilities. State-run Iranian media downplayed the long-awaited attack.
Japan’s ruling Liberal Democratic Party and coalition partner lost their majority in the lower house of parliament in Sunday’s elections. The LDP is still likely to end up forging a new, broader coalition. The Nikkei rose 1.8% while the Japanese yen weakened vs. the dollar, which has been a positive for global markets.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally showed mixed weekly action, with Tesla, Nvidia and some other megacaps masking weak breadth.
The Dow Jones Industrial Average fell 2.7% in last week’s stock market trading. The S&P 500 index lost nearly 1%. The Nasdaq composite climbed 0.2%. The small-cap Russell 2000 gave up 3%.
The Dow Jones and Russell 2000 are below their 21-day lines, with the latter closing just below its 10-week line. The S&P 500 is above its 21-day line and not far from all-time bests. The Nasdaq hit a record high Friday, though it came off intraday highs.
In addition to Tesla, Nvidia and Astera Labs, many other names cleared buy points Friday. Western Digital (WDC), ResMed (RMD), Deckers Outdoor (DECK) and L3Harris Technology (LHX) did so on earnings.
The 10-year Treasury yield jumped 16 basis points to 4.23%. In the coming week, investors will get a slew of economic data, including the first read on Q3 GDP and the October jobs report. That will presage the Fed meeting on Nov. 6-7.
U.S. crude oil futures jumped 4.5% to $71.78 a barrel last week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 2.1% last week. The iShares Expanded Tech-Software Sector ETF (IGV) edged down 0.1%, with Microsoft a huge IGV component. The VanEck Vectors Semiconductor ETF (SMH) edged up 0.6%. Nvidia stock is by far the biggest SMH holding.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) retreated 0.75% last week and ARK Genomics ETF (ARKG) sold off 6.05%. Tesla stock is a major holding across Ark Invest. Cathie Wood also has built up a big Nvidia stake and also owns some BYD stock.
SPDR S&P Metals & Mining ETF (XME) tumbled 4% last week. SPDR S&P Homebuilders ETF (XHB) plunged 7.15%. The Energy Select SPDR ETF (XLE) fell 0.6% and the Health Care Select Sector SPDR Fund (XLV) lost 2.95%. The Industrial Select Sector SPDR Fund (XLI) gave up 2.8%.
The Financial Select SPDR ETF (XLF) sank 2%.
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Tech Titans On Tap
Google reports Tuesday night, with Microsoft and Meta Platforms Wednesday. Apple and Amazon will follow Thursday night. Arguably all are near or flirting with various buy points or aggressive entries, but the looming earnings make that highly risky.
Just these five companies boast a combined market valuation of…
Read More: Dow Jones Futures Rise, Oil Dives As Two Global Risks Ebb; Tesla, Nvidia In Buy