Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. A big Apple (AAPL) AI push, the Tesla (TSLA) shareholder meeting and the latest Federal Reserve rate outlook “dot pot” headline major events.
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Eli Lilly (LLY) faces an FDA panel while Oracle (ORCL), Adobe (ADBE) and Broadcom (AVGO) are key earnings this coming week.
The stock market rally saw the Nasdaq and S&P 500 hit record highs last week, even as the Russell 2000 retreated to back below the 50-day line. Despite weak breadth, a number of stocks flashed buy signals last week.
Nvidia (NVDA) surged again last week to a record high, edging above a $3 trillion valuation and topping Apple stock. A 10-for-1 Nvidia stock split takes place after Friday’s close.
S&P 500 Rebalance
CrowdStrike (CRWD), KKR (KKR) and GoDaddy (GDDY) will join the S&P 500 index, S&P Dow Jones Indices announced Friday evening. They’ll replace Robert Half (RHI), Comerica (CMA) and Illumina (ILMN) in the benchmark index before the open on Monday, June 24.
These moves are part of the big quarterly rebalances in the S&P indexes.
CrowdStrike and KKR stock jumped Friday night, with GoDaddy also rising.
Meanwhile, Dell Technologies (DLTR) and Palantir Technologies (PLTR), two profitable big caps seen as possible S&P 500 picks, fell slightly Friday night as they were passed over again.
Nvidia and Eli Lilly stock are on IBD Leaderboard. Nvidia stock is on the IBD 50. Broadcom stock and Nvidia are 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.
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Stock Market Rally
The stock market rally was both strong and mixed in the latest week.
The Dow Jones Industrial Average edged up 0.3% in last week’s stock market trading, just regaining its 50-day moving average. The S&P 500 index popped 1.3% and the Nasdaq composite jumped 2.4%, both setting all-time highs.
Nvidia stock soared 10.3% to 1,208.88, giving it a market cap of $3.022 trillion. That passed up Apple stock, even though it extended a weekly win streak, ending with a $3.019 trillion valuation. Nvidia is behind No. 1 Microsoft (MSFT), which ended the week at $3.149 trillion.
Overall breadth was weak-to-lackluster: The small-cap Russell 2000 and the S&P MidCap 400 both gave up 2.1% for the week, falling below their 50-day lines.
However, a lot of leading stocks flashed buy signals or set up. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW), which can be viewed a very rough proxy for growth stocks, gained 1% for the week, reclaiming the 50-day line.
The 10-year Treasury yield declined 8 basis points to 4.43%, but shot up 15 basis points on Friday.
U.S. crude oil futures fell 1.9% to $75.53 a barrel last week, but came off four-month lows mid-week.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.4% last week, with Microsoft, Oracle and Adobe stock big members and CRWD stock also in the ETF. The VanEck Vectors Semiconductor ETF (SMH) leapt 4.9%, with Nvidia and AVGO stock key holdings.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) both climbed 3.1% last week. Tesla stock is a major holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) plunged 6.2% last week. The Global X U.S. Infrastructure Development ETF (PAVE) shed 3.6%. U.S. Global Jets ETF (JETS) descended 0.55%. SPDR S&P Homebuilders ETF (XHB) and the Energy Select SPDR ETF (XLE) slumped 3.4%.
The Health Care Select Sector SPDR Fund (XLV) climbed 1.9%. The Industrial Select Sector SPDR Fund (XLI) fell 1%. The Financial Select SPDR ETF (XLF) dipped 0.4%.
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Apple AI Push
Apple holds its annual Worldwide Developers Conference, starting on Monday. The iPhone giant is expected to make a long-awaited artificial intelligence push at WWDC, with CEO Tim Cook giving a keynote address at 1 p.m. ET.
Apple is expected to roll out in-device generative AI tools for the iPhone, iPad and other devices. Apple’s digital assistant Siri is likely to get a brain transplant with gen AI features. Apple is likely to rely on an alliance with ChatGPT creator OpenAI, which is backed by Microsoft.
Apple stock rose 2.4% to 196.89 last week, moving closer to a 199.62 cup-base buy point. Shares ended Friday at a 2024 closing high, up 2.2% for the year.
AAPL stock has rallied 20% from a 52-week low of 164.07 on April 19. That’s largely in anticipation of Apple’s AI push.
So there’s a risk of “buy…
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