Dow Jones futures rose modestly Sunday night, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA), Service now (now) And Netflix (NFLX) Title of a big earnings week.
X
The S&P 500 and Dow Jones hit all-time highs on Friday while the Nasdaq hit its best level in two years. Big Tech companies led the market's rise last week. Small businesses struggled, but rebounded from support on Friday.
With the exception of Friday, market breadth has been lackluster in 2024. But the market's leadership is strong, with a large number of stocks showing buy signals in the past few days with several others creating buy signals.
apple (Camel) offered early entry on Friday, but with caveats. Cloudflare (network) Buy signal flashes with Kings Project (DKNG) On the edge.
Investors can add exposure gradually, but earnings season is looming.
In addition to Tesla, ServiceNow, and Netflix, Intel Corporation (you are K), ASML (ASML), L Research (LRCX), Kosovo Liberation Army (KLAC), Dr. Horton (DHI), Bakkar (Picard) And United Rentals (URI) under click, but not limited to.
Tesla stock, despite its decline, is still being closely watched by investors. ServiceNow starts making software profits, while Intel, ASML, LRCX, and KLAC provide more insight into the booming chip sector. DR Horton, Paccar and URI stocks show strength beyond technology.
Now the inventory is running IBD Leaderboardwith Booking Holding (Baking) Stocks in the leaderboard watchlist. KLA stock is on IBD Long-Term Leaders. DraftKings, ServiceNow, United Rentals, and NET Stock are on Bahraini dinar 50. ServiceNow, United Rentals, and ASML shares are available at IBD Big Cap 20.
Cloudflare stock was IBD Stock of the Day on Friday. DKNG stock was the pick on Thursday.
The video embedded in this article discusses weekly market action and stock analysis of Cloudflare, DraftKings, and Super micro computer (SMCI).
Dow jones futures today
Dow Jones futures rose 0.2% versus fair value. S&P 500 futures rose 0.3%, and Nasdaq 100 futures rose 0.7%.
The yield on 10-year Treasury bonds fell to 4.11%.
Remember, an overnight move in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
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Stock market pool
The stock market rally eased at the beginning of the week, but rose on Thursday and Friday.
The Dow Jones Industrial Average rose 0.7% in stock market trading last week. The Standard & Poor's 500 rose 1.2%. The Nasdaq Composite rose 2.3%.
The S&P 500 surpassed its January 2022 all-time peak on Friday. The Dow Jones rebounded to an all-time closing high. The Nasdaq index hit its best level in two years, although it is still far from its record highs. The Nasdaq 100 index hit a record high of 2.9% last week.
The Russell 2000 index fell 0.3%. The small-cap index has rebounded significantly from its 50-day line.
Invesco S&P 500 Equal Weight Fund (RSP) fell 0.15% over the week but rebounded significantly from the 10-week line and reclaimed the 21-day line on Friday.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) lagged the Nasdaq 100, but jumped 1.8% to a two-year high. This reflects strong market leadership, especially in the field of technological growth.
The yield on 10-year Treasury bonds jumped 20 basis points to 4.15%. The two-year Treasury yield, closely tied to Fed policy, rose 27 basis points to 4.41%.
Economic data was generally strong last week, while Federal Reserve policymakers and European Central Bank officials signaled a slow approach to interest rate cuts. Markets now see less than a 50-50 chance of the Fed starting to cut interest rates in March.
The rebound in Treasury yields and waning hopes for lower interest rates have not had much impact so far on the market's rally, but they are worth watching.
US crude oil futures rose 1 percent to $73.41 per barrel last week.
The Fed is sending a new message on interest rate cuts
ETFs
Among the growth ETFs is the iShares Expanded Technology Software Sector ETF (IGV) jumped 2.4%, and NOW stock was an important item. VanEck Vectors Semiconductor ETF (Trait) by 8.2%, with shares ASML, KLA, LRCX, and Intel all large holdings.
Reflecting more speculative stocks, the ARK Innovation ETF (Ark) fell 2.3% last week and the ARK Genomics ETF (Arkj) decreased by 5.8%. Tesla stock remains a major holding across Ark Invest's ETFs.
SPDR S&P Metals and Mining Fund (XME) fell 0.9% last week. Global X US Infrastructure Development Foundation (ETF)cradle) by 0.5%, with URI stock being a large component. US Global Jets ETF (Planes) decreased by 0.3%. SPDR S&P Homebuilders ETF (XHB) reversed a 1.3% rise, with DHI stock gaining ground. Energy Select SPDR ETF (XLE) fell 3% to a six-month low. Healthcare Select Sector SPDR Fund (Forty-fifth) fell 0.75% as health insurance companies retreated, ending a nine-week winning streak. Selected Industrial Sector SPDR Fund (forty-first) by 0.3%, with shares of United Rentals and PCAR held in this fund.
Financial Select SPDR ETF (XLF) rose by 0.9%.
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Stocks to watch
Apple stock jumped 3% to 191.56, rebounding from the 200-day line and clearly reclaiming the 50-day line, providing a solid entry. However, the relative strength line has lagged, reaching a 10-month low recently.
Apple's profits were very average, with demand for iPhones in China a concern. Q1 2024 earnings are scheduled for February 1.
Cloudflare stock rose 2.5% to 81.36 last week after finding support at its 50-day line and a previous buy point at 76.07 COP. On Friday, NET stock reclaimed its 21-day line and broke a brief downtrend, providing an early entry. Cloudflare now has a flat base pattern, with a buy point of 86.91.
DKNG stock jumped 14.2% to 37.62, rising above its 50-day line. DraftKings stock is hitting resistance at the downtrend line. A move above Friday's high at 38.15 will provide an early entry. The official consolidated buy point is 39.35.
Tesla, Netflix and General Electric Earnings: Investment Action Plan
Tesla earnings
Tesla's earnings are scheduled for Wednesday evening. Analysts expect earnings per share to decline 39% from a year earlier to 73 cents per share, with revenue up more than 5% to $25.62 billion.
The focus will be on the 2024 outlook for gross margins and deliveries, especially as price cuts and incentives continue into early 2024.
Tesla began rolling out version 12 of the FSD Beta on Sunday evening to some paying customers after weeks of internal testing.
Tesla shares fell 3.1% last week to 212.19, which is the fifth weekly decline in a row. The RS line fell to an eight-month low, reflecting TSLA stock's deterioration against the S&P 500. Bottom line, Tesla stock is in the body shop right now.
Tesla and TSLA stock's woes are mirrored in many other electric vehicle manufacturers and stocks.
Other major profits
Netflix is earnings beat Tuesday night with the focus back on subscriber growth. NFLX stock is just below a traditional buy point, finding support at the 10-week line.
ServiceNow stock is extended, but it works great. Wednesday night's results and guidance will be key to many program runs.
ASML reports on Wednesday morning, and Lam Research is scheduled for Wednesday evening, followed by KLA and Intel on Thursday evening. Intel stock remains in a 10-week recovery range last week, although earnings largely raise the risk of new purchases. ASML, KLA and LRCX shares look extended after big bounces off their 10-week line.
Heavy truck maker Paccar reports on Tuesday and Heavy Equipment is scheduled to play United Rentals on Wednesday. It can be said that both send buy signals, early entries into emerging rules.
DR Horton is scheduled to report earnings on Tuesday. DHI shares have strengthened over the past month, catching up to moving averages.
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What are you doing now
The stock market rally no longer represents a broad-based advance from late 2023. Instead, technology companies and some other leading companies are turning away from small caps and certain sectors. However, market leadership remains strong, with new buying opportunities and recent purchases generally increasing.
Investors can add to or retain their portfolio, depending on their investment style as well as existing holdings and exposure levels.
Buy as early as possible to buy points or early entries. Being a successful investor requires committing to not buying for too long – and doing the prep work for your watch lists so you can take advantage of buying opportunities.
Earnings will rise in the next two weeks, especially for technology leaders. As the market rises in earnings season, there is a risk that expectations are too high.
Know when your inventories are available – as well as when competitors, customers and suppliers report.
Read The Big Picture every day to stay on top of the market trend and leading stocks and sectors.
Please follow Ed Carson on topics at @edcarson1971x/Twitter at @IBD_ECarson And Bluesky V @edcarson.bsky.social For stock market updates and more.
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