Dow Jones futures fell slightly Sunday night, along with S&P 500 futures and Nasdaq futures. The stock market rally showed last week’s resilience, trimming modest weekly losses even as Treasury yields rose. But Friday’s rebound has largely faltered, with the Nasdaq facing resistance.
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stock Nvidia, visa (Fifth), Chipotle Mexican Grill (CMG), Salesforce.com (CRM), Tempura Sealy (TPX), Levent (LTHM), Arista Networks (network), slb (slb), Flowserve (FLS) And Marriott International (March).
Visa and Marriott stocks are in traditional buying areas, while Chipotle and FLS stocks are near them. Securities Borrow and Lend Share is executable from early entry during nvidia (NVDA) and shares of CRM, Tempur Sealy, Arista Networks and Livent are nearby.
Nvidia and software makers Salesforce and Dynatrace are leading the AI wave, along with many other technology stocks.
Nvidia is on IBD Leaderboard, while CMG stock is on the leaderboard watch list. DT stock is on SwingTrader. LTHM stock and Salesforce.com on defect 50 existing. Salesforce was IBD Bank’s Friday stock.
The video embedded in the article discussed the weekly action of the market rally and analyzed Salesforce, Tempur Sealy and SLB stocks.
Dow jones futures today
Dow futures fell 0.1% against fair value. S&P 500 futures lost 0.2%. Nasdaq 100 futures fell 0.3%.
The 10-year Treasury note rose slightly, to 4.08%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable shares in the bullish stock market on IBD Live
Stock market rise
The stock market rally has eased again in a week shorter than the holiday.
The Dow Jones Industrial Average fell 2% in stock trading last week, slipping below the 21-day line and approaching the 50-day line. The S&P 500 fell 1.2%, just below the 10-day line. The Nasdaq Composite fell 0.9%, holding on for 10 days. The small cap Russell 2000 fell 1.3%, but its rebound of 1.2% on Friday put it back above 21 days.
Invesco S&P 500 Equal Weight Fund (RSP) lost only 0.75%. First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW) waiver of 1.3%.
The 10-year Treasury yield jumped 23 basis points to 4.05%, matching a 2023 high of 4.09% on the day. The two-year Treasury yield, linked more to Fed policy, rose 5 basis points to 4.93%, but eased from Thursday’s 16-year high of 5.12%.
US crude oil futures jumped 4.6% to $73.86 a barrel during the week. Copper futures rose 0.7%, helped by Friday’s gain of 1.3%.
The US dollar initially rallied along with Treasury yields, putting pressure on stocks and especially commodities. However, the dollar reversed lower during the week.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty(down 2.7% last week, while the Innovator IBD Breakout Opportunities ETF)fit) lost 1.75%. iShares Expanded Technology and Software ETF (IGV) down 1.8%, with CRM stock a major component. VanEck Vectors Semiconductor Corporation (SMH) lost 2.1%, with NVDA stock taking the lead.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(down 0.9% last week and ARK Genomics ETF)ARKG) decreased by 2.8%.
SPDR S&P Metals & Mining ETFs (XME) sank 0.6%% last week, but came off lows. Global Infrastructure Development Fund X US (cradle) fell 1.6%. US Global Gates Foundation ETF (Planes) increased by 1.2% and 6% in the previous week. SPDR S&P Homebuilders ETF (XHB) gave up 2.9%. Energy Defined Fund SPDR ETF (xle) was down 0.5%, with SLB stock gaining heavily. SPDR Health Care Sector Selection Fund (XLV) decreased by 2.8%. SPDR Industry Selection Fund (XLI) decreased by 1%.
SPDR Financial Selection Fund (XLF) fell by 0.4%, to hit the resistance at the 200-day line. SPDR S&P Regional Banking ETF (KRE) rose 1.6%.
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Stocks to watch
Nvidia stock rose 0.5% to 425.03 last week. The AI leader has a tight four-week pattern with 439.90 long, but investors can use Friday’s high of 432.14 as an early entry. A longer pullback or sideways move would be ideal, but NVDA stock may not offer that.
Visa stock is holding just above a flat-base buy point of 235.57, just 3.2% above the 50-day line. Could Visa and its fellow payments giant Master Card Credit Card (Master’s) Finally made another real move? The strong American consumer and travel abroad are the tailwinds.
MarketSmith analysis showed that CMG stock tried to move above 2139.88 buying points for the flat base, but it never closed above it. Shares fell 2.9% to 2,077.46 for the week, pulling back to the 21-day line and the 10-week line. A move up from those levels or a classic breakout are potential entry points.
CRM stock is trading tightly in the 21 day and 10 week lines, within a flat base with 225 buy points. A move above Wednesday’s high of 214.62 would provide an early entry.
TPX stock rose 0.9% to 40.43, including Friday’s gain of close to 3% in above-average trading volume. The mattress giant is on the right side of a five-month merger with 44.28 buy points. It sits right at the resistance around 41.50-41.62. The clearinghouse that would provide early entry into Tempur Sealy shares.
LTHM stock rose 1.7% to 27.40 on Friday, just below the 27.75 entry. Investors can see 27.75 as a high handle for a low base. Other lithium plays bounce after that Tesla (TSLA) and several other electric vehicle makers have reported strong second-quarter deliveries in recent days.
ANET stock started to narrow again, finding support at the 21-day line. It is close to breaking the trend line, with 164.20 as another possible entry. The networking giant has a new base with 178.36 buy points. Note that Arista stock has had a few weeks of heavy selling on the new consolidation.
SLB stock jumped 8.6% to 53.35 on Friday in the biggest volume of the year, crossing the 200-day line and breaking a trend line dating back to January. Investors can still buy the oilfield services giant, formerly Schlumberger, though it is somewhat extended from 200 days. Securities Borrowing and Lend earnings are due on July 21st.
Flowserve stock rose 1.9% to 36.96 on Friday, bouncing off a 21-day line. FLS stock has 37.56 cups with a buy point handle. Flowserve has struggled since 2014. But earnings are rebounding, with solid growth seen through 2024. Industrial companies are the market leaders right now, with Flowserve’s end markets doing well.
Marriott shares rose 1.1 percent to 185.66 for the week. Friday’s 2% gain in slightly above-average volume pushed MAR stock back above 183.27 buy points and not far from the April 2022 record high.
Market rally analysis
The market rally has moved sideways over the past three weeks, which has been constructive, allowing stocks to pull back to major support or form handles and bases.
Not many stocks flashed buy signals and made those moves flat last week. But a slew of leading stocks are being generated from a variety of groups, including Nvidia, Salesforce, Flowserve and more chips, software, and mega-caps look strong, but do housing, industrials, travel, and even some power games. So do electric cars and automakers in general, although very few are in their positions.
The bulls want to run, which is fine, but they are running into resistance. The Nasdaq is 5.4% higher than the 50-day line with the Nasdaq 100 up 6%. This isn’t a stretch, but it’s not far from being either. Ideally, the Nasdaq is moving sideways or slightly sideways
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What are you doing now
Investors should watch closely, and build their watch lists. You can look to add exposure a bit, but do it carefully. A number of stocks have flashed early entries over the past week or so only to pull back amid the range-bound market. Many may work well, but you can’t assume that.
You may still want to take a quick partial profit, especially if the NASDAQ rises to extreme levels again.
Earnings season begins next week Delta Airlines (DAL), Aehr Test Systems (AEHR) And c. B. Morgan Chase (JPM) drives several banks.
Read the big picture every day to stay in sync with market trend, leading stocks and sectors.
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