Dow Jones Futures: Market Rally Runs Up To Key Test; Here’s What To Do Now


Dow Jones futures will open on Sunday night, together with S&P 500 futures and Nasdaq futures. The stock market rally had one other sturdy week, transferring as much as a significant take a look at.


A market pause would not be a shock, and might be wholesome, after sturdy worth beneficial properties in usually gentle quantity over the previous a number of weeks. Investors needs to be cautious about including extra publicity.

Diversified oil big Exxon Mobil (XOM) is organising close to doable entries, as vitality shares take the lead as soon as once more. Costco Wholesale (COST) has a cup-with-handle base, although a number of key rivals are reporting this coming week. UnitedHealth (UNH) has traded tightly inside a purchase zone, creating one other entry. Apple (AAPL) is transferring shut a breakout as AAPL stock is outperforming different megacaps. Microsoft (MSFT) is closing in on its 200-day line, which might supply an opportunity to start out a place.

China EV startup Li Auto (LI) experiences earnings earlier than Monday’s open. LI stock has been among the many higher EV shares, outperforming giants BYD (BYDDF) and Tesla (TSLA), however must get above its 50-day line. BYD stock is under its 50-day line whereas Tesla is just under its 200-day.

UNH stock is on IBD Leaderboard and was Friday’s IBD Stock Of The Day. MSFT stock is an IBD Long-Term Leader.

The video embedded on this article mentioned the weekly market motion in depth, whereas additionally analyzing Exxon Mobil, UnitedHealth and Apple stock.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, together with S&P 500 futures and Nasdaq 100 futures.

Remember that in a single day motion in Dow futures and elsewhere does not essentially translate into precise buying and selling within the subsequent common stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally closed at weekly highs regardless of some reversals through the week.

The Dow Jones Industrial Average rose 2.9% in final week’s stock market buying and selling. The S&P 500 index popped 3.25%. The Nasdaq composite ran up 3.1%. The small-cap Russell 2000 leapt 4.9%.

The 10-year Treasury yield rose 1 foundation level to 2.85%, however with some massive strikes through the week.

U.S. crude oil futures rose 3.5% to $92.09 a barrel final week, regardless of Friday’s pullback. Gasoline futures leapt 6.7%. Natural gasoline costs jumped 8.7% for the week.


Among the most effective ETFs, the Innovator IBD 50 ETF (FFTY) gained 2.3% final week, whereas the Innovator IBD Breakout Opportunities ETF (BOUT) rallied 3.1%. The iShares Expanded Tech-Software Sector ETF (IGV) superior 3%, with MSFT the highest IGV holding. The VanEck Vectors Semiconductor ETF (SMH) edged up 0.7%, rebounding from steep losses following the Nvidia (NVDA) and Micron (MU) warnings.

SPDR S&P Metals & Mining ETF (XME) jumped 8.3% final week. The Global X U.S. Infrastructure Development ETF (PAVE) popped 4.6%. U.S. Global Jets ETF (JETS) ascended 3.5%. SPDR S&P Homebuilders ETF (XHB) rallied 4%, its eighth straight weekly achieve. The Energy Select SPDR ETF (XLE) jumped 7.4%, with XOM stock an enormous weight in XLE. The Financial Select SPDR ETF (XLF) bounced 5.4%. The Health Care Select Sector SPDR Fund (XLV) climbed 1.65%, with UNH stock an enormous holding.

Reflecting more-speculative story shares, ARK Innovation ETF (ARKK) climbed 3.25% final week and ARK Genomics ETF (ARKG) 3.8%. Tesla stock is a significant holding throughout Ark Invest’s ETFs. Cathie Wood’s Ark additionally owns some BYD stock.

Five Best Chinese Stocks To Watch Now

Stocks Near Buy Points

XOM stock rallied 6.3% to 93.99 final week, transferring again above the 50-day line. Shares of the vitality big are closing on a trendline from the early June peak. The official purchase level is 105.67, however that might be considerably above the 50-day line. Volume was gentle final week and has not been nice over the previous month as Exxon stock rebounded. Earnings development continues to growth.

COST stock edged down 0.6% this previous week to 537.21. Shares are drifting decrease in a deal with with a 552.81 purchase level, in accordance with MarketSmith analysis.

Keep in thoughts that smaller rival BJ’s Wholesale (BJ) experiences this coming Thursday. Walmart (WMT), which owns the Sam’s Club warehouse chain, is due out Tuesday morning, with Target (TGT) reporting Wednesday.

UNH stock rose 1.6% to 543.70. The well being insurer big continues to be in vary of a 518.80 cup-with-handle purchase level, whereas nonetheless under the April 14 excessive. UnitedHealth stock did not fairly forge a three-weeks-tight sample, simply exceeding the weekly transfer restrict. But buyers might nonetheless use 545.84 as an alternate purchase level.

Apple stock superior 4.1% to 172.12 final week. It was the sixth straight weekly achieve, however all have come on gentle quantity. On the upside, the relative energy line has hit a number of new highs, reflecting AAPL stock’s outperformance vs. the S&P 500. Apple stock is transferring towards a 179.71 double-bottom purchase level. Technically, shares are just under a trendline entry. Ideally, AAPL stock would forge a deal with.

MSFT stock climbed 3.2% to 291.91, however not like Apple continues to be under its 200-day transferring common. An enormous transfer above the 200-day line might supply an opportunity to enter MSFT stock as a Long-Term Leader. The RS line just isn’t removed from 2022 excessive, even with MSFT stock is considerably under its late November document excessive of 349.67.

Li Auto Earnings

Wall Street expects a internet lack of 2 cents per share on $1.4 billion in gross sales within the second quarter, in accordance with FactSet. That’s vs. a year-earlier lack of 1 cent on $780.4 million.

Li Auto has been worthwhile for the previous three quarters, however Covid shutdowns took their toll on manufacturing and deliveries in Q2. Li Auto at the moment has only one mannequin, the Li One hybrid SUV.

But it is begun gross sales of the premium L9 hybrid SUV, with deliveries set to start out later this month. Preorders have been sturdy, with Li Auto predicting L9 deliveries of 10,000 or extra in September.

LI stock fell 3.4% to 32.49 final week, creating extra space vs. its 50-day line and lengthening a downtrend that started in late June, That adopted an enormous run from early May. Shares did shut within the higher half of its weekly vary. Li Auto stock would have a brand new base with a 41.59 purchase level, if it begins constructing the precise aspect. A robust transfer above the rising 50-day might supply an early entry, nevertheless it’s slightly steep.

Tesla Vs. BYD: EV Giants Are Now Frenemies

Tesla And BYD Stock

Tesla stock bounced 4.1% to 900.09 final week. That’s coming again above its 200-day transferring common, reclaiming its 40-week line on Friday. Breaking above its 200-day line and the Aug. 4 excessive of 940.82 would supply an aggressive entry for TSLA stock. The official purchase level is 1,208.10.

BYD stock dipped 0.2% final week to 36.69, buying and selling tightly however under the 50-day line. The China EV and battery big has a base with a 43.71 purchase level. A decisive transfer above the 50-day would supply an early entry.

BYD is supplying Blade batteries to Tesla Berlin, in accordance with some experiences. Blade-powered Model Ys ought to begin rolling off the manufacturing line in a couple of weeks. Meanwhile, BYD will start deliveries of the Seal sedan, a much-cheaper rival to the Model 3, within the subsequent few weeks. BYD additionally start Atto 3 deliveries in Australia in a couple of days, coming into a brand new market as a part of an enormous worldwide enlargement.

Market Rally Analysis

The stock market rally had a few unpleasant intraday reversals, on Monday and Thursday, however in the end had stable beneficial properties on the main indexes.

The Dow Jones, S&P 500 and Russell 2000 have decisively cleared their early June highs, becoming a member of the Nasdaq. The Russell 2000 is simply above its 200-day line, with the S&P 500 and Dow Jones shut behind. The Nasdaq has a little bit extra work to get to that long-term degree because it will get to the 13,000 degree.

Getting above the 200-day line can be proof that the present uptrend is greater than a considerable bear market rally. A pause or pullback would not be a shock after a robust advance for the main indexes, largely on lackluster quantity. Friday’s bounce got here on very gentle quantity.

A pause or modest pullback over a number of days or a couple of weeks might be constructive, however the market goes to do what it is going to do.

Energy shares proceed to look sturdy, however will rise or fall with underlying oil and pure gasoline costs.

A variety of medicals are doing nicely. Chipmakers, lithium performs, some metal performs, transports and extra are displaying constructive motion.

Time The Market With IBD’s ETF Market Strategy

What To Do Now

As Scott Bennett of Invest with Rules advised IBD Live on Friday, buyers needn’t placed on the brakes, however they could wish to ease off the gasoline.

Be cautious about including publicity within the very quick time period, with the market rally maybe stretched and going through one more key resistance space. Taking partial earnings continues to be a sound technique, and a solution to hold publicity from ramping up from new buys.

Still, some high quality shares proceed to flash purchase alerts or arrange. Investors needs to be collaborating on this market, and in search of new alternatives. So hold constructing these watchlists.

Read The Big Picture day by day to remain in sync with the market path and main shares and sectors.

Please comply with Ed Carson on Twitter at @IBD_ECarson for stock market updates and extra.


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