Dow Jones futures will begin trading Sunday evening, along with S&P 500 futures and Nasdaq futures. JPMorgan Chase (JPM) and other banks kick off earnings season this week.
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Major banks start earnings season next week
Last week’s stock market rally saw the S&P 500 and Nasdaq hit new highs, with the Nasdaq extending its gains even further, while small-cap stocks fell off key levels.
Still, the number of stocks that issued buy signals increased. Meta Platform (Meta), Palantir Technologies (PLTR) and ASML (ASML) is in a buy zone. Meanwhile, Tesla (TSLA) surged. NVIDIA (NVDA) continued to perform well after falling from its all-time high, posting a small weekly gain.
Biden’s interview is a must-win.
President Biden’s interview with ABC News’ George Stephanopoulos on Friday may be his final chance to salvage his reelection effort after the disastrous June 27 debate and the media’s detailed coverage of his struggles over the past few months. The interview, recorded in the afternoon, will air at 8 p.m. ET.
Biden stressed at a campaign event on Friday that he would “keep the campaign going.” But if he were to drop out, Vice President Kamala Harris is the likely Democratic nominee. This political drama could have a major impact on markets, and some sectors have already been affected.
Earnings and inflation come first
JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) reports earnings on Friday. All are near buy points or early entry.
The June CPI inflation report is due to be released on Thursday, following a weak employment report on June 5. PPI inflation data is due to be released on Friday.
Nvidia and ASML shares are listed on the IBD Leaderboard. Meta shares are listed on SwingTrader. Nvidia shares, Palantir and Citigroup are listed on the IBD 50. Palantir shares are listed on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures will begin trading at 6pm ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight movements in Dow futures or any other stocks do not necessarily translate into actual trading in the next regular stock market session.
IBD experts break down major stocks and markets on IBD Live.
Stock market rise
The stock market rally was a positive one for the major indexes. The Dow Jones Industrial Average rose 0.7% in the stock market last week. The S&P 500 Index rose 1.95%. The Nasdaq Composite Index rose 3.5%.
However, the small-cap Russell 2000 fell 1%, dropping below its 50-day moving average.
The Invesco S&P 500 Equal Weight ETF (RSP) fell 0.4% to 163.38, further below its 50-day line.
In contrast, the First Trust Nasdaq 100 Equal Weight Index ETF (QQEW) rose 1.6% to a record high, reflecting strength in non-large-cap growth stocks, particularly tech growth stocks. This significantly lagged the Nasdaq 100’s 3.6% gain.
The Nasdaq is currently 8.3% above its 50-day moving average and rising. The tech-heavy index reached that level on June 17, setting the stage for a two-week sideways market. A pause or pullback is again on the cards. It doesn’t have to happen soon, or be that big, but the risk is rising.
The yield on the 10-year Treasury note fell 7 basis points to 4.27% after surging to 4.49% earlier in the week.
U.S. crude oil futures rose 2% this week to $83.16 a barrel and are up 10.1% over the past four weeks.
Copper futures are up 6.1% this week. Gold prices are up 2.6% and silver is up 7.4%.
Bitcoin fell 10.7% to $56,458.26, having rebounded from a multi-month low of $53,700 early Friday morning.
ETF
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.4% last week. The iShares Expanded Tech-Software Sector ETF (IGV), which includes PLTR stock, rose 2.3%, just below its late 2021 peak. The VanEck Vectors Semiconductor ETF (SMH) rose 3.5%. Nvidia is by far SMH’s largest holding, with ASML also a major contender.
Reflecting more speculative names, the ARK Innovation ETF (ARKK) rose 4.55% last week, while the ARK Genomics ETF (ARKG) fell 1.1%. Tesla shares are the No. 1 holding across Ark Invest’s ETFs.
The SPDR S&P Metals & Mining ETF (XME) rose 3.25% last week, buoyed by rising metals and coal prices, while the Financial Select SPDR ETF (XLF) rose 1%. JPMorgan shares, Citigroup and Wells Fargo are all key members.
But there were weaknesses in other areas.
The Global X U.S. Infrastructure Development ETF (PAVE) fell 1.1%. The U.S. Global Jets ETF (JETS) fell 2.6%. The SPDR S&P Home Builders ETF (XHB) fell 3.1%. The Energy Select SPDR ETF (XLE) fell 1.15%, the Health Care Select Sector SPDR Fund (XLV) fell 0.9%, and the Industrial Select Sector SPDR Fund (XLI) fell 0.5%.
Timing the Market with IBD’s ETF Market Strategy
Tesla stock
Tesla shares surged 27.1% this week to 251.52, well above their 200-day moving average. Second-quarter deliveries fell compared to the same period a year ago but beat revised expectations.
Shares are currently trading well above a buy point at 191.08. TSLA stock is on a long-term trendline leading back to its all-time high in late 2021. Ideally, Tesla will take a break for a while.
Tesla’s earnings report is scheduled for July 17, and the robotaxi event is scheduled for August 8.
NVIDIA
Nvidia shares rose 1.85% this week to 125.83, bouncing off the 21-day line. Aggressive investors could have used Wednesday’s trading to buy a few more shares, but Nvidia may need to take a break.
Nvidia isn’t scheduled to report earnings until mid-August. Taiwan Semiconductor Manufacturing TSM, which makes chips for Nvidia and many other companies, will report June sales on Wednesday and second-quarter earnings on July 18.
MetaStock
Meta shares rose 7.1%, mostly on Friday, to 539.91, above buy points of 514.01 or 522.08. Meta reports earnings on July 31.
Palantir stock
Palantir shares rose 7.5% to 27.23, breaking above a 26.57 buy point on Friday and hitting their highest price since late 2021. Four months of broad, gradual consolidation can be seen as a big handle on a big base. Though tradable, PLTR shares are 18.7% above their 50-day line. The stock has a tendency to move up and down wildly.
Palantir’s earnings are due in early August.
ASML stock
ASML shares rose 5.1% this week to 1,074.48, bouncing off the 21-day line and re-exceeding a buy point of 1,056.34. ASML is scheduled to report earnings on July 17.
What to do now
It’s not ideal that the Nasdaq is rising while the small-cap, mid-cap and equal-weighted S&P 500 ETFs are missing their 50-day lines.
Still, most of the major stocks are performing well and new buying opportunities have been emerging steadily in recent days.
If you’ve recently bought something new, it’s probably working, but be prepared for the market to pull back or reverse again.
Although there are warning signs against new purchases, the overall bullish trend remains strong and investors should put in substantial to large amounts.
Be sure to check your watchlist and review your portfolio.
It’s earnings season and time to turn your attention to JPMorgan, Citigroup, Wells Fargo, and Delta Airlines(DAL) and other companies are scheduled to announce their earnings this week, followed by a more active period of earnings announcements from other companies.
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