Dow Jones futures open Sunday night, along with S&P 500 futures and Nasdaq futures.
X
The stock market rally, after sharply declining over the past week, has rebounded and closed strong. JPMorgan Chase and PNC Financial are competing for takeover First Republic Bank (FRC) after the FDIC takeover took place this weekend.
Major indexes fell on Tuesday as First Republic Bank revived bank worries. However, major indices have found support and rebounded.Initially, megacaps such as meta platform (meta) and microsoft (MSFTMore) led the comeback, but the width improved later in the week, especially on Friday.
The market rally looks healthier, but is still “under pressure.” Investors should see market strength and more buying opportunities.
Earnings season continues to be tough this week, Advanced Micro Devices (AMD) left late Tuesday, apple (AAPL) is due Thursday. Another Fed rate hike is scheduled for Wednesday, along with key economic data next week. The big question is whether Federal Reserve Chairman Jerome Powell will signal that the central bank will pause rate hikes.
Saw the FDIC take over the First Republic
including banking giants JP Morgan Chase (JPM) and PNC Financial Services (PNC) is looking to buy First Republic following a government seizure. wall street journal Citing sources, it reported on Friday night. The FDIC asked for a final bid by Sunday, Bloomberg reported on Saturday.
Because of its size, JP Morgan would need a regulatory exemption to buy First Republic.
bank of america (BACs) is one of the banks considering a bid for First Republic, CNBC reported Saturday.
An acquisition by the FDIC and sale of First Republic Bank could take place this weekend.
FRC shares plunged 34% in after-hours trading Friday after reports that the FDIC would take control of the California-based bank.
First Republic’s share price has already plunged 75% in the week to new record lows, boosted by massive deposit outflows in the first quarter. FDIC takeover hopes rose this week despite efforts by big banks to deliver quasi-bailouts.
An FDIC takeover will almost certainly protect all First Republic Bank deposits. But FRC equity investors may end up with nothing.
Local banks fell on Tuesday but sharply narrowed their weekly losses. The outflow of First Republic deposits was in a class of its own.
Friday night Federal Reserve data showed both bank deposits and loans increased in recent weeks, indicating no credit crunch so far.
A swift resolution to the First Republic situation could restore confidence in the banking sector and boost market sentiment.
Amazon leads five S&P 500 stocks near post-earnings buy point
dow jones futures today
Dow Jones futures open at 6:00 pm ET, along with S&P 500 and Nasdaq 100 futures.
Note that overnight trading on Dow futures or elsewhere does not necessarily lead to actual trading on the next regular stock market session.
METAIn stock IBD leaderboard, with DXCM shares the earning option is played. MSFT shares are long-term leaders in IBD. ANET inventory is IBD50Stocks of AMD, Arista Networks, and DXCM are on top. IBD Big Cap 20Arista Networks was IBD Stock Of The Day on Friday
A video embedded in the article discusses the big market week and analyzes AMD stock. in mode (INMD) and Dexcom.
monday earnings, sales
Meanwhile, EV-focused chip makers ON Semiconductor (upon) will report before opening on Monday. ON’s stock price has fallen significantly over the past week, along with other chip makers exposed to the EV market amid concerns over demand for EVs.
Chinese EV startup lee auto (Li), Nio (Nio) and XPeng (XPEV) reports April deliveries early on Monday. Weekly data show that Li Auto shows strong sales, while Nio and Xpeng struggle.
China’s EV and battery giant BYD (BYDDF) releases April sales data early in the week.of Tesla (TSLA) rival reported strong first-quarter earnings on Thursday.
Tesla hasn’t analyzed sales in China, but weekly data so far show sales in China starting strong. Over the weekend, Tesla began offering some new modest discounts on select Model 3 and Y stock vehicles in Europe.
BYD’s inventory is ranged from early entrants. LI stocks are trying to regain key levels. XPeng and Nio shares face major hurdles. Tesla stock is below all moving averages.
again, Arista Networks (ANET) reports first quarter earnings on Monday night. His ANET stock, a major supplier to Meta Platforms and Microsoft, found support at the 50-day line last week.
Join IBD experts analyzing viable stocks on IBD Live stock market rally
stock market rally
The stock market’s rally looked ugly on Tuesday, but rallied as major indices rose.
The Dow Jones Industrial Average rose 0.9% in last week’s stock market trading. The S&P 500 index also rose 0.9% for him. The Nasdaq Composite rose 1.3% on him. The small-cap Russell 2000 fell 1.3% on him.
The 10-year US Treasury yield fell 12 basis points in a week to 3.45%.
US crude futures have fallen 1.1% to $76.78 a barrel over the past week despite a 2.7% rally on Friday. Gasoline futures are down 0.9% this week, but have fallen 9.1% over the past two weeks.
ETFs
Innovator IBD50ETF (FFTY) fell 3.6% last week, with several components suffering huge revenue losses. Innovator IBD Breakout Opportunities ETF (game) increased by 0.3%. iShares Expanded Tech Software Sector ETF (IGV) fell 1.45%, with Microsoft a big component of IGV. VanEck Vectors Semiconductor ETF (SMH) 0.4% immersion. AMD stock is a major SMH holding that also has ON stock in the ETF.
Reflecting more speculative story stocks, the ARK Innovation ETF (arc) fell 4.5% last week, while the ARK Genomics ETF (ARKG) 5.3%. Tesla stock is Ark Invest’s top holding in her ETF, and Kathy Wood has added her TSLA stake in the past few weeks. Ark also has a small stake in her BYD.
SPDR S&P Metals & Mining ETF (XME) retreated 1.6% last week. Global X US Infrastructure Development ETF (pave) ended just above breakeven. US Global Jets ETF (jet) fell 1%, but well below its low. SPDR S&P Homebuilders ETF (XHB) Pop 2.2%. Energy Select SPDR ETF (XLE) rose slightly. Healthcare Select Sector SPDR Fund (XLV) fell 0.6%, but rebounded from its lows. DXCM stock is an XLV component.
Financial Select SPDR ETF (XLF) fell 0.15% but bounced back to just below the 50-day bar. SPDR S&P Regional Banking ETF (Kure) fell 0.6%, but slashed its losses after reaching its worst level since late 2020. FRC shares are holdings of KRE.
5 Best Chinese Stocks to Watch Right Now
Market rally analysis
The stock market rally has had a turbulent week, with major indices testing for support and finally closing in solid gains.
The Nasdaq fell to the 50-day line on Tuesday as the First Republic surprised investors again. The S&P 500 and Dow Jones are near that level and by midweek he is below the 21-day line.
Worse, the First Trust Nasdaq-100 Equal Weighted Index ETF (QQEW) and Invesco S&P 500 Equal Weight ETF (RSP) fell below the 50-day line on Tuesday. The latter also fell below 200 days as these ETFs continued to fall on Wednesday despite Microsoft boosting the Nasdaq.
Meta stocks and other tech giants posted big gains on Thursday. QQEW and RSP lagged behind QQQ and SPY respectively, but still performed well. On Friday, the index rose modestly, with the RSP outperforming and above the 50-day line.
The Nasdaq did not significantly surpass its intraday high on April 18, but hit its highest since September. The S&P 500 and Dow Jones surpassed his April highs, with all major indices reaching near his 2023 highs.
The SMH chip ETF, which has tumbled to its worst level since mid-March, cut weekly losses but was still below the 50-day line. Ram Researchh (LRCX) and AMD stocks are set near the entry. However, many chip plays caused terrible selling, including a significant drop in earnings.
Massive profit losses in major stocks have become all too common in recent days. Market leadership remains narrow. There are not many stocks that are sending a buy signal or trying to do so. Some of them are immediately profitable, including AMD. floor and decoration (FNDMore), in mode (INMD) and ANET stock.
Apple’s stock price appears to be growing on the daily chart, but on the weekly chart, investors can see it as just above the buy point from the handle long cup or double bottom base. According to MarketSmith’s analysis, the handle also appears as a tight three-week pattern.
After last week’s shakeout, the market rally could be poised for a stronger move forward. If the major indices break 2023 highs by some margin, the market rally could have room for major earnings and Fed meetings to run in the rearview mirror. However, stocks may face resistance again in the coming days.
Time the Market with IBD’s ETF Market Strategy
what to do now
The stock market rally has been difficult to navigate.
Investors may have cut their exposure over the past week, as many stocks erased gains or flashed sell signals. There weren’t many opportunities to strengthen positions even though the major indices closed higher. that’s ok. If the market rally really strengthens, that opportunity will come. For a whipsaw with a narrow index, I’m glad it’s mostly cash.
Gradually add exposure as conditions improve. Pay attention to earnings reports.
The weekend rebound didn’t cause many breakouts or early entries, but many stocks started to move into positions.
Many major stocks, including big winners earlier in the year, have sent sell signals over the past week or so.
Read The Big Picture daily to stay in sync with market direction and key stocks and sectors.
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