Dow Jones futures will begin trading on Sunday night, along with S&P 500 futures and Nasdaq futures.
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As the US Federal Reserve gears up to cut interest rates in 2024, the stock market once again posted a big rally, with big gains across the board. The Dow Jones hit a new all-time high, while the S&P 500, Nasdaq Composite, small-cap Russell 2000, and S&P all hit new highs. The Midcap 400 all hit 52-week highs.
The Magnificent Seven was a relative laggard overall, but that shouldn’t be taken into account. Many are consolidating after significant declines.
tesla (TSLA) produced an upward reversal and outperformed the early entry. Nvidia (NVDA) regained the buy point. microsoft (MSFT), apple (AAPL), Amazon.com (AMZN) and meta platform (Meta) are all in the buy zone.In fact, Google’s parent company alphabet (Google) is the only Magnificent Seven stock that is not currently in the buy range.
Of course, in this broad market rally, investors should focus on the vast pool of major stocks and sectors. There are still buying opportunities, but there are also reasons to consider taking partial profits.
Amazon stock, Microsoft, Nvidia, Meta are all on IBD Leaderboard. Apple stock, Amazon, and Nvidia stock are all listed on SwingTrader. Microsoft stock is featured in his IBD Long Term Leaders. Nvidia, Microsoft, and Meta stocks are IBD50.
In the video embedded in the article, we discussed the big market week and analyzed Tesla stock. Monday.com (Mundi) and steel dynamics (STLD).
Steel Dynamics was IBD’s Stock of the Day on Friday, and MNDY Stock was Thursday’s Pick.
Dow Jones futures today
Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, open at 6pm ET on Sunday.
Please note that overnight trades such as Dow futures do not necessarily translate into actual trades in the next regular stock market.
IBD experts analyze leading stocks and markets on IBD Live.
stock market rise
The stock market continued to rise, with major indexes rising for the seventh straight week.
In stock market trading last week, the Dow Jones Industrial Average rose 2.9% to a new all-time high. The S&P 500 Index rose 2.5% and the Nasdaq Composite Index rose 2.85%, both their highest levels since January 2020.
The small-cap Russell 2000 rose 5.55% and the S&P Midcap 400 rose 4.3%, targeting a 52-week high.
Invesco S&P 500 Equal Weight ETF (RSP) soared 3.9%, while the First Trust Nasdaq 100 Equal Weight Index ETF (QQEW) rose 5%. This was much better than the Nasdaq 100’s 3.35%, but was weighed down by slower growth in mega-cap tech stocks.
All of these indexes and ETFs, including the Nasdaq 100, posted their best weekly performance since the week ended November 3, as fresh market gains staged a follow-through day after a quasi-market pause did.
The Nasdaq has extended further from its 50-day line, finishing 7.6% above that level. It may be a little early in the market rally to be worried about that, but it’s worth keeping an eye on. Many stocks are extended from traditional buy points or by rising straight up from the bottom.
The CBOE Volatility Index remains near its lowest level in nearly four years. It can also be a yellow flag if the market fear gauge shows little or no fear.
The yield on the 10-year Treasury note fell 32 basis points to 3.93%, the biggest five-day drop since March. The 10-year US Treasury yield fell below the 4% level.
Meanwhile, the US dollar fell, in part because the Federal Reserve was more dovish than the European Central Bank or the Bank of England.
U.S. crude oil futures rose 20 cents to $71.43 a barrel on Friday, after hitting their lowest since June during the week.
ETF
Among growth ETFs, iShares Expanded Technology Software Sector ETF (IGV) jumped 2%, with Microsoft stock a major component. VanEck Vectors Semiconductor ETF (SMH) soared 7.1% to a record high. NVDA stock is the number one holding.
ARK Innovation ETF (Arkku) Up 3.9% last week, the ARK Genomics ETF (arcg) soared 8.2%. Tesla stock remains a major holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) rose 6% in a significant reversal. Global X US Infrastructure Development ETF (pave) soared 5.8%. US Global Jets ETF (jets) rose 4%. SPDR S&P Home Builders ETF (XHB) jumped 7.05%. Energy Select SPDR ETF (XLE) rebounded up 2.5%, while the Healthcare Select Sector SPDR Fund (XLV) rose 1.6%. Industrial Select Sector SPDR Fund (XLI) rose 3.7%.
Financial Select SPDR ETF (XLF) rose 3.4%, while the SPDR S&P Regional Bank ETF (KRE) jumped 8.1%.
The EV boom is slowing down.What Tesla and the US “battery belt” mean
Magnificent Seven Stock
Tesla shares rose 4% to 253.50 in a bullish week after briefly falling below the 50-day line. The stock cleared the trend line dating back to July and offered an aggressive entry. TSLA stock also broke through a short-term high of 252.75, another early entry. Trading volumes have improved in recent days and weeks.
Tesla stock has a buy point of 278.98 from its five-month double bottom.
On the downside, Tesla’s relative strength line has stopped falling, but has been trending downward over the past few months.
Microsoft stock fell 0.9% this week to 370.73, but it also regained its 21-day line after breaking above a cup-based buy point of 366.78 on Friday.
Investors can buy MSFT stock here and it will no longer extend beyond the 50-day line. On the weekly chart, MSFT stock is currently in a 4-week tight with an official buy point of 384.30. However, a rally above Wednesday’s high of 377.64 would be an attractive entry.
Apple stock rose nearly 1% this week to 197.57, but remains within range of the cup-with-handle buy point at 192.93.
A growing number of Chinese government agencies and state-owned enterprises are banning employees from bringing Apple iPhones and other foreign-made devices into the workplace, Bloomberg reported shortly after market close on Friday, citing sources. Reported. These bans began in some agencies in Beijing and Tianjin and have been further tightened in the past year or two.
This suggests that headwinds for Apple’s sales in China are growing even as the Dow tech giant aims to diversify iPhone production to countries such as India.
Apple shares were slightly lower at Friday’s close, but then eased back after the close.
Amazon stock rose 1.7% to 149.97, marking its eighth straight weekly gain. According to MarketSmith analysis, the stock retested the 21-day line this week, but remains at a buy point of 145.86.
Meta shares rose 0.65% to 334.92 and briefly tested the 50-day line, but remained at a buy point of 326.20.
Google stock fell 1.8% to 132.60, falling below its 50-day line before hitting resistance. Although the RS line is at a five-month low, GOOGL stock is not far from the Cup with Handle buy point of 139.42.
Nvidia stock jumped 2.9% to 488.90, rebounding from its 50-day line and regaining a double-bottom buy point at 476.09. Volume increased slightly on Wednesday and Friday and throughout the week, but was noticeably absent from Nvidia’s gains over the past few months.
The tech giant may also be working on a new flat base.
intel (INTC) announced its AI chip on Thursday. Advanced Micro Devices (AMD) I did that a week ago. But Nvidia remains the leader in AI chips and hopes to take another step up early next year.
Timing the Market with IBD’s ETF Market Strategy
market rise analysis
Don’t chase extended stocks. The market rally has been very strong since late October, increasing the risk of a pullback.
Investors may have been able to buy stocks last week as major indexes cleared recent ranges to 2023 highs and small-cap stocks soared. Some stocks, including Tesla and Nvidia, offer buying opportunities, but many leaders are feeling limited.
After a big rally in the market and your portfolio, it’s hard not to get excited. However, keep your emotions in check. The weekend may be a good time to take a calm look at your stock holdings.
Depending on your investment style, you may even be able to get partial returns on some extended leaders. It could also provide cash for new purchases and perhaps diversify the portfolio into industrial, metal, financial, building products, etc.
Weekends are the perfect time to get your screen running and work on your watchlist. A huge number of stocks and sectors are showing strong moves, perhaps the biggest since the 2020 bull market. Therefore, it may take some effort to clear them all.
That’s a big problem.
Read The Big Picture every day to stay on top of market direction and key stocks and sectors.
X/ Follow Ed Carson on Twitter. @IBD_ECarsonthread of @edcarson1971 and in the blue sky @edcarson.bsky.social The latest information on the stock market, etc.
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