Dow Jones futures will begin trading on Sunday night, along with S&P 500 futures and Nasdaq futures. The Federal Reserve meeting is approaching.
This week’s stock market rally was little changed. However, after regaining their 50-day lines on Thursday, the major indexes retreated on Friday. Although another rally is possible, it won’t be long before the S&P 500 and Nasdaq also send very bearish signals.
AI chip manufacturer Nvidia (NVDA) was the clear leader of the market rally in 2023, but fell below the 50-day line. taiwan semiconductor (TSM) Demand concerns hurt many chip stocks Friday, especially chip equipment.
Google’s parent company alphabet (Google) and tesla (TSLA) is trending steadily in the buy area. meta platform (Meta), microsoft (MSFT) and Amazon.com (AMZN) The chart doesn’t look particularly damaged, but it has retreated from the buy area.
Market gains are under pressure with volatile movements. It’s a dangerous time to buy new. However, here are five stocks to keep an eye on. ServiceNow (now), lee auto (Lee), Reservation held (BKNG), XP (XP) and caterpillar (Cat).
NVDA stock, Tesla, Meta, Booking Holdings are listed IBD Leaderboard, currently in stock on your leaderboard watchlist. LI stock and XP are on SwingTrader. MSFT stock is featured in his IBD Long Term Leaders. Meta stocks include Nvidia, XP, Booking, Tesla, and Caterpillar. IBD50. Tesla stocks, ServiceNow, Nvidia, Google, and Caterpillar are in the spotlight. IBD big cap 20.
In the video embedded in the article, we explained and analyzed the market movements in detail samsara (IoT), Caterpillar, XP.
Policymakers will meet on September 19-20, but the overwhelming view in the market is that there will be no action. But Fed policymakers will likely offer new interest rate hike expectations and staff will release economic forecasts. These rate hike predictions and Fed Chairman Jerome Powell’s press conference are likely to have an impact on stocks and bonds.
The odds of a rate hike on Nov. 1 have fallen by about one-third as recent data suggests a fundamental cooling in inflation and economic growth.
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.
stock market rise
There were some notable swings in the stock market rally this week, but the major indexes finished close.
In last week’s stock market trading, the Dow Jones Industrial Average rose 0.1%. The S&P 500 index fell 0.2%. The Nasdaq Composite fell 0.4%. Both fell below their 50-day lines on Friday.
The small-cap Russell 2000 fell 0.2%, just above its 200-day line.
Adobe and Oracle’s earnings and outlook did not meet high expectations. ADBE stock fell 5.6% for the week near its 50-day line. ORCL stock plunged 9.8%, below its 50-day price.
This report was bad news for many software plays. IOT stock reversed its strong move following Samsara’s results, but rebounded in the 50-day period. Mongo DB (MDB) and data dog (DDOG) was one of several stocks that regained its 50-day line on Monday ahead of Oracle’s earnings, then fell back to post solid weekly losses.
A waning hype about revenue from AI services and tools may also have weighed on AI chip giant Nvidia, which fell 3.7% on Friday and hit its lowest point in a month this week.
Meanwhile, several airlines warned about fuel costs. new core (Nue) induced lower profits. The Taiwanese cicada reportedly effectively issued a warning.
UAW strike vs. ford (F), general motors (GM) and Chrysler’s parent company Stellantis (STLA) began on Friday. Investors didn’t seem to care, but a prolonged outage could have a major impact on the industry and economy.
The yield on the 10-year U.S. Treasury rose 6 basis points to 4.32%. This is not far from the 15-year high of 4.36% recorded last month.
U.S. crude oil futures rose 3.7% last week to $90.77 per barrel. Copper prices rose 2.3%.
Among growth ETFs, Innovator IBD 50 ETF (FFTY) It fell 2.5% last week. iShares Enhanced Technology Software Sector ETF (IGV) fell 3.3%, with Adobe stock, Oracle and Microsoft holding huge stakes. VanEck Vectors Semiconductor ETF (SMH) gave up 2.4%. Nvidia stock tops his SMH holdings, with TSM being a major component.
SPDR S&P Metals & Mining ETF (XME) rose 3.7% last week. US Global Jets ETF (jets) fell by 1.75%, widening its long decline. SPDR S&P Home Builders ETF (XHB) retreated by 2.9%. Energy Select SPDR ETF (XLE) lost part of the Healthcare Select Sector SPDR Fund (XLV) rose 0.1%. Industrial Select Sector SPDR Fund (XLI) fell 0.6%, with CAT stock heavily held.
Top 5 Chinese stocks to watch right now
Tesla, Google stock is a buying opportunity
TSLA stock rose 10.1% on Monday as Morgan Stanley’s Adam Jonas said Tesla’s Dojo supercomputing efforts could boost TSLA stock’s valuation by $500 billion. This exceeded the initial entry of 261.18. The stock maintained its gains and rose a bit more, ending the week at 274.39, up 10.4%.
Although still within the early entry range, investors may want to wait for the handle. Tesla stock has an official buy point of 299.29 on a cup basis.
Google shares rose 0.75% to 137.40, marking their fourth straight week of gains and hitting a 17-month high on Thursday. The stock is still within the $133.74 shelf entry just above the cup-with-handle benchmark, but investors may want to wait for better buying opportunities. GOOGL stock’s relative strength line is at its 52-week high.
Meanwhile, MSFT stock and Meta fell below their 50-day line after an early entry on Thursday. AMZN stock is below the flat-based buy point.
ServiceNow stock fell 3.4% on the week to 579.58. The software giant currently has a cup-with-handle base on the weekly chart, giving it a buy point of 607.90. The handle will be correct on the daily chart after Monday.
LI stock is at a new double-dip base with a buy point of 43.37. The Chinese EV startup’s stock rose 5.9% last week to $40.65, recovering above its 50-day line. Investors could use Friday’s high of 41.44 as an early entry from the downtrend line, which is still near the 50-day mark.
BKNG stock rose 0.5% to 3,160.15, riding the 21-day line and rising on the right side of the flat base at a buy point of 3,251.71. Early entry will be possible if the price breaks above Thursday’s high of 3,226.57.
XP stock rose 6% last week to 26.36, and Friday’s 2.7% rise from near the 21-day and 50-day lines suggests an early entry. Investors could see buy points at 27.67 or 27.71, as the Brazilian brokerage has been trading lower since late July.
CAT stock fell 1.1% to 279.15, with support at the 10-week line. According to MarketSmith analysis, Caterpillar has a buy point of 293.88 from a flat base just above the cup base. Investors could use the September 5 high of 289.41 as an early entry, with a downward trend line potentially providing a more aggressive buy signal.
5 stocks near buy points, profits expected to soar up to 7,800%
market rise analysis
It’s been a disappointing week for the struggling market as Friday’s decline dampened hopes for a resumption of its steady uptrend.
The market is probably still in its September range, and in a slightly larger range than it has been in the past two months, and the 50-day line is cutting through all of that. This makes it easier for market bulls to move quickly from bullish or bearish signals without having to take any decisive action.
The underlying trend is weaker than the major indexes. The Nasdaq’s advance/decline line is at a long-term low, but overall new lows tend to outweigh new highs.
As the Russell 2000 struggles to maintain its 200-day line, once-leading sectors such as software and industrials are under increasing pressure.
Chips was already struggling, but SMH is now starting to lose sight of its 50-day target as Nvidia fell below that key level. Taiwan Semi is reportedly experiencing delays in chip equipment deliveries as weak final demand added to the semiconductor industry’s woes.
Housing inventory has been struggling over the past few weeks. lenner (Len) Friday didn’t help, despite surpassing the number of views.
It won’t take long for the major indexes to regain their 50-day lines, but the S&P 500 and Nasdaq are just above their August 29 follow-through day lows. A close below the FTD low would be a very bearish sign that the market rally will ultimately fail.
The index rose on Thursday despite rising U.S. Treasury yields, but rising market interest rates have clearly weighed on stock prices in recent weeks. Stocks are likely to come under further pressure if the 10-year Treasury yield hits new highs. A fall in yields could be a flashpoint.
Therefore, the prospect of a Fed rate hike on Wednesday could be critical to the recovery of a sluggish market.
Timing the Market with IBD’s ETF Market Strategy
what to do now
There’s nothing more dangerous than a volatile market. The market appeared to be recovering on Thursday, with some stocks issuing buy signals. Investors certainly could have made additional purchases. But on Friday, many new buyers came under pressure. If you hold back, you may incur big losses. Cut ties and the market might just go back to normal.
This was not only the case in September, but also the general trend over the past two months.
Investors should have exposure through long-term holdings or recent successful buys. However, to limit the risk of getting caught in the market torrent, avoid increasing your exposure at the first positive signs.
Investors should focus on preparing for the next steady uptrend, rather than trying to force the issue. Work on those watchlists. Pay attention to stocks that are showing relative strength.
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_ECarson The latest information on the stock market, etc.
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