Dow Jones futures will begin trading on Sunday night, along with S&P 500 futures and Nasdaq futures.
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The stock market went into a correction last week as U.S. Treasury yields soared on the Fed’s hawkish outlook for interest rate hikes. Major indexes have broken through several important support levels, while major stock prices have suffered significant damage.
Stocks rebounded on Friday morning, but ended with a trickle lower despite a slight decline in yields.
tesla (TSLA) Last week we built a buy point on the new handle, but it fell solidly on Friday and has fallen significantly this week. TSLA stock has lined up with many other leaders over the past week or two and is in danger of breaking out.
meta platform (Meta), fedex (FDX), general electric (G.E.), costco wholesale (Fee), lee auto (Lee), Arista Networks (ANET), vertex pharmaceuticals (VRTX), synopsis (SNPS) and cloud strike (CRWD) is one of the stocks that is performing relatively well so far.
But few of these stocks look viable in a raging bull market. In the current environment, now is the time to buy new, not window shop.
Meta stocks and Tesla are doing well IBD Leaderboard. SNPS stock is listed on IBD Long Term Leaders.Tesla stock and CrowdStrike IBD50. CRWD stock is IBD big cap 20. Meta Platforms was the IBD Stock Of The Day on Friday.
In the video embedded in the article, we detailed weekly market trends and also provided analysis of Tesla, Meta, and Vertex stocks.
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 correction
This week, the stock market recorded significant declines across the board.
The Dow Jones Industrial Average fell 1.9% in stock market trading last week. The S&P 500 index fell 2.9%. The Nasdaq Composite fell 3.6%.
The yield on the 10-year US Treasury rose 12 basis points (bp) to 4.44%. On Thursday, the yield hit 4.49%, its highest level since October 2007. The US dollar extended its long weekly winning streak and continued its gains on Friday.
U.S. crude oil futures rose 1 cent a barrel to 90.03 a barrel, down from their 2023 highs but rebounding slightly on Friday.
The market correction has taken hold since Wednesday, with the S&P 500 and Nasdaq closing below their August 29 follow-through day lows, a very bearish sign. The S&P 500 and Dow are below their August lows, and the Nasdaq is not far behind.
The small-cap Russell 2000 fell 3.8% last week, and the Invesco S&P 500 Equal Weight ETF (RSP) decreased by 3.3%. Both rates were well below the 200-day line, the lowest level since early June. These reflect the breadth weakness that has plagued the market for years.
Perhaps the market was “scheduled” to rebound, but Friday morning’s rally fizzled out. Even at the highs, Friday’s gains were not very meaningful, but it is disheartening to see the bulls struggling to establish their position.
Very few stocks are currently giving buy signals.
Leading stocks have suffered significant damage. Nvidia (NVDA) is now decisively below the 50-day line. Celsius Holdings (cell) has fallen to just below the 50-day level. A number of brands that were seen as promising. Uber Technologies (Uber), draft kings (DKNG) and ServiceNow (now), which was sold during the market correction.
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ETF
Among growth ETFs, Innovator IBD 50 ETF (FFTY) fell 5% last week. iShares Enhanced Technology Software Sector ETF (IGV) CRWD stock also joined, falling 3.2%. VanEck Vectors Semiconductor ETF (SMH) fell 3.3%, marking the third consecutive year of significant losses. SNPS stock is part of his IGV and SMH.
ARK Innovation ETF (Arkku) plunged 9.85% last week, with the ARK Genomics ETF (arcg) sold 8.5%. Tesla stock is the No. 1 holding among all Ark Invest ETFs, but Cathie Wood’s Ark sold 170,000 Tesla shares between Tuesday and Thursday.
SPDR S&P Metals & Mining ETF (XME) fell 3.3% last week. Global X US Infrastructure Development ETF (pave) fell 2.5%, a round-trip rally from the June breakout. US Global Jets ETF (jets) fell by 4.6%, continuing a sharp decline. SPDR S&P Home Builders ETF (XHB) rose 3.45%. Energy Select SPDR ETF (XLE) will give up 2.9% and the Healthcare Select Sector SPDR Fund (XLV) fell 1.5% and held VRTX stock. Industrial Select Sector SPDR Fund (XLI) gave up 3.1% and held both GE and FDX stock, down below 40 weeks.
Financial Select SPDR ETF (XLF) fell 3.4%, while the SPDR S&P Regional Bank ETF (KRE) fell 5.8%.
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tesla stock
Tesla stock fell nearly 11% last week to 244.88, reversing all of the previous week’s gains spurred by analysts’ bullish views on the electric car maker’s Dojo supercomputer and the prospects for self-driving. TSLA stock gained a handle and gained a buy point of 278.98. However, the stock is currently 4% below its 50-day line, with some of the recent declines due to high volume. Analysts are rushing to lower their third-quarter delivery estimates, and Tesla is likely to release actual numbers around October 2.
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Up-and-coming stock
Meta stock fell 0.4% to 299.08, ending the week below its 50-day line. According to MarketSmith, the internet giant is currently on the handle, with a low buy point of 312.87. Facebook’s parent company will discuss its Metaverse and artificial intelligence efforts at its annual Connect conference on September 27-28.
GE stock fell 3.7% to 111.25, ending the week below 50 days on a tough sideways basis. LULU stock and Vertex rebounded from around the 50-day line during the day. Arch Capital and Costco have withdrawn from near the buy point. LPG stocks rallied towards a buy point for cups with handles.
FDX stock is just above the 50-day line of last week’s FedEx earnings, with Thursday’s high providing an early entry point.
COST stock has been hovering around a flat-based buy point, rebounding from around the 50-day line on Friday to end the week slightly higher. Costco’s financial results are scheduled to be released on Tuesday.
ANET stock price fell 2.4% to 180.34 on Friday, failing to regain its 50-day line. Technically, Arista is in the buy zone, but investors should probably wait for further strength.
Synopsys stock fell slightly for the third week in a row, dropping 1.1% to 446.85. Chip design software makers tried unsuccessfully Friday to reverse the 50-day deadline. Buy points for SNPS stock are 468.03 or 471.15, but an early entry is possible if it breaks out of a short downtrend.
VRTX stock rose solidly in mid-week, but fell back to finish just 0.2% higher at 349.63, staying above its 50-day line within a sideways basis. The high price on September 20th allows for early entry.
CRWD stock is technically in the old buy zone, but investors may be hoping for more strength. The cybersecurity leader looked to jump on Thursday after offering strong long-term guidance, but retreated amid market woes. A move above Thursday’s high could be an aggressive entry.
LI stock fell below its 50-day line and rose towards that level on Friday. Chinese EV startups have a double-dip foundation, but a decisive move above the 50-day line could mean early entry.
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what to do now
The stock market is entering a correction phase. This is not the time to take new positions, and most major stocks have suffered serious damage anyway. If the overall market continues to decline, the few stocks that are holding out could easily collapse.
The correction may be immediate, or it may last for weeks or even months.
Don’t try to guess when a new market rally will occur. Your job is just to be ready when it happens. Keep your watchlist updated.
There will be some stocks that are close to practical application, but there will also be many stocks that are showing relative strength even though their positions are not sufficient.
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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