Dow Jones Futures Fall: Can Bulls Break Above Resistance? 10 stocks to watch
Dow Jones futures fell slightly on Sunday evening, along with S&P 500 futures and Nasdaq futures. The share price rally showed resilience last week, paring modest weekly losses even as government yields rose. But Friday’s bounce largely weakened as the Nasdaq faces resistance.
X
nvidia stock, Visa (V), Chipotle Mexican Grill (CMG), Salesforce.com (CRM), Fight Sealy (TPX), Alive (LTHM), Arista Networks (A WEB), SLB (SLB), Flowserve (FLS) and Marriott International (MAR).
Visa shares and Marriott are in traditional buy zones, while Chipotle and FLS shares are near them. SLB shares are actionable from an early entry period Nvidia (NVDA), CRM stocks, Tempur Sealy, Arista Networks and Livent are nearby.
Nvidia and software makers Salesforce and Dynatrace are riding the AI wave, along with many other tech stocks.
Nvidia is on the IBD Leaderboard, while CMG stock is on the Leaderboard Watchlist. The DT share is on SwingTrader. The LTHM share and Salesforce.com are on the IBD 50 list. Salesforce was Friday’s IBD Stock Of The Day.
The video embedded in the article discussed the market rally’s weekly action and analyzed Salesforce, Tempur Sealy and SLB stocks.
Dow Jones Futures today
Dow Jones futures fell 0.1% relative to fair value. S&P 500 futures lost 0.2%. Nasdaq 100 futures fell 0.3 percent.
The 10-year Treasury rose slightly to 4.08%.
Keep in mind that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock market rally
The stock market recovery retreated in a holiday-shortened week.
The Dow Jones Industrial Average fell 2% in last week’s trading, skidding below its 21-day line and approaching its 50-day line. The S&P 500 fell 1.2% to just below the 10-day line. The Nasdaq composite fell 0.9%, holding the 10-day high. The small-cap Russell 2000 fell 1.3%, but Friday’s 1.2% pullback brought it back over the 21-day.
The Invesco S&P 500 Equal Weight ETF ( RSP ) lost just 0.75%. The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) gave up 1.3%.
The 10-year Treasury yield jumped 23 basis points to 4.05%, matching the 2023 high of 4.09% intraday. The two-year Treasury yield, more closely tied to Fed policy, rose 5 basis points to 4.93%, but fell back from Thursday’s 16-year high of 5.12%.
US crude oil futures rose 4.6% to $73.86 a barrel on the week. Copper futures rose 0.7%, thanks to a 1.3% gain on Friday.
The US dollar rose first with government interest rates, putting pressure on stocks and especially commodities. But the dollar reversed lower for the week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF ( FFTY ) fell 2.7% last week, while the Innovator IBD Breakout Opportunities ETF ( BOUT ) lost 1.75%. The iShares Expanded Tech-Software Sector ETF ( IGV ) fell 1.8%, with the CRM stock a key component. The VanEck Vectors Semiconductor ETF ( SMH ) gave up 2.1%, with NVDA shares on top.
Reflecting more speculative storied stocks, the ARK Innovation ETF ( ARKK ) fell 0.9% last week and the ARK Genomics ETF ( ARKG ) retreated 2.8%.
The SPDR S&P Metals & Mining ETF (XME) fell 0.6%% last week, but came off a low. The Global X US Infrastructure Development ETF ( PAVE ) fell 1.6%. The US Global Jets ETF (JETS) gained 1.2% and rose 6% last week. The SPDR S&P Homebuilders ETF (XHB) returned 2.9%. The Energy Select SPDR ETF (XLE) fell 0.5%, with the SLB stock a significant stake. The Health Care Select Sector SPDR Fund ( XLV ) fell 2.8%. The Industrial Select Sector SPDR Fund (XLI) retreated 1%.
The Financial Select SPDR ETF ( XLF ) fell 0.4%, hitting resistance at the 200-day line. The SPDR S&P Regional Banking ETF (KRE) rose 1.6%.
Top five Chinese stocks to watch now
Stocks to watch
Nvidia shares rose 0.5% to 425.03 last week. The AI leader has a four-week tight pattern with a buy point at 439.90, but investors can use Friday’s high of 432.14 as an early entry. A longer pullback or sideways action would be ideal, but NVDA stock may not offer that.
Visa stock is holding just above a 235.57 buy point with a flat base, and is just 3.2% above the 50-day line. Can Visa and other payment giants MasterCard (MA) finally make another real move? A robust American consumer and foreign travel are tailwinds.
CMG stock tried to move above a 2,139.88 flat-base buy point but never closed above it, MarketSmith analysis shows. Shares fell 2.9% to 2,077.46 for the week, retreating to the 21-day and 10-week lines. A bullish move from these levels or a traditional breakout are possible entries.
CRM stock is trading close to its 21-day and 10-week lines, within a flat base with a buy point at 225. A move above Wednesday’s high of 214.62 would offer an early entry.
TPX shares rose 0.9% to 40.43, including Friday’s nearly 3% gain on above-average volume. The mattress giant is working up the right side of a five-month consolidation with a buy point of 44.28. It is right at resistance around 41.50-41.62. Clearing that would offer early entry into Tempur Sealy stock.
LTHM shares rose 1.7% to 27.40 on Friday, just below an entry of 27.75. Investors can view 27.75 as a high handle to a bottom. Other lithium plays are rebounding after Tesla (TSLA) and several other electric car manufacturers reported strong second-quarter deliveries in recent days.
The ANET share is starting to tighten up again, finding support at the 21-day line. It is close to a trend line break, with 164.20 as another possible entry. The network giant has a new base with a buy point of 178.36. Note that Arista stock has a few weeks of high-volume selling in its new consolidation.
SLB shares rose 8.6% to 53.35 on Friday in the heaviest volume of the year, burst above the 200-day line and broke a trend line dating back to January. Investors can still buy the oilfield services giant, formerly known as Schlumberger, although it will be slightly extended from the 200-day mark. The SLB income is due on 21 July.
Flowserve shares rose 1.9% to 36.96 on Friday, bouncing off the 21-day line. The FLS stock has a buy point of 37.56 cup with handle. Flowserve has struggled since 2014. But earnings are on the rise, with strong growth seen through 2024. Industrial is the market leader right now, with Flowserve’s end markets doing well.
Marriott shares rose 1.1% to 185.66 for the week. Friday’s slightly above-average 2% rise in volume pushed the MAR stock back above a buy point of 183.27 and not far from the April 2022 record high.
Market rally analysis
The market rally has moved sideways over the past three weeks, which has been constructive, allowing stocks to pull back to key support or forge handles and bases.
Not many stocks flashed buy signals and made those moves last week. But a large number of leading stocks from a number of groups are establishing themselves, including Nvidia, Salesforce, Flowserve and several Chips, software and megacaps look strong, but do housing, industrials, travel and even some energy plays. So do electric cars and car manufacturers in general, although few are in the position.
The bulls want to run, which is a good thing, but run into resistance. The Nasdaq is 5.4% above its 50-day line with the Nasdaq 100 up 6%. They are not expanded, but are not far from being. Ideally, the Nasdaq will move sideways or slightly sideways
Time the market with IBD’s ETF market strategy
What to do now
Investors should pay close attention and build their watch lists. You can look for a little extra exposure, but do so carefully. A number of stocks have flashed early entries in the past week or so, only to pull back amid the range-bound market. Many may go well, but you can’t assume that.
It may still be wise to take quick partial profits, especially if the Nasdaq rises to extreme levels again.
Earnings season starts this week, with Delta Air Lines (VALLEY), Aehr test systems (AEHR) and JPMorgan Chase (JPM) manages several banks.
Read The Big Picture every day to stay in sync with market direction and leading stocks and sectors.
Follow Ed Carson on Twitter at @IBD_ECarson for stock exchange updates and more.
YOU MIGHT ALSO LIKE:
Why this IBD tool simplifies the search for top stocks
Best growth stocks to buy and watch
IBD Digital: Unlock IBD’s Premium stock lists, tools and analysis today
Tesla vs. BID: EV Giants Vie For Crown, But Which Is The Better Buy?
Nvidia and this AI stock lead 5 names near buy points
