The future of Dow Jones will open on Sunday evening, as well as the future of the S&P 500 and the future of the Nasdaq. The market rally continued to make a profit last week, with a number of leading stocks shining buy signals.
The stock market rally has shown resilience in view of rising crude oil prices and rising Treasury yields. That is, until now. But do not overreact. The constant increase in Treasury yields makes it difficult for the stock market to withdraw permanently, especially growth names.
A modest pullback can have the life of large indicators and leading stocks. Apple (AAPL) and especially Tesla stock can use the rest. The handle could also build Nvidia (NVDA), which ran high over the past few weeks. Marriott Worldwide (MAR) has a handle, but it can use a longer base.
Regeneron Pharmaceuticals (REGN) has made a high handle as it trades in the shopping area, offering a second chance or an additional purchase opportunity. J.B. Hunt Transport Services (JBHT) pulled back below the point of purchase, but received support somewhere.
Xpeng EARINGS
Meanwhile, Xpeng (XPEV) reports results for the fourth quarter early Monday. China EV rival Nio (NIO), which reported mixed results on Thursday, will begin delivering its EV sedan, ET7, on Monday as well. That is part of a busy week for Chinese EV makers, delivered in March also at the tap.
XPEV stock and Nio stock sold on a tough Friday. That was partly due to the results and direction of Nio, but also highlighted the renewed concern over China's stock listing in the U.S. often.
Tesla (TSLA) could release first-quarter global delivery and production figures by the end of next week as well.
Tesla, J.B. Hunt and Nvidia stock are on the IBD Leaderboard. Tesla, Regeneron, Nvidia and JBHT stock are in IBD 50.
The video embedded in this article covers another important market week and analyzes MAR stocks, REGN stocks and IBD Stock Of The Day Carlisle (CSL).
Dow Jones Futures Today
The Dow Jones futures open at 6pm on ET on Sunday, as well as the future of the S&P 500 and the future of the Nasdaq 100.
Keep in mind that the night action in Dow futures and elsewhere does not translate into real trading in the next stock market.
Stock Market Rally
The stock market rally showed lower to stronger gains last week, advancing on a major improvement over the past week.
The Dow Jones Industrial Average gained 0.4% profit on stock market trading last week. The S&P 500 index rose 1.8%. The Nasdaq combination came out 2%. The small cap Russell 2000 sank by 0.5%.
Treasury's 10-year yield jumped by 34 points last week to 2.49%, the highest since May 2019. That is up from 1 March of 1.68%. With the 10-year yield increasing rapidly, the Treasury's two-year yield has grown very rapidly, narrowing the gap to only 20 points. The soft Treasury yield curve, translated elsewhere, reflects the Federal Reserve's expectation that prices will rise sharply, and that economic growth will slow down.
The future of US crude oil rose by about 12% to $ 113.90 a barrel last week.
ETFs
Among the leading ETFs, Innovator IBD 50 ETF (FFTY) rose 1.9% last week, while Innovator IBD Breakout Opportunities ETF (BOUT) came out 3.5%. IShares Expanded Tech-Software Sector ETF (IGV) fell 0.6%. The share price of VanEck Vectors Semiconductor ETF (SMH) has changed to + 2.3% per week. Nvidia stock is a big part of SMH.
Showing the most speculative news stocks, the ARK Innovation ETF (ARKK) fell 1.9% last week and the ARK Genomics ETF (ARKG) fell 2.8%. Tesla stock remains No. 1 in charge of all ETFs in Ark Invest. Ark also owns XPEV stock.
The SPDR S&P Metals & Mining ETF (XME) was up 8.1% last week. Global X U.S. Infrastructure Development ETF (PAVE) gained 1.7%. The U.S. Global Jets ETF (JETS) has increased by 1.1%, which is not a bad thing considering rising energy prices. SPDR S&P Homebuilders ETF (XHB) is down 8.8% with rising prices and weak housing reports. Energy Select SPDR ETF (XLE) jumped 6.6% and Financial Select SPDR ETF (XLF) improved 1.3%. Health Care Select Sector SPDR Fund (XLV) decreased by 0.5%.
Apple Stock
Apple stocks rose 6.55% this past week to 174.72, regained the 50-day line and eliminated the downward trend of a downward trendline. Shares close the 176.75 low buy price double. But AAPL stock has moved up to nine straight sessions. Ideally, stocks can stand for at least a few days, or build a handle, to reduce the risk of a pull after the break.
The related power line has returned to a much higher level, reflecting Apple's strong stock performance compared to the S&P 500 index. The RS line is a blue line on the charts provided.
Tesla Stock
Tesla stock fell 11.6% last week to 1,010.64, after a 13.8% increase last week. The official shopping area is 1,208.10, Shares lost a fraction on Friday, but after rising eight straight sessions. Ideally, TSLA stock can take a breath, make a decent handle on a deep cup base and allow moving averages to reach the top. The 50-day line is still in a state of disrepair.
Nvidia Stock
Nvidia stocks improved by 4.7% to 276.92 last week, leading to semiconductor rejuvenation after a drop of about 20% last week. On Thursday, stocks cut short-term resistance levels, offering a sharp boost. Just in the middle of the right side of deep integration with the shopping area of about 346.57, NVDA stock can use the handle. Nvidia stocks may need to go up a bit to make the right handle, with the center above the base of the base.
Marriott Stock
Marriott stock rose 0.2% last week to 171.52. The stock gained 173.54 on Friday. After splitting with several other travel stocks in early February, MAR stock sold the Russo-Ukraine war *******. It is inverted into a V-shaped integration. The 173.54 buy point is just above the "handle", which is not fair as it requires another week of consolidation to establish a proper base. The entry is closer to the previous purchase point, which is no longer valid but still noticeable.
Regeneron stock
After strong gains over the past two weeks, REGN stock fell 0.8% to 680.03 last week, forming a strong handle on the flat base's buying zone. Regeneron stock is still above 673.96 buying points, which is now safe after the recent break. REGN stock has already cleared opening entries near 636 and 645.
JBHT stock
JB Hunt stock fell 2.7% to 209.19, a strong breakout on March 6 for several sessions. The pullback has been very low and not surprising due to rising fuel prices over the past few days. But JBHT stock fell below the 208.97 flat-basis buying point at the end of last week, but moved back into buy territory from its 21-day line on Friday. Investors can buy a trucking firm here or wait for a slight decline as JBHT stock crossed the intraday high of 213.29 on Thursday.
The megacaps like Apple, Tesla, Nvidia and Google Parent Alphabet (GOOGL) reflect most of Nasdaq's strong gains over the past week. Last week's ARKK retrace, although relatively modest, indicated that Treasury yields would have an impact on higher value growth stocks.
One concern is that if these megacaps lose land, growth stocks will sell out quickly, especially ARKK-type stocks.
However, a slight market pullback will help Tesla Stock, Nvidia, Apple and more form handles and receive their moving averages. It also reduces the risk of sharp adverse effects in the market.
On the other hand, JBHT stock can use some market strength or lower energy prices.
