Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. Tesla, Apple and Palo Alto Networks are in focus, along with a Saudi Arabia crude output cut as well as a possible flood of Treasury issuance.
X
The stock market rally showed growing momentum this past week, with the major averages all making big moves.
Market rally leadership remains narrow, concentrated in the artificial intelligence space, as well as chips and software. Many of those stocks are extended. But if market breadth continues to improve, a wider array of buying opportunities will develop.
Already, Tesla (TSLA) broke out Friday. DexCom (DXCM), Lennar (LEN) and JPMorgan Chase (JPM) flashed early entries late in the week. Marriott International (MAR) arguably is actionable as well.
All reflect possible leadership areas. Tesla stock joins EV rivals such as BYD (BYDDF) in clearing buy points. DXCM stock is one of several medical products securities trying to push higher. LEN stock is among a number of homebuilders rebounding again. JPM stock stands out among financials, but the sector is rebounding. MAR stock is among a broadly reviving travel sector.
Investors should be looking to add exposure amid the promising bullish shift. But be ready to step back.
Meanwhile, Apple (AAPL) is expected to show off its mixed-reality headset on Monday, its first new hardware product since the Apple Watch in 2015. The headset will take on rivals such as the Meta Quest from Meta Platforms (META). Apple stock is on the cusp of clearing its January 2022 highs and is closing in on a $3 trillion market cap.
In other news, Palo Alto Networks (PANW) will join the S&P 500, among many changes to the S&P indexes before the open on June 20. PANW stock jumped late Friday.
Tesla stock joined IBD Leaderboard on Friday, joining Meta stock and Palo Alto Networks. PANW stock is on the IBD Big Cap 20. LEN stock joined SwingTrader on Friday. Lennar was Friday’s IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.
OPEC+, which includes OPEC and key allies such as Russia, on Sunday agreed to extend current production through 2024. But Saudi Arabia will make a voluntary cut of one million barrels per day, at least for July, to try to support prices. Weaker-than-expected China demand, along with excess production by Russia, have pushed crude oil prices toward 52-week lows.
The Treasury Department is expected to auction off some $170 billion in T-bills Monday after President Biden signed the deal to raise the debt limit on Saturday. A flood of issuance will come over the next few weeks.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market Rally
The stock market rally showed strong, broad gains, especially late in the week.
The Dow Jones Industrial Average popped 2% in last week’s stock market trading. The S&P 500 index rallied 1.8%. The Nasdaq composite gained 2%. The small-cap Russell 2000 jumped 3.3%.
The 10-year Treasury yield fell 13 basis points to 3.69% for the week, but did rise 8 basis points on Friday.
U.S. crude oil futures fell 1.3% to $71.74 a barrel last week, even with Friday’s 2.3% bounce.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) popped 3.6% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) gained 1.7%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 2.1%. The VanEck Vectors Semiconductor ETF (SMH) dipped 0.8%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) leapt 6.45% last week and ARK Genomics ETF (ARKG) jumped 4.9%. Tesla stock is the No. 1 holding across Ark Invest’s ETFs. Cathie Wood’s Ark also owns some BYD stock.
SPDR S&P Metals & Mining ETF (XME) rebounded 4.2% last week. The Global X U.S. Infrastructure Development ETF (PAVE) popped just over 3%. U.S. Global Jets ETF (JETS) ascended 3.1%. SPDR S&P Homebuilders ETF (XHB) jumped 3.5%. The Energy Select SPDR ETF (XLE) advanced 1.4%. The Health Care Select Sector SPDR Fund (XLV) climbed 2.2%. DXCM stock is in XLV.
The Financial Select SPDR ETF (XLF) rose 2.15% in an outside, upside week. JPM stock is a major XLF component.
The SPDR S&P Regional Banking ETF (KRE) jumped 4.8%.
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Apple Mixed-Reality Headset
Apple will show off its latest hardware and software innovations in a keynote presentation Monday at 10 a.m. PT at its annual Worldwide Developers Conference. It’ll detail the latest operating systems for the iPhone, iPad, Mac, Apple TV and Apple Watch. But the buzz is all about a…
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