Market Rally Strong, But Prep For A Pullback; AMD, Boeing Lead 10 Stocks In

The stock market rally showed strong, broad action in the past week, running past a surprisingly hawkish Federal Reserve. That raises confidence in the uptrend’s longer-term prospects. But with the Nasdaq extended, the odds of a market pullback are elevated in the short term. Friday may have reflected the start of a slide, but it wasn’t much of one.

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A pullback could create new buying opportunities in leading stocks, many of which are currently far extended from any entry. But in the short run, investors should be cautious about making new purchases, especially in hot tech areas.

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.

BA stock is trading right around a buy point. Boeing (BA) and rival Airbus (EADSY) will likely announce a bevy of new orders at the Paris Air Show, which kicks off Sunday. McKesson (MCK) broke out of a consolidation while Smith & Nephew (SNN) is above a trendline entry. Marriott International (MAR), Chipotle Mexican Grill (CMG), Boyd Gaming (BYD) and Floor & Decor (FND) are near buy points. All seven stocks are from nontech areas of market leadership.

Meanwhile, Advanced Micro Devices (AMD), Samsara (IOT) and Rambus (RMBS) are three hot stocks that are starting to pull back.

But many leaders are not retreating. Nvidia (NVDA) hit a fresh record high Friday, surging 10% for the week. Meta Platforms (META) marked a 16-month best before closing a fraction lower on Friday. Tesla (TSLA), after two tiny losses ended a record 13-day win streak, rose to a fresh eight-month high Friday.

Tesla, META stock and Nvidia are on IBD Leaderboard. CMG stock is on the Leaderboard watchlist. MCK stock was added to SwingTrader on Friday, joining Boeing and FND stock. Chipotle and IOT stock are on the IBD 50. Chipotle and Tesla stock are on the IBD Big Cap 20. McKesson was Friday’s IBD Stock Of The Day.

The video embedded in the article reviews the market action over the past week and analyzes McKesson, Chipotle and AMD stock.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.

U.S. stock markets will be closed on Monday, June 19, for the Juneteenth holiday, but other exchanges around the world will be open. Dow futures will trade normally.

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 had a strong week, especially on the Nasdaq, despite generally modest losses Friday.

The Dow Jones Industrial Average rose 1.25% in last week’s stock market trading, reaching its best levels of the year. The S&P 500 index jumped 2.6%, its best weekly gain since March.  The Nasdaq composite leapt 3.25%, its eighth straight weekly advance. The small-cap Russell 2000 climbed 0.5%, well off weekly highs.

The 10-year Treasury yield rose 2 basis points to 3.77%.

U.S. crude oil futures rose 2.3% to $71.78 a barrel last week. Copper prices climbed 2.5%.

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) advanced 2.1% last week. The iShares Expanded Tech-Software Sector ETF (IGV) leapt 5.2%. The VanEck Vectors Semiconductor ETF (SMH) ran 4.45% higher, with Nvidia and AMD stock major holdings.

The SPDR S&P Metals & Mining ETF (XME) popped 2.9% last week. The Global X U.S. Infrastructure Development ETF (PAVE)  rallied 2.6%. U.S. Global Jets (JETS) ascended 5.65%. The SPDR S&P Homebuilders ETF (XHB) stepped up 2.4%. The Energy Select SPDR ETF (XLE) dipped 0.6%. The Health Care Select Sector SPDR Fund (XLV) was up 1.4%. MCK stock is in XLV.

The Industrial Select Sector SPDR Fund (XLI) jumped 3%. BA stock is a major XLI holding.

The Financial Select SPDR ETF (XLF) rose 1.3%. The SPDR S&P Regional Banking ETF (KRE) fell 0.9% after big gains since early May.

Reflecting stocks with more speculative stories, the ARK Innovation ETF (ARKK) rallied 4.2% last week and ARK Genomics (ARKG) leapt 3.9%. Tesla stock is the No. 1 holding across Ark Invest’s ETFs.

Five Best Chinese Stocks To Watch Now

Stocks To Watch

BA stock rose 1.2% to 219.99 this past week, just below a 221.43 flat-base buy point. Many other industrial plays look extended from their 50-day lines, but not Boeing.

MCK stock climbed 3.1% to 406.20, breaking out past a 401.53 handle buy point Friday.

SNN stock jumped 6.9% to 32.16 last week, clearing a trendline in a flat base that’s part of a base-on-base formation.

CMG stock dipped 0.4% to 2,032.92 in low volume, trading at its 21-day line with the 10-week line catching up. Chipotle has a four-weeks-tight pattern with a 2,139.88 official buy point. That pattern could…