Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally is teetering, with last week’s short-lived rebound quickly fizzling.
The stock market rally is still standing, but is bruised and wobbly. The major averages are testing key support areas, though the Nasdaq has held its 200-day line so far.
The Nasdaq has lagged the S&P 500 index since last February, with that underperformance increasing over the past two months.
Apple (AAPL) stock and Apple iPhone chipmaker Qualcomm (QCOM) are two growth stocks holding up relatively well, while Tesla (TSLA) China rival Xpeng (XPEV) is right at an early entry. Meanwhile, DE stock is setting up, while SM Energy (SM) broke out Friday.
Goldman Sachs (GS), Charles Schwab (SCHW) and Signature Bank (SBNY) report before Tuesday’s market opening. GS stock fell below its 200-day moving average on Friday, though it’s technically in a base. Schwab stock is extended. SBNY stock is at the edge of a buy zone.
The video embedded in this article discussed the volatile market action as well as SM stock, On Semiconductor (ON) and Deere.
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. markets will be closed Monday in observance of the Martin Luther King Jr. holiday, though other exchanges around the world will be open.
Coronavirus cases worldwide reached 324.05 million. Covid-19 deaths topped 5.54 million.
Coronavirus cases in the U.S. have hit 66.14 million, with deaths above 871,000.
While cases continue to hit new highs worldwide, new infections seem to have peaked in the U.K. and New York, following the pattern in South Africa. Hospitalizations are rising, but not nearly as much as in previous Covid waves.
Stock Market Rally
The stock market rally traded up and down near key support levels this past week, ultimately closing modestly to solidly lower.
The Dow Jones Industrial Average fell 0.9% in last week’s stock market trading. The S&P 500 index and Nasdaq composite dipped 0.3%. The small-cap Russell 2000 gave up 0.8%.
The 10-year Treasury yield edged up 1 basis point to 1.77%, rebounding Friday after pulling back modestly for three straight sessions. It hit a 23-month high of 1.81% intraday Tuesday. U.S. crude oil futures climbed more than 6% for the week to $83.82 a barrel.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.3% last week, but after hitting a 52-week low intraday Monday. The Innovator IBD Breakout Opportunities ETF (BOUT) climbed 1%. The iShares Expanded Tech-Software Sector ETF (IGV) slid 1.6%. The VanEck Vectors Semiconductor ETF (SMH) popped 3.4%, with Qualcomm stock a notable holding.
SPDR S&P Metals & Mining ETF (XME) climbed 2% last week. The Global X U.S. Infrastructure Development ETF (PAVE) retreated 1.3%. U.S. Global Jets ETF (JETS) edged up 0.1%. SPDR S&P Homebuilders ETF (XHB) retreated 1%. The Energy Select SPDR ETF (XLE) jumped 5.2% after surging 10.5% the prior week. The Financial Select SPDR ETF (XLF) retreated nearly 1%, but many banks had strong weeks. The Health Care Select Sector SPDR Fund (XLV) dipped 0.2%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) both tumbled nearly 5% to 19-month lows. Tesla stock remains the No. 1 holding across ARK Invest’s ETFs, but Cathie Wood has slashed her TSLA stake in recent months while stepping up investments in hard-hit, highly valued growth.
Apple stock edged up 0.5% to 173.07 last week. On Monday, Jan. 10, AAPL stock rebounded from its 10-week line for the first time since its November breakout. Investors could use a move above Thursday’s high 176.62, a place to buy Apple stock from that 10-week line bounce. That would also push the iPhone maker above its 10-day and 21-day lines.
Apple doesn’t have a base per se, but has been consolidating tightly over the past several weeks, with the relative strength line holding right around record highs. Investors might treat this recent trading as a messy flat base, with a buy point around 181-182.
QCOM stock rose 4.6% to 188.69 last week. Shares have generally found support at their 21-day line since mid-December, but on Jan. 10 rebounded from their 50-day line. The RS line for Qualcomm stock is at a new high, especially powerful performance for a growth stock.
QCOM stock has been consolidating in a messy fashion since mid-November, though the trading looks tighter on a weekly basis. Officially, Qualcomm stock has a three-weeks-tight entry of…