Dow Jones Futures Loom With S&P 500 At Record Highs; Tesla, Netflix Earnings On

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA), ServiceNow (NOW) and Netflix (NFLX) headline a big earnings week.

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The S&P 500 and Dow Jones hit all-time highs Friday with the Nasdaq at a two-year best. Big techs led the market rally last week week. Small caps struggled, but they did rebound from support on Friday.

Friday excepted, market breadth has been lackluster in 2024. But market leadership is robust, with a significant number of stocks flashing buy signals in the past few days with many others setting up.

Apple (AAPL) offered an early entry Friday, though with caveats. Cloudflare (NET) flashed a buy signal with DraftKings (DKNG) on the cusp.

Investors can add exposure gradually, but earnings season looms large.

In addition to Tesla, ServiceNow and Netflix, Intel (INTC), ASML (ASML), Lam Research (LRCX), KLA (KLAC), D.R. Horton (DHI), Paccar (PCAR) and United Rentals (URI) are on tap, just to name a few.

Tesla stock, despite its slump, is still closely watched by investors. ServiceNow kicks off software earnings, while Intel, ASML, LRCX and KLAC offer more insight into the booming chip sector. D.R. Horton, Paccar and URI stock show strength beyond techs.

NOW stock is on IBD Leaderboard, with Booking (BKNG) stock on the Leaderboard watchlist. KLA stock is on IBD Long-Term Leaders. DraftKings, ServiceNow, United Rentals and NET stock are on the IBD 50. ServiceNow, United Rentals and ASML stock are on the IBD Big Cap 20.

Cloudflare stock was Friday’s IBD Stock Of The Day. DKNG stock was Thursday’s selection.

The video embedded in this article discusses the weekly market action and analyzed Cloudflare stock, DraftKings and Super Micro Computer (SMCI).

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.

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 leading stocks and the market on IBD Live

Stock Market Rally

The stock market rally retreated to start the week, but revved higher on Thursday and Friday.

The Dow Jones Industrial Average rose 0.7% in last week’s stock market trading. The S&P 500 index gained 1.2%. The Nasdaq composite popped 2.3%.

The S&P 500 just eclipsed its January 2022 all-time peak on Friday. The Dow Jones rebounded to an all-time closing high. The Nasdaq set a two-year best, though it’s still some distance from its record highs. The Nasdaq 100 hit a record high, soaring 2.9% last week.

The Russell 2000 edged down 0.3%. The small-cap index did rebound significantly from its 50-day line.

The Invesco S&P 500 Equal Weight ETF (RSP) dipped 0.15% for the week but bounced considerably from its 10-week line and reclaimed the 21-day line on Friday.

The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) lagged the Nasdaq 100, but jumped 1.8% to a two-year high. That reflects strong market leadership, especially in the tech growth space.

The 10-year Treasury yield jumped 20 basis points to 4.15%. The two-year Treasury yield, more closely tied to Fed policy, soared 27 basis points to 4.41%.

Economic data was generally strong last week, while Fed policymakers and European Central Bank officials signaled a go-slow approach on rate cuts. Markets now see less than a 50-50 chance that Fed rate cuts will start in March.

The bounce in Treasury yields and ebbing rate-cut hopes haven’t had much impact yet on the market rally, but they bear watching.

U.S. crude oil futures rose 1% to $73.41 a barrel last week.

The Fed Is Sending A New Message On Rate Cuts. Is Wall Street Listening?

ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) popped 2.4%, with NOW stock a significant component. The VanEck Vectors Semiconductor ETF (SMH) surged 8.2%, with ASML stock, KLA, LRCX and Intel all big holdings.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) fell 2.3% last week and ARK Genomics ETF (ARKG) tumbled 5.8%. Tesla stock remains a major holding across Ark Invest’s ETFs.

SPDR S&P Metals & Mining ETF (XME) slipped 0.9% last week. The Global X U.S. Infrastructure Development ETF (PAVE) added 0.5%, with URI stock a big component. U.S. Global Jets ETF (JETS) dipped 0.3%. SPDR S&P Homebuilders ETF (XHB) reversed 1.3% higher, with DHI stock a major holding. The Energy Select SPDR ETF (XLE) slumped 3% to a six-month low. The Health Care Select Sector SPDR Fund (XLV) fell 0.75% as health insurers tumbled, snapping a nine-week win streak. The Industrial Select Sector SPDR Fund (XLI) climbed 0.3%, with United Rentals and PCAR stock both holdings in that fund.

The Financial Select SPDR ETF (XLF) climbed 0.9%.

Time The Market With IBD’s ETF Market Strategy

Stocks To Watch

Apple stock jumped 3% to 191.56, rebounding from the 200-day line and clearly retaking the 50-day, offering an aggressive…