Dow Jones futures were little changed Sunday night, along with S&P 500 futures and Nasdaq futures. President Joe Biden is contemplating his re-election campaign as the French parliamentary elections trended sharply to the right.
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Nasdaq declines after reaching 18 thousand points; Uber, JPMorgan and Hilton are in the spotlight
The stock market rally gave some mixed signals last week, but the Nasdaq’s strong trend remains intact. Meta platforms (Meta), Amazon.com (I am sad) And Tesla (TSLA) broke out last week, with software makers AppLovin (program), monday.com (soggy) And Service now (now) Flashing buy signals. Nvidia (NVDA) found her footing.
The Ministry of Justice said Boeing (Bachelor’s) will accuse her of fraud, urging space giant Dow to plead guilty or risk prosecution, according to multiple reports. Meanwhile, Boeing has reportedly agreed to purchase the supplier Air spirit systems (SPR) for $4.7 billion in an all-stock deal.
Meanwhile, China’s electric car makers will announce June sales on Monday.
Dow Jones Futures Today
Dow Jones futures were equal to fair value. S&P 500 futures rose 0.15%, and Nasdaq 100 futures rose 0.1%.
The yield on 10-year Treasury bonds rose several basis points to 4.42%.
Remember that an overnight move in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Biden is thinking about his election campaign
President Biden discussed his reelection campaign at Camp David on Sunday with family members who urged him to keep fighting, The New York Times reported, citing sources. This comes after Biden’s disastrous performance during Thursday night’s presidential debate raised concerns about his fitness for office.
Top Democratic officials have publicly expressed continued support, though many have serious concerns in private.
Biden’s chances of falling
According to PredictIt, Biden’s odds of winning the Democratic nomination were 61% as of Sunday evening, compared to 72% on Friday and 85% before the debate. Biden’s odds of winning the presidency were 30%, up from 25% on Saturday evening but down from 36% on Friday and 48% on Thursday before the debate.
Donald Trump’s odds of winning have barely increased even as Biden’s chances have faded. Trump is projected to have a 56% to 59% chance on Friday, up from 53% before the debate.
However, growing speculation about a second Trump presidency with a GOP-led Congress weighed on solar and hospital stocks on Friday.
Trump’s victory in the debate gave the S&P 500 a huge boost. Then this happened.
French takes right turn
France’s far-right National Front party, led by Marine Le Pen, won a major victory in the first round of parliamentary elections on Sunday. A left-wing coalition is set to take second place, while President Emmanuel Macron’s centrist party trails in third place.
Reports indicate that the leftist group is seeking alliances, ready to adjust its agenda to stop the National Front led by Le Pen.
Parliament is likely to become suspended after the final round of voting on July 7, although the National Front may ultimately obtain a majority.
Macron called for early elections on June 9, sparking turmoil in markets in France and Europe.
But the euro rose overnight.
The stock market rose last week
The Dow Jones Industrial Average fell 0.1% in stock market trading last week after a strong start to the week. The S&P 500 fell 0.1% and the Nasdaq rose 0.2% after both retreated from record highs early Friday.
The Russell 2000 small-cap index rose 1.3%, reclaiming its 50-day level.
Looking at the weekly chart, the Nasdaq has not shown any real weakness, having risen over the past four weeks and nine of the past 10 weeks.
The Nasdaq is up 5.9% above the 50 day, extending slightly even with the recent sideways movement. A longer pause or moderate pullback would allow stocks to rise and give more room for the next advance.
Electric car sales in China
Investors will get June and Q2 sales from China’s electric vehicle makers New (New), Lee Otto (for me), xpeng (XPEV) And Zikr (Zak) early Monday and probably the EV and giant battery BYD (PDF).
Tesla and Rivian (Raven) Automakers are scheduled to release their numbers early Tuesday. Most automakers will release second-quarter U.S. sales on Tuesday as well.
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ETFs
Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) decreased by 0.4% last week.
iShares Expanded Tech-Software Sector ETF (IJV2.4%, which is its fourth strong weekly advance in a row. ServiceNow and AppLovin stock are IGV holdings. VanEck Vectors Semiconductor ETF (Trait) fell 1.6%, but came off the lows somewhat. Nvidia shares are SMH’s dominant holding company.
The most speculative story stocks, the ARK Innovation ETF (Ark) rose 1.4% last week and the ARK Genomics ETF (I will ride) fell by 3.5%, returning to its lowest levels in April. Tesla stock is the No. 1 investment among Ark Invest’s ETFs.
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Mega Cap Stocks
NVDA stock fell 2.4% over the week to 123.54. But after falling 6.7% on Monday, ending a three-day selloff, the AI ​​chip leader rebounded and settled above its 21-day moving average. NVDA stock could benefit from a longer break, forming a new base and allowing the 50-day line to catch up.
Meta stock rose 1.9% to 504.22. The stock cleared a 514.01 cup buy point with a handle on Thursday, but fell nearly 3% on Friday. There are still some early entries inside the handle, however.
Amazon stock rose 2.2% to 193.25, above a firm buy point of 191.70. Shares fell 2.3% on Friday.
Tesla stock jumped 8.1% to 197.88, surpassing a buy point of 191.08. The buying range extends to 200.63. Tesla stock faced resistance at the 40-week line on Friday, but closed higher.
Tesla’s big weekly gains came as several analysts lowered their second-quarter delivery estimates ahead of a press release from the electric car giant on Tuesday.
Tesla may cut its prices in China in the coming days, local media reported.
Amazon achieved this feat in the Andy Jassy era. What then?
Software stocks are in buy zones
AppLovin stock jumped 5.9% on the week to 83.22, breaking above a narrow, short-term trend line of 82.66 on Thursday, providing an early entry. The official fixed-base buy point is 88.50, according to Marketsorg.
Monday.com stock jumped 7% last week to 240.76, rebounding from its 50-day line within a short, double-bottomed consolidation zone next to another base. The official buy point is 249. However, MNDY stock broke above the trend line on Thursday. On Friday, the software maker tested a short-term high of 239.54, which roughly coincides with the previous base’s buy point of 239.22.
ServiceNow stock rose just over 5% to 787.19, breaking the trend line. Shares are up 23% from the May 31 intraday low of 637.99. The official buy point is 815.32. Ideally, NOW stock will form a handle.
Meanwhile, a number of software stocks are rising from the bottom and trading within the norm, while some blue chips are extending.
Investors could use IGV — which has a chart that closely resembles ServiceNow’s — or other software ETFs to capitalize on this move in the sector.
Market rise analysis
There are many ways active investors can exploit the current stock market rally.
A very active trader may have made several trades over the past couple of weeks, picking up some winners while also exiting a number of stocks that quickly faded amid small turnovers. Other traders may have chosen to take little or no action depending on how their current positions behave.
The key is to find an investing style and rules that work for you.
Pay attention to market and sector movements. Several software names should be on your watch list. While financial and industrial stocks have fallen, many stocks in those areas are very close to becoming viable.
The presidential race is an extreme wild card, with Biden’s debate performance and related fallout creating even greater uncertainty months before Election Day.
Read The Big Picture every day to stay informed about market trends, leading stocks and sectors.
Nvidia, Amazon, Meta shares rise Leaderboard for IBD. Amazon and Meta stocks are on SwingTrader. Nvidia, Monday.com, and ServiceNow stocks are on SwingTrader. Bahraini dinar 50. AppLovin was IBD’s stock of the day on Friday while Amazon was the pick on Thursday.
Please follow Ed Carson on Threads at @edcarson1971 And X/Twitter on @IBD_ECarson For stock market updates and more.
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