Dow Jones futures will open Sunday evening along with S&P 500 futures and Nasdaq futures.
x
After some struggles throughout the week, the stock market kicked off a new rally on Friday. There was a reversal in major indices and buying signals were seen in many stocks.
nvidia stock, meta platform (Meta), Arista Networks (a net), qualis (QLYS), Eli Lilly (LLY), CME Group (CME), Vertiv Holdings (VRT), CrowdStrike Holdings (CRWD), Cadence Design System (CDNS) and palo alto network (PANW) were among those clearing buy points or initial entries. All have relative strength lines at or near higher levels, indicating stronger performance than the S&P 500.
With those 10 stocks, Tesla (TSLA) bounced back from key support on Friday and led gains throughout the week despite a barrage of bad news.
Investors should prepare their watch list this weekend and consider increasing investments gradually if the market continues to perform well.
NVIDIA (NVDA), LLY stock, Arista Networks, Vertiv and Meta Platform are on the IBD Leaderboard, Tesla stock is on the Leaderboard watchlist. PANW stock and the Meta platform are on SwingTrader. CDNS stock is on the IBD Long-Term Leaders. Meta Stock, Nvidia, Qualys, Arista Networks, Cadence Design, Palo Alto Networks, Tesla and Eli Lilly are on the IBD 50. Nvidia, Tesla, Palo Alto and ANET stocks are on the IBD Big Cap 20.
Eli Lilly was the IBD Stock of the Day on Friday, with CrowdStrike, Arista Networks and PanW stock also selected during the week.
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 on Dow futures and elsewhere will not necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze leading stocks and markets on IBD Live
stock market rally
The stock market struggled all week, with the Dow Jones and S&P 500 breaking recent lows, ending their rally attempts. But the Nasdaq rally effort continued. On Friday, major indices reversed course on higher volume, which led to gains in major stocks.
The Dow Jones Industrial Average fell 0.3% in last week’s stock market trading. The Dow cut losses again Friday morning, but then rose 0.9%. The S&P 500 index rose 0.5%, breaking above the 40-week line on Friday. The Nasdaq Composite jumped 1.6% on Friday and for the week, moving above the 21-day line. The small-cap Russell 2000 fell 2.1% after hitting a five-month low on Tuesday.
Market conditions were positive on Friday, but the general trend has been much weaker for weeks or months.
The 10-year Treasury yield rose 21 basis points to 4.78%, but closed well off its peak of 4.89% early Friday. 10-year bond yields rose several basis points on Friday, but the dollar retreated for the third consecutive session.
Last week, US crude oil futures fell 8.8% to $82.79 per barrel. Gasoline futures are down 8.6% last week and just over 19% over the past three weeks. They hit a 2023 low during the week.
etf
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.5% last week. The iShares Expanded Tech-Software Sector ETF (IGV) rose 2.2%, reclaiming the 50-day line. Cybersecurity plays a role CRWD stock, Qualys and Palo Alto are all IGV members. The VanEck Vector Semiconductor ETF (SMH) rose 2.3%, with Nvidia stock at No. 1. CDNS stock is in SMH and IGV.
Reflecting stocks with a more speculative story, the ARK Innovation ETF (ARKK) fell 1.2% last week and the ARK Genomics ETF (ARKG) fell 5.7%. Tesla stock remains the No. 1 holding in Ark Invest’s ETF.
The SPDR S&P Metals & Mining ETF (XME) fell 3.2% last week. The Global X US Infrastructure Development ETF (PAVE) fell 0.4%. The US Global Jets ETF (JETS) dropped 1.5%. The SPDR S&P Homebuilders ETF (XHB) fell 2.1%. The Energy Select SPDR ETF (XLE) sold 5.2% and the Health Care Select Sector SPDR Fund (XLV) jumped 1% higher, with LLY stock a notable member. The Industrial Select Sector SPDR Fund (XLI) slipped 0.6%.
The Financial Select SPDR ETF (XLF), which also includes CME stocks, declined 0.4%.
The five best Chinese stocks to watch right now
Stock in buy areas
Nvidia stock rose 2.4% to 457.62 on Friday and is up 5.2% for the week, clearing the 50-day line, offering an early entry. As of Friday’s close, NVDA stock has a new base with a 502.66 buy point. According to The Information report, shares fell on Friday night. Microsoft (MSFT) Nvidia will launch an AI chip next month to reduce its reliance on GPUs.
Meta stock jumped 3.5% to 315.43 on Friday, clearing a 310.64 cup-with-handle buy point as well as a 312.87 entry.
Arista stock rose 3.2% on Friday and 45.5% for the week, to 194.02. Shares achieved an initial entry of 189.90. ANET stock now has a flat base with a 198.70 buy point.
Eli Lilly’s stock jumped 4.4% to 565.22 on Friday, bouncing off its 50-day line and moving above its 21-day moving average. This provided a new buying opportunity. LLY stock fell below its 50-day line on Tuesday but recovered on Thursday. Eli Lilly capped a bullish week out.
Qualys stock jumped 4% to 160.97 on Friday, surpassing short-term resistance around 155 as well as its recent 52-week high of 157.88. That recent area could actually be seen as a flat base or a handle to the base through September 2022.
CrowdStrike stock jumped a massive 6.9% to 176.69 on Friday, breaking above the 21-day line to shake off a few months of chaotic consolidation. However, CRWD stock closed 11.4% above its 50-day range.
Palo Alto’s stock jumped 4.2% to 246.69 on Friday, bouncing close to the 50-day line and surpassing some very short-term levels. PANW stock has a 258.88 consolidation buy point. However, investors can use the trendline at 254.23, or around 250 as initial entries for further moves.
CME stock jumped 4.85% to 211.93 in a big week that included the past two months of trading. Shares bounced above the 50-day line on Thursday. Shares surpassed a 209.31 flat-base buy point on Friday, according to MarketSmith analysis.
Vertiv’s stock jumped 6.9% to 39.77 for the week, including Friday’s 4.2% gain. Shares rallied from the 21-day and 10-week lines, while also clearing short-term levels, offering early entry. VRT stock, one of the big winners of 2023, now has a new flat base with a 40.41 buy point.
Cadence Design’s stock jumped 3.9% to 243.95 on Friday, rebounding from the 50-day line and breaking the downtrend of a handle, offering an early entry. CDNS stock is working at a 247.50 cup-with-handle buy point.
tesla stock
Tesla stock rose 4.1% this week to 260.53. On Wednesday, shares jumped 5.9%, rising above the 50-day line and offering an early entry. Shares fell back to the 50-day line on Friday morning, but recovered with modest gains. A move above Thursday’s intraday high at 263.20 could offer a new early entry by breaking the downtrend in the handle. Tesla stock has a 278.98 cup-with-handle base.
Tesla showed surprising strength amid a lot of bad news. Early Monday, Tesla reported third-quarter deliveries that fell further than expected. On Monday night, Tesla launched a new, lower-priced Model Y, which is $3,750 cheaper than the previous base variant. Late Thursday, Tesla cut the prices of the Model 3 and Model Y in the US, as well as the Model Y in Norway.
Bulls are looking forward to an updated Model 3, which will soon begin deliveries in China and Europe, as well as the upcoming Cybertruck and more speculative long-term bets on self-driving, AI and robotics.
Time the Market with IBD’s ETF Market Strategy
What do we do now
The stock market’s rally attempt showed bullish action over the weekend, with major indices reversing course on Friday and a number of major stocks issuing buy signals.
Investors could and perhaps should have added some investments on Friday. If the market continues to do well, keep moving out of cash, but do so gradually.
Remember, stocks rose on Friday as Treasury yields fell from their all-time highs, but market rates continue to rise. If the 10-year Treasury bond yield closes at 5%, it is easy to imagine the major indices falling again.
So be prepared to step back if the market or your position begins to falter.
But it’s time to get ready for the weekend. Make sure your watch lists are up to date. Pay special attention to stocks that are actionable or nearly actionable.
Investors will receive CPI and PPI inflation reports in the coming week. Earning season will begin JPMorgan Chase (JPM), unitedhealth (UNH) and Delta Airlines (DAL) is in the headlines.
Read The Big Picture every day to keep up with market direction and leading stocks and sectors.
Please follow Ed Carson on X/Twitter @ibd_ecarson And threads on @edcarson1971 for stock market updates and more.
You might also like:
Best Growth Stocks to Buy and Watch
IBD Digital: Unlock IBD’s premium stock lists, tools, and analysis today
Tesla Vs. BYD: EV giants compete for the crown, but which one is better to buy?