Dow Jones Futures Fall as Stock Market Rally Rebounds After Retreat
Dow Jones futures fell modestly Monday night, along with S&P 500 futures and Nasdaq futures. The stock market rally had a strong rebound last week after the major indexes and many leading stocks retreated to start 2024 but soon found support at key levels. A large number of stocks flashed buy signals, including a powerful breakout from Nvidia (NVDA), once again leading the overall market.
Nvidia stock is now extended, but fellow AI leader Microsoft (MSFT) is just above a buy point after a solid weekly gain, on the cusp of surpassing the market cap of fellow Dow giant Apple (AAPL).
Novo Nordisk (NVO) remains in a buy zone. MercadoLibre (MELI) and Tradeweb Markets (TW) flashed entries intraday.
Tesla (TSLA) had an ugly week, extending a recent sell-off and breaking key support levels. On Monday, Elon Musk suggested he wouldn’t develop “AI & robotics” at Tesla if he doesn’t get a lot more TSLA shares.
Apple is offering iPhone discounts of up to 5% in China, amid mounting concerns of slowing demand there.
Boeing (BA) said Monday it’s making new quality changes following the midair Alaska Airlines (ALK) incident on Jan. 5. The Dow giant faces new delays in 737 Max jets deliveries to China, The Wall Street Journal reported Monday, citing sources.
The stock market rally got off to a strong start Monday and extended gains. The Dow Jones Industrial Average edged up 0.3% in last week’s stock market trading, after briefly topping a record high on Friday. Boeing (BA), which tumbled nearly 13% on 737 Max woes, curbed the Dow’s gains.
The S&P 500 index popped 1.8%, hitting 52-week highs and coming within a few points of its all-time peak. The Nasdaq jumped 3.1%, rebounding from the 10-week line but hitting resistance at the 15,000 level.
Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures declined 0.4% and Nasdaq 100 futures lost 0.5%.
Tesla stock has had mammoth runs and could again. But it’s a bad stock now. Shares tumbled 7.8% to 218.89 for the week, knifing through the 50-day and 200-day lines. The relative strength line, which tracks a stock’s performance vs. the S&P 500, is at its lowest levels since May.
The market rally has been acting great. Stocks fell to start 2024, but the S&P 500, Nasdaq and leading stocks found support where you’d expect.
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Analyst comment
Positive news:
– The stock market rally had a strong rebound last week, with many leading stocks finding support at key levels.
– Several stocks, including Nvidia (NVDA), Microsoft (MSFT), Novo Nordisk (NVO), MercadoLibre (MELI), and Tradeweb Markets (TW), flashed buy signals.
– The stock market rally got off to a strong start on Monday, with the Dow Jones Industrial Average and the S&P 500 hitting new highs.
Neutral news:
– Boeing (BA) faces new delays in 737 Max jets deliveries to China and is making quality changes following a midair incident on Jan. 5.
Negative news:
– Tesla (TSLA) had a rough week, with the stock price tumbling and breaking key support levels.
– Apple is offering iPhone discounts in China amid concerns of slowing demand.
– Tesla CEO Elon Musk suggested he wouldn’t develop “AI & robotics” at Tesla if he doesn’t get more TSLA shares.
As an analyst, the market is expected to continue its strong momentum based on the positive news of a stock market rally, new buy signals from leading stocks, and strong start on Monday. However, caution should be exercised due to negative news surrounding Tesla and potential concerns about Apple’s demand in China.
