Dow Jones futures rose slightly Sunday night, along with S&P 500 futures and Nasdaq futures. The stock market rally had a mixed week, but the action was generally negative, with resurgent Treasury yields and mixed earnings weighing on growth.
Dow Jones Futures Rise Sunday Night in Mixed Stock Market
Dow Jones futures rose 0.1% vs. fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures climbed 0.3%. Overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Market Rally Stumbles as Tech Stocks and Treasury Yields Drag Down Growth
The stock market rally had a mixed week that was damaging for the Nasdaq and growth names. The Dow Jones Industrial Average rose 0.6% in last week’s stock market trading. The S&P 500 index dipped 0.3%. The Nasdaq composite slumped 1.9%. The small-cap Russell 2000 gave up 1.65%. Market breadth is weakening on the Nasdaq, but much less so on the NYSE. The 10-year Treasury yield jumped 11 basis points to 4.17%, close to the 2023 high of 4.21% set Aug. 4.
S&P 500 Finds Support, Dow Jones Inches Up Amid Market Uncertainty
The S&P 500 edged lower, but found support around its 10-week line Friday. The Dow Jones rose slightly for the week. The market rally is in danger of falling into a correction. While techs arguably already are in a correction, industrials, infrastructure, housing and energy sectors are holding up or gaining ground. So are some retail, travel, medical, transportation and financial names.
Industrial, Infrastructure, Housing and Energy Sectors Hold Strong Amidst Market Correction
Investors should be thinking defensively in the current market environment. Tesla stock, Nvidia and Martin Marietta are on IBD Leaderboard. SLB stock is on SwingTrader. Tesla, SLB, Applied Materials and ANET stock are on the IBD Big Cap 20. Flowserve was Friday’s IBD Stock Of The Day.
Arista Networks, Tenaris, Visa, and More Near Buy Points as Earnings Season Approaches
Arista Networks (ANET), Tenaris (TS), Visa (V), SLB (SLB), Lennar (LEN), Martin Marietta (MLM), Delta Air Lines (DAL), Flowserve (FLS), Lululemon Athletica (LULU) and JPMorgan Chase (JPM) are all setting up or holding up. Meanwhile, Cardinal Health (CAH), Cava Group (CAVA), Home Depot (HD), StoneCo (STNE) and On Holding (ONON) are trading around buy zones with earnings due this coming week.
Investors should be increasingly defensive, especially with regards to growth plays. Overall and tech exposure should have been coming down in the past couple of weeks, even if only by addressing holdings on a case-by-case basis. It’s still possible that the market rally revives, especially if Treasury yields ease. The ongoing pullback is letting leading stocks pull back to key levels and work on new bases. So a slew of buying opportunities could develop, whether that’s in a few days or several weeks. Investors need to prepare for that moment.
Analyst comment
Neutral news: The Dow Jones futures rose slightly Sunday night, along with S&P 500 and Nasdaq futures. The stock market had a mixed week with negative factors like Treasury yields and mixed earnings weighing on growth.
Market analysis: The market is currently facing uncertainty and is in danger of falling into a correction. Investors should consider a defensive approach and reduce their exposure to growth plays. However, there is a possibility of a market rally revival if Treasury yields ease. Potential buying opportunities may arise in the coming days or weeks, and investors should be prepared for those moments.
