Dow Jones futures will open Sunday afternoon, along with S&P 500 futures and Nasdaq futures. The stock market rally shrugged off a Thursday morning tumble, with the major indexes closing Friday essentially at record highs. Tesla (TSLA) and Virgin Galactic (SPCE) are in focus over the weekend, along with a further China crackdown on U.S. IPOs.
Roku (Roku), Advanced Micro Devices (AMD), Vale (VALE), Upwork (UPWK), Ford Motor (F), Victoria’s Secret parent L Brands (LB), Zscaler (ZS) and Cimarex Energy (XEC) are stocks with bullish action this past week from strong areas of the market.
LB and ZS stock are the only ones above official buy points. But Roku stock, AMD, Vale and, arguably, Ford are actionable now. UPWK stock and Cimarex have a little more work before tripping early or official entries.
Even leading stocks will tend to follow the overall market, which is why Roku, AMD and these other names tumbled and rebounded on Thursday. But group and industry action also is important.
The overall stock market rally showed resilience. But bouncing back so quickly, especially on light volume, carries its own risk.
China IPO Crackdown
China’s cybersecurity regulator said Saturday that companies with data from over one million users must seek its approval when listing overseas due to risks such information could be “affected, controlled, and maliciously exploited by foreign governments.”
The Cyberspace Administration’s edict comes after ordering ride-hailing giant Didi Global (DIDI) and two other recent U.S. IPOs to suspend new user registrations, while also ordering app stores to pull Didi’s app.
Didi stock plunged 22% last week, while many other Chinese companies also sold off. In addition to the record Alibaba (BABA) antitrust fine and related remedies earlier this year, Beijing is imposing sweeping controls on internet and data-centric companies.
Earnings On Tap
Earnings season will get underway this coming week. Dow Jones giants JPMorgan Chase (JPM) and Goldman Sachs (GS) kick off bank earnings on Tuesday, with Bank of America (BAC) and Wells Fargo (WFC) due Wednesday and Morgan Stanley (MS) on Thursday. Meanwhile, Delta Air Lines (DAL) reports on Wednesday, with UnitedHealth (UNH) and Taiwan Semiconductor (TSM) on Thursday.
Tesla and Ford stock are on IBD Leaderboard, while Roku and UPWK stock are on the Leaderboard watchlist. Ford and Roku stock are on SwingTrader. Roku stock also is on the IBD 50.
Dow Jones Futures Today
Dow Jones futures will 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 actionable stocks in the stock market rally on IBD Live
Coronavirus cases worldwide reached 187.09 million. Covid-19 deaths topped 4.03 million.
Coronavirus cases in the U.S. have hit 34.71 million, with deaths above 622,000.
New U.S. coronavirus cases topped 27,000 on Friday, the highest since late May, as the more-infectious Delta variant becomes dominant. But hospitalizations and deaths remain low. Coronavirus vaccines provide strong protection vs. the Delta variant for serious illness.
Stock Market Rally
The stock market rally ultimately closed with slim weekly gains, right at record highs. The Dow Jones Industrial Average edged up 0.2% in last week’s stock market trading. The S&P 500 index and Nasdaq composite advanced 0.4%. The small-cap Russell 2000 fell 1.3%.
The 10-year Treasury yield fell 7 basis points to 1.36%. It hit a five-month low of 1.26% on Thursday.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) tumbled 2.4% for the week, while the Innovator IBD Breakout Opportunities ETF (BOUT) gained 1.35%. The iShares Expanded Tech-Software Sector ETF (IGV) added 0.8%. The VanEck Vectors Semiconductor ETF (SMH) fell 1.1%, with AMD stock a notable component.
SPDR S&P Metals & Mining ETF (XME) eked out a 0.55% weekly gain after undercutting recent lows. The Global X U.S. Infrastructure Development ETF (PAVE) closed a fraction below breakeven. U.S. Global Jets ETF (JETS) slumped 2.1% as Delta Covid fears continue to weigh on travel-related stocks. SPDR S&P Homebuilders ETF (XHB) fell 1.1%. The Energy Select SPDR ETF (XLE) tumbled 3.4% and the Financial Select SPDR ETF (XLF) slipped 0.7%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) sank 2% and ARK Genomics ETF (ARKG) 2.2%, but both rebounded from their 200-day lines. Roku stock is the No. 2 holding in the ARKK ETF, after Tesla. Tesla stock is the No. 1 holding for Ark Invest overall.
Five Best Chinese Stocks To Buy And Watch Now
Tesla FSD Beta V9 Release
Tesla FSD Beta V9 was released at Friday midnight, letting a select group of owners test the latest version of the driver-assist system. Expect videos highlighting FSD’s pros and cons in the days ahead. Despite their names, Autopilot and Full-Self Driving are L2 driver-assist systems, a long way from fully autonomous L5. But FSD revenue has been important to Tesla, which hopes to introduce a monthly subscription version.
Meanwhile on Monday, a long-awaited case involving Tesla’s acquisition of SolarCity is set to get underway. Tesla CEO Elon Musk is accused of buying SolarCity to avoid a default, rather than a deal to add value to the electric automaker. Musk was SolarCity’s largest shareholder, with some family members key executives and major investors.
Tesla stock fell 3.2% last week to 656.95, but found support at its 50-day and 200-day lines on Thursday. TSLA stock has an aggressive entry at 700.10. While the share price has rallied somewhat from May lows, the relative strength line for Tesla stock is not far from those 2021 lows.
Virgin Galactic Space Flight
Sunday’s Virgin Galactic space flight will include billionaire founder Richard Branson, giving him bragging rights over Amazon (AMZN) founder Jeff Bezos. Bezos will be aboard a June 20 flight from his Blue Origin space company. While Virgin Galactic’s flight will gain a lot of publicity, it’s also the launchpad for commercial service and turning space dreams into down-to-earth cash.
SPCE stock rose 9.5% last week to 49.20. After more than tripling from mid-May lows, SPCE stock has consolidated in volatile fashion in the past few weeks. Virgin Galactic arguably has a 57.61 handle buy point from an extremely deep base.