Dow futures will open Sunday evening, along with S&P 500 and Nasdaq futures, with a focus on Twitter stock as Elon Musk has moved to end his acquisition. The stock market rally showed its strength, with the Nasdaq leading the major indexes higher while more high-quality stocks flashed buy signals.
The Nasdaq closed the week around its 10-week moving average and 50-day line, having struggled several times this year. Major indicators decisively clearing these key levels could be a positive move, although the market rally will still face many challenges, from technical resistance to the start of earnings season. On the contrary, selling from the current levels may be a bearish signal.
Elon Musk wants to end the Twitter deal
Late Friday, Tesla CEO Elon Musk informed Twitter (TWTR) that he wants to close a $44 billion deal worth $54.20 per share. Musk’s lawyers argued that Twitter “did not comply with its contractual obligations.”
Twitter’s board said it was confident of the deal and intends to close the deal. She plans to fight in court to get Musk to honor the signed agreement. Protracted litigation is likely. Musk may have to close the deal or pay a large sum — more than a billion-dollar breakup fee — to leave.
It’s a big turnaround since April, when Musk belatedly disclosed a large stake in “negative” TWTR stock and quickly moved into an acquisition deal, claiming it could significantly expand growth and boost freedom of speech.
Twitter’s stock fell 5% in late Friday trading, indicating its lowest levels since mid-March. Shares fell 5.1% to 36.81 on Friday after a Washington Post article that the deal was in trouble.
TSLA stock rose modestly in the extended trade.
Meanwhile, Musk’s step back from Tesla may be good news for ex-President Trump, who has been battling Truth Social. Digital World Acquisition Corporation. (DWAC), which is Truth Social’s parent SPAC merger partner, up 29% late Friday.
Stocks making upward movements
McKesson (MCK), United Health (United nations), two cents (CNC), Lanthius (LNTH), Northrop Grumman (No objection certificate), Ali Baba (Baba), SolarEdge Technologies (SEDG), fortinet (FTNT) And the Tesla (TSLA) Nine stocks are in or near buy zones, ranging from traditional breakouts to early buy points to very aggressive entry points.
Shares of Northrop, UnitedHealth and LNTH in operation IBD Leaderboard. Centene and McKesson in action SwingTrader. FTNT stock is on Long-term leaders of IBD. UN stock is in defect 50. MCK and Fortinet stock are on IBD Big Cap 20. It was McKesson on Friday IBD stock today.
The video included in the article discusses the state of the market and analyzes three stocks making upward movements: McKesson, Lantheus and Tesla.
Dow jones futures contracts today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember to work overnight in Dow Jones futures contracts and elsewhere that does not necessarily translate into actual circulation in the next regular session Stock market session.
Join IBD experts as they analyze actionable stock market actionable shares on IBD Live
stock market rise
The stock market rally bounced back in the last week, with solid to strong gains on the indices.
The Dow Jones Industrial Average rose 0.8% last week stock market trading. The S&P 500 advanced 1.9%. The Nasdaq Composite Index jumped 4.6%. Small cap Russell 2000 rose 2.4%.
The 10-year Treasury yield rose 13 basis points to 3.1%, after falling to 2.75% during Wednesday. The two-year yield also rose to 3.1% after being above the 10-year average for a few days.
US crude oil futures fell more than 3% in the past week to $104.79 a barrel, but after falling below $100 on Wednesday.
Friday’s June jobs report was stronger than expected, although employment tends to be a lagging indicator. The Atlanta Federal Reserve’s GDP forecast tool sees an annualized decline of 1.2% in the second quarter, versus -2.1% last week.
CME’s FedWatch is still up 75 basis points later this month and 50 basis points in September. But he sees a half point move likely at the November meeting, a shift from expectations of a quarter point move in the past few days.
The June CPI could move markets and the Fed’s far-flung interest rate expectations, but July’s 75 basis points seem locked in.
ETFs
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rose 1.6% last week, while the Innovator IBD Breakout Opportunities ETF (fit) offer 1.5%. iShares Expanded Technology and Software Fund (ETF)IGV) by 4.4%, with the FTNT stock portion of the ETF. VanEck Vectors Semiconductor Corporation (SMH) rose by 6.45%.
SPDR S&P Metals & Mining ETF (XME) fell 1.5%, continuing its weekly losing streak. Global Infrastructure Development Fund X US (cradle) rose 0.7%. US Global Gates Foundation (ETF)Planes) Keep high and close flat. SPDR S&P Homebuilders ETF (XHB) rose 3.2%. SPDR Specific Energy Fund (SPDR ETF)XLE) is down 2.25% and the Financial Select SPDR ETF)XLF) rose 0.6%. SPDR Healthcare Sector Selection Fund (XLV) rose 0.8%, with the United Nations owning a major stock.
Shares reflect more speculative stories, the ARK Innovation ETF (see youIt jumped 13.7% last week, jumping again above the 50-day line. ARK Genomics ETF (ARKG) is up 14.4%, jumping from the 50-day streak. Tesla shares are principal ownership via Ark Invest’s ETFs.
Top 5 Chinese stocks to watch right now
Stocks in buying areas
McKesson stock rose 3.1% on Friday to 331.26 and flashed several early buy signals. Stocks rebounded from the 50-day line, broke the downward sloping trendline, and created the short-term resistance at 330.16. MCK stock contains flat base With 340.04 points of purchase, according to MarketSmith Analysis. The line relative forcethe blue line in the provided charts, has recorded new highs in recent days.
UnitedHealth stock rose 0.8% Friday to 518.63. During the day, the Dow Jones giant reached 528.37, surpassing the handle 518.80 buy point Either from a cup or double bottomed base, but closed just below the entrance. On Tuesday, UN stock tested the 50-day streak during the day as a mini tremor. Many health insurance companies are located in or near areas of purchase, including Centene, which is a positive sign. But UnitedHealth’s earnings are due on Friday, July 15th.
Centene stock rose 3.2% to 88.01 on Friday, moving above 87.44 double bottom point purchase. Like UnitedHealth, CNC stock tested the 50-day streak on Tuesday. The two-year RS line is at a new level. Centene’s earnings aren’t due until July 26, but UnitedHealth’s results may affect CNC shares on Friday.
Lantheus stock jumped 7.4% on Friday to 67.79, bouncing back above the 50-day line, and also breaking the trend line and topping the short-term high. LNTH stock is consolidating after a massive wave from late February to early June, but it needs another week to become a proper base.
Northrop stock, after bouncing back to its buying range the previous week, fell 1.2% in the last week to 480.43, but bounced back from Tuesday’s 50-day streak test. NOC stock is exercisable from the 50-day line and 477.36 old buy points. Northrop stock now has a file flat base With 492.40 buy points.
Alibaba stock broke above the 200-day line and exited a bottom line with resistance above 121. Over the course of the week, BABA stock rose 4.2% to 120.90 but fell 1.2% on Friday to close just below those key levels. On Thursday, BABA stock Ideally, bottom bases will form substantially above or above the 200-day line, but many stocks are showing similar patterns. Many Chinese Internet stocks are showing improved actions.
SolarEdge stock jumped 6.75% in the last week to 295.11, rebounding from the 50-day line on Tuesday and retracing the 200-line on Friday. SEDG stock operates at 314.62 buy points from cup base with handle. But it is trading directly on a trend line from the top of the handle or above the 3-month base.
Fortinet stock rose 9.3% last week to 62.70, reclaiming the 50-day streak and ending just above the 200-day streak. This provides an opportunity to buy FTNT stock as an early entry or as a long-term leader. However, trading volume was light throughout the week. While Fortinet stock is far from its peak, the RS streak is at a new high, something few software could claim.
Tesla vs. BYD: Which EV giant is the best one to buy?
Tesla stock rose 10.3% in the short week to 752.9 back above the 50-day line for the first time in two months. TSLA stock has yet to pull back from its May lows last month, so it can be said that it is trying to erase a very short bottom base.
Tesla stock rose 2% late Friday after news that Musk is seeking to end the Twitter deal, which may require more TSLA sales or guarantees.
A very aggressive trader could try to take a position here, but it wouldn’t be a typical IBD buy, even on early entry. Tesla stock has a long way to go before hitting the 200-day streak, with all-time highs well above that.
In contrast, China’s EV competitors BYD (BYD) And the Lee Otto (LI) are in the buying zones now, and are trading just below 52-week highs.
Tesla can unlock its own Supercharger In the United States soon, according to a White House memo. Tesla earnings are due July 20.
Market Rise Analysis
The stock market rally, which was reeling a week ago, bounced back last week after rebounding from Tuesday’s intraday lows. The Nasdaq rose to its 50-day and 10-week lines as well as its highs in late June, closing partially above its 10-week average.
The 10-week line was a major resistance area for the tech-heavy index.
On Friday morning, the major averages pulled back strongly after a strong jobs report pushed Treasury yields higher. But they turned back to close and nothing changed.
The S&P 500, Dow Jones and Russell 2000 indices have not yet reached the 50-day/10-week line, but have regained their 21-day moving averages.
However, last week’s gains came on light trading volume, indicating that large institutions are not making big bets on this market rally just yet.
Pausing the market rally around current levels for a few days or weeks wouldn’t be a terrible thing. This would allow more bases to take shape and allow the major averages to catch up with the leading stocks or collapse to the worst hit names trying to bounce back.
However, more stocks are setting up points of purchase of different quality. The medical sector continues to be dominant, accounting for four of the nine stocks highlighted here. But there are other sectors that look promising.
Remember, financial markets are still weighing the risks of inflation, stagnation and Fed rate hikes. Stocks, bonds and commodities are subject to violent fluctuations.
Time to Market with IBD’s ETF Market Strategy
What are you doing now
The market rally is still ‘under pressure’, but the major indicators are looking much better than they were a week ago, and they are about to make a huge positive move. The blue-chip stocks are growing more and are doing well.
All this is still temporary. Sharp selling, especially from current levels, may be a bearish signal. A few bad days could turn recent buying into clear losses, with indicators heading lower again.
Therefore, slowly build your exposure as the market and your positions work. You can still take some partial profits on the winners to reap the winnings. Be prepared to reduce losses quickly.
Work hard this week on your watch lists. Build an extensive list, paying particular attention to a selection of potential purchases in the coming days.
Pay special attention to earnings season, which will start to pick up this coming week. Amid rising inflation, a strong dollar and slowing growth, we expect many companies to miss or issue bleak guidance. So pay attention to when your property reports your earnings, or when major competitors are ready.
Read The Big Picture Every day to keep up with the trend of the market, stocks and leading sectors.
Please follow Ed Carson on Twitter at Tweet embed For stock market updates and more.
You may also like:
Best growth stocks to buy and watch
IBD Digital: Unlock IBD Premium Stock Listings, Tools & Analytics Today