Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.
The stock market rally cleared some major resistance in the past week. The major indexes had solid gains, responding bullishly to uneven earnings reports and economic data. Leading stocks acted well, with breakouts and buy points continuing to work.
Since the Jan. 6 follow-through day, the market rally has shown robust gains. In fact, the advance suggests this uptrend could be a “moneymaker” or even a “life-changing” rally, according to one noted growth investor.
So investors should be taking advantage of the opportunities. But do so carefully. The market rally is around key levels, while it’s another big week for news.
Apple (AAPL), Google parent Alphabet (GOOGL), Amazon.com (AMZN), Facebook parent Meta Platforms (META) are all on tap, as well as hundreds of other companies. Apple stock and these other tech titans are rebounding strongly, but have a lot of repair work. Still, their earnings and guidance will be key for the market rally as well as many other tech stocks.
The Federal Reserve holds its policy meeting this coming week, with another rate hike expected on Feb. 1. The big question is when Fed chief Jerome Powell and his colleagues call a halt to further rate increases.
Tesla (TSLA) skyrocketed on mixed earnings as CEO Elon Musk was bullish about the future. TSLA stock soared from its Jan. 6 bear market low, but isn’t yet offering a buy point.
Meanwhile, Tesla archrival BYD (BYDDF), Snowflake (SNOW), Shift4Payments (FOUR) and Etsy (ETSY) are four aggressive stocks in or near potential buy areas. But handle them with care.
ETSY stock is on SwingTrader. FOUR stock is on the IBD 50.
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 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
Stock Market Rally
The stock market rally had strong gains across the board this past week.
The Dow Jones Industrial Average climbed 1.8% in last week’s stock market trading. The S&P 500 index jumped 2.5%. The Nasdaq composite leapt 4.3%. The small-cap Russell 2000 rose 2.4%.
U.S. crude oil futures fell 2.4% to $79.68 a barrel during the week, reversing from a recent high of $82.48 intraday Friday.
The 10-year Treasury yield rose 3 basis points to 3.52%.
The Federal Reserve is expected to raise rates by just a quarter point on Feb. 1, after a half-point move in December and four straight hikes of 75 basis points before that. Markets overwhelmingly expect another quarter-point hike in late March, to a 4.75%-5% range. But investors are now betting that policymakers will hold steady.
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) advanced 2.5% last week. The iShares Expanded Tech-Software Sector ETF (IGV) popped 4.5%. The VanEck Vectors Semiconductor ETF (SMH) rallied 5.2% to a five-month high.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) soared 10.7% last week and ARK Genomics ETF (ARKG) jumped 5%. Tesla stock is a major holding across Ark Invest’s ETFs, with Cathie Wood’s Ark loading up on shares in recent months. Ark also owns a small stake in BYD.
SPDR S&P Metals & Mining ETF (XME) climbed 2.1% last week to an eight-month high. The Global X U.S. Infrastructure Development ETF (PAVE) climbed 3.3%. U.S. Global Jets ETF (JETS) edged up 0.3%. SPDR S&P Homebuilders ETF (XHB) stepped up 3.3%. The Energy Select SPDR ETF (XLE) climbed 0.8%, its seventh straight weekly gain. The Financial Select SPDR ETF (XLF) advanced 2.55%. The Health Care Select Sector SPDR Fund (XLV) fell 0.8%, a fifth straight weekly decline.
Five Best Chinese Stocks To Watch Now
Meta Platform earnings are due Wednesday night. META stock rallied for a fifth straight week, leaping 8.9% to just below its 200-day line.
Apple earnings are due Thursday night. It’ll likely be a rough quarter, with iPhone production delays taking a toll. But AAPL stock jumped 5.85% last week, closing in on its 200-day line.
Google earnings are also late Thursday. GOOGL stock shrugged off a new Justice Department antitrust suit to ultimately climb 1.4%. But it’s still some distance from its 200-day.
Amazon earnings also are slated after Thursday’s closing bell. AMZN stock tested 50-day line support on Wednesday morning but roared higher for a 5.1% weekly gain. Shares are still well below their 200-day line.
Tesla stock surged 33% last week, rocketing above its 50-day line. Since its Jan. 6 bear-market low of 101.84, TSLA stock has erupted for a 75% gain.
On Wednesday night, Tesla earnings slightly beat lowered analyst views, while revenue was roughly in line. But shares spiked as Elon Musk was bullish on demand following price cuts and predicted production of up to 2 million vehicles.
Will revived Tesla demand be sustained? It may be several weeks before there’s a clear picture. By Tuesday morning, investors should get some weekly China EV registration data for Tesla and other automakers. However, Tesla Shanghai was closed this past week for the Chinese New Year holiday, which likely also affected demand. Later in the week, investors will get January sales data from BYD, Nio (NIO), Li Auto (LI) and XPeng (XPEV), but not Tesla.
Tesla Vs. BYD: EV Giants Vie For Crown, But Which Is The Better Buy?
Stocks Near Buy Points
BYD stock leapt 9.3% last…
Read More: Why This May Be A ‘Life Changing’ Market Rally; Apple, Fed Meeting Loom As Tesla Run