Dow Jones futures open Sunday night along with S&P 500 futures and Nasdaq futures. Apple, Oracle and Adobe (ADBE) have big news ahead. Tesla (TSLA) Stock, Roku, and Shopify are major Cathy wood holdings near points of purchase.
The stock market rally had a rough week, with all major indexes falling below their 50-day lines. The scope of the market is shown to be weak.
Progress is under pressure, so be wary of new acquisitions. But this can change quickly.
Key events next week
Apple (APL) will unveil the iPhone 15 and other products on Tuesday, AAPL stock slid last week on China’s iPhone concerns.
Oracle (ORCL) and Adobe reported earnings this week, the titans offering insight into cloud computing and artificial intelligence. Both stocks are doing well, while the software sector is doing better than the chips and hardware tech plays.
Lennar (L.N) also reported on Thursday night. Housing stocks have a big 2023, but have been struggling lately amid high mortgage rates.
The Labor Department will release its August CPI inflation report early Wednesday.
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Dow Jones futures open at 6 pm ET, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight action in Dow futures and elsewhere does not translate into actual trading during the next regular stock market session.
Stock market rally
The stock market’s rally weakened, with all key indexes falling below their 50-day moving averages.
The Dow Jones Industrial Average was down 0.75 percent in last week’s stock market trading. The S&P 500 index retreated 1.3 percent. The Nasdaq composite fell 1.9 percent. The small-cap Russell 2000 fell 3.6%.
Apple stock fell nearly 6% for the week, falling below its 50-day line. China is reportedly expanding its government ban on iPhones at work. Apple will unveil the iPhone 15 on Tuesday.
The 10-year Treasury yield rose 8 basis points to 4.26 percent. In the year It hit 4.31% for the week, not far from the 15-year high of 4.36% set on August 22.
U.S. crude oil futures rose 2.3 percent last week to $87.51.
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) was down 1.4% last week. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.6% after two big weekly gains. Adobe is No. 1 in IGV, with ORCL stock No. 2. PATH stock is also in IGV.
VanEck Vectors Semiconductor ETFSMHIt decreased by 3.7 percent.
Reflecting more conservative historical stocks, the ARK Innovation ETF (ArchyARK Genomics ETF (up 0.1%)ARKG) 4.5% drift. Tesla stock is the No. 1 holding in Arch Invest ETFs. Roku stock, UiPath, Shopify, DraftKings and Twilio are top-10 holdings for Kathy Wood Ark.
SPDR S&P Metals & Mining ETF (XME) retreated 3.3% last week. Global X US Infrastructure ETFPev) left 3.7%. US Global Jets ETF (JetsIt is down 4.6%. SPDR S&P Homebuilders ETF (XHB) down 3.6 percent. Energy Choice SPDR ETF (XLE1.4% and Healthcare Select Sector SPDR Fund (inXLVIt was down 1.1%. Industry Select Sector SPDR FundXLIIt decreased by 2.9 percent.
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Kati wood stocks near the points of purchase
Tesla shares fell on Friday, but rose 1.4% for the week to 248.50, hovering between the 50-day and 21-day moving lines. EV Giant has a buy point of 299.29. A critical move above the 50-day provides an early entry for TSLA stock, with the Aug. 31 high of 261.18 as a special trigger.
Roku stock has a new cup base with a 98.44 buy point after hitting 50-day support in late August. Shares rose to 95.84 on Wednesday after Roku said it would cut 10% of its workforce in Q3 earnings guidance. Roku stock pared gains but was still up 2.1% on the week to 83.47. Roku may be starting to create a weird looking handle.
Shopify stock has a cup-to-hold on the weekly chart with a buy point of 67.60. The handle needs one more day to appear on the daily chart. SHOP stock hit a gap above its 50-day high on Aug. 31. Amazon.com (AMZN). Shares fell 5.55% last week to 63.01, falling below the low of the interval.
PATH stock rose 16.3 percent to 18.48 last week, fueled by strong earnings and a buyback plan. UiPath stock is approaching a 19.03 double-bottom buy point, but a downtrend may be in effect. After rising over the past three weeks, a pause or handle would be useful for PATH stock.
DKNG stock jumped 7.5% to 31.85, rebounding from its 50-day high. The online sports betting giant now has a V-shaped base with a buy point of 34.49. DraftKings inventory appears to have extended slightly beyond the 50-day mark. A handle will be useful here.
TWLO stock rose 0.1% to 65.48. According to MarketSmith analysis, Tulio has a buy score of 71.24 from a merger near a successful base. TWLO stock’s relative strength line has rebounded a bit recently but has been cut after a months-long slide.
Tesla Margins Are Staggering. Bulls will see a rebound even as price declines continue.
Market Rally Analysis
The market’s rally weakened considerably last week. The Dow Jones and Russell 2000 fell below their 50-day lines on Tuesday, the S&P 500 and finally the Nasdaq fell below that key level.
The market rallied on Thursday with pressure on the upside.
The S&P 500 and Nasdaq tested their intraday lows on August 29, but did not close below that level. That would be a very loaded sign.
The S&P 500 and Nasdaq rallied quickly Friday as they faced resistance near their 50-day lines — and the 10-year yield began to pare the day’s losses.
The Russell 2000 is struggling to stay above the 200-day mark, as market volatility worsens.
The pre-fall lines of the Nasdaq and NYSE have struggled since late July. After late August, A/D lines fell again this past week, hitting long-term lows for the Nasdaq. That is not a healthy situation.
Energy stocks are doing well on high oil prices in 2023. Software is showing strength with the giants. Microsoft (MSFT) and Salesforce.com (CRM) flirting with buying signals. Adobe and Oracle’s earnings and commentary on AI will be key.
Most other sectors are struggling recently.
Time with IBD’s ETF Market Strategy
What to do now
With the market rally under pressure, investors should be wary of new acquisitions outside of the energy sector. As a practical matter, few non-energy stocks have presented recent buying opportunities.
Investors may need to cut some holdings in recent days, giving up their gains or flashing sell signals.
Still, a large number of stocks are still developing or are not far from doing so. So prepare your watch lists and stay in touch with the market.
Between support and resistance between the S&P 500 and the Nasdaq, it won’t take a big move either way to significantly change the market picture.
Apple’s iPhone event, Oracle and Adobe earnings and the August CPI inflation report are the events that will affect the market in the coming week.
Read The Big Picture daily to stay in tune with market direction and leading stocks and sectors.
Please follow Ed Carson on X/Twitter @IBD_ECarson For stock market updates and more.
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