Dow Jones Futures: What The Market Rally Needs Now; Six Stocks In Focus, Tesla Rival

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The market rally continued to make gains last week, with a number of leading stocks flashing buy signals.

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The stock market rally has showed resilience in the face of rising crude oil prices and surging Treasury yields. That is, so far, though the Nasdaq retreated Friday. But don’t be complacent.

A modest pullback would be healthy for the major indexes and leading stocks. Apple (AAPL) and especially Tesla stock could use a rest. A handle would also be constructive for Nvidia (NVDA), which has raced higher in the past couple of weeks. Marriott Worldwide (MAR) has a handle, but could use a longer base.

Regeneron Pharmaceuticals (REGN) has forged a high handle as it trades in a buy zone, offering a second chance or add-on buying opportunity. J.B. Hunt Transport Services (JBHT) pulled back below a buy point, but it did find support at a point.

Xpeng Earnings

Meanwhile, Xpeng (XPEV) reports fourth-quarter results early Monday. China EV rival Nio (NIO), which reported mixed results late Thursday, will begin deliveries of its luxury EV sedan, the ET7, on Monday as well. That’s part of a busy week for China EV makers, with March deliveries also on tap.

XPEV stock and Nio stock sold off hard Friday. That was partly due to Nio results and guidance, but also reflected revived delisting concerns for U.S.-listed Chinese stocks generally.

Tesla (TSLA) could release global first-quarter deliveries and production figures late next week as well.

Tesla, J.B. Hunt and Nvidia stock are on IBD Leaderboard. Tesla, Regeneron, Nvidia and JBHT stock are on the IBD 50.

The video embedded in this article covered another important market week and analyzed MAR stock, REGN stock and IBD Stock Of The Day Carlisle (CSL).

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 showed modest to solid gains last week, building on the prior week’s huge advance.

The Dow Jones Industrial Average eked out a 0.4% gain in last week’s stock market trading. The S&P 500 index climbed 1.8%. The Nasdaq composite popped 2%. The small-cap Russell 2000 sank 0.5%.

The 10-year Treasury yield leapt 34 basis points last week to 2.49%, the highest since May 2019. That’s up from the March 1 low of 1.68%. As fast as the 10-year yield has risen, the two-year Treasury yield has rallied even faster, narrowing the gap to just 20 basis points. The flattening Treasury yield curve, inverted in some places, reflects expectations the Federal Reserve will raise rates aggressively, and that economic growth will slow.

U.S. crude oil futures shot up nearly 12% to $113.90 a barrel last week.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.9% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) popped 3.5%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.6%. The VanEck Vectors Semiconductor ETF (SMH) gained 2.3%. Nvidia stock is a major SMH holding.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) fell 1.9% last week and ARK Genomics ETF (ARKG) 2.8%. Tesla stock remains the No. 1 holding across Ark Invest’s ETFs. Ark also owns some XPEV stock.

SPDR S&P Metals & Mining ETF (XME) spiked 8.1% last week. The Global X U.S. Infrastructure Development ETF (PAVE) gained 1.7%. U.S. Global Jets ETF (JETS) ascended 1.1%, not bad given the soaring energy prices. SPDR S&P Homebuilders ETF (XHB) crashed 8.8% on soaring rates and weak housing reports. The Energy Select SPDR ETF (XLE) leapt 6.6% and the Financial Select SPDR ETF (XLF) advanced 1.3%. The Health Care Select Sector SPDR Fund (XLV) dipped 0.5%.

Five Best Chinese Stocks To Watch Now

Apple Stock

Apple stock rose 6.55% over the past week to 174.72, reclaiming the 50-day line and clearing a downward-sloping trendline early entry. Shares are closing in on a 176.75 double-bottom base buy point. But AAPL stock has risen for nine straight sessions. Ideally, shares would at least pause for a few days, or even form a handle, to minimize the risk of a post-breakout pullback.

The relative strength line is back at record highs, reflecting Apple stock’s strong performance vs. the S&P 500 index. The RS line is the blue line in the charts provided.

Tesla Stock

Tesla stock jumped 11.6% in the latest week to 1,010.64, after soaring 13.8% in the prior week. The official buy point is 1,208.10, according to MarketSmith analysis, with a shallow trendline offering a slightly lower entry around 1,150.

Shares lost a fraction Friday, but after surging for eight straight sessions. Ideally, TSLA stock would take a breather, forming a decent…