Dow Jones Futures Fall As Market Rally Weakens; Tesla Shanghai Reopening

Dow Jones futures fell Sunday night, along with S&P 500 futures and especially Nasdaq futures. Tesla and CEO Elon Musk’s Twitter bid are in focus.

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The stock market rally suffered further losses last week, with the Nasdaq leading declines as Treasury yields continue to soar. What’s your game plan for the coming week? Be cautious about new buys, focusing on leading sectors. Earnings season adds further uncertainty.

Tesla (TSLA) headlines a big week of results, with the EV giant reportedly aiming to restart its Shanghai factory on Monday. Meanwhile, Tesla CEO Elon Musk’s bid for Twitter (TWTR) took another twist Friday as the social media firm enacted a “poison pill” provision to thwart him. Tesla stock is working on a cup-with-handle buy point, but the chart is messy with earnings just one of the many risks in focus.

Expedia (EXPE), Cheniere Energy (LNG), Merck (MRK), Edwards Lifesciences (EW) and Check Point Software (CHKP) are five stocks near buy points from relatively strong areas of the market.

LNG stock and Tesla are on IBD Leaderboard. Tesla stock also is on the IBD 50. Check Point was the IBD Stock Of The Day.

The video embedded in the article discusses the week’s market action and analyzes EXPE stock, Cheniere Energy and Check Point Software.

Dow Jones Futures Today

Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures sank 0.5% and Nasdaq 100 futures retreated 0.9%.

Crude oil prices climbed 1%.

The 10-year Treasury yield rose 2 basis points to 2.85%.

U.S. stock markets were closed on April 15 for Good Friday. Exchanges in Europe, Australia and Hong Kong, also closed Friday, will remain shut on Monday.

The People’s Bank of China on Friday cut banks’ minimum reserve requirement by 25 basis points starting April 25 to bolster the economy amid widespread lockdowns. But it kept its one-year medium-term loan rate steady at 2.85%, surprising most economists.

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 some big daily and intraday moves in a short week, but the overall trend remains bearish. The Dow Jones Industrial Average sank 0.8% in last week’s stock market trading. The S&P 500 index slumped 2.1%. The Nasdaq composite lost 2.6%. The small-cap Russell 2000 eked out a 0.5% gain.

The 10-year Treasury yield rallied 12 basis points to 2.83%, hitting the highest level since late 2018.

U.S. crude oil futures shot up nearly 9% to $106.95 a barrel last week. The European Union is drawing up plans to ban Russian crude oil, the New York Times reported Thursday, a painful economic step that Germany in particular had resisted. The EU reportedly won’t formally discuss a Russia crude ban until the final round of French presidential voting on April 24. If the EU does go ahead, crude prices could spike higher. The EU is even more reliant on Russian natural gas.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) dipped 0.2% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 0.8% The iShares Expanded Tech-Software Sector ETF (IGV) sank 2.1%. The VanEck Vectors Semiconductor ETF (SMH) skidded 3.5%, threatening to undercut 2022 lows.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) both fell 2.7% last week. Tesla stock remains the No. 1 holding across Ark Invest’s holdings.

SPDR S&P Metals & Mining ETF (XME) soared 7.3% last week to a fresh high. The Global X U.S. Infrastructure Development ETF (PAVE) advanced 1.4%. U.S. Global Jets ETF (JETS) ascended 8%. SPDR S&P Homebuilders ETF (XHB) closed just below break-even. The Energy Select SPDR ETF (XLE) edged up 0.4% and the Financial Select SPDR ETF (XLF) retreated 2.6%. The Health Care Select Sector SPDR Fund (XLV) lost 2.9%, but from all-time highs.

Five Best Chinese Stocks To Watch Now

Tesla Stock

Tesla stock fell nearly 4% last week to 985, after losing more than 5% in the prior week. The handle has some depth , presumably shaking out some weak holders after TSLA stock’s powerful late March run. But the chart is deep and messy. A longer handle, with tighter action, would let the major averages continue to catch up.

Tesla earnings are due on Wednesday night. Investors can expect strong year-over-year growth, but will probably be looking ahead. They’ll be looking for fresh clues about the Tesla Cybertruck, Semi and other further products. But they may not get it.

The Shanghai plant, shut down due to Covid restrictions since March 28, reportedly will reopen on Monday. Some staff have entered a “closed-loop” system, living on site. It’s unclear when actual production will resume, but it will be very low initially. A return to full production could take weeks. Suppliers and logistical challenges are also factors.

Tesla will suffer a big…