Dow Jones Futures Rise After Stock Market Rally's Ugly Week; Tesla Rebounds
Dow Jones futures rose slightly Monday morning, along with S&P 500 futures and Nasdaq futures. Tesla jumped with the EV giant and CEO Elon Musk making news over the weekend.
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Dow Jones futures rose slightly Monday morning, along with S&P 500 futures and Nasdaq futures. Tesla jumped with the EV giant and CEO Elon Musk making news over the weekend.
The stock market rally suffered heavy damage last week in the wake of a hawkish Fed outlook and weak economic data that raised concerns that the Federal Reserve will drive the economy into a recession. The Nasdaq and S&P 500 index closed the week below their 50-day moving averages.
Megacap stocks remain a drag on the major indexes, especially Apple (AAPL) and Tesla (TSLA), with TSLA stock plunging to fresh bear market lows. Amazon.com (AMZN) and Google parent Alphabet (GOOGL) aren't too far away from their lows. Microsoft didn't lose too much for the week but fell back from the 200-day line. Nvidia (NVDA), which had been part of a chip rebound, reversed lower, back below key support.
But the megacaps aren't hiding underlying strength. Most stocks that had flashed buy signals in recent days and weeks turned south. Leading sectors also suffered.
Insulet (PODD), Commercial Metals (CMC), Elf Beauty (ELF), Peabody Energy (BTU) and Dow Jones giant Caterpillar (CAT) are holding up relatively well. None are actionable right now, however.
Investors should be wary of making any buys in the current market, but focused on trimming exposure and building up watchlists.
The video embedded in this article reviewed the market action in depth, while also analyzing Insulet, Elf Beauty and CAT stock.
Defense Deal
L3Harris (LHX) confirmed it will buy Aerojet Rocketdyne (AJRD) for $4.7 billion in all-cash deal, including debt. LH3 Harris will pay $58 a share per AJRD share. Lockheed Martin (LMT) scrapped a $4.4 billion deal for Aerojet in February amid regulatory opposition. LHX stock fell more than 1%. AJRD climbed 1%.
The European Union early Monday accused Facebook-parent Meta Platforms (META) of violating antitrust rules. META stock fell 2%.
Tesla was also in the news, with new year-end local China subsidies, a possible plant in Mexico, and Musk asking Twitter users if he should step down as CEO of that social site.
Dow Jones Futures Today
Dow Jones futures were 0.1% above fair value. S&P 500 futures advanced 0.2% and Nasdaq 100 futures climbed 0.3%. Tesla stock boosted S&P 500 and Nasdaq futures, after acting as a big drag over the weekend.
The 10-year Treasury yield rose 4 basis points to 3.52%.
Crude oil futures edged higher. Natural gas sank 6%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
