Dow Jones futures rose slightly Sunday night, along with S&P 500 futures and Nasdaq futures. Tesla and Google-parent Alphabet headline a big earnings week, with both showing positive stock action.
The stock market rally was mixed last week, though the Nasdaq and S&P 500 set record highs amid strong economic data and positive news for AI chips, notably Nvidia, Taiwan Semiconductor and Advanced Micro Devices.
Astera Labs cleared a buy point Friday after many false starts for the smaller AI-chip maker.
Square-parent Block will join the S&P 500 index before Wednesday's open. Block stock jumped late Friday on the news
Nvidia stock is on IBD Leaderboard. Taiwan Semiconductor stock, Urban Outfitters and Nvidia are on the IBD 50. Netflix stock is on IBD Big Cap 20. Nvidia stock is on IBD Sector Leaders.
Dow Jones Futures Today
Dow Jones futures climbed 0.1% vs. fair value. S&P 500 futures advanced 0.1% and Nasdaq 100 futures rose 0.2%.
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 leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally generally advanced for the week, with AI stocks pushing the Nasdaq and S&P 500 to fresh peaks. Non-AI and crypto plays lagged, though they came well off Wednesday's intraday lows. Trump tariff news, with an Aug. 1 deadline approaching, weighed on stocks somewhat to end the week.
The Dow Jones Industrial Average fell less than 0.1% in last week's stock market trading. The S&P 500 index rose 0.6%. The Nasdaq composite climbed 1.5%. The small-cap Russell 2000 edged up 0.2%.
Nvidia stock rose 4.5%, hitting a new high on news that it will be allowed to resume sales of H20 AI chips to China. Shares have risen for eight straight weeks. AMD stock leapt 7.2%. Taiwan Semi, which makes chips for Nvidia, AMD and more, rallied 4.3% on strong earnings and guidance.
The Invesco S&P 500 Equal Weight ETF edged down 0.1%, though it came well off midweek lows.
The First Trust Nasdaq 100 Equal Weighted Index ETF climbed 0.8%, lagging the Nasdaq slightly.
Still, leading stocks had a strong week. While breakouts have been spotty recently, most buying opportunities from the past week are working so far.
The Nasdaq is 6.5% above the 50-day moving average, slightly stretched. The risk of a pullback is rising, though it doesn't have to be right away or that serious.
The 10-year Treasury yield rose one basis point to 4.43%, backing off weekly highs.
U.S. crude oil futures fell 1.6% to $67.34 a barrel last week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF soared 7.1% last week. The iShares Expanded Tech-Software Sector ETF gained 3.3%. The VanEck Vectors Semiconductor ETF advanced 1%, with Nvidia, Taiwan Semiconductor and AMD stock all huge components.
ARK Innovation ETF surged 7.35% last week and ARK Genomics ETF fell 1.4%. Tesla stock is the No. 1 holding across ARK Invest's ETFs.
SPDR S&P Metals & Mining ETF popped 2.8% last week. The Energy Select SPDR ETF sank 3.6% and the Health Care Select Sector SPDR Fund lost 2.5%. The Industrial Select Sector SPDR Fund advanced 0.8%. The Financial Select SPDR ETF climbed 0.7%.
Bullish Tesla Move With Earnings Due; Rival Is Clear EV Leader
Tesla Earnings
Tesla earnings and revenue are expected to fall, down 40% and 9%, respectively. The still-unseen affordable vehicle, delivery guidance, Tesla Energy margins and more are important for the business.
But for investors, all of that takes a back seat to Tesla robotaxi efforts. CEO Elon Musk will be bullish on the earnings call about the Austin launch and self-driving generally. But he's always bullish about Tesla's self-driving efforts. As long as safety monitors are in the passenger seat, Tesla robotaxis will be a work in progress.
On Sunday, Musk said Tesla will integrate robotaxi software into Full Self-Driving, but didn't give a timeline.
Tesla stock leaped 5.15% to 329.65 last week, moving above key levels. Friday's move above the 50-day line offered an aggressive entry, but the looming earnings made that highly risky. TSLA stock has a new base within a big, deep consolidation, with a 367.71 buy point, according to MarketSurge. A strong post-earnings move could offer at least an early entry.
Best Growth Stocks To Buy And Watch
Google Earnings
Google earnings should climb 15% with revenue up 11%. AI and cloud-computing growth — and costs — will be key. So will advertising revenue growth that still accounts for the vast majority of sales.
Google stock rose 2.7% to 185.06, in range from a cup-with-handle base. The buy point is 181.23. Despite a slight recent uptick, the relative strength line is still well off highs, showing that GOOGL stock isn't outperforming the S&P 500 index.
Astera Labs Breaks Out
Astera Labs jumped 6.5% to 102.13 in a big upside, outside week, hitting a five-month high. ALAB stock rebounded from the 50-day line on Thursday, then cleared several weeks of resistance on Friday after previously failing to close above 100 several times. Astera is still well off the early January peak.
Taiwan Semiconductor also makes Astera Labs' chips.
Time The Market With IBD's ETF Market Strategy
What To Do Now
The market rally continues to act well, both on the major indexes and leading stocks.
Investors should be heavily invested. The past week offered a number of buy opportunities, which generally worked.
The Nasdaq being somewhat extended as earnings season ramps up raises the risk of a market pullback. So it may be a time to hold steady for the next few days.
In addition to Tesla and Google, notable earnings this week include GE Vernova, SAP, ServiceNow, Boston Scientific, RTX, CME Group and more.
Know the earnings dates for your holdings, as well as for major companies that are set to report.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
