Dow Jones futures fell modestly Sunday night, along with S&P 500 futures and Nasdaq futures. Crude oil upshifted after President Donald Trump committed the U.S. military to Israel's war effort against Iran. Tesla launched its robotaxi service in Austin, Texas on Sunday afternoon.
The stock market rally had a narrowly mixed week, holding up reasonably well amid ongoing Israel-Iran news. Viking, Dell, Super Micro and Shake Shack are in buy areas.
Tesla began its robotaxi service in Austin, Texas, on Sunday, providing rides to an invite-only group of fans for a flat rate of $4.20 per ride. All rides came with a human "safety monitor" in the passenger seat. Uber Technologies, which could swing on Tesla robotaxi news, has a new base and is near an aggressive entry.
Dow Jones Futures Today
Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures dipped 0.3%. Nasdaq 100 futures declined 0.35%.
Crude oil futures, up nearly 14% since Israel launched its Iran attacks, traded nearly 2% higher Sunday night with West Texas Intermediate around $75 a barrel.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Trump: Damage From U.S. Bomb Attack Unclear
President Trump announced Saturday night on Truth Social that the U.S. bombed three Iranian sites.
"We have completed our very successful attack on the three Nuclear sites in Iran, including Fordow, Natanz, and Esfahan." Trump added, "NOW IS THE TIME FOR PEACE!"
Trump addressed the nation briefly shortly after 10 p.m. ET on Saturday.
""Our objective was the destruction of Iran's nuclear enrichment capacity and a stop to the nuclear threat posed by the world's No. 1 state sponsor of terror, Trump said. "If peace does not come quickly, we will go after those other targets with precision, speed and skill."
After a barrage of 14 GBU-57 "bunker buster" bombs and dozens of Tomahawk cruise missiles fired from a submarine, Chairman of the Joint Chiefs of Staff Dan Caine, in a Pentagon brief Sunday morning, said the nuclear sites suffered "severe damage and destruction." President Trump Saturday night said that the nuclear sites were "totally obliterated."
The Israeli military's initial analysis found the site "sustained serious damage from the strike but had not been completely destroyed," the New York Times reported.
Iran said it reserved all options following the "outrageous" attack, and had reportedly said previously that it had protected the targeted uranium.
Iran's Parliament approved closing the Strait of Hormuz, according to state TV, but the final decision rests with the Supreme National Security Council. Some 15% of the global oil and 20% of liquefied natural gas exports pass through the Strait. A closure would likely send oil prices spiking, and could spur further U.S. response. The U.S. has positioned a lot of military gear in the region over the past few days.
Iran could attack American bases in the region via missiles or other means.
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Stock Market Rally
The stock market rally held up last week amid continued Israel-Iran attacks, though the indexes finished near weekly lows for a second straight week. The Federal Reserve stuck to its rate-cut forecast, but Fed chief Jerome Powell isn't in a rush. Reports of new Trump curbs on chip technology to China weighed on chips and techs on Friday.
The Dow Jones Industrial Average was up a fraction in last week's stock market trading. The S&P 500 index dipped 0.15%. The Nasdaq composite rose 0.2%. The small-cap Russell 2000 climbed 0.4%.
The indexes are trading near the low end of a mini-range from the past several sessions. The Nasdaq and S&P 500 are still above their 21-day moving averages, not far from record highs.
Amid the sideways market action, a few leaders moved out, though some pulled back. Some speculative growth names have gone on huge runs.
The 10-year Treasury yield fell five basis points to 4.37%. U.S. crude oil futures rose 2.7% to $74.93 a barrel after surging 13% in the prior week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF popped 3.1% last week. The iShares Expanded Tech-Software Sector ETF fell 1.1%. The VanEck Vectors Semiconductor ETF climbed 1.3%. ARK Innovation ETF vaulted 8.9% last week, briefly hitting a three-year high on Friday. Tesla stock is the No. 1 holding across ARK Invest's ETFs.
SPDR S&P Metals & Mining ETF edged up 0.3%, stretching the weekly win streak to 11. The Energy Select SPDR ETF rose 1%. The Industrial Select Sector SPDR Fund dipped 0.2%, with Uber stock a notable component. The Financial Select SPDR ETF finished 0.9% higher.
Time The Market With IBD's ETF Market Strategy
Tesla Robotaxi Launch Sunday
Tesla confirmed Friday that the robotaxi launch will take place Sunday in a geofenced area of Austin, Texas, though the invite-only service hasn't started yet. Each Tesla robotaxi will have a "safety monitor" in the passenger seat along with remote teleoperators as backup. They also may also have a safety car following behind.
With EV sales falling and a limited pipeline of new vehicles, CEO Elon Musk and TSLA investors have bet heavily on robotaxi hopes.
Tesla stock fell 1% to 332.16 for the week. Shares are trading around their 21-day line and holding above the 200-day.
TSLA stock could swing Monday on the robotaxi launch, but that process could continue for days, weeks or longer as the market mulls whether it's a success.
Uber Stock
Uber stock dipped 0.2% to 82.78 for the week, bouncing off the 50-day but hitting resistance at the 21-day. The ride-hailing and delivery app giant now has a flat base forged near the top of the old consolidation. The traditional buy point is a 93.60. Investors could use a trendline entry, now far from the prior base's buy point of 87.
Uber could swing on the Tesla robotaxi launch.
Tesla Vs. BYD: Robotaxis Imminent, With Safety Monitors
Stocks In Buy Zones
Dell Technologies stock jumped nearly 9% to 119.39 for the week, clearing an aggressive entry of 116.97 on Friday. Dell stock had paused for a few weeks above the 200-day line. But there's still a lot of overhead resistance in a yearlong, deep base.
Super Micro stock leaped 9.05% for the week to 45.32, topping a 44.72 aggressive entry Friday after also consolidating for a few weeks above the 200-day line. Like AI server rival Dell, Super Micro has a huge amount of overhead resistance. Super Micro also still has accounting issues.
Shake Shack stock rallied 7.5% to 133.01, clearing an alternate handle buy point of 131.38 on Friday within a base going back to last December.
Viking stock gained 6.3% to 49.50, back above a 48.58 cup-with-handle buy point, according to MarketSurge. Cruise line peer Carnival, which is also in a buy zone, reports earnings on Tuesday.
Five Stocks Near Buy Points In Classice Base
What To Do Now
The stock market rally has held up amid negative or potentially negative headlines. The major indexes have been moving sideways for the past several sessions amid the Israel-Iran conflict.
Trump's move to bomb Iran nuclear sites, and the possible consequences, is massive news. It's important to be aware of the news but ultimately focus on the market's reaction.
It's been a time to be heavily invested. But be careful about new buys until the market clears its mini-range. The S&P 500 and Nasdaq could undercut their 21-day moving averages at Monday's open.
Work on watchlists and have your exit strategies ready.
Shake Shack stock is on IBD Leaderboard and SwingTrader. Viking was Friday's IBD Stock Of The Day.
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