Dow Jones futures rose slightly Sunday night, along with S&P 500 futures and Nasdaq futures. Robinhood and AppLovin are set to jump on joining the S&P 500. Key inflation reports and the Apple iPhone 17 launch are on tap this week.
The stock market rally hit record highs Friday morning, but the major indexes closed slightly lower for the day and mixed for the week. The weak August jobs report fueled Fed rate-cut hopes — and fears the economy is stalling out.
Broadcom jumped on earnings Friday, but its gain was pain for Nvidia and Advanced Micro Devices. Many AI-adjacent stocks also fell on Friday and for the week, including GE Vernova.
Apple is in a buy zone ahead of Tuesday's product event. Tesla stock is around early entries, rallying amid a massive pay package for Tesla CEO Elon Musk and other news. Home Depot, Micron Technology and Taiwan Semiconductor are actionable, with the latter two getting a lift from Broadcom.
Dow Jones Futures Today
Dow Jones futures climbed 0.15% vs. fair value. S&P 500 futures advanced 0.2%. Nasdaq 100 futures rose 0.3%.
The 10-year Treasury yield edged up to 4.1%.
Crude oil futures rose 1%. OPEC+ on Sunday agreed to increase production again, by 137,000 barrels per day in October. Crude prices sank 3.3% to $61.87 a barrel last week in anticipation of another output hike. The cartel is focusing on market share, pushing out U.S. shale producers.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
AppLovin, Robinhood To Join S&P 500
On Friday evening, S&P Global announced that Robinhood stock, AppLovin and Emcor will join the S&P 500 index before the open on Sept. 22. AppLovin stock and Robinhood, snubbed multiple times over the past year, jumped. Emcor stock rose modestly. APP could hit a new high Monday while HOOD and EME offer entries.
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Stock Market Rally
The stock market rally started off weak, with the S&P 500 and Nasdaq testing their 10-week moving averages, but the major indexes rebounded to record highs Friday morning before the modest reversal.
The Dow Jones Industrial Average fell 0.3% in last week's stock market trading. The S&P 500 index climbed 0.3%. The Nasdaq composite rose 1.1%. The small-cap Russell 2000 advanced 1%, hitting fresh 2025 highs.
The major indexes are all trading around the top of a range from the past few weeks. Weekly trading has been tight, but daily or intraday swings have been common.
Growth stocks are mixed, with clear winners and losers but also promising setups. Nvidia stock, AMD and GE Vernova fell 4.1%, 7.1% and 5% respectively last week, all decisively below their 10-week lines, a clear sell signal.
Housing-related stocks are running fast, though many are extended. Financials and industrials fell Friday but are still in good shape. Some medicals and retailers are doing well.
The 10-year Treasury yield dived 14 basis points to 4.085%, a five-month low. The two-year yield tumbled to a three-year low.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF climbed 0.7% last week. The iShares Expanded Tech-Software Sector ETF rose a fraction, with AppLovin stock a notable member. The VanEck Vectors Semiconductor ETF gained 1%. Nvidia, Taiwan Semiconductor, AMD and Broadcom are a huge share of the SMH ETF.
ARK Innovation ETF advanced 0.5% last week and ARK Genomics ETF jumped 3.2%. Tesla stock is the No. 1 holding across ARK Invest's ETFs.
SPDR S&P Metals & Mining ETF gained 1.9% last week. SPDR S&P Homebuilders ETF jumped 4.7%, with Home Depot a key member. The Energy Select SPDR ETF slid 3.35% and the Health Care Select Sector SPDR Fund edged up 0.3%. The Industrial Select Sector SPDR Fund declined 0.7%. The Financial Select SPDR ETF shed 1.7%.
Best Growth Stocks To Buy And Watch
Stocks In Buy Areas
Apple stock rose 3.2% last week to 239.67, clearing a 235.12 handle buy point on a long consolidation. The relative strength line has made solid gains over the past month, but is still well off highs. AAPL stock jumped after a federal judge imposed relatively light antitrust penalties on Google-parent Alphabet, with Apple's lucrative search deal left intact. The Apple product event on Tuesday will signal if the tech titan can revive iPhone buzz.
Tesla stock jumped 5.1% to 350.81, regaining its 200-day line Wednesday and briefly topping a 355.39 alternate entry on Friday. The traditional buy point is 367.71, according to MarketSurge. Tesla announced a pay package that could total $1 trillion for CEO Elon Musk if big milestones are met. Also, the Tesla robotaxi app opened to the public, but the ride-hailing service has very few vehicles and is still relying on safety drivers.
Home Depot stock gained 3% for the week to 418.95, clearing a 414.50 cup-with-handle buy point on Friday. Tumbling mortgage rates are fueling housing-related stocks.
Micron stock jumped 5.8% on Friday to 131.37, topping a 129.60 cup-with-handle base. The memory-chip giant surged 10.4% for the week, clearing an early entry Thursday.
Taiwan Semiconductor stock fell Tuesday, but rallied for a 5.4% weekly advance to 243.41. On Friday, shares reclaimed the 50-day line and broke a downtrend in a flat base. The traditional buy point is 248.28. Taiwan Semiconductor makes chips for Nvidia and AMD, but also Broadcom and Apple.
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What To Do Now
The stock market rally is right at record highs. But it's a stock picker's market. If you're in the right stocks, such as Broadcom, Astera Labs and D.R. Horton, there are big gains to be had.
But the upside and downside reversals of the past few weeks have also created a lot of false starts, luring investors into stocks that fizzle, only for some of those names to quickly rebound.
So while it's a good idea to be heavily invested, don't feel compelled to push hard on new buys right now.
Definitely work on watchlists.
Nvidia, AppLovin, Broadcom and GE Vernova are on Leaderboard, with Micron stock on the Leaderboard watchlist. AppLovin stock is on the IBD 50. Broadcom stock is on the IBD Big Cap 20.
The Apple iPhone event and the PPI and CPI inflation reports will be key for the coming week. Software giant Oracle and cybersecurity play Rubrik headline a modest earnings calendar.
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