Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. Tesla deliveries and the June jobs report are on tap this week.
The stock market rally had a powerful week, with the S&P 500 and Nasdaq hitting record highs on Friday.
Investors can look to keep making new, gradual buys, but should already be heavily invested.
After a limited robotaxi launch dominated headlines in the past week, Tesla will release second-quarter global deliveries on Wednesday, July 2. China EV rivals XPeng, Xiaomi, BYD and more also will report Q2 deliveries in early July.
CEO Elon Musk criticized the Senate version of the Trump budget bill, ripping "insane" cuts to electric energy and other green energy credits.
The June jobs report is due on Thursday, with investors looking for further evidence of labor market weakness.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Stock Market Rally
The stock market rally charged higher during the week. The S&P 500 and Nasdaq hit all-time levels Friday.
Israel-Iran fears quickly waned in the wake of President Donald Trump's move to bomb Iranian nuclear facilities. Meanwhile, Trump touted positive U.S.-China trade news while the White House signaled a July 9 tariff deadline isn't important.
On Friday, Trump halted Canada trade negotiations, but investors quickly shrugged that off.
The Dow Jones Industrial Average rallied 3.8% in last week's stock market trading, clearing short-term levels to its best level since early March. The S&P 500 index jumped 3.4%. The Nasdaq composite leaped 4.25%. The small-cap Russell 2000 gained 3%, hitting resistance Friday at the 200-day moving average.
Leading stocks generally did well, though some speculative names had some big Friday or weekly losses.
The 10-year Treasury yield fell nine basis points to 4.28%.
U.S. crude oil futures dived 11.3% to $65.52 a barrel last week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF climbed 2.8% last week. The iShares Expanded Tech-Software Sector ETF gained 2.5%. The VanEck Vectors Semiconductor ETF surged 7%.
ARK Innovation ETF advanced 3% last week. Tesla stock is the No. 1 holding across ARK Invest's ETFs. Cathie Wood also has a big position in Circle. ARK owns a small stake in BYD as well.
SPDR S&P Metals & Mining ETF rose 1.3% last week. The Energy Select SPDR ETF slumped 4.2% and the Health Care Select Sector SPDR Fund increased 1%. The Industrial Select Sector SPDR Fund and Financial Select SPDR ETF popped 3.1%.
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Tesla Deliveries After Robotaxi Week
Second-quarter Tesla deliveries are due on Wednesday, July 2. A tesla-compiled analyst consensus pegs deliveries at 385,066, but many recent forecasts have been around 350,000-370,000.
Tesla delivered 336,681 EVs in the seasonally slow Q1 and 443,956 in Q2 2024.
Tesla bulls have focused on the June 22 robotaxi launch in Austin, Texas. The 10 or so Model Y robotaxis have had some issues, even with a "safety monitor" in the front passenger seat and teleoperators. The key is whether Tesla can expand the robotaxi service, including to other cities, while scaling back the human backup.
Musk Rips Trump Budget Bill
Musk took to his social site X to rip the Senate version of the Trump budget bill.
"The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country! Utterly insane and destructive. It gives handouts to industries of the past while severely damaging industries of the future."
That alludes to the elimination of the $7,500 tax credit for EVs, which will have a significant impact on Tesla sales. The Senate version would end the EV credit on Sept. 30 vs. the House-passed legislation on Dec. 31. Curbs on other green energy credits also could have direct or indirect impacts.
Furthermore, Musk risks reigniting the feud with President Trump.
Tesla Stock Erases Gains
Tesla stock surged 8.2% on Monday following the robotaxi launch, but erased those gains before closing with a 0.5% uptick for the week to 323.79. TSLA stock has been consolidating, with some big swings, for the past few weeks within a much-larger consolidation. Investors could find aggressive entries, but there's no clear buy point now.
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China EV Makers
XPeng, Nio, Li Auto, and Xiaomi will release Q2 deliveries on July 1, with battery and EV giant BYD disclosing sales on July 1-2.
Xiaomi officially launched the YU7 crossover on June 26, with the so-called Model Y killer getting 200,000 orders in the first three minutes. Xiaomi stock spiked higher last week, clearing a consolidation.
Li Auto cut Q2 delivery guidance on June 27.
What To Do Now
The impressive stock market rally continues to impress. The S&P 500 and Nasdaq are at record highs after holding up on various negative headlines and then running higher as those fears faded.
Still, the market backing off Friday's highs, especially volatile growth names, on the latest Trump trade threat shows that headline risks remain.
Investors long ago should have been heavily or even fully invested. Waiting for new highs, when everything looks good, can be too late.
Many of the best stocks have already made a big move, and even offered a second opportunity to buy during various market pauses in the past few months.
Investors can still make new buys, adding exposure or replacing laggards, but do so incrementally. This is also true if you still have modest exposure.
Have your watchlists and exit strategies up to date. Stay engaged and flexible.
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