Finance
Dow Jones Futures: Tesla Pushes Nasdaq Above 18,000; These six stocks are getting a Trump bubble
Dow Jones futures moved lower overnight, along with S&P 500 futures and Nasdaq futures. A slew of economic data will be available Wednesday morning during a half-day session.
↑
X
Nasdaq leads market; Weatherford, Goldman Sachs, Novo Nordisk in pictures
The stock market rally had a positive session on Tuesday, with the S&P 500 and Nasdaq setting all-time highs. Tesla (TSLA) rose Wednesday on stronger-than-expected deliveries, continuing a strong run.
Bank shares also made an important contribution. Goldman Sachs (GS), JPMorgan Chase (JPM), Wells Fargo (WFC), bank of America (BAC), Citi Group (c) And Morgan Stanley (MRS) trading around buy points or early entries. The yield curve on government bonds has become less inverted as long-term interest rates become increasingly likely that Donald Trump will return to the White House.
Meanwhile, shale energy plays a role Diamondback energy (CANINE) and shares in oil machinery Weatherford International (KRWD) And TechnipFMC (FTI) are making bullish moves around the bases.
Weatherford stock is on the line IBD rankings watchlist. Citigroup stock is on the ropes IBD50. Diamondback Energy was the IBD stock of the day on Tuesday. JPMorgan stock was the selection on Monday.
The video in this article breaks down Tuesday’s market action and analyzes Weatherford. Goldman Sachs Stocks and Novo Nordisk (NVO).
Dow Jones futures today
Dow Jones futures lost a fraction compared to fair value. S&P 500 futures and Nasdaq 100 futures headed lower.
The ADP Employment Report will be released at 8:15 a.m. ET, followed by weekly unemployment claims at 8:30 a.m. ET. The ISM Services Index will be available at 10:00 AM ET. The June jobs report is scheduled for Friday.
U.S. stock markets will close at 1:00 PM ET on July 3, heading into the Thursday, July 4 holiday.
Remember, overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading during the next regular stock market session.
Biden chances drop
Texas Rep. Lloyd Doggett became the first Democratic member of Congress to call on President Joe Biden to resign. Rep. Jim Clyburn, D-S.C., said he might support Vice President Kamala Harris as the candidate if Biden were to leave. Biden’s chances of becoming the Democratic nominee fell to below 50% on PredictIt, while Harris’ chances increased. Trump’s chances of retaking the White House haven’t increased much, but they have risen since Thursday night’s debate.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock market rally
The stock market rally had a solid session, supported by Tesla, but with decent gains elsewhere.
The Dow Jones Industrial Average rose 0.4% in stock trading on Tuesday. The S&P 500 index climbed 0.6% and rose above 5,500 for the first time. The Nasdaq index rose 0.8% to close above 18,000.
The small-cap Russell 2000 rose 0.2%, just below the 50-day line.
The Invesco S&P 500 Equal Weight ETF (RSP) climbed 0.45%, also below the 50-day mark.
The first Trust Nasdaq 100 equal-weighted index ETF (QQEW) fell 0.85%, just below record highs.
In addition to banking and energy, many software, discount retail, shipping and medical sectors are doing well. On the other hand, industrial sectors are struggling, while many housing and construction projects are faltering.
The Nasdaq composite is 7% above its 50-day line, with modest extension.
US crude oil prices fell 0.7% to $82.81 per barrel, down from above $84 early Tuesday.
Ten-year government bond yields fell four basis points to 4.43%, but after rising 19 basis points in the previous two sessions. Two-year government bond yields fell three basis points to 4.74%, after rising less than six basis points in the two previous trading days.
The yield curve is becoming less inverted as bond traders bet on higher budget deficits and perhaps stronger economic growth if Trump returns to the White House.
ETFs
Of the growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) gained 0.5%. The VanEck Vectors Semiconductor ETF (SMH) popped 1%.
Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) climbed 0.8% and ARK Genomics ETF (ARKG) fell 1.5% to its worst close since late October. Tesla stock is the #1 in Ark Invest ETFs.
SPDR S&P Metals & Mining ETF (XME) rose 0.7% and the GlobalPAVE) advanced 0.6%. The SPDR S&P Homebuilders ETF (XHB) rose by 0.1%.
The Energy Select SPDR ETF (XLE) fell 0.1%, with Diamondback Energy among its members. The Healthcare Select Sector SPDR fund (XLV) fell 0.4%. The Industrial Select Sector SPDR fund (XLI) gained 0.55%.
The Financial Select SPDR ETF (XLF) rose 1.2%, with JPMorgan, Goldman Sachs, Bank of America, Morgan Stanley, Citigroup and Wells Fargo all notable holdings.
Time the market with IBD’s ETF market strategy
Tesla shares
Tesla shares rose 10.2% to 231.26 on Tuesday. Deliveries in the second quarter were 443,956, above lowered forecasts but still lower than a year earlier. The applied energy storage rose to a new high. TSLA stock, which broke above the 200-day mark on Monday, is now well extended from a 191.08 buy point cleared on June 26.
Energy stocks near buy points
Diamondback Energy rose 0.6% to 204.90 on Tuesday, off session highs but continuing an advance against the 50-day moving average. FANG stock is moving towards a cup-base buy point of 211.96. Shares made an early entry late last week as they moved past the 50-day mark.
Weatherford shares rose 2.3% to 124.53 on Tuesday, building the right side of a Cup base with a 129.70 buy point. Stocks could work towards a handle, although this will take more time. The June 28 intraday high of 124.93 coincides with a downtrend line for WFRD stock.
TechnipFMC shares fell 0.3% to 26.19, but are still trending higher. FTI stock has a buy point of 27.30 on a flat basis Market wave. Last week’s move above the 50-day line provided an early entry, while the stock is still within range.
Tesla extends run as it retains BEV crown; BYD turnover almost 1 million
Bank stocks strong as Trump yields rise
Goldman shares rose 0.4% to 465.61 on Tuesday, operating at a buy point with a flat base of 471.48. The shares found support at their 50-day line last Thursday. Investors could use Monday’s high of 464.02 as an early entry.
JPMorgan shares rose 1.65% to 208.83, above a flat-base buy point of 205.88. JPM stock had an early entry on Friday as it decisively crossed the 50-day line and a trend line.
Bank of America shares rose 2.3% to 40.93, ending several weeks of tight action as part of a four-session recovery from the 50-day mark.
Shares of Wells Fargo rose 0.6% to 60.97 on Tuesday after resuming the 50-day line on Monday, offering an early entry. WFC stock has a buy point of 62.55 based on a shallow cup base.
Citigroup climbed 2% to 64.68. Shares are rising toward a 64.98 buy point from a flat base off a previous base. Citi stock gave a buy signal on Friday when it rose above the 50-day line.
Morgan Stanley rose 0.5% to 99.65 on Tuesday after breaching short-term levels above the 50-day mark. MS stock has a buy point of 103.25 from a flat base.
Keep in mind that JPMorgan, Citigroup, and Wells Fargo report earnings on July 12, and Goldman, BofA, and Morgan Stanley report a few days later.
What to do now
The stock market remains somewhat divided, with the Nasdaq crossing the 50-day mark and the Russell 2000 below that key level. Some stocks have given buy signals, although a fair number of them have retreated or worse.
Investors may want to largely hold on to their existing exposure, perhaps taking advantage of new opportunities and taking action as other positions struggle.
Remember, the price of financial independence is always vigilance. So stay involved with the market and your portfolio.
Read The Big Picture every day to stay informed about market direction and the most important stocks and sectors.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
YOU MAY ALSO LIKE:
Why this IBD tool simplifies the search for top stocks
Do you want to make a quick profit and avoid big losses? Try SwingTrader
Best growth stocks to buy and watch
IBD Digital: Unlock IBD’s premium stock lists, tools and analysis today
