As the curtains rise on Sunday evening, the financial world turns its eyes toward the future, specifically Dow Jones, S&P 500, and Nasdaq futures, all taking their positions on the global stage. This anticipation sets the tone for what promises to be another compelling chapter in the saga of stock market dynamics.
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S&P 500 Enters Power Trend; Broadcom, Comfort Systems, NextEra Energy In Focus
The preceding week’s stock market narrative was a tale of mixed fortunes. The Dow Jones Industrial leaped to new heights, crafting a record of its own, while the S&P 500 made modest gains. On the other end of the spectrum, the Nasdaq composite dallied, particularly bruised by Nvidia’s (NVDA) less-than-stellar earnings revelation. Nevertheless, it staged a commendable recovery on Friday, reclaiming its 50-day line in a resolute bounce.
Entering a so-called power trend, the S&P 500 signals a muscular flex in the ongoing market rally. The past week witnessed an array of stocks stepping out or gearing up, hinting at a market teeming with opportunities.
It’s notable how certain stocks have pranced into the limelight, declaring themselves ripe for the picking. Giants like ServiceNow (NOW), Netflix (NFLX), AppLovin (APP), and others have sashayed into buy zones, inviting investors to take a closer leap into what could be a lush garden of potential gains.
The electric vehicle scene, led by China’s BYD (BYDDF), Tesla’s spirited competitor, pulsated with dynamism. BYD broke out on Friday, heralding a significant uptick in sales, a narrative supported by a sequence of reports on August deliveries from various EV players.
Moreover, stalwarts such as Broadcom (AVGO) and Dick’s Sporting Goods (DKS) hover around buy points, with the drumroll of earnings week beating loudly in anticipation. Eyes also turn towards the economic stage this Friday for the August jobs report, a barometer for broader economic health and investor sentiment.
Nvidia and ServiceNow enjoy the limelight on IBD Leaderboard, with other notable mentions across IBD’s curated lists, indicating a rich tapestry of stocks that weave through the market’s fabric.
An embedded video in this narrative dissects the nuances of the week’s market performance, offering a deeper dive into Broadcom, Comfort Systems, and NextEra Energy, amongst others.
Dow Jones Futures Today
As the clock strikes 6 p.m. ET on Sunday, the futures for Dow Jones, alongside S&P 500 and Nasdaq 100, will awaken, trailing the shadows of the weekend to herald the week ahead. The Labor Day closure offers a brief respite for U.S. markets, though global exchanges will continue their dance, with Dow futures navigating the twilight hours unencumbered.
A guiding principle for investors remains the unpredictable nature of overnight movements in futures, offering a kaleidoscope view that may not always reflect the ensuing daytime market session.
IBD experts stand ready to dissect and analyze the market’s movements, alongside leading stocks on IBD Live.
Stock Market Rally
The stock market rally, as observed last week, displayed a dichotomy of outcomes—mixed yet finishing strong on Friday.
Last week’s trading painted a vivid picture: the Dow Jones Industrial Average ascended by 0.9%, while the S&P 500 saw a subtle elevation of 0.2%. The Nasdaq composite, despite a 0.9% decline, rebounded with a 1.1% gain on Friday. The Russell 2000, representing small-cap stocks, modestly retreated.
The S&P 500 flirted with all-time highs, ending the week just shy of surpassing its recent zenith. The advent of a power trend on Friday, while not a direct buy signal, marks a bullish phase that could redefine strategy for keen investors, as elucidated by IBD’s Mike Webster.
The Nasdaq, with hurdles to surmount before embracing its own power trend, teeters at a critical juncture. The tech-heavy index’s fate hangs on its ability to firmly eclipse the 50-day line and vault over its recent range. Conversely, a slip below the 21-day line could signal distress, especially for tech stocks.
The broader market whispers tales of shifting dynamics, possibly hinting at a tech sector slowdown as non-tech entities gain prominence. This narrative is underscored by the 10-year Treasury yield’s ascent and crude oil’s subtle retreat.
ETFs
Exploring the ETF landscape, we witnessed varied performances across the board, from the Innovator IBD 50 ETF (FFTY)’s decline to the iShares Expanded Tech-Software Sector ETF (IGV)’s modest advance. Semiconductor ETFs and other sector-focused funds also narrate a story of fluctuation, reflecting the market’s inherent volatility.
Amid speculative fervor, ARK Innovation ETF (ARKK) and ARK Genomics ETF (ARKG) experienced their share of declines, showcasing the market’s unyielding unpredictability and the speculative nature of investment in innovation and genomics.
In a quest to master market timing, IBD’s ETF Market Strategy emerges as a beacon for investors navigating the ever-changing tides.
Nvidia Stock
Nvidia’s journey last week epitomized the market’s rollercoaster, with a notable dip followed by a modest Friday resurgence. Despite a promising earnings report, Nvidia’s performance elucidated the market’s relentless quest for groundbreaking beats and raises, underscoring the competitive landscape of tech giants.
Stocks In Buy Zones
The week witnessed a plethora of stocks parading into buy zones, from ServiceNow’s strategic positioning to Netflix’s subtle ascent above its cup base. Comfort Systems and NextEra Energy also made their mark, amplifying the rang
