Dow Jones futures will open on Sunday afternoon, along with S&P 500 futures and Nasdaq futures. The stock market rally showed solid gains in the major indexes, fueled by strong gains by the five trillion-dollar tech giants: Apple stock, Microsoft (MSFT), Amazon.com (AMZN), Facebook (FB) and Google parent Alphabet (GOOGL).
Apple (AAPL) broke out past a buy point late last week. Google stock moved higher in its buy zone, while Amazon flashed at least an early entry. Microsoft stock moved out of its buy zone while Facebook stock looks extended. All FB stock did last week was hit a record high and a $1 trillion valuation for the first time.
The megacap techs, along with big-cap chip winners such as Nvidia (NVDA) and AMD (AMD), fueled the S&P 500 and Nasdaq composite to record highs, while the Dow Jones set a record close.
But many growth stocks had nasty sell-offs or reversals. On the plus side, some growth stocks had more-gentle pauses, forging new buy points. Still, while the stock market rally is in a confirmed uptrend, investors need to follow their buy and sell rules.
OPEC+ Talks To Continue
OPEC+ will continue talks on Monday, after failing to reach an agreement on Thursday-Friday. Most of the oil ministers back a plan to gradually increase output starting in August, but the United Arab Emirates wants a better deal for itself. A modest production hike likely would only partially offset rising demand, as the global economy ramps up. It’s possible that no deal will be reached, sending crude prices soaring. There’s also always the risk that OPEC+, which includes OPEC and Russia, could fracture.
China Blocks Didi From App Stores After IPO
China ordered app stores to remove Didi Chuxing, just days after Didi Global (DIDI) held one of the biggest U.S. IPOs years. The cybersecurity regulator said Didi violated restrictions on the collection and usage of personal information, but didn’t offer any specifics. That came just two days after announcing a probe and ordering Didi to suspend new user sign ups.
The Didi IPO raised $4.4 billion in its IPO on June 29, pricing shares at $14 each, at the high end of its expected range. Didi stock popped to 18.01 in Wednesday’s debut, but closed at 14.14. Shares surged 16% on Thursday, but then sank 5.3% on the cybersecurity probe.
Dow Jones Futures Today
Dow Jones futures will open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures. U.S. stock exchanges are closed Monday, July 5, in observance of the Fourth of July holiday. But Dow Jones futures will trade normally on Monday, along with stock markets around the world.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Stock Market Rally
The stock market rally had a solid week, capped Friday by a jobs report showing strong hiring was also not sparking inflation concerns.
The Dow Jones Industrial Average rose 1% in last week’s stock market trading. The S&P 500 index climbed 1.7% and the Nasdaq composite 1.9%. The small-cap Russell 2000 retreated 1.35% on smaller financials and some sharp growth-stock losses.
Apple stock and Microsoft, the only two members of the $2 trillion club, are in the Dow Jones, S&P 500 and Nasdaq composite. FANG stocks Facebook, Google and Amazon are all in the S&P and Nasdaq.
The 10-year Treasury yield tumbled 11 basis points to 1.43%, the lowest since March. Crude oil futures hit fresh three-year highs.
Growth stocks generally powered higher, despite some big individual losers.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 2.1% last week with a few high-profile growth names such as Digital Turbine (APPS) selling off hard. The Innovator IBD Breakout Opportunities ETF (BOUT) added 0.7%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 1.7%. Microsoft stock is a major IGV component. The VanEck Vectors Semiconductor ETF (SMH) jumped 2.6%.
Meanwhile, other sectors were mixed.
SPDR S&P Metals & Mining ETF (XME) edged up 0.9% and Global X U.S. Infrastructure Development ETF (PAVE) 0.15%, after both had big rebounds in the prior week. U.S. Global Jets ETF (JETS) slumped 2.2%, as Delta coronavirus fears and restrictions slam travel names. SPDR S&P Homebuilders ETF (XHB) rose 2.4%, continuing to rebound after several weeks of weakness. The Energy Select SPDR ETF (XLE) fell 1.2% amid profit-taking, and the Financial Select SPDR ETF (XLF) was just about break-even.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) rose 2.1% and ARK Genomics ETF (ARKG) 2.2%, but both closed in the bottom third of their weekly ranges.