Dow Jones Futures Fall Amid Market Rally Pullback; Tesla, Apple Near Buy Points

Dow Jones futures fell slightly Sunday night, along with S&P 500 futures and Nasdaq futures. Tesla (TSLA) reported record first-quarter deliveries on Saturday, with the EV giant near possible buy points. China EV giant BYD (BYDDF) reported monthly sales above 100,000 for the first time.

The stock market rally is in the midst of a modest pullback after a strong run from mid-March lows.

The major indexes still look healthy. But investors should be cautious about new buys in the very short term and be ready to exit positions if they aren't working. Growth and shipping stocks ran into trouble late last week, such as Dutch Bros (BROS) and J.B. Hunt Transport Services (JBHT).

Apple stock, Exxon Mobil (XOM) and SolarEdge Technologies (SEDG) are setting up near buy points.

Tesla Vs. BYD: Which Booming EV Giant Is The Better Buy?

Tesla stock is on IBD Leaderboard and the IBD 50. XOM stock is on the IBD Big Cap 20, which is full of energy and commodity names. The video embedded in this article analyzes the market rally and discusses Apple (AAPL), JBHT stock and SEDG stock.

China Delisting Threat Over?

Beijing is signaling that it will back down vs. the U.S. over accounting oversight, easing delisting fears.

China's securities regulator said Saturday it would release revised regulations for Chinese companies listed overseas. Notably, this line will be removed from the rules: "On-site inspections shall be conducted primarily by Chinese regulators or rely on the results of inspections by Chinese regulators."

U.S.-listed Chinese stocks rallied Friday on a report that China was moving toward giving U.S. auditing regulators access to those companies' books.

But China's widening lockdowns and restrictions, including Shanghai's extended shutdown could have a significant impact on production and demand, hitting Chinese stocks.

Dow Jones Futures Today

Dow Jones futures dipped 0.1% vs. fair value. S&P 500 futures lost 0.1% and Nasdaq 100 futures fell 0.25%.

The Hang Seng tech index rose solidly early Monday local time, with China internet and EV plays rallying on delisting optimism.

The 10-year Treasury yield rose 4 basis points to 2.42%. The 2-year yield climbed 6 basis points to 2.49%, further inverting the yield curve.

Crude oil futures fell slightly.

Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally started last week strong but ended with modest gains or slim losses.

The Dow Jones Industrial Average dipped 0.1% in last week's stock market trading. The S&P 500 index rose less than 0.1%. The Nasdaq composite rose 0.7%. The small-cap Russell 2000 also climbed 0.7%

The 10-year Treasury yield sank 11 basis points last week to 2.38%. The two-year Treasury yield spiked to 2.43%, decisively moving above the 10-year rate. This yield inversion is a possible recession signal — down the road — with the Fed set to aggressively raise rates at upcoming meetings. Experts differ on whether the yield curve inversion poses a serious recession risk. Fed chief Jerome Powell recently noted that the very short end of the yield curve is still well below long-term rates.

Still, the yield curve bears watching.

U.S. crude oil futures plunged nearly 13% to $99.27 a barrel, their biggest weekly loss in nearly two years. President Biden said Thursday that the U.S. would release 1 million barrels a day for six months from strategic reserves to help combat high gasoline prices.


Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.4% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) dipped 0.8%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 2.2%. But the VanEck Vectors Semiconductor ETF (SMH) sold off 3.6%, falling sharply from mid-week.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) jumped 4.7% last week and ARK Genomics ETF (ARKG) 7.3%. Tesla stock is the No. 1 holding across Ark Invest's ETFs. Cathie Wood recently began buying some Nio stock and has been adding to Ark's BYD position. Ark also owns some XPEV stock.

SPDR S&P Metals & Mining ETF (XME) retreated 1.4% last week, but rebounded well off lows. The Global X U.S. Infrastructure Development ETF (PAVE) sank 1.5%. U.S. Global Jets ETF (JETS) jumped 4.3% on lower fuel costs. SPDR S&P Homebuilders ETF (XHB) slumped 2.8% to a 52-week low.

The Energy Select SPDR ETF (XLE) lost 2.15%, but bounced off lows. XOM stock is a major XLE holding. The Financial Select SPDR ETF (XLF) slumped 3.3%, as the inverted yield curve hit bank stocks. The Health Care Select Sector SPDR Fund (XLV) climbed 1.3%.


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