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Dow Jones Futures: Uptrend Continues as Tesla Earnings Emerge; Optimize your portfolio

Dow Jones Futures: Uptrend Continues as Tesla Earnings Emerge; Optimize your portfolio

Dow Jones futures open Sunday evening, as do S&P 500 futures and Nasdaq futures. Tesla (TSLA), ServiceNow (NOW) and GE Aerospace (GE) is making headlines for a busy week of earnings.

The stock market rally extended its weekly winning streak, with the Dow Jones and S&P 500 hitting new highs throughout the week. Market leadership is broad in terms of sectors and temperament.

Nvidia (NVDA), Tesla rival BYD (BYDDF), cybersecurity game SentinelOne (S), insurance game Chubb (CB) and Spotify (SPOT) are all feasible. Warren Buffett’s Berkshire Hathaway holds significant stakes in BYD and Chubb stocks.




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Tesla profits are in sight. These are the two growth drivers to watch.



Although potential risks are on the horizon, this is a time for investors to invest heavily and take modest steps now to optimize their portfolios.

Nvidia shares are on the IBD Leaderboard and the IBD 50. Nvidia and Spotify shares are on SwingTrader. ServiceNow stock is in the IBD Big Cap 20. Chubb was the IBD Stock of the Day on Thursday.

Dow Jones futures today

Dow Jones futures open at 6:00 p.m. ET on Sunday, as do S&P 500 futures and Nasdaq 100 futures.

Keep in mind that overnight performance in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular trading session.

Join IBD experts as they analyze leading stocks and the market on IBD Live

Stock market rally

The stock market rally continued higher, with major indexes all rising for the sixth week in a row.

The Dow Jones Industrial Average rose nearly 1% in trading last week and hit another record high on Friday. The S&P 500 index climbed 0.85%, hitting an all-time high on Thursday and a record close on Friday. The Nasdaq Composite rose 0.8%, not far from record highs.

The Russell 2000 small-cap index rose 1.9% to hit a two-year closing high on Wednesday.

More speculative names are making big moves, including in nuclear power, Bitcoin and China. But many traditional growth stocks, defensive growth stocks and even more defensive names across sectors are showing strength.

The 10-year Treasury yield was unchanged at 4.07%, having tested the 4% mark during the week.

U.S. crude oil futures fell 8.4% last week to $69.22 a barrel.

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.8% last week. The iShares Expanded Tech-Software Sector ETF (IGV) fell 0.5%, with ServiceNow stock making up a significant portion. The VanEck Vectors Semiconductor ETF (SMH) fell 2%, with Nvidia stock the main component.

The ARK Innovation ETF (ARKK) rose 3% last week and the ARK Genomics ETF (ARKG) finished flat. Tesla is a key holding in Ark Invest’s ETFs, but Cathie Wood has also built a large stake in Nvidia in recent months. Ark also owns a small stake in BYD shares.

The SPDR S&P Metals & Mining ETF (XME) gained 3.1% last week. The US Global Jets ETF (JETS) rose 7.2%. The SPDR S&P Homebuilders ETF (XHB) rose 3.5%.

The Energy Select SPDR ETF (XLE) fell 2.6% and the Health Care Select Sector SPDR Fund (XLV) lost 0.6%.

The Industrial Select Sector SPDR Fund (XLI) rose 0.6%. The Financial Select SPDR ETF (XLF) gained 2.4%.

Tesla profit

Tesla earnings are expected to fall 9%, which would mark its fifth consecutive year-over-year decline, although significantly smaller than the previous four quarters. Sales growth is expected to rise 9%, supported by China shipments.

However, the focus will likely be on Elon Musk and Tesla’s earnings release. Investors and analysts may want clues about the still-unknown “affordable” vehicle, which is expected to enter production in the first half of 2025. Any hints of a Model Y refresh would also be welcome.

Tesla shares rose 1.3% for the week to 220.70, but remain below their 50-day line. Shares plunged 15.6% in October following underwhelming third-quarter deliveries and the Oct. 10 Robotaxi event. TSLA stock has a buy point of 264.86 cups with handles.

Stocks in buy zones

Nvidia shares rose 2.4% last week to 138. The AI ​​chip leader is still within range of a 131.26 buy point. Shares hit a record intraday high of 140.89 on Thursday, but did not close above the left consolidation high of 140.76. That would be the traditional buying point.

Strong earnings and forecasts from Nvidia chip maker Taiwan Semiconductor (TSM) has helped boost NVDA stock and other AI stocks.

According to MarketSurge, SentinelOne shares rose 2.5% to 26.36, approaching a consolidated buy point of 26.62. Investors could have used 25.54 or a descending trend line for an earlier entry the previous week. Several cybersecurity stocks are trading around buy points.

Spotify shares rose 3.3% to 378.81, leaving the 21-day line. This eliminated a trend line within a tight pattern that was mostly in the buy zone of a previous flat base. Investors could have used Friday’s move as their own buy signal or as an opportunity to add to stocks.

Chubb shares rose 5.2% this week to 301.66, breaking through the flat-base buy point of 294.18. The Warren Buffett-backed insurer emerged as an industry peer on Thursday travelers (TRV) recorded a higher profit difference.

BYD shares fell 3.1% for the week but rose 7.2% to 36.86 on Friday. That pushed the Chinese EV giant back above a 32.69 buy point from a long, deep cup base. The shares have risen and fallen alongside other Chinese stocks in recent weeks as investor sentiment has shifted amid China’s stimulus measures.

BYD stock is up 33.2% so far this year, making it the only electric vehicle maker to be up in 2024.

Profitable Warren Buffett-backed BYD is expected to sell 4 million electric vehicles in 2024, up from just over 3 million in 2023, while Tesla is seeing a slight decline in deliveries from last year’s 1.8 million.

The best growth stocks to buy and watch

What to do now

While earnings season, the presidential election and geopolitical issues pose potential risks over the next few weeks, the market recovery is going very well. Leading stocks are booming. In fact, the fact that the market is concerned means stocks will continue to rise.

Nevertheless, the sentiment indicators show that investors are certainly optimistic, although not dangerous.

Investors should be heavily invested for some time, so there is no need to make any big moves now. Optimize your portfolio by making incremental or add-on purchases while trimming some losers. You could also make changes to ensure you have leaders from different sectors and a mix of high performers and high performers depending on your risk tolerance.

This means your watchlists must be up to date. Also, pay close attention to the key return reports for your portfolio.

It’s also important to stay committed. If earnings season or other news changes the nature of the market rally or individual holdings, you must be ready to adapt.

Read The Big Picture daily to stay up-to-date on market direction and the leading stocks and sectors.

Please follow Ed Carson in threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

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