Exciting news for investors as the Dow Jones achieves record highs, along with the S&P 500 scaling new peaks and the Nasdaq hitting a two-year best. Leading the charge were big tech stocks, propelling the market rally throughout the week. Despite a somewhat lackluster market breadth in 2024, there is robust leadership, with numerous stocks signaling buying opportunities.
Tech Leaders Propel the Rally
Notable performers include Apple, offering an early entry, Cloudflare flashing a buy signal, and DraftKings on the cusp. Investors are advised to consider gradually increasing exposure, although the upcoming earnings season adds an element of caution.
Earnings Season Highlights
This week features major earnings reports from Tesla, ServiceNow, Netflix, Intel, ASML, Lam Research, KLA, D.R. Horton, Paccar, and United Rentals. Each of these stocks provides insights into various sectors, from software and chips to construction and technology.
Tesla, despite recent challenges, continues to be closely monitored by investors. ServiceNow leads the software earnings, while Intel, ASML, Lam Research, and KLA offer valuable perspectives on the booming chip sector. D.R. Horton, Paccar, and United Rentals showcase strength beyond the tech realm.
Key Players in the Market
Key stocks to watch include NOW on IBD Leaderboard, BKNG on the Leaderboard watchlist, KLA on IBD Long-Term Leaders, and DraftKings, ServiceNow, United Rentals, and NET on the IBD 50. Cloudflare and DraftKings were featured as IBD Stock Of The Day on Friday and Thursday, respectively.
Navigating Dow Jones Futures
Dow Jones futures, along with S&P 500 and Nasdaq futures, open on Sunday evening. It’s important to note that overnight movements in Dow futures may not necessarily translate into actual trading during regular stock market sessions.
In the broader market, the Dow Jones rose by 0.7%, the S&P 500 gained 1.2%, and the Nasdaq surged by 2.3% last week. Notably, the S&P 500 surpassed its January 2022 all-time peak on Friday. While small caps faced challenges, the Russell 2000 rebounded significantly from its 50-day line.
Economic Strength and Market Resilience
Economic data remains strong, and despite rising Treasury yields, the market rally continues, with tech sectors leading the way. Keep an eye on developments in the coming weeks as Dow Jones futures fluctuate and the market navigates through earnings season and potential shifts in Fed policy.
