Dow Jones futures fell slightly Sunday evening, along with S&P 500 futures and Nasdaq futures. Investors expect a big week of money, which leads Tesla (TSLA), Microsoft (MSFT) and Boeing (BA).
The stock market rebounded mid-week, with major indexes falling below the moving average. But they bounced back on Friday, especially Nasdaq and tech stocks. Nasdaq, a laggard in 2022, has led the large-cap index in 2023 as technology growth names return to support.
The recent recession gave room for many stocks to breathe, active hands or other new buying opportunities.
Investors should pay close attention, but be wary of new trends. Marketing is a critical level environment. Deposit periods can affect indexes in certain sectors and individual stocks.
Hundreds of companies will report this coming week. Here are 10 financial stories to watch: Tesla, Microsoft, Boeing, Work Now (now), Chevron (CVX), Visa (V) and Mastercard (MA), and explosive-gear giants ASML (ASML), Research Lam (LRCX) and KLA CORP. (KLAC).
These reports will provide insight into their respective industries, and can have a significant impact on the market as a whole. Tesla and Microsoft products still have a lot of repair work, while Boeing is stretching. NOW stock may be close to initial energy input. CVX, Visa and Mastercard products are available near the point of purchase. The same is true of LRCX and KLA, where ASML does not reach it.
KLAC stocks are in the IBD Big Cap 20. Microsoft and ASML stocks are in the IBD Long Cap stocks.
The stocks of Microsoft, Boeing, Chevron and Visa make up the Dow Jones.
The video attached to this article examines important marketing weeks and research Etsy (ETSY), LRCX products and ServiceNow.
Dow Jones Futures Today
Dow Jones futures lost 0.1% vs. the right value. S&P 500 futures fell 0.1% and Nasdaq 100 futures declined 0.1%.
Crude oil futures fell slightly.
Remember that overnight events in the Dow Futures and elsewhere do not necessarily translate to the actual market in the next stock market session.
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The stock market had a reversal on Wednesday, then fell further on Thursday, but ended well.
The Dow Jones Industrial Average fell 2.7% in trading last week. The S&P 500 index was down 0.7%. The Nasdaq Composite climbed 0.55%. The small-cap Russell 2000 declined 1.1%.
The 10-year Treasury note fell 3 points to 3.48% Friday. The stock hit 3.37% in the week, less than four months.
Crude oil futures for February rose 1.8% to $81.31 a barrel last week. The March contract, the latest crude contract close to the month, ended at $81.64.
Among the younger ETFs, the Innovator IBD 50 ETF (FFTY) fell 1% last week. The iShares Expanded Tech-Software Sector ETF ( IGV ) rose 1.45%, with MSFT and ServiceNow stocks both holding strong positions. The highest price of the VanEck Vectors Semiconductor ETF is 0.7%. ASML stock is a major holding, along with LRCX, KLAC and TER.
Turning to other news stocks, the ARK Innovation ETF (ARKK) climbed 1.4% last week and the ARK Genomics ETF (ARKG) lost 1%. TSLA stock remains a key holding across Ark Invest’s ETFs. In fact, Cathie Wood’s Ark has brought back Tesla stock in recent months.
The position of the SPDR S&P Metals & Mining ETF changed -0.5% per week. The Global X US Infrastructure Development ETF (PAVE) fell nearly 3%. The U.S. Global Jets ETF (JETS) rose just 0.35% but is well on its way to 2023. The SPDR S&P Homebuilders ETF (XHB) fell 2.4%.
The Energy Select SPDR ETF (XLE) climbed 0.7%, its sixth straight weekly gain. Chevron’s products are the main raw material. The Financial Select SPDR ETF (XLF) fell 2.1%. The Health Care Select Sector SPDR Fund (XLV) fell 1.1%, its sixth decline in seven weeks.
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Tesla’s earnings will come Wednesday night. Investors expect a 34% return and a 39% return. That will be the first quarter in a year that revenue growth will outpace profits, an early sign of margin pressure.
The focus will be on looking, especially at the end of the global price increase to start 2023. Will Tesla stick to the 50% weight limit? Will Elon Musk give details of the Cybertruck again, and will he confirm the Model 3 changes? What about new EV plants? Tesla stock rose 9% last week to 133.42, surpassing a 21-day moving average after it hit an intraday low of 101.81 on Jan. 6. But it is still below the 50-day mark and especially the 200-day mark.
Microsoft’s earnings will be Tuesday night. Analysts expect Microsoft’s earnings to decline slightly, with lower revenue. Microsoft’s results will be key for software developers, the PC sector and cloud computing e.g Amazon.com (AMZN). Last week, the Dow Jones tech titan said it would cut 10,000 jobs, or 4.5% of the workforce. MSFT stock rose 0.4% last week, breaking through resistance at the 50-day line. It’s clear that Microsoft has a bearish base below the 200-day line. But a breakout will involve clearing the 200-day line and a long downward trend.
Boeing’s earnings are Wednesday morning, with modest gains expected after several losses. Investors are betting on the return of profits and income in the years to come. Boeing stock fell 3.4% to 206.76 last week. After the big move, BA stock should set up again.
ServiceNow funding is scheduled for Wednesday night. Analysts expect a 38% EPS gain, the second straight quarter of rapid growth. Business leaders have budgeted 2023 for IT spending. The report will be the basis for the name of the most valuable business product. The stock is now up 6.5% to 441.83 after falling 13% last week. The index cleared the 200-day mark on Friday, breaking a four-month high and erasing a long period of decline. That gave an early entry, but the money coming in made that very difficult.
Chevron’s money will expire on Friday morning. Analysts expect the quarter’s EPS growth to grow more than a year ago, but down from Q2-Q3. CVX stock rose 1.8% to 180.81 last week, retracing its 50-day line. Chevron is in a flat base, but a move above Wednesday’s high of 182.38 will provide an early entry. Chevron’s income will be important for the oil and gas sector, especially oil like Exxon Mobil (XOM).
Mastercard funds will be received early Thursday, and Visa funds will be received later. Mastercard’s EPS is up nearly 10% and Visa’s is up 11%. The results and credit card details will be important for third party payment companies and for understanding customer spending patterns. Visa and Mastercard products are working in long-term control, trading around key resistance levels that return to early 2022.
ASML’s funding will be available early Wednesday, with Lam Research and Teradyne following. KLA reports late Thursday. ASML’s earnings are expected to fall 11%, but Lam’s research earnings should rise 15% and KLA’s 27%. Leadership will be key in what could be a challenge 2023. The income statement, and bracelet manufacturers like. Intel (INTC), will provide insight into the semiconductor space and end markets.
ASML stock is extended by the 200-day line. LRCX stock is trading above the 50-day and 200-day lines in a bearish setup. KLAC stock has a short hand on the weekly chart for support going back a year.
Market Rally Analysis
The stock market is all about setbacks, and get one. Major indexes rebounded sharply on Wednesday and fell on Thursday. But they closed lower Thursday and resumed strong Friday.
The Nasdaq posted weekly gains, retracing its 50-day moving average on Friday. Friday’s action was another next day for the Nasdaq.
The S&P 500 retook its 50-day line and retreated back above its 200-day line. The Russell 2000 found support at the 200 day and may try to test the 2022 peak soon.
The Dow Jones was the biggest winner of the week, falling below its 50-day mark and ending the week well below that level.
Outside of the Dow, the recent pullback seems normal and healthy so far.
The pause allows for stocks to break even while a few break even. If anything, a little setback might be worth it in this case.
But major indexes have a number of major resistance. The S&P 500 should retrace the 200-day line well, with this past week’s highs and December’s highs serving as key points.
Earnings periods can be the cause of huge profits or losses in the market – or both.
Next week will also provide the first reading on fourth-quarter GDP, as well as a look at December’s PCE inflation. Those will pave the way for the Federal Reserve’s policy meeting on Feb. 1.
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The technological revolution continues
The stock market appears to be turning to the technology development game after a long hiatus. The Nasdaq composite hit a bear market closing shortly as Dec. 28. But in 2023, the Nasdaq is up 6.4%. The SMH chip ETF has rallied 12%, the IGV software ETF 5.5% and the ARKK 16.8%.
What causes technological growth?
Stocks are falling, which is good for high-value growth stocks. In the meantime, there is hope for a softer economic downturn, as China and Europe improve and the Fed’s rate hikes show up recently. That raises the stakes that most of the bad news is price for growth stocks
The Russell 2000, another risky play, close to the Nasdaq, is up 6.1% in 2023.
The S&P 500 is up 2.5% to start the new year. The Dow Jones was up 0.7%, with only thanks to Friday’s strong gains.
There are not many technical growth names in place. LRCX products are among the emerging chip leaders. Software is rare, although NOW products make a case. E-commerce is picking up, as well MercadoLibre (MELI) appears in Etsy (ETSY) setting up. China’s internet and e-commerce industry is thriving.
The biggest earnings over the next two weeks are tech heavy, so investors will see if the growth recovery has legs.
Meanwhile, many currencies have struggled over the past week, while food safety and security watchdogs and stocks are stumbling.
Both gold and mining are looking strong. Flights have taken off, and businessmen are checking into hotels. Marketing is a mixed bag. The same is true of medicine: Biotechs are attractive but healthcare providers are weak.
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What You Should Do Now
The stock market showed some rebound over the past weekend, with many positive stocks. It is still possible that the current recession will resume, causing permanent damage. A deposit period can trigger large movements in specific stocks, but also their competitors, suppliers and customers.
Therefore, while the market, especially the Nasdaq, may be showing “risk,” investors should be cautious about adding exposure. One possible option is through the market or sector ETF, to avoid the risk of a single product. If you add exposure, be prepared to leave quickly. If you are not prepared and ready to leave quickly, you need to be careful in entering the post.
But the next few weeks could provide plenty of buying opportunities. So prepare your checklist and be at it.
Read The Big Picture every day to stay in touch with the market leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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