This week, the stock market surge came under strain, with the Nasdaq leading a sell-off as Treasury rates soared to 2023. The main indexes attempted to recover Friday as rates went back, but equities slumped.
Dow Jones futures, as well as S&P 500 and Nasdaq futures, will open on Sunday evening.
For better or worse, the market surge may have reached an inflection point. With the upswing “under pressure,” investors should exercise caution while making fresh purchases. However, it is a good moment to seek for attractive stocks.
Nvidia (NVDA) is recovering from a near-test of its 10-week moving average. Tesla (TSLA) is maintaining its 50-day and 10-week lines, indicating that several entry are conceivable. Broadcom (AVGO) is selling at a premium. Toll Brothers (TOL) is recovering from its 10-week loss, but Delta Air Lines (DAL) is struggling.
Earnings season has completed its busiest two weeks, but hundreds more corporations will report this week.
Berkshire Hathaway (BRKB) will publish second-quarter results on Saturday morning. Analysts estimate Berkshire profits to dip 8% year on year to $3.87 per share, while sales will increase roughly 6% to $80.58 billion. Investors will also want to know if Buffett’s conglomerate bought or sold equities in the quarter, the magnitude of BRKB stock buybacks, and its cash position as of June 30. The stock of BRKB is marginally stretched from a purchase point.
Apple (AAPL) makes up roughly half of Berkshire Hathaway’s stock holdings. Apple stock is expected to rise 40% by 2023, after a dramatic drop last week, breaching critical levels on Friday due to disappointing results and forecast.
On Monday night, Palantir Technologies (PLTR) reports, followed by Eli Lilly (LLY) and Celsius Holdings (CELH) on Tuesday.
IBD Leaderboard includes Nvidia stock, Tesla, and Celsius. The TSLA stock is included on the IBD 50. The video attached in this post delves into the market movement, as well as AVGO shares, Delta Air Lines, and Toll Brothers.
Futures on the Dow Jones Today
Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures all open at 6 p.m. ET Sunday.
Remember that overnight trading in Dow futures and other markets does not always transfer into trade in the following normal stock market session.
On IBD Live, join IBD experts as they explore actionable stocks amid the stock market surge.
Rally in the Stock Market
This week’s stock market rise witnessed significant losses. Even though Treasury rates were far off their highs, a Friday rebound turned into a downward reversal. It’s unclear what sparked the afternoon selling. A significant cyberattack was reported.
In last week’s stock market trade, the Dow Jones Industrial Average fell 1.1%. The S&P 500 index fell 2.3%. The Nasdaq Composite Index fell 2.85%. The Russell 2000 small-cap index lost 1.15%.
The S&P 500 and Nasdaq reclaimed its 21-day moving averages on Friday, but finished below that level. The Russell 2000 is barely over that critical short-term level, while the Dow Jones is getting close.
Apple shares contributed significantly to the market’s poor performance this week. The Dow fell 7.1% this week, its largest weekly loss in nine months. Following results, AAPL shares gapped below the 50-day moving average on Friday, bringing its market valuation back below $3 trillion.
The 10-year Treasury yield has increased by 9 basis points to 4.06%. However, this is lower than the previous 2023 highs. The yield reached 4.21% intraday on Friday, a nine-month high and not far from the 15-year peak of 4.31% set in October 2022. However, the yield fell 13 basis points on the day.
The July employment data revealed that hiring is slowing, and two Fed members signaled a tilt away from additional rate rises. The two-year Treasury yield, which is more directly linked to Fed policy, declined 10 basis points on Friday and 4.79% for the week.
Crude oil futures in the United States increased 2.8% to $82.82 per barrel, marking the sixth consecutive weekly rise.