Dow futures fell overnight, along with S&P 500 futures and Nasdaq futures after a modestly lower session on a stock market rally. Two recent IPOs, Mobileye and Sprinker, have been trading overnight on the news.
Major indices fell on Monday, with the Nasdaq and S&P 500 turning negative as AAPL stock reversed slightly lower. But they held most of last week’s gains.
apple (AAPL) flipped a bit lower after revealing the long-awaited Vision Pro mixed reality headset,
Bitcoin plummeted after the SEC filed charges against Binance, the world’s largest cryptocurrency exchange, and co-founder Changpeng Zhao, for alleged securities violations and illegally mining US COIN stocks and mining Bitcoin as Marathon Digital too. The Securities and Exchange Commission (SEC) threatened counteraction. Coinbase (currency).
Late Monday, Marketing Software Maker sprinkler (CXM) reported better-than-expected first-quarter earnings and earnings. CXM stock jumped nearly 4% in late trading. Sprinkler stock, its 2021 IPO, closed just above the short consolidation that could be seen as a precursor to an eight-month merger.
while, Mobileye (MBLY) is down 3% in late trading, indicating a return to below 50 a day. The self-driving systems company said it would sell 35 million shares on its behalf Intel (INTC), which spun off from Mobileye in an initial public offering last year. MBLY stock fell 2.7% to 42.37 Monday. Stocks are set to drop below the 50-day line.
Tesla stock is running IBD Leaderboard, with Wingstop on the Watch Leaderboard. FTNT stock was added to SwingTrader on Monday and is listed on IBD Long Term. WING and Fortinet stocks are available at defect 50. Fortinet was IBD Monday’s stock.
Dow jones futures today
Dow Jones futures fell against fair value. S&P 500 futures were down 0.1% and Nasdaq 100 futures were down 0.2%.
Remember that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.
Apple Vision Pro
Apple unveiled its long-awaited mixed reality headset, the Vision Pro, at its annual Worldwide Developers Conference. Targeting gaming, communications and productivity uses, the goggles combine virtual reality with augmented reality. The price of $3,499, which is about $3,000 higher than speculation, could deter potential buyers.
Earlier, Apple revealed some new Mac computers and provided updates to the latest operating systems for iPhone, iPad, Mac, Apple TV, and Apple Watch.
Apple stock closed down 0.8% at 179.58 after hitting a record high of 184.95 on the day before the Vision Pro was revealed.
Stock market rise
The stock market rally showed modest declines overall on Monday, after the Nasdaq index pulled back from its strong morning gains.
The Dow Jones Industrial Average fell 0.6% in stock market trading Monday. The S&P 500 fell 0.2%. The Nasdaq Composite fell 0.1%. Small-cap Russell 2000 sank 1.3%.
US crude oil prices rose 0.6% to $72.15 a barrel, off the highest levels of the day. Saudi Arabia said it would cut production by 1 million bpd in July.
The 10-year Treasury yield was unchanged at 3.69%.
Exchange Traded Funds
Among the ETFs, the Innovator IBD 50 ETF (fifty) by 0.85%. iShares Expanded Technology and Software ETF (IGV) rose 0.7%, with FTNT stock holding IGV. VanEck Vectors Semiconductor Corporation (SMH) decreased by 1.25%.
Reflecting more speculative stories, the ARK Innovation ETF (ARK)ark(Advance 1.1% and ARK Genomics ETF)ARKG) gain of 0.75%. Tesla stock is the number one stock ETF held by Ark Invest. COIN and Shopify stocks are also in the top 10 holdings for Cathie Wood’s Ark ETFs.
SPDR S&P Metals & Mining ETFs (XME) decreased by 0.8%. US Global Gates Foundation ETF (Planes) decreased by 0.2%. SPDR S&P Homebuilders ETF (XHB) step down approximately 1%. Energy Defined Fund SPDR ETF (xle(down 0.7% and SPDR Health Care Sector Selection Fund)XLV) increased by 0.4%.
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Stocks in buy zones
Tesla stock rose 1.7% to 217.61 on Monday after hitting a 2023 high of 221.29 on the day. The shares are still in a range of 207.79 buy points, but they are at the upper end of the 5% chase zone. Tesla stock broke out on Friday from a cup bottom or double bottom. The EV giant has led on above-average volume for six straight sessions.
FTNT stock jumped 4.6% to 71.27, regaining 69.07 buys from a V-shaped flat bottom, according to MarketSmith analysis. The volume was heavy. Fortinet originally broke on May 19, but quickly pulled back to test the 50-day streak before recovering.
DXCM rose 1.7% to 124.66 on Monday, and also reached 126.44 flat-base buy points on the day. Stocks recovered the 50-day line late last week and broke a short trend line. Dexcom shares topped a short-term high on Monday.
SHOP stock rose 2.8% to 59.92, rebounding from the 21-day line. This provides early entry, though Shopify stock has triggered aggressive buys several times in the past few weeks only to quickly fizzle out. Stocks are running on potential base following a solid earnings gap in early May.
WING rose 3% to 203.69, rebounding from the 50-day and 10-week lines, just above the previous hold. The stocks also regained the 21-day line and broke the downward sloping trend line. The volume was light but not bad. Investors can use Monday’s movement as a buy signal. Wingstop stock is on track to have a flat bottom, part of the base-on-base pattern, by the end of the week.
Market rally analysis
The stock market rally saw a dip on Monday, but it looked normal after last week’s big gains. The Nasdaq initially led, but turned red as Apple stock reversed lower. So did the S&P 500.
The Dow Jones fell modestly, but it is still above the 50-day line.
The Russell 2000 fell strongly, closing just below the 200-day line. This is a reflection of weak supply. After the winners dominated late last week, the losers took it easy on Monday.
The Nasdaq 100 rose 0.1%, off a session high. It is still 9.3% above the 50-day line.
First Trust Nasdaq 100 Equal Weighted Mutual Fund (QQEW) also rose 0.1%.
Invesco S&P 500 Equal Weight Fund (RSP) is down 0.3%, but it is still above the 50-day and 200-day lines. It will be important to maintain this level and eventually make the journey towards the peaks of 2023.
The market rally was led by technology giants and artificial intelligence stocks, including many chip games. While some continued to rally on Monday, the reversal in Apple stock and the recent slide in chips isn’t entirely unwelcome.
While market breadth was negative on Monday, some sectors showed strength or hinted at it.
That includes cybersecurity, with FTNT stock being just one of many top performers. Several restaurant names, including WING stock, are still on the list. Theatrical medical products and systems such as DXCM stock are at or near inputs. Home builders and, to a lesser extent, travel stocks are doing well.
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What are you doing now
After last week’s broad bull run, investors should look to gradually increase exposure.
Several stocks made quick buy signals on Monday, although it wasn’t a flood given Monday’s mildly subdued action.
Don’t force your way into extreme exposure. Let the market gather for you. If the market is steadily improving and the buys are big stocks, you can add more to your portfolio over time. If the market starts to falter, you will need to watch the exit.
Have your watchlists ready. Finding emerging leaders and identifying early entries is key.
Read the big picture every day to stay in sync with the market trend, leading stocks and sectors.
Please follow Ed Carson on Twitter at @employee For stock market updates and more.
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