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Sun. Jul 14th, 2024

Dow Jones Futures Fall Amid Declining Market Rally Led by Nvidia; 7 Stocks Approaching Buy Points – The UBJ

By Vaseline May27,2024

Movement in Dow Jones futures, S&P 500 futures and Nasdaq futures showed a slight downturn on Sunday evening, reflecting the nuanced sentiment in the market. While the past week witnessed Nvidia’s remarkable performance driving the Nasdaq to record highs, other sectors faced headwinds, resulting in varied performance across indices.

Last week’s stock market rally featured a mix of highs and lows. Nvidia’s robust earnings numbers and optimistic expectations pushed the Nasdaq to unprecedented levels despite a downward reversal experienced on Thursday. In contrast, the S&P 500 briefly reached all-time highs but ended the week with marginal changes. Conversely, the Dow Jones and Russell 2000 indexes suffered setbacks, with sectors such as consumer goods, housing, commodities and software facing notable challenges.

Looking ahead, market participants are eagerly awaiting key earnings reports from notable companies to be released this week. Among them are Salesforce.com, Cava, Dell Technologies, Abercrombie & Fitch, Costco Wholesale and Pure Storage. Of particular interest is Salesforce’s report, as it is expected to provide insights into the enterprise software sector following weak guidance from Workday.

In addition, the Federal Reserve’s main inflation gauge, the core personal consumption expenditures (PCE) price index, will be released early Friday. Economists expect moderate increases, with the possibility of a modest downward revision in core inflation for the first quarter.

Despite the threatened closure of US stock markets for Memorial Day, other global stock exchanges will remain operational. However, it is essential to recognize that overnight movements in futures markets do not necessarily translate directly into actual trading activity during the subsequent regular trading session.

Recent performance across sectors and indices has been mixed, reflecting the diverse dynamics within the market. While the Nasdaq index reached all-time highs, buoyed by Nvidia’s stellar performance and the subsequent rise in tech stocks, the broader market grappled with challenges. The Dow Jones Industrial Average posted a notable decline, while the S&P 500 index finished marginally higher after hitting record levels earlier this week. There was weak market breadth, with several sectors and leading stocks seeing notable declines.

In exchange-traded funds (ETFs), movements between different sectors were observed. Growth-oriented ETFs, such as the iShares Expanded Tech-Software Sector ETF, saw declines, while others, such as the VanEck Vectors Semiconductor ETF, posted significant gains.

Several individual stocks are currently positioned near buy points or within buy zones, including Microsoft, Merck, Arista Networks, Crocs, Netflix, Eli Lilly and TJX. Investors are advised to exercise caution and caution given the mixed performance and potential sector challenges. It is imperative to stay informed, build watchlists and formulate exit strategies, especially during periods of market uncertainty.

For further insights and updates on market direction, leading stocks and sectors, readers are encouraged to follow market experts and stay abreast of developments through sources such as IBD’s The Big Picture.

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