Dow Jones futures fell early Tuesday, along with S&P 500 and Nasdaq futures after a slightly lower session for the stock rally. Two recent IPOs, Mobileye and Sprinkler, moved on the news.
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Major indexes fell on Monday, with the Nasdaq and S&P 500 turning negative as AAPL stock reversed slightly. But they kept most of last week’s gains.
Apple (AAPL) reversed slightly after unveiling the highly anticipated Vision Pro mixed reality headset,
You’re here (TSLA), Fortinet (FTNT), DexCom (DXCM), Shopify (SHOP) and wing stop (WING) are in the buying range.
Bitcoin plunged as the SEC filed charges against Binance, the world’s largest cryptocurrency exchange, and co-founder Changpeng Zhao, for alleged securities violations and illegal trading in US COIN stock and bitcoin miners such as Marathon Digital also fell. The SEC has threatened action against it. Coinbase (PIECE OF MONEY).
Late IPOs
Late Monday, marketing software maker Sprinkler (CXM) reported better-than-expected first-quarter profit and revenue gain. CXM stock jumped nearly 4% late in the session. Sprinkler stock, a 2021 IPO, had closed just above a short consolidation that could be considered a handful for an eight-month consolidation.
In the meantime, mobileye (MBLY) fell 6% in premarket trading, signaling a return below 50 days. The self-driving systems company said it would sell 35 million shares on behalf of Intel (INTC), which created Mobileye in an IPO last year. MBLY stock fell 2.7% to 42.37 on Monday. Stocks should fall below their 50-day line.
Tesla stock is on the IBD rankings, with Wingstop on the rankings watchlist. The FTNT stock was added to SwingTrader on Monday and is listed on IBD Long-Term Leaders. WING and Fortinet shares are on the IBD 50. Fortinet was the IBD stock of the day on Monday.
The video embedded in this article discusses Monday’s market action and analyzes FTNT stock, samsara (IoT) and Fluency Energy (FLNC).
Dow Jones Futures Today
Dow Jones futures lost 0.1% relative to fair value. S&P 500 futures fell 0.1% and Nasdaq 100 futures fell less than 0.1%.
The 10-year Treasury yield fell 2 basis points to 3.67%.
Crude oil futures fell 2%, now clearly below where they were before Saudi Arabia announced a surprise production cut on Sunday.
Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
Apple Vision Pro
Apple unveiled the long-awaited mixed reality headset, the Vision Pro, at its annual Worldwide Developers Conference. Targeting gaming, communication and productivity uses, the glasses combine virtual reality and augmented reality. The price of $3,499, higher than the speculation of around $3,000, could deter potential buyers. It will go on sale in early 2024.
Earlier, Apple unveiled new Mac computers and provided updates on the latest operating systems for iPhone, iPad, Mac, Apple TV and Apple Watch.
Apple stock closed 0.8% lower at 179.58 after hitting an intraday high of 184.95 ahead of the Vision Pro unveiling.
Join the experts at IBD as they analyze actionable stocks in the stock market rally on IBD Live
Stock market rally
The stock market rally showed generally modest declines on Monday after the Nasdaq pulled back from strong morning gains.
The Dow Jones Industrial Average fell 0.6% in Monday’s stock trading. The S&P 500 index fell 0.2%. The Nasdaq composite fell 0.1%. The small-cap Russell 2000 fell 1.3%.
US crude oil prices rose 0.6% to $72.15 a barrel, well off intraday highs. Saudi Arabia said it would cut production by one million barrels a day in July.
The 10-year Treasury yield remained unchanged at 3.69%.
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Among growth ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.85%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 0.7% as FTNT stock was held by IGV. ETF VanEck Vectors Semiconductor (SMH) fell 1.25%.
Reflecting more speculative stocks, ARK Innovation ETF (ARKK) gained 1.1% and ARK Genomics ETF (ARKG) gained 0.75%. Tesla stock is the top position among Ark Invest’s ETFs. COIN and Shopify stocks are also the top 10 holdings of Cathie Wood’s Ark ETFs.
The SPDR S&P Metals & Mining ETF (XME) fell 0.8%. The US Global Jets ETF (JETS) fell 0.2%. SPDR S&P Homebuilders ETF (XHB) dropped nearly 1%. The Energy Select SPDR ETF (XLE) fell 0.7% and the Health Care Select Sector SPDR Fund (XLV) rose 0.4%.
The Financial Select SPDR ETF (XLF) fell 0.5%. The SPDR S&P Regional Banking ETF (KRE) fell 2.5%.
Five best Chinese stocks to watch now
Stocks in shopping areas
Tesla stock rose 1.7% to 217.61 on Monday after hitting a 2023 high of 221.29 intraday. Stocks are still in range for a buy point of 207.79, but are at the upper end of the 5% hunting zone. Tesla stock broke Friday from what is either a cup or a double-bottom base. The electric vehicle giant has advanced on above-average volume for six consecutive sessions.
FTNT stock jumped 4.6% to 71.27, reclaiming a buy point of 69.07 from a flat V-shaped base, according to MarketSmith analysis. The volume was heavy. Fortinet initially broke out on May 19, but quickly reversed to test the 50-day line before recovering.
DXCM stock climbed 1.7% to 124.66 on Monday, also hitting the fixed-base buy point of 126.44 intraday. Stocks recovered the 50-day line at the end of last week and broke a short trendline. Dexcom stock hit a short-term high on Monday.
SHOP stock gained 2.8% to 59.92, rebounding from its 21-day line. This offers early entry, although Shopify stock has teased aggressive buy points several times over the past few weeks and then quickly slumped. Stocks are working on a possible basis after a powerful earnings gap in early May.
WING stock jumped 3%% to 203.69, bouncing off the 50-day and 10-week lines, just above a previous consolidation. Stocks also recovered their 21-day line and broke a descending trendline. The volume was light but not terrible. Investors could use Monday’s move as a buy signal. The Wingstop stock is on track to have a flat bottom, part of a base-to-base pattern, by the end of the week.
Market rally analysis
The stock market rally saw a slide on Monday, but looked normal after last week’s big gains. The Nasdaq was initially in the lead, but turned red as Apple stock reversed. The S&P 500 too.
The Dow Jones retreated modestly, but is still above its 50-day line.
The Russell 2000 fell sharply, closing just below the 200-day line. This is a reflection of a low range. After the winners dominated last week, the losers won easily on Monday.
The Nasdaq 100 edged up 0.1%, off session highs. It is still 9.3% above its 50-day line.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) also rose 0.1%.
The Invesco S&P 500 Equal Weight ETF (RSP) fell 0.3%, but remains above its 50-day and 200-day line. It will be important to maintain this level and eventually progress towards the highs of 2023.
The market rally was led by tech titans and AI stocks, including many chipsets. While some continued to rise on Monday, the reversal in Apple stocks and the recent pullback in chips aren’t entirely unwelcome.
While market breadth was negative on Monday, some sectors showed or hinted at strength.
This includes cybersecurity, with FTNT stock being just one of the top performers. Several restaurant names, including WING stock, are still on the menu. Medical products and systems such as DXCM inventory are at or near the entrances. Homebuilders and, to a lesser extent, travel stocks are doing well.
Time the Market with IBD’s ETF Market Strategy
What to do now
After last week’s broad bullish rally, investors should look to gradually increase their exposure.
Several stocks issued flash buy signals on Monday, although not a flood given Monday’s slightly lower action.
Don’t force your way into strong exposure. Let yourself be attracted by the recovery of the market. If the market is steadily improving and the major stocks are giving buy signals, you can add to your portfolio over time. If the market starts to falter, you will want to keep an eye on the exit.
Prepare your watch lists. Finding emerging leaders and spotting early entrants is essential.
Read The Big Picture every day to stay in tune with market direction and top stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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