Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures, after stocks surged to record highs following Donald Trump’s presidential victory.
The Dow Jones and S&P 500 had their best weeks in a year while hundreds of leading stocks gapped out to new highs betting on a tailwind under a second Trump administration Tesla (TSLA) skyrocketed back above a $1 trillion market cap, with CEO Elon Musk was a huge backer of the Trump election effort. Palantir Technologies (PLTR) had an even better week, with earnings leading the way.
There were many big earnings winners this week, though also notable losers.
↑
X
This Stock Could Be The Next Chipotle. But Can It Maintain Stellar Earnings Growth?
Earnings season remains active. Monday.com (MNDY) will report Q3 results before the open. MNDY stock is extended, a common problem for leading stocks.
But not Meta Platforms (META), Google-parent Alphabet (GOOGL), CrowdStrike (CRWD), Vertex Pharmaceuticals (VRTX) and brand-new Dow Jones component Nvidia (NVDA). Meta and Google stock are just below buy points. CrowdStrike stock, Vertex and Nvidia are actionable now.
Nvidia, Meta and Vertex stock are on IBD Leaderboard, with Tesla stock on the Leaderboard watchlist. Nvidia stock is on SwingTrader. Palantir stock, Nvidia and Monday.com are on the IBD 50. Google was Friday’s IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally saw huge gains in the past week. The Dow Jones Industrial Average jumped 4.6% in last week’s stock market trading, the S&P 500 index popped 4.7% and the Nasdaq composite leaped 5.7% — all hitting record highs.
The small-cap Russell 2000 spiked 8.6% to its best levels since its all-time high in November 2021.
Markets are booming on hopes that Trump’s return to the White House, backed by a GOP Congress, will mean tax cuts, deregulation and increased merger activity.
Meanwhile, the Federal Reserve cut rates again on Thursday. Fed Chief Jerome Powell signaled that rate cuts would continue. And he said policymakers won’t consider Trump’s fiscal policies until they actually take shape.
As the sector ETFs below show, stock market gains were broad and deep.
Dozens, if not hundreds of stocks had double-digit weekly gains. Tesla skyrocketed 29%, but Palantir stock shot up 39%, Axon Enterprise (AXON) nearly 42% and on and on.
The 10-year Treasury yield fell 5 basis points to 4.31%, tumbling from Wednesday’s four-month intraday high of 4.48%. The two-year Treasury yield, more closely tied to Fed policy, rose 5 basis points to 4.25%.
U.S. crude oil futures rose 1.3% to $70.38 a barrel for the week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) leaped 11.5% last week. The iShares Expanded Tech-Software Sector ETF (IGV) ran up 9.7%, with Palantir and CrowdStrike both notable members. The VanEck Vectors Semiconductor ETF (SMH) gained 6%, with Nvidia stock the dominant member.
ARK Innovation ETF (ARKK) spiked 15.9% last week and ARK Genomics ETF (ARKG) bolted 7.9%. Tesla stock is still a big holding across Ark Invest’s ETFs. Cathie Wood has also built up a big Nvidia position.
SPDR S&P Metals & Mining ETF (XME) jumped 8.5% last week. The Global X U.S. Infrastructure Development ETF (PAVE) advanced 9.2%. U.S. Global Jets ETF (JETS) ascended 5.6%. SPDR S&P Homebuilders ETF (XHB) gained 3.6%. The Energy Select SPDR ETF (XLE) popped 6.5%. The Health Care Select Sector SPDR Fund (XLV) was up 1.65%, with Vertex stock a holding. The Industrial Select Sector SPDR Fund (XLI) bounced 6%.
The Financial Select SPDR ETF (XLF) rallied 5.5% and the SPDR S&P Regional Banking ETF (KRE) spiked 10.45%.
Time The Market With IBD’s ETF Market Strategy
Stocks Near Buy Points
Meta stock rose 3.9% to 589.34 last week, rebounding from the 10-week line and retaking the 21-day. The Facebook and Instagram parent now has a new flat base, base-on-base pattern with a 602.95 buy point.
Google stock gained 4.1% to 178.54 last week, nearing a 182.02 cup-with-handle buy point. A move above Thursday’s high of 181.08 would offer a slightly early entry. The relative strength line is still near the lowest levels since March, reflecting Google’s underperformance vs. the S&P 500.
CrowdStrike stock jumped 8.9% to 330.03, retaking the 200-day line and clearing a 323.94 cup-with-handle buy point, according to MarketSmith analysis. The RS line still well off June’s peak, though it’s making a comeback. CrowdStrike plunged after triggering a global IT outage on July 19, with fears of hefty liability costs and long-term reputational damage in focus. The cybersecurity giant reports earnings in late November, with investors curious to see if CrowdStrike is finding its footing.
Vertex stock surged 9.7% in the week to 516.74. Shares peeked past early entries on Thursday then ran past the 510.63 flat-base buy point on Friday. Vertex earnings and sales beat on Nov. 4, but the focus is on the pipeline. In January, the FDA will consider approving Vertex’s next-generation cystic fibrosis drug and its pain treatment.
Nvidia stock, which joined the Dow Jones on Nov. 8, rallied 8.7% in the week to 147.15, back above a 140.76 consolidation buy point. The buy zone runs to 147.80. Investors also could treat the Oct. 22 high of 144.42 as a high-handle entry. Nvidia earnings are due Nov. 20.
Tesla Stock
Tesla stock spiked 29% to 321.22, the biggest weekly gain since the week ended Jan. 27, 2023. Tesla stock now a $1.03 trillion valuation, topping the $1 trillion for the first time in two years.
Musk was a huge Trump supporter, and could join the new administration in an official or advisory capacity.
It’s not clear how much Trump could or will do regarding EVs, or even if those moves would be a net benefit to Tesla. On self-driving, it’s technology not regulators that are holding back Tesla, though there’s likely less risk from regulatory probes of Tesla crashes.
But what is clear is that TSLA stock reflects an investor belief that Trump will be a boon to Tesla.
What To Do Now
The stock market rally is in great shape. The major indexes and leading stocks suggest that this could be the start of another big bull run.
So you want to be heavily invested. If you aren’t, build up your exposure gradually, buying leading stocks that aren’t extended. If you are, you can make more buys, depending on how your risk tolerance is. But also go through your portfolio and see if you there are can prune some laggards and funnel that cash into winners.
A pullback in the indexes or near-vertical stocks would not be a surprise. And while a massive period of news is in the rearview mirror, earnings season will remain heavy for the next few weeks.
Work on your watchlists to spot stocks that are in range or setting up.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
YOU MIGHT ALSO LIKE:
Why This IBD Tool Simplifies The Search For Top Stocks
Best Growth Stocks To Buy And Watch
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
How To Invest: Rules For When To Buy And Sell Stocks In Bull And Bear Markets
