NEW YORK – Dow Jones futures, as well as S&P 500 futures and Nasdaq futures, will open Sunday evening, signaling the beginning of a new trading week in the stock market.
The stock market finished the week on a high note with the Dow Jones and S&P 500 hitting fresh all-time highs on Friday. The Nasdaq also rebounded to a two-year high largely due to the strong performance of Meta Platforms and Amazon.com. The week was dominated by mixed Big Tech earnings, with the overall performance being positive and providing a boost to the sector.
Despite the weak market breadth, there were still plenty of stocks showing potential, with companies like Adobe, Axon Enterprise, MongoDB, and Synopsys all flashing buy signals on Friday. These companies also earned distinctions in various stock lists, further highlighting their potential as solid investments.
Looking ahead, the coming week is expected to remain heavy on earnings with notable companies such as Caterpillar, Chipotle Mexican Grill, Eli Lilly, ELF Beauty, Arm Holdings, and Pinterest among those reporting.
The stock market rally, despite experiencing midweek struggles, showed resilience with the Dow Jones Industrial Average and S&P 500 index setting record highs. The Nasdaq composite also posted gains, driven by strong earnings performances from Meta Platforms and Amazon.com.
While the indexes rallied to new highs, market breadth weakened, with losers outnumbering winners on Friday. The small-cap Russell 2000 experienced a decline, falling below the 21-day line but finding support at the 50-day line.
In terms of ETFs, the iShares Expanded Tech-Software Sector ETF and VanEck Vectors Semiconductor ETF showed gains, while speculative story stocks like ARK Innovation ETF also witnessed positive movement.
Several stocks, including MongoDB, Axon Enterprise, Adobe, Synopsys, and Samsara, were in buy zones as they demonstrated strong performances heading into the weekend.
Finally, as the stock market rally continued to forge ahead, investors were advised to exercise caution with regards to new buys and to review their portfolios, considering potential profit-taking or pruning on laggards.
Overall, the market showed strength and resilience, signaling a potential for further gains, but caution remained important in light of potential overextension.