Dow Jones futures fell early Tuesday, along with S&P 500 futures and Nasdaq futures after the stock market’s rally. Two recent IPOs, Mobileye and Sprinkler, moved in the news, while e-commerce software giant Shopify extended its advance on Monday.
X
Major indexes retreated on Monday, with the Nasdaq and S&P 500 turning negative as AAPL shares edged lower. But they retained most of last week’s gains.
Apple (AAPL) changed little after releasing the long-awaited Vision Pro mixed-reality headset.
Tesla (D.S.L.A), Fortinet (FTNT), DexCom (DXCM), Shopify (shop) and Wingstop (the wing) are in the buying range. Schaub stock rose solidly early Tuesday.
Bitcoin plunged on Monday after the SEC charged that Binance, the world’s largest cryptocurrency exchange, and co-founder Changpeng Zhao, acted illegally in the US COIN stock and against bitcoin miners such as Marathon Digital.
On Tuesday, the SEC filed suit Coinbase (currency), after earlier threatened action against a US crypto exchange. COIN token fell more than 10% after falling 9% on Monday.
IPOs move late
Late Monday, the marketing software maker Sprinkler (CXM) posted better-than-expected first-quarter profit and revenue gains. CXM shares rose 4% in early Tuesday trading. Shares of Sprinkler, 2021 IPO, closed above a short consolidation, which could be seen as a handle for the eight-month consolidation.
Meanwhile, Mobile (MBLY) fell 4% in pre-market trade, indicating a move below its 50-day low. The self-driving startup said it will sell 35 million shares on behalf of the company Intel (INTC), Mobileye spun off in an IPO last year. MBLY shares fell 2.7% to 42.37 on Monday. Shares fall below their 50-day line.
Tesla stock is on the move IBD Leaderboard, with Wingstop on the leaderboard watchlist. FTNT stock was added to SwingTrader on Monday and is among IBD’s long-term leaders. Wing Stock and Fortinet are available IBD 50. Fortinet is Monday’s IBD Stock of the Day.
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 fell slightly against fair value. S&P 500 futures edged lower and Nasdaq 100 futures edged lower.
The 10-year Treasury yield fell 1 basis point to 3.68%.
Crude oil futures fell more than 2%, below where they were before Saudi Arabia announced a surprise output cut on Sunday.
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. Aimed at gaming, communication and productivity applications, the glasses combine virtual and augmented reality. A price tag of $3,499, rather than the estimated $3,000, may deter potential buyers. It will go on sale in early 2024.
Earlier, Apple released some new Mac computers and provided updates on the latest operating systems for iPhone, iPad, Mac, Apple TV and Apple Watch.
Apple shares fell 0.8% to 179.58 ahead of the Vision Pro launch.
Join IBD experts as they examine stocks that could be in for a stock market rally on IBD Live
Stock market rally
The stock market rally showed a generally modest decline on Monday, after the Nasdaq pulled back from solid morning gains.
The Dow Jones Industrial Average fell 0.6% in Monday’s stock market trading. The S&P 500 index retreated 0.2%. The Nasdaq composite fell 0.1%. The small-cap Russell 2000 fell 1.3%.
U.S. crude oil prices rose 0.6% to $72.15 a barrel, an intraday high. Saudi Arabia said it would cut production by 1 million barrels per day in July.
The 10-year Treasury yield was unchanged at 3.69%.
ETFs
Among growth ETFs, the innovator IBD 50 ETF (FFTYUp 0.85%. iShares Expanded Technology-Software Sector ETF (IGV) up 0.7%, FTNT stock holds an IGV. VanEck Vectors Semiconductor ETF (SMHDown 1.25%.
Reflecting the more speculative story stocks, the ARK Innovation ETF (ARKKAdvanced 1.1% and the ARK Genomics ETF (ARKG) received 0.75%. Tesla shares are the No. 1 holding across Arc Invest’s ETFs. COIN stock and Shopify are the top 10 holdings for Cathie Wood’s Ark ETFs.
SPDR S&P Metals & Mining ETF (XMEdecreased by 0.8%. US Global Jets ETF (JETSdecreased by 0.2%. SPDR S&P Homebuilders ETF (XHB) fell almost 1%. Energy Select SPDR ETF (XLE) fell 0.7% and the Health Care Sector SPDR Fund (XLVrose 0.4%.
Fund Selection SPDR ETF (45fell 0.5%. SPDR S&P Regional Bank ETF (Createfell 2.5%.
Five Best Chinese Stocks to Watch Now
Stocks in buying areas
Tesla shares rose 1.7% to 217.61 on Monday, hitting a 2023 intraday high. Shares are still in range from the 207.79 buy point, but at the upper end of the 5% chase zone. Tesla stock broke out of a cup or double-bottom base on Friday. The EV firm has moved above its average for six straight sessions.
According to MarketSmith analysis, FTNT stock rose 4.6% to 71.27, retrieving the 69.07 buy point from the V-shaped flat floor. The volume was heavy. Fortinet first broke out on May 19, but dropped to test the 50-day line before quickly recovering.
Shares of DXCM rose 1.7% to 124.66 on Monday, hitting an intraday flat-base buy point of 126.44. The stock retook the 50-day line last weekend and broke a short trend. Dexcom shares topped short-term highs on Monday. DXCM stock was up 1% in early trading Tuesday
SHOP stock rose 2.8% to 59.92 on Monday, recovering from its 21-day hitting streak. That offers an early entry, though Shopify stock has quickly faltered, despite teasing aggressive buy points several times over the past few weeks. Shares are performing on a potential basis following a powerful earnings gap in early May. Shop shares rose more than 3% in premarket Tuesday trading.
Wing stock rose 3% to 203.69, off the 50-day and 10-week lines, just above the previous consolidation. The stock also retook its 21-day range and broke the downward sloping trendline. The volume was light but not terrible. Investors can use Monday’s move as a buy signal. The Wingstop stock is on track for a flat base, part of a base-on-base pattern, by the end of the week.
Market rally analysis
The stock market rally saw a dip on Monday, but looked modest after last week’s big gains. The Nasdaq led early, but turned into the red as Apple shares fell. The S&P 500 became
The Dow Jones retreated modestly, but is still above its 50-day range.
The Russell 2000 fell solidly, closing just below the 200-day line. This is a reflection of weak width. After the winners dominated last weekend, the losers won easily on Monday.
The Nasdaq 100 rose 0.1%, hitting a session high. It is still 9.3% above its 50-day line.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) rose 0.1%.
Invesco S&P 500 Equal Weight ETF (RSP) fell 0.3%, but remained above its 50-day and 200-day. Maintaining that position and eventually making the trek towards the 2023 peak will be crucial.
Tech titans and AI stocks led the market’s rally, including several chip plays. While some were bullish on Monday, Apple stock’s reversal and the recent pullback in chips aren’t entirely benign.
While market breadth was negative on Monday, some sectors showed or hinted at strength.
This includes cyber security, with the FTNT stock being one of several top performers. Many of the restaurant’s names, including the wing share, are still on the menu. Medical products and systems such as DXCM stock are at or near entries. Homebuilders and, to a lesser extent, travel stocks performed well.
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What to do now
After last week’s bullish, broad market rally, investors should gradually add exposure.
Several stocks flashed buy signals on Monday, although it wasn’t a flood due to Monday’s mild lower action.
Don’t force your way into extreme exposure. Let the market rally inspire you. If the market improves steadily and the best stocks flash buying signals, you can add them to your portfolio over time. If the market starts to fall, you should monitor the exits.
Keep your watch lists ready. It’s important to spot emerging leaders and spot early impressions.
Read the big picture every day to stay in tune with market direction and leading stocks and sectors.
Follow Ed Carson on Twitter @IBD_ECarson For stock market updates and more.
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