Dow futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally had a generally positive week, with Nasdaq and smaller companies led.
But with major indicators at resistance levels after recent strong gains, the market rally showed resilience amid some mixed headlines.
Berkshire Hathaway (BRKBOperating profit increased 39% year-over-year to $9.28 billion. But the Warren Buffett conglomerate incurred a net loss of $43.8 billion. That reflects a $53 billion investment loss, amid a stock market plunge that reached its lowest levels in June.
Berkshire repurchased just $1 billion of its stock in the second quarter, down from $3.2 billion in the first quarter. Instead, Berkshire was loaded Occidental Petroleum (OXY)
Buffett’s company still had $105.4 billion in cash at the end of June versus $106.3 billion at the end of March.
BRKB stock fell 2.8% last week to 292.07, trading between the 200-day and 50-day lines. Berkshire stock has rebounded from its June lows but is still far from its late March peak of 362.10.
Chip stocks are rebounding, which is a positive sign of any rally in the market. monolithic power systems (MPWR), Kosovo Liberation Army (KLAC), Analog devices (ADI), Axelis Technologies (ACLS) And the anemme (on me), but is currently in no man’s land, extending from early but less traditional entrances buy points.
finally, Celsius (CELH) He got a thermal scan after huge gains in recent days and weeks. What Investors Should Do in CELH Stock with Tuesday’s Earnings?
MPWR stock is running Long-term leaders of IBD. KLAC stock is on the Long-Term Watch List by Leaders. CELH, Axcelis Technologies, Onsemi, KLA and Monolithic Power all share in the defect 50. ADI, Onsemi and Monolithic Power stocks are in a range IBD Big Cap 20. ACLS stock was Friday’s stock of IBD. Monolithic Power and ON were the stock of the day earlier in the week.
Dow jones futures contracts today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
stock market rise
The Dow Jones Industrial Average fell 0.1% last week stock market trading. The S&P 500 rose 0.4%. The Nasdaq Composite Index is up 2.15%. Small cap Russell 2000 rose 1.9%.
The 10-year Treasury yield jumped 20 basis points to 2.84%, including 16 basis points on Friday after Hot Jobs Report. The odds of a rate hike of 75 basis points on September 21 rose to two-thirds from about 40% before the employment data.
US crude oil futures fell 9.7% for the week to $89.01 a barrel, hitting their lowest levels since before the Russian invasion of Ukraine in late February.
between the Best ETFsThe Innovator IBD 50 ETF (fifty) rebounded 2.9% last week, while the Innovator IBD Breakout Opportunities ETF (fit) decreased by 0.7%. iShares Expanded Technology and Software Fund (ETF)IGV) jumped 3.7%. VanEck Vectors Semiconductor Corporation (SMH) gained 2.7%.
SPDR S&P Metals & Mining ETF (XME) rose 0.5% last week. Global Infrastructure Development Fund X US (cradle) rose 0.15%. US Global Gates Foundation (ETF)Planes) rose 3.2%. SPDR S&P Homebuilders ETF (XHB) was up 0.2%, its seventh consecutive weekly advance. SPDR Specific Energy Fund (SPDR ETF)XLE) with 6.8% and the Financial Select SPDR ETF)XLF) decreased by 0.1%. SPDR Healthcare Sector Selection Fund (XLV) down 0.7%, despite the strength of biotech.
Monolithic Power stock rose nearly 15% to 532.33 last week thanks to solid earnings. Investors may have been able to buy MPWR shares into the August 2 earnings gap, as this removed some other resistance areas. But as of Friday’s close, the monolithic stock was 17% above the 200-day line and 24% above the 50-day line. The line relative force It is already at a high level, indicating an outperformance of MPWR stock against the S&P 500 Index. The stock has 580.10 buying points from a fixation going back to late November. But ideally, the stocks will pause and form an indicator. This should provide a lower entry and also allow the moving averages to catch some ground.
It’s the same story for Axcelis, Onsemi and KLAC stocks, all of which have posted gains in the past two weeks, now spanned from moving averages but lower than traditional breakouts. ADI’s stock is much the same, although earnings for analog hardware will come out on August 17th.
Apple stock rose 1.75% to 165.35, the fifth consecutive weekly gain. Investors could have bought shares of AAPL as it liquidated the 200-day streak on July 29 after earnings. At 3.7% above the 200-day line, action can still be taken as early income. The RS line for Apple stock is already at an all-time high. The official buy point is 13.04, but the handle, at current levels or slightly higher, would be attractive.
Tesla stock fell 6.6% to 864.51 on Friday, down 3% for the week as it erased much of a seven-day winning streak. This also pushed stocks below the 200-day line. But if TSLA stock can hold a few days around current levels, a rise above Thursday’s high of 940.82 could provide a solid entry. It would be too low for a traditional handle.
At Tesla’s annual meeting Thursday night, shareholders approved a 3-for-1 stock split, even though that had been expected for months. CEO Elon Musk spoke at length about Tesla’s prospects, but didn’t say anything exciting. Elon Musk’s ongoing Twitter saga could affect TSLA stock.
Legal experts say Twitter (TWTR) has a strong case that Musk should go ahead with the $54.20 per share buyout. The Musk-Twitter experiment will take place in October. Amid the latest legal filings, TWTR stock rose 3.6% to 42.52 on Friday, reclaiming its 200-day streak and reaching its best level in nearly three months.
Meanwhile, the California Department of Automobiles on July 28 accused the electric vehicle giant of misleading customers about its autopilot and FSD capabilities, according to files first reported by the Los Angeles Times. But if the state DMV wins its action, it will likely only require Tesla to modify its advertising and marketing.
The C stock has seen a massive rupture since it crossed the 200-day line on July 5th. News broke out on August 1 that PepsiCo (PEP) was taking a large stake in CELH and would be the main distributor for the energy drink maker.
On Friday, CELH stock fell 9% to 98.62, despite bouncing off the 10-day line and still jumping nearly 11% for the week. The percentage score will go up from the small S&P 600 to the S&P MidCap 400. But fewer mutual funds and ETFs track the mid-cap fund versus the S&P 600, so the result is that fewer index funds may own CELH shares. Also, the leader of the energy drink monster drink (MNST) down 5% on Friday on weak earnings.
Percentage earnings are due on Tuesday, so investors need to make decisions. If you bought the CELH stock near the 200-day or the resistance around 72, you still have a lot of support. You can choose to lock in some partial profits. For those who bought an extended, for example in Pepsi News on Monday, you could have a bit of protection or you could be sitting on a loss bound for results. The percentage stock tends to move a lot on earnings.
Market Rise Analysis
It was a mixed week for the stock market rally. Growth stocks and small businesses led the way while the Dow Jones and S&P 500 were little changed
But given the deluge of earnings and a frantic jobs report pointing to big increases in Fed rates for a longer period, the rally could have sent the market into a sell-off late last week after stocks surged to resistance levels. But they stopped, at most. Friday’s work was particularly encouraging.
The Nasdaq is above its highs in early June, but is approaching a trend line starting from the start of the year. The Russell 2000 is at its highest in early June while the S&P 500 and Dow Jones are still operating on that key level.
It would be worth a longer pause or a modest withdrawal. The market rally has gone a long way, with most of the advance coming from relatively light volumes.
Meanwhile, a lot of blue-chip stocks or potential leaders could use a break. Major indexes pausing or reversing will provide an opportunity for the likes of Monolithic Power and Onsemi to form handles, create fewer entries and let the moving averages catch up.
The same goes for shares of Apple, Tesla, and many more.
Market leadership is expanding. Biotechnology, chips, aerospace/defense, solar, steel, and energy, to name a few, are showing their strength.
These are encouraging signs. But this could be a bear market rally that is eventually losing steam.
What are you doing now
Investors should play this market, but not for all balls. There are still reasons to be cautious about the current market. At any given time, not many stocks are flashing buy signals, while tremors and sectoral rotation can make holding positions difficult.
So add exposure carefully. There is still an argument for taking some partial profits.
Build your own watch lists. Be sure to create a broad network so you can identify potential leaders from a variety of sectors.
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