Dow Jones Futures: Market Rally Bends But Doesn’t Break; Big Week For Tesla, EV

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally fell last week, but the major indexes slashed losses by Friday’s close, with the Nasdaq once again facing a big hurdle.

X

Dow Jones component UnitedHealth (UNH) soared into a buy zone Friday on strong earnings, propelling other health insurers past buy points, including Centene (CNC) and Humana (HUM). Option Care Health (OPCH) and Shockwave Medical (SWAV) also jumped into buy areas.

It’s a big week for EV giants Tesla (TSLA) and China’s BYD (BYDDF). Tesla earnings are due Wednesday night, with investors looking to see how the automaker weathered Covid shutdowns and other headwinds last quarter. BYD, which announced booming preliminary first-half earnings this past week, will begin sales of the Seal sedan, a Model 3 rival, on Monday. Both Tesla stock and BYD fell significantly last week, and need time to repair.

Chip stocks are nowhere near being actionable. But they are showing some signs of strength amid a long, painful downtrend. That’s a positive sign for a sustained market rally.

UNH stock is on IBD Leaderboard. UnitedHealth and CNC stock are on the IBD 50. HUM stock is on the IBD Big Cap 20. Option Care Health 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 actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally fell for most of the week, but recovered most of its losses by the end.

The Dow Jones Industrial Average dipped 0.2% in last week’s stock market trading. The S&P 500 index sank 0.9%. The Nasdaq composite retreated 1.7%. The small-cap Russell 2000 fell 1.4%

The 10-year Treasury yield tumbled 17 basis points to 2.93%. The two-year Treasury yield rose 5 basis points to 3.12%. The inverted Treasury yield curve from the two-year to 10-year is a recession warning, but it’s a little less inverted than mid-week. The 1-year yield, which moved above the two-year yield for much of the week, closed at 3.1%.

U.S. crude oil futures tumbled 6.9% to $95.78 a barrel last week, even after bouncing quite a bit from Thursday’s lows.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) sank 0.9% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) dipping 0.6.  The iShares Expanded Tech-Software Sector ETF (IGV) tumbled 4.4%, with a ServiceNow (NOW) warning taking a toll on the sector. The VanEck Vectors Semiconductor ETF (SMH) popped nearly 3%.

SPDR S&P Metals & Mining ETF (XME) edged down 0.1% last week. The Global X U.S. Infrastructure Development ETF (PAVE) gained 1 cent. U.S. Global Jets ETF (JETS) ascended 1.4%. SPDR S&P Homebuilders ETF (XHB) rose 0.5%. The Energy Select SPDR ETF (XLE) slumped 3% and the Financial Select SPDR ETF (XLF) shed 0.9%. The Health Care Select Sector SPDR Fund (XLV) dipped 0.4%, rebounding late in the week. UNH stock is a major XLV stock…