Dow Jones Futures: Apple Leads Earnings Wave, Fed Rate Hike Looms; What To Do

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally had strong gains last week, breaking above some key resistance. Techs pulled back Friday on Snap (SNAP) and other poor earnings.

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Apple (AAPL), Microsoft (MSFT), Google parent Alphabet (GOOGL), Amazon.com (AMZN) and Facebook parent Meta Platforms (META) headline a massive week for earnings.

META stock and Google sold off hard Friday on Snap results and lack of guidance. Microsoft stock fell back to its 50-day line. Amazon merely trimmed big weekly gains. But Apple stock is the one of the five even close to its 200-day line, and it has no obvious buy point in sight.

Meanwhile, the Federal Reserve meets, with another big 75 basis-point rate hike likely coming Wednesday. Guidance for future moves will be key. Investors have started to downsize the September rate hike, with limited tightening after that. That’s in large part to the economy rapidly slowing, perhaps even falling into a recession. A recession, along with still-high inflation, is not a great mix for corporate profits.

Fed Recession May Already Be Here; What That Means For S&P 500

While the recent action in the major indexes has been promising, investors should still be cautious as they add exposure.

Not many leading stocks have been flashing buy signals. Meanwhile, several promising stocks have seen sudden sell-offs, including Dollar Tree (DLTR), Lantheus (LNTH), Agilon Health (AGL) and Li Auto (LI), forcing tough decisions for investors.

LNTH stock is on IBD Leaderboard, while Agilon exited Friday. Li Auto stock and Agilon are on the IBD 50. MSFT stock and Google are on IBD Long-Term Leaders.

The video embedded in the article reviewed the important market action, while also analyzing Cross Country Healthcare (CCRN), Li Auto and DLTR stock.

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 had strong weekly gains, even with Friday’s retreat.

The Dow Jones Industrial Average rose 2% in last week’s stock market trading. The S&P 500 index gained 2.6%. The Nasdaq composite jumped 3.3%. The small-cap Russell 2000 leapt 3.7%.

The 10-year Treasury yield tumbled 15 basis points to 2.78%, plunging 25 basis points on Thursday-Friday. The Treasury yield curve is inverted from the one-year to the 10-year. The six-month T-bill rate, at 2.94%, is significantly above the 10-year Treasury yield. All of that reflects growing recession risks.

U.S. crude oil futures fell nearly 3% to $97.59 a barrel last week.

ETFs

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) gave up 0.6% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) advanced 0.45%. The iShares Expanded Tech-Software Sector ETF (IGV) popped 5.4%, with MSFT stock a major component. The VanEck Vectors Semiconductor ETF (SMH) ran up 5.6%.

The…