Dow Jones Futures: New Market Rally Attempt Already Reeling; Netflix, Tesla

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures.

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The main indexes had a wild week, with the major indexes breaking to bear market lows before rebounding powerfully on Thursday despite a hot inflation report. Stocks resumed selling Friday as Treasury yields powered higher.

While a market rally attempt is still ongoing, the major indexes are all in major downtrends. Stocks that flash buy signals or set up, suddenly crack. Investors should remain cautious until the market shows real signs of strength.

Tesla (TSLA) and Netflix (NFLX) headline earnings in the coming week. TSLA stock has tumbled to 52-week lows. NFLX stock has set up in a bottoming base, but faces significant overhead resistance.

Meanwhile, Shockwave Medical (SWAV), Wolfspeed (WOLF), Aehr Test Systems (AEHR), Albemarle (ALB) and Digi International (DGII) are growth stocks that are holding up reasonably well, but are not yet in position amid the current weak market. All have suffered damage in recent days, including Friday. They could break decisively lower if the market shows further weakness. But, if the market strengthens, these could be notable winners.

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.

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Stock Market Last Week

The stock market sold off to fresh bear market lows, rebounded, and then started sliding again in volatile weekly action.

The Dow Jones Industrial Average rose 1.2% in last week’s stock market trading. The S&P 500 index slid 1.5%. The Nasdaq composite tumbled 3.1%. The small-cap Russell 2000 fell 1%.

The 10-year Treasury yield leapt 13 basis points to 4.01%, extending the weekly winning streak to 11 weeks. The 10-year Treasury yield hit a 14-year high of 4.06% on Thursday. The two-year Treasury yield, more closely tied to Fed policy and where rates may be headed, surged to 4.5%.

U.S. crude oil futures fell 6.8% to $86.40 a barrel last week. Natural gas prices slumped 3.8%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) slumped 3.6% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) rose 1.3%. The iShares Expanded Tech-Software Sector ETF (IGV) tumbled 5.7% while the VanEck Vectors Semiconductor ETF (SMH) plunged 8.2%, both to fresh two-year lows.

SPDR S&P Metals & Mining ETF (XME) declined 3.1% last week. The Global X U.S. Infrastructure Development ETF (PAVE) sank 1.5%. U.S. Global Jets ETF (JETS) ascended 5.75%. SPDR S&P Homebuilders ETF (XHB) lost 4.2%. The Energy Select SPDR ETF (XLE) gave up 1.9% and the Financial Select SPDR ETF (XLF) edged up 0.4%. The Health Care Select Sector SPDR Fund (XLV) advanced nearly 1%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) tumbled 9.4% last week, on the cusp of breaking below its March 2020 Covid crash low. ARK Genomics ETF (ARKG) dived 7.1%, still above its June lows. TSLA stock is the top holding…