Dow Jones futures rose modestly Monday afternoon along with S&P 500 futures and Nasdaq futures, while Bitcoin pulled back from a record high. President Donald Trump, sworn in, is expected to sign a flurry of day one executive orders. U.S. markets are closed.
The stock market rally is looking strong, with the Nasdaq and S&P 500 above their 50-day moving averages and many leaders flashing buy signals. The video embedded in the article analyzes the market action in depth and reviews Viking stock, ServiceNow, Amazon and much more.
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Stocks Surge Into Trump 2.0; Viking Holdings, ServiceNow, Amazon.com In Focus
Dow Jones Futures Climb
Dow Jones futures climbed 0.4% vs. fair value as of 1 p.m. ET. S&P 500 futures advanced 0.4% and Nasdaq 100 futures rose 0.4%.
Futures are now shut but will reopen at 6 p.m. ET. U.S. stock and bond markets were closed for the Martin Luther King holiday.
Crude oil fell more than 1%.
Bitcoin is slightly below $103,000. Overnight it topped $109,000, an all-time high, on Trump optimism.
Trump launched his own cryptocurrency on Friday night. Trump businesses control 80% of the $TRUMP meme coin. Melania Trump has launched her own meme coin, $MELANIA.
Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
These Stocks Are Building Big Gains As Trump Looms
Trump Speech, Executive Orders
President Trump said in his inaugural address that he’s declaring national emergencies on energy and the southern border. He also said he would revoke the EV mandate, alluding to fuel-economy rules that encourage electric vehicles.
Trump refrained new tariffs, after previously threatening big day one hikes on China, Canada and Mexico. Instead, he wants to study the issue initially.
Trump is expected to issue some 100 executive orders on day one, many of which were signaled in his speech and in recent days. But he’s only signed a few so far.
TikTok restored operations Sunday after Trump said he will issue an order giving the Chinese-owned video app a temporary reprieve from a law banning it. That could affect Meta Platforms (META) and Snapchat parent Snap (SNAP).
The executive orders could have a big impact on Wall Street, especially specific sectors and stocks. But markets may have already priced much of this news.
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Stock Market Rally
The stock market rally showed strong action last week. Treasury yields tumbled on tame inflation data while strong earnings also buoyed the major indexes.
The Dow Jones Industrial Average gained 3.7% in last week’s stock market trading, briefly topping the 50-day moving average Friday. The S&P 500 index popped 2.9% and the Nasdaq composite 2.45%, both moving above their 50-day lines Friday.
The small-cap Russell 2000 jumped about 4%, but is still below the 50-day line.
The Invesco S&P 500 Equal Weight ETF (RSP) and The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) also rebounded from their 200-day lines, jumping 3.9% and 3.7%, respectively, for the week. RSP is just below the 50-day line while QQEW cleared that key level for the first time in a month.
All the key indexes and equal-weight ETFs are still in ranges going back to December.
Wide Range Of Stocks Up
More bullishly, leading stocks across a wide range of industries are acting well.
Tesla (TSLA), ServiceNow (NOW), Vertiv (VRT), Amazon.com (AMZN) and Broadcom (AVGO) flashed buy signals. Goldman Sachs (GS), Energy Transfer (ET), Viking Cruises (VIK) and Quanta Services (PWR) also are actionable, along with several of their respective peers.
AI giant Nvidia (NVDA) rose modestly for the week, but is still below the 50-day line.
The 10-year Treasury yield dived 16 basis points to 4.61%, backing off Tuesday’s 52-week intraday high of 4.81%.
U.S. crude oil futures rose 1.7% to $77.88 a barrel last week, but off midweek highs above $80.
Bitcoin shot up to 104,767.70 as of 4 p.m. ET Friday on reports of looming pro-crypto Trump executive orders.
Cruise Lines Sail On Lifted Targets, Demand Strength. One Breaks Out.
Tesla Stock
Tesla stock surged 8.05% to 426.50 last week, rebounding from the 10-week line and breaking a downtrend within a short consolidation. It could have a new base after one more week, with a potential 488.54 buy point. Tesla earnings are due Jan. 29, with focus on Elon Musk’s latest timelines for self-driving, the “affordable” electric-vehicle model and more.
Musk is a huge supporter and adviser to Donald Trump.
Other Stocks In Buy Zones
ServiceNow, Broadcom, Amazon, Quanta Services and Vertiv stock all flashed early entries within bases.
Viking stock, Goldman Sachs and Energy Transfer are breakouts.
Time The Market With IBD’s ETF Market Strategy
What Investors Should Consider Now
The stock market rally is on the upswing, with strong bullish signals. This could still be a short-term move in a choppy trend, but right now the action in the indexes and especially leading stocks is positive.
Investors should take advantage, adding exposure gradually. Also, they should look to buy stocks beyond the artificial intelligence and tech space, given the breadth of leadership right now.
Investors would be wise to work on watchlists, scanning for the stocks and sectors that are leading and setting up. But they should be ready to scale back if the market does retreat.
The Trump inauguration could be a buy or sell the news event.
Earnings season will ramp up this week, with Netflix (NFLX), GE Vernova (GEV), GE Aerospace (GE) and American Express (AXP) among the many notable names.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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