Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. U.S. markets will be closed Monday for the Martin Luther King holiday. Donald Trump’s inauguration also will be Monday, with the incoming president expected to issue a flurry of day one executive orders.
The stock market rally had a strong week, with the Nasdaq and S&P 500 moving back above their 50-day moving averages. Treasury yields tumbled on tame inflation data while strong earnings also buoyed the major indexes. Bitcoin spiked to near record highs on expectations of pro-crypto Trump moves.
↑
X
Stocks Surge Into Trump 2.0; Viking Holdings, ServiceNow, Amazon.com In Focus
Many stocks flashed buy signals, including Tesla (TSLA), ServiceNow (NOW), AI data center infrastructure play Vertiv (VRT), Amazon.com (AMZN) and Broadcom (AVGO). 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 market is looking bullish again, but this could be part of the up-and-down choppy action for the past several weeks.
So investors can keep adding exposure, gradually.
Nvidia stock is on IBD Leaderboard, with Tesla stock on the Leaderboard watchlist. Viking, ServiceNow, Goldman and Amazon stock are on SwingTrader. Broadcom, Quanta Services and Vertiv stock are on the IBD 50. Vertiv, Broadcom and ServiceNow stock are on the IBD Big Cap 20.
ServiceNow was Friday’s IBD Stock of The Day. Broadcom stock was Thursday’s pick.
The video embedded in the article analyzes the weekly market action in depth and reviews Viking stock, ServiceNow, Amazon and many other stocks and ETFs.
Trump Executive Orders
Trump will be sworn in Monday, and he’s expected to get right to work, issuing perhaps 100 executive orders on day one.
Trump’s executive orders are expected to cover a range of issues, including energy policies, deportations, bitcoin, TikTok and more.
Those could have a big impact on Wall Street, especially specific sectors and stocks. But markets may have already priced much of this news in.
On Friday, Trump spoke with Chinese President Xi Jinping on trade, TikTok and much more, reporting a “very good” call. That could ease trade war fears as Trump reenters the White House.
These Stocks Are Building Big Gains As Trump Looms
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.
With U.S. stock and bond markets closed Monday for the Martin Luther King holiday, U.S. investors may not get a clear initial reaction to Trump’s day one moves until Tuesday.
Bitcoin and other cryptocurrencies will trade, along with stock markets around the world.
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 leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally showed strong action in the past week.
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.
More bullishly, leading stocks across a wide range of industries are acting well.
The 10-year Treasury yield dived 16 basis points to 4.61%, falling back from a 52-week high of 4.81% intraday Tuesday.
U.S. crude oil futures rose 1.7% to $77.88 a barrel last week, but finished off midweek highs above $80.
Bitcoin shot up to nearly $106,000 intraday Friday, just below all-time highs, trading at 104767.70 as of 4 p.m. ET. Bitcoin and other cryptocurrencies rallied on reports of a pro-crypto Trump executive order on Monday, creating a crypto advisory council. Falling Treasury yields, along with general risk-on sentiment, also buoyed bitcoin.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) jumped 3.6% last week. The iShares Expanded Tech-Software Sector ETF (IGV) bounced 3.2%, with ServiceNow stock a big holding. The VanEck Vectors Semiconductor ETF (SMH) rallied 4.5%. Nvidia stock and Broadcom are significant positions in SMH.
ARK Innovation ETF (ARKK) rebounded 3.7% last week but ARK Genomics ETF (ARKG) fell 2.55%. Tesla stock is a major holding across Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) leapt 5.6% last week. SPDR S&P Homebuilders ETF (XHB) soared 8.1%. The Energy Select SPDR ETF (XLE) soared 6.3% and the Health Care Select Sector SPDR Fund (XLV) edged up 0.4%. The Industrial Select Sector SPDR Fund (XLI) shot up 4.9%.
The Financial Select SPDR ETF (XLF) surged 6.15%, with Goldman stock a key holding.
Cruise Lines Sail On Lifted Targets, Demand Strength. One Breaks Out.
Tesla Stock
Tesla stock surged 8.05% to 426.50 for the week, rebounding from the 10-week line and breaking a short, relatively steep downtrend within a short consolidation. TSLA stock could have a new base after one more week, with a potential 488.54 buy point. Tesla earnings are due on Jan. 29, with a lot of interest in Elon Musk’s latest timelines for self-driving, the “affordable” EV 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 To Do Now
The stock market rally is on the upswing, with strong bullish signals this past week. This may end up being 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 of buying opportunities, adding exposure gradually. Look to buy stocks beyond the AI and tech space, given the breadth of leadership right now.
Work on your watchlists, scanning for the stocks and sectors that are leading and setting up. But be ready to scale back if the market does retreat.
The Trump inauguration could be a buy or sell the news event when the stock market reopens Tuesday.
Earnings season will ramp further this coming week, with Netflix (NFLX), GE Vernova (GEV), GE Aerospace (GEV) 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.
YOU MIGHT ALSO LIKE:
Why This IBD Tool Simplifies The Search For Top Stocks
Catch The Next Big Winning Stock With MarketSurge
Best Growth Stocks To Buy And Watch
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
How To Invest: Rules For When To Buy And Sell Stocks In Bull And Bear Markets
