Dow Jones Futures: Market Rally Falls, Holds Key Levels; Tesla Has ‘Super Bad’ Sell-Off

The stock market rally paused in a holiday-shortened week. The major indexes retreated modestly but held key levels even as Federal Reserve policymakers signaled big rate hikes are likely for several more meetings. But it’s unclear if the recent market action was bullish or bearish.

show off its latest operating system changes. There’s buzz that Apple WWDC will reveal an NFL streaming package. Still, Apple stock fell solidly on Friday, closing lower for the week.

Tesla stock tumbled on Friday and for the week as Tesla CEO Elon Musk reportedly wants to cut 10% of salaried jobs amid a “super bad feeling” about the economy.

Beyond the Tesla (TSLA) move itself, it’s a reminder that volatile, highly valued growth names can make big moves off the bottom, but also sell off hard.

Northrop Grumman (NOC), Dollar Tree (DLTR), Flex LNG (FLNG), Albemarle (ALB) and ZIM Integrated Resources (ZIM) are five stocks trading near buy points. All have relative strength lines at or near highs, a bullish sign. The RS line, the blue line in the charts provided, tracks a stock’s performance vs. the S&P 500 index.

NOC stock and Albemarle are on IBD Leaderboard. ZIM stock is on the IBD 50. The video embedded in this article discussed the market rally action this week and analyzed Northrop, DLTR stock and ALB 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.

Stock Market Rally

The stock market rally retreated modestly for the week, though with some big daily moves in the major indexes.

The Dow Jones Industrial Average fell nearly 1% in last week’s stock market trading. The S&P 500 index gave up 1.2%. The Nasdaq composite slumped 1%. The small-cap Russell 2000 edged down 0.2%.

The 10-year Treasury yield leapt 21 basis points to 2.96%, rebounding toward 3% amid generally strong economic data and hawkish Fed comments. That follows three weeks of significant declines in the 10-year yield.

U.S. crude oil futures rose 3.3% to $118.17 a barrel last week. Gasoline futures shot up 8.7%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.2% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up about 1%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 0.7%. The VanEck Vectors Semiconductor ETF (SMH) sank 1.5%.

SPDR S&P Metals & Mining ETF (XME) retreated 2.2% last week. The Global X U.S. Infrastructure Development ETF (PAVE) dipped 0.2%. U.S. Global Jets ETF (JETS) descended 4.6%. SPDR S&P Homebuilders ETF (XHB) retreated 1%. The Energy Select SPDR ETF (XLE) gained 1.1% and the Financial Select SPDR ETF (XLF) dropped 2%. The Health Care Select Sector SPDR Fund (XLV) skidded 3.1%

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) stepped back nearly 5% last week and ARK Genomics ETF (ARKG) 3.7%. Tesla stock remains the No. 1 holding across Ark Invest’s ETFs.