Dow Jones futures rose Monday morning, along with S&P 500 futures and Nasdaq futures. President Donald Trump says he'll announce new tariff hikes on Monday and later in the week.
The stock market rally had an up-and-down week amid Trump tariff headlines, huge earnings and economic data. The major indexes ultimately retreated, with Nasdaq falling below key support.
In this environment, it's important to step back from daily or intraday swings. Use weekly charts to help put the major indexes and individual stocks in perspective.
Tesla sold off last week to 2025 lows, threatening to break decisively below a recent consolidation.
Dow Jones Futures Today
Dow Jones futures climbed 0.55% vs. fair value. S&P 500 futures advanced 0.55%. Nasdaq 100 futures rose 0.8%. That would suggest that the Nasdaq composite will open slightly above the 50-day line.
The 10-year Treasury yield edged up to 4.49%.
Crude oil climbed more than 1%.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Trump Tariffs
President Trump said Sunday that he'll hike tariffs on all steel and aluminum imports to 25% on Monday. He also said he will announce reciprocal tariffs later in the week on other countries that impose duties on U.S. goods.
Shares of U.S.-based steel and aluminum stocks rallied early Monday.
Last week, Trump hiked China tariffs across the board by 10%, while suspending 25% tariffs on Mexico and Canada for 30 days.
China reportedly will levy tariffs of up to 15% on U.S. autos and energy, though it doesn't import those in significant numbers. It's also reportedly drawing up a list of more U.S. companies to probe, including Broadcom. Beijing last week offered initial targeted retaliatory duties and probes.
Trump has also promised tariff hikes on the European Union.
Key Earnings, Economic Data
Robinhood, Shopify, Palo Alto Networks, Howmet Aerospace, AppLovin, DoorDash, HubSpot and Reddit are among the notable earnings reports this week.
Investors also will get the January PPI and CPI inflation reports.
AppLovin, Shopify, DoorDash, Howmet Aerospace and HubSpot stock are on IBD Leaderboard. TSLA stock is on the IBD Leaderboard watchlist. Reddit stock, HubSpot, Howmet Aerospace are on the IBD 50. Shopify stock and HubSpot are on the IBD Big Cap 20.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Stock Market Rally
The stock market rally tumbled Monday morning on Trump tariff threats, rebounded for most of the week before falling again Friday on hot inflation expectations and renewed Trump tariff chatter.
The Dow Jones Industrial Average gave up 0.5% in last week's stock market trading. The S&P 500 index dipped 0.2%. The Nasdaq composite fell 0.5%, tumbling 1.4% on Friday to drop below the 50-day line.
The Dow, S&P 500 and even the Nasdaq aren't that far from record highs. But the Nasdaq is below its 50-day line while the S&P 500 is close to that key level.
The small-cap Russell 2000 slipped 0.35%, continuing to hit resistance at the 50-day.
With the indexes at key levels, it's easy for the market to look bullish or bearish on any given day. Looking at weekly charts can help smooth out the changes.
Several leading stocks flashed buy signals in the past week. There were some huge earnings winners, but also some notable losers.
The 10-year Treasury yield sank eight basis points to 4.48% after hitting a 2025 low of 4.4% during the week.
U.S. crude oil futures fell 2.1% to $71 a barrel last week.
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ETFs
Among growth ETFs, the Innovator IBD 50 ETF rallied 5.3% last week, with some big winners paying off. The iShares Expanded Tech-Software Sector ETF gained 1.7%, with Palo Alto stock and AppLovin notable holdings. The VanEck Vectors Semiconductor ETF advanced 0.6%.
ARK Innovation ETF dipped 0.2% last week and ARK Genomics ETF climbed 0.45%. Tesla stock is the No. 1 holding across Ark Invest's ETFs. Robinhood stock and Shopify also are key Cathie Wood holdings, with Reddit stock also a position.
SPDR S&P Metals & Mining ETF bounced 1.5% last week. The Energy Select SPDR ETF popped 1.1% and the Health Care Select Sector SPDR Fund dipped 0.3%. The Industrial Select Sector SPDR Fund retreated 0.8%. The Financial Select SPDR ETF climbed 0.7%.
Time The Market With IBD's ETF Market Strategy
Tesla Stock
Tesla stock tumbled 10.6% for the week to 361.62, hitting a two-month low. Shares are now 26% below their Dec. 18 all-time high of 488.54 buy point. Shares have tumbled since hitting resistance on Jan. 31 at a downward-sloping trendline
If TSLA stock rebounds from here the pattern would be a double-bottom base with a 439.74 buy point. A rebound above the 50-day line could offer an early entry.
But there's a danger that Tesla stock breaks considerably lower.
TSLA stock fell slightly early Monday.
The relative strength line for Tesla stock is at a three-month low.
Tesla sales have tumbled in Europe to start 2025, a sign that CEO Elon Musk's increasingly political statements are hurting the brand there as well as in the U.S. Meanwhile, Musk-fueled optimism about Tesla robotaxis may have waned somewhat.
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What To Do Now
The stock market remains choppy and headline driven. It's one of the most challenging environments for active investors. There's enough strength to lure traders in and enough weakness to shake them out.
To be fair, leading stocks have looked better than the major indexes. But there have been some big blowups in recent weeks due to earnings, AI news and more.
Investors can make new or add-on buys, but it's definitely a time to be incremental. And there's nothing wrong with standing pat or even reducing exposure if your stocks aren't working or your risk tolerance has been breached.
While daily charts are useful to identifying specific buy points, it helps to have a longer-term perspective. Use weekly charts to avoid getting too giddy or glum about the market or individual stocks.
Staying engaged and flexible is key. Have your watchlists and exit plans ready. If you've done that homework ahead of time, it's easier to keep your emotions level when the market is topsy-turvy.
Shopify, Robinhood, AppLovin, Palo Alto, Reddit, Howmet and other earnings will be important. The CPI inflation report is due Wednesday with the PPI on Thursday.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
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