Dow Jones futures rose modestly Monday morning, along with S&P 500 futures and Nasdaq futures. It comes after stocks surged to record highs following Donald Trump's presidential victory. Bitcoin topped $82,000 amid a crypto run.
The Dow Jones and S&P 500 had their best weeks in a year while hundreds of leading stocks gapped out to new highs betting on a tailwind under a second Trump administration. Tesla skyrocketed back above a $1 trillion market cap, with CEO Elon Musk was a huge backer of the Trump election effort. Palantir Technologies had an even better week, with earnings leading the way.
There were many big earnings winners last week, though also notable losers.
Before the open, Monday.com reported better-than-expected Q3 profit and sales, but only guided Q4 revenue in line with consensus. Monday.com stock, which was extended, plunged well more than 10% early Monday.
Meta Platforms, Google-parent Alphabet, CrowdStrike, Vertex Pharmaceuticals and brand-new Dow Jones component Nvidia. Meta and Google stock are just below buy points. CrowdStrike stock, Vertex and Nvidia are actionable now.
Nvidia, Meta and Vertex stock are on IBD Leaderboard, with Tesla stock on the Leaderboard watchlist. Nvidia stock is on SwingTrader. Palantir stock, Nvidia and Monday.com are on the IBD 50. Google was Friday's IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures were up 0.5% vs. fair value. S&P 500 futures rose 0.5% while Nasdaq 100 futures gained 0.5%.
Crude oil futures fell more than 2%.
China's consumer price index rose 0.3% in October vs. a year earlier, below views for an unchanged 0.4%. Producer prices slumped 2.9% vs. a year earlier, picking up from September's 2.8% drop and views for a 2.6% decline. The data underscored consumer and weakness after Friday's stimulus plan disappointed.
U.S. bond markets are closed Monday for Veterans Day, but not stock markets.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Bitcoin Tops $82,000 Mark
Bitcoin topped $82,000 early Monday, extending a Trump crypto run.
The pioneer cryptocurrency was at $76,783.86 as of 4 p.m. ET Friday, up 14.1% over four sessions starting with Election Day.
President-elect Donald Trump was pro-crypto during the campaign and is expected to offer a friendlier regulatory regime for digital currencies.
Bitcoin ETFs and related stocks such as Coinbase Global and Robinhood Markets surged again early Monday.
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Stock Market Rally
The stock market rally saw huge gains in the past week. The Dow Jones Industrial Average jumped 4.6% in last week's stock market trading, the S&P 500 index popped 4.7% and the Nasdaq composite leaped 5.7% — all hitting record highs.
The small-cap Russell 2000 spiked 8.6% to its best levels since its all-time high in November 2021.
Markets are booming on hopes that Trump's return to the White House, backed by a GOP Congress, will mean tax cuts, deregulation and increased merger activity.
Meanwhile, the Federal Reserve cut rates again on Thursday while Fed Chief Jerome Powell signaled rate cuts would continue. He said policymakers won't consider Trump's fiscal policies until they actually take shape.
As the sector ETFs below show, stock market gains were broad and deep.
Dozens, if not hundreds of stocks had double-digit weekly gains. Tesla skyrocketed 29%, but Palantir stock shot up 39%, Axon Enterprise nearly 42% and on and on.
The 10-year Treasury yield fell 5 basis points to 4.31%, tumbling from Wednesday's four-month intraday high of 4.48%. The two-year Treasury yield, more closely tied to Fed policy, climbed 5 basis points to 4.25%.
U.S. crude oil futures rose 1.3% to $70.38 a barrel for the week.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF leaped 11.5% last week. The iShares Expanded Tech-Software Sector ETF ran up 9.7%, with Palantir and CrowdStrike both notable members. The VanEck Vectors Semiconductor ETF gained 6%, with Nvidia stock the dominant member.
ARK Innovation ETF spiked 15.9% last week and ARK Genomics ETF bolted 7.9%. Tesla stock is still a big holding across Ark Invest's ETFs. Cathie Wood has also built up a big Nvidia position.
SPDR S&P Metals & Mining ETF jumped 8.5% last week. The Global X U.S. Infrastructure Development ETF advanced 9.2%. U.S. Global Jets ETF ascended 5.6%. SPDR S&P Homebuilders ETF gained 3.6%. The Energy Select SPDR ETF popped 6.5%. The Health Care Select Sector SPDR Fund was up 1.65%, with Vertex stock a holding. The Industrial Select Sector SPDR Fund bounced 6%.
The Financial Select SPDR ETF rallied 5.5% and the SPDR S&P Regional Banking ETF spiked 10.45%.
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Stocks Near Buy Points
Meta stock rose 3.9% to 589.34 last week, rebounding from the 10-week line and retaking the 21-day. The Facebook and Instagram parent now has a new flat base, base-on-base pattern with a 602.95 buy point.
Google stock gained 4.1% to 178.54 last week, nearing a 182.02 cup-with-handle buy point. A move above Thursday's high of 181.08 would offer a slightly early entry. The relative strength line is still near the lowest levels since March, reflecting Google's underperformance vs. the S&P 500.
CrowdStrike stock jumped 8.9% to 330.03, retaking the 200-day and clearing a 323.94 cup-with-handle buy point, according to MarketSmith analysis. The RS line still well off June's peak, though it's making a comeback. CrowdStrike plunged after triggering a global IT outage on July 19, with fears of hefty liability costs and long-term reputational damage in focus. The cybersecurity giant reports earnings in late November.
Vertex stock surged 9.7% in the week to 516.74. Shares peeked past early entries on Thursday then ran past the 510.63 flat-base buy point on Friday. Vertex earnings and sales beat on Nov. 4, but the focus is on the pipeline. In January, the FDA will consider approving Vertex's next-generation cystic fibrosis drug and its pain treatment.
Nvidia stock, which joined the Dow Jones on Nov. 8, rallied 8.7% in the week to 147.15, back above a 140.76 consolidation buy point. The buy zone runs to 147.80. Investors also could treat the Oct. 22 high of 144.42 as a high-handle entry. Nvidia earnings are due Nov. 20.
Five S&P 500 Stocks On This Elite IBD List Near Buy Points
Tesla Stock
Tesla stock spiked 29% to 321.22, the biggest weekly gain since the week ended Jan. 27, 2023. Tesla stock now a $1.03 trillion valuation, topping the $1 trillion for the first time in two years.
Musk was a huge Trump supporter, and could join the new administration in an official or advisory capacity.
It's not clear how much Trump could or will do regarding EVs, or even if those moves would be a net benefit to Tesla. But what is clear is that TSLA stock reflects an investor belief that Trump will be a boon to Tesla.
Wedbush analyst Dan Ives, a longtime Tesla bull, raised his TSLA price to 400 on Monday. Tesla stock jumped yet again
Bitcoin Tops $82,000 Amid Trump Crypto Run. Next Stop $100K?
What To Do Now
The stock market rally is in great shape. The major indexes and leading stocks suggest that this could be the start of another big bull run.
So you want to be heavily invested. If you aren't, build up your exposure gradually, buying leading stocks that aren't extended. If you are, you can make more buys, depending on how your risk tolerance is. But also go through your portfolio and see if you there are can prune some laggards and funnel that cash into winners.
A pullback in the indexes or near-vertical stocks would not be a surprise, though that doesn't seem to be happening Monday. And while a massive period of news is in the rearview mirror, earnings season will remain heavy for the next few weeks.
Work on your watchlists to spot stocks that are in range or setting up.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
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