Dow Jones futures will open Sunday evening, along with S&P 500 and Nasdaq futures. U.S. markets will be closed Monday for the Martin Luther King holiday. Donald Trump’s inauguration will also take place on Monday, with the new president expected to issue a series of executive orders on day one.
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 fell following subdued inflation data, while strong earnings also supported major indexes. Bitcoin has reached near-record highs due to expectations over Trump’s pro-crypto moves.
Tesla (TSLA), ServiceNow (NOW), Vertiv (VRT), Amazon.com (AMZN) And Broadcom (AVGO) issued buy signals. Goldman Sachs (GS), Energy transfer (AND), Viking cruises (VIK) And Quanta Services (REP) are also exploitable, along with several of their respective peers.
The video embedded in the article takes an in-depth look at weekly market developments and reviews Viking stocks, ServiceNow, Amazon and more.
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Stocks jump in Trump 2.0; Viking Holdings, ServiceNow and Amazon.com in brief
Friday evening, the president-elect Trump launched his own cryptocurrency. The value of the $TRUMP meme coin has skyrocketed, with Trump companies controlling about 80% of it.
TikTok has stopped its operations in the United Statescomplying with a US law that banned the app of short videos if its Chinese parent company Bytedance did not divest its business by Sunday. Trump announced on social media that he would issue an executive order granting a temporary reprieve to TikTok.
Dow Jones Futures Today
Dow Jones futures open Sunday at 6 p.m. ET, along with S&P 500 and Nasdaq 100 futures.
With U.S. stock and bond markets closed Monday for the Martin Luther King holiday, U.S. investors may not have a clear first reaction to Trump’s initial moves until Tuesday.
Stock markets around the world will be open on Monday, while Bitcoin and other cryptocurrencies like $TRUMP will trade 24/7.
Remember that overnight action Dow Jones Futures and elsewhere does not necessarily translate into real exchanges during the next regular class sotck exchange session.
These stocks deliver big gains as Trump looms
Trump’s executive orders
Trump will be sworn in on Monday and he is expected to get 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, evictions, bitcoin and more, as well as his TikTok order promise.
This could have a big impact on Wall Street, particularly on specific sectors and stocks. But markets may have already priced in much of this news.
Trump spoke with Chinese President Xi Jinping on Friday about trade, TikTok and more, reporting a “very good” call. That could ease fears of a trade war as Trump returns to the White House.
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Stock market rally
The stock market rally showed strong action over the past week.
The Dow Jones Industrial Average gained 3.7% last week stock market tradingbriefly surpassing the 50-day moving average on Friday. The S&P 500 Index jumped 2.9% and the Nasdaq Composite Index rose 2.45%, both surging above their 50-day line on Friday.
The small-cap Russell 2000 index jumped about 4%, but still remains below the 50-day line.
The Invesco S&P 500 Equal Weight ETF (RRSP) 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. The RSP is just below the 50-day line while the QQEW has crossed this key level for the first time in a month.
All key indexes and equal-weighted ETFs are still in ranges dating back to December.
On a more bullish note, top stocks across a wide range of sectors are performing well.
AI giant Nvidia (NVDA) increased slightly over the week, but still remains below the 50-day line.
The 10-year Treasury yield plunged 16 basis points to 4.61%, falling from a 52-week intraday high of 4.81% on Tuesday.
U.S. crude oil futures rose 1.7% to $77.88 a barrel last week, but finished above $80 midweek.
Bitcoin climbed to nearly $106,000 on Friday, just below all-time highs, trading at 104,767.70 as of 4 p.m. ET. Bitcoin and other cryptocurrencies rallied Monday on reports of a pro-crypto Trump executive order, creating a crypto advisory council. Falling Treasury yields, as well as general risk sentiment, have also boosted bitcoin.
ETFs
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) jumped 3.6% last week. The iShares Expanded Tech-Software Sector ETF (IGV) rallied 3.2%, with ServiceNow stock a strong holding. The VanEck Vectors Semiconductor ETF (SMH) increased by 4.5%. Nvidia and Broadcom stocks hold 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 among Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) jumped 5.6% last week. SPDR S&P Homebuilders ETF (XHB) soared by 8.1%. The Energy Select SPDR ETF (XLE) rose 6.3% and the SPDR Health Care Select Sector Fund (XLIV) increased slightly by 0.4%. The Select Industrial Sector SPDR Fund (XLII) jumped 4.9%.
The Financial Select SPDR ETF (XLF) jumped 6.15%, with Goldman stock a key holding.
Cruise lines sail on raised targets and require force. One bursts.
Tesla Stock
Tesla stock jumped 8.05% to 426.50 for the week, rebounding from the 10-week line and breaking a short, relatively steep downtrend during a short consolidation. TSLA stock could have a new base after another week, with a potential buy point of 488.54. Tesla earnings are due on January 29, with much interest in Elon Musk’s latest timelines regarding autonomous driving, the “affordable” EV model and much more.
Musk is a big supporter and advisor to Donald Trump.
Other actions in buying zones
ServiceNow, Broadcom, Amazon, Quanta Services and Vertiv all posted early entries into the databases.
Viking, Goldman Sachs and Energy Transfer stocks are breakouts.
Time the Market with IBD’s ETF Market Strategy
What to do now
The stock market rally is on the rise, with strong bullish signals last week. This could end up being a short-term move in a volatile trend, but right now the movement in the indices and especially the major stocks is positive.
Investors should take advantage of buying opportunities, gradually increasing their exposure. Look to buy stocks beyond the AI and technology space, given the breadth of current leadership.
Work on your watchlists, looking for stocks and sectors that are leading and taking hold. But be prepared to cut your spending if the market declines.
Trump’s inauguration could be a buying or selling event when the stock market reopens on Tuesday.
Earnings season will intensify further next week, with Netflix (NFLX), GE Vernova (GEV), GE Aerospace (GEV) And American Express (AXP) among the many notable names.
Nvidia shares are in progress MII classificationwith Tesla stock on the rankings watch list. Viking, ServiceNow, Goldman and Amazon stocks are on the rise Swing Trader. Broadcom, Quanta Services and Vertiv shares are on the stock market MII 50. Vertiv, Broadcom and ServiceNow shares are on the stock market IBD large cap 20.
ServiceNow was Friday IBD Stock of the Day. Broadcom stock was Thursday’s pick.
Read The big picture every day to stay in tune with the direction of the market and the main values and sectors.
Please follow Ed Carson on the discussions at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
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