Dec. 8 at 4:59 AM
$DIA $SPY $QQQ $TSLA $SOFI
From Investors Business Daily:
"Dow Jones Futures: Tesla In Buy Area As AI Giants, Fed Loom"
Dow Jones futures were little changed Sunday night, while S&P 500 futures and Nasdaq futures rose slightly. Broadcom and Oracle earnings loom this week along with the year's final Federal Reserve meeting.
President Donald Trump said Sunday night that the proposed Netflix (NFLX) takeover of Warner Bros. Discovery (WBD) could be a problem. "It's a lot of market share," he said.
The stock market continues to move toward all-time highs, with all the key indexes rising modestly for the week.
Stocks from a variety of sectors flashed buy signals last week, including Tesla (TSLA), Comfort Systems (FIX), Vertiv (VRT), Penumbra (PEN) and JPMorgan Chase (JPM).
The slow, steady market action has been ideal for ABC investing: aggressive but Cautious.
The Federal Reserve is expected to cut rates again on Wednesday. The focus will be on the rate outlook for 2026, including from Fed chief Jerome Powell.
Broadcom (AVGO), Oracle (ORCL) and Ciena (CIEN) will provide insight on the AI ecosystem, while Toll Brothers (TOL) will give a sense of the housing market.
The video embedded in the article reviews the daily and weekly market action and analyzes Penumbra stock, Vertiv and JPMorgan.
Penumbra was Friday's IBD Stock Of The Day.
-- Dow Jones Futures Today --
Dow Jones futures were flat vs. fair value. S&P 500 futures rose 0.15% and Nasdaq 100 futures climbed 0.2%.
Bitcoin rebounded to
$91,000 Sunday night. The cryptocurrency fell 3.45% to
$89,340.76 as of 4 p.m. ET Friday vs. 24 hours earlier.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
-- S&P 500 Additions, Snubs --
Carvana (CVNA), AI cooling play Comfort Systems (FIX) and cement giant CRH (CRH) will join the S&P 500 index, S&P Global announced late Friday. Carvana spiked while CRH jumped and FIX stock rose.
Vertiv stock and SoFi Technologies (SOFI) were notable S&P 500 snubs. Both fell late Friday.
-- Stock Market Rally --
The stock market rally saw modest-to-solid gains on the key indexes. All are nearing record highs, with the small-cap Russell 2000 almost doing so.
The Dow Jones Industrial Average rose 0.5% in last week's stock market trading. The S&P 500 index advanced 0.3%. The Nasdaq composite climbed 0.9%. The small-cap Russell 2000 gained 0.8%.
The Invesco S&P 500 Equal Weight ETF (RSP) edged up 0.25%, hitting a record high Friday before paring gains.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) popped 1.9%, closing in on all-time levels as well.
Leading stocks continued to act well across an array of sectors. High-beta tech names mounted comebacks, though many remain below their 50-day lines. Medicals, banks, metal plays, airlines and a growing number of retailers are acting well overall.
The 10-year Treasury yield jumped 12 basis points to 4.14%.
U.S. crude oil futures rose 2.6% to
$60.08 a barrel this week.
-- ETFs --
Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.3% last week. The iShares Expanded Tech-Software Sector ETF (IGV) jumped 5.2%. The VanEck Vectors Semiconductor ETF (SMH) rallied 3.45%, with Broadcom stock a major holding.
ARK Innovation ETF (ARKK) popped 2.8% last week and ARK Genomics ETF (ARKG) declined 0.8%. Tesla stock is the No. 1 holding across ARK Invest.
SPDR S&P Metals & Mining ETF (XME) advanced 2.7% last week. U.S. Global Jets ETF (JETS) ascended 4.3%. SPDR S&P Homebuilders ETF (XHB) gave up 1.35%. The Energy Select SPDR ETF (XLE) rose 1.5% and the Health Care Select Sector SPDR Fund (XLV) sank 2.8%. The Industrial Select Sector SPDR Fund (XLI) climbed 0.6%. The Financial Select SPDR ETF (XLF) was up 0.7%.
-- Stocks In Buy Zones --
Tesla stock jumped 5.8% to 454.94 for the week, moving decisively above the 50-day line. Investors could have used that as an early entry in an emerging consolidation. TSLA stock got a boost as CEO Elon Musk said FSD owners with the latest v14.2.1 variant could text while driving, even though that's illegal in most states and FSD is still labeled as Supervised.
Comfort Systems gained 2.5% to 1,001.48 for the week. FIX stock cleared an early entry Thursday. Comfort Systems, an AI data center cooling play, now has a cup base with a 1,020.26 buy point. Comfort Systems rose modestly late Friday on the S&P 500 inclusion, flirting with a breakout.
Penumbra stock climbed 2.55% to 300.66 last week. On Friday, briefly topped a 301.01 handle buy point on a long consolidation.
JPMorgan stock edged up 0.6% for the week to 315.04, rebounding from the 50-day and 10-week lines. That's just shy of an old 318.01 buy point that could still be used, with 322.25 another possible entry.
Vertiv stock jumped 5.1% to 189.02 for the week, rebounding from the 50-day and 10-week lines, offering an early entry. The AI infrastructure firm is working on a new base, but needs another week.
Vertiv fell modestly late Friday on news that it won't join the S&P 500.
-- What To Do Now --
The stock market rally continues to show strength and breadth, with the key indexes nearing record highs and a variety of leading stocks flashing buy signals or setting up.
The downside of broad market leadership means investors have more work building watchlists and selecting possible targets.
With a new or revived rally, investors should look to boost exposure early on, but do so incrementally. Being aggressive but cautious doesn't take long to be heavily invested if the market is acting well, and limits the risk if a new rally fizzles.
After the prior week's strong rebound back above the 50-day line, last week's gradual rise made it easy for investors to steadily add exposure without getting left behind.
Penumbra stock is on SwingTrader. Comfort Systems and Vertiv stock are on the IBD 50. Broadcom stock and Comfort Systems are on the IBD Big Cap 20. Comfort Systems stock is on IBD Sector Leaders.
