Table of Contents
Dow Jones futures open Sunday evening, along with S&P 500 futures and Nasdaq futures, in the wake of an assassination attempt on former President Donald Trump.
Netflix (NFLX), Taiwanese semiconductor (TSM), ASML (ASML) And Goldman Sachs (GS) next week’s most important earnings reports.
Google parent Alphabet (GOOGL) is close to a deal to buy cybersecurity startup Wiz for about $23 billion, The Wall Street Journal reported Sunday, citing sources.
↑
X
TSM and ASML are trading near highs. Are they a pre-earnings purchase?
Trump rally shooting
A gunman fired multiple shots at the stage as former President Trump held a campaign rally in western Pennsylvania on Saturday evening. Trump suffered minor injuries to his right ear. The Secret Service surrounded him and quickly removed him from the stage after Trump, with a bloody face, shook his fist defiantly.
Trump later said on his Truth Social site that he was “shot with a bullet that pierced the upper part of my right ear.”
Two people are said to have been killed, including the suspected shooter.
Authorities identified Thomas Matthew Crooks, 20, of Pennsylvania as the shooter. They’re trying to figure out a motive.
The incident is being investigated as an assassination attempt.
Top Republicans and Democrats, including President Joe Biden, quickly denounced the attack and political violence in general. They praised the quick response of the Secret Service, wished Trump’s recovery and urged calm. Biden spoke with Trump after the incident, the White House said Sunday evening.
The Republican National Convention is this week and Trump is expected to name his running mate in the coming days.
Trump’s chances of retaking the White House have risen to 66% on PredictIt from about 60% before Saturday’s shooting. Before the first presidential debate, it was about 53%.
The Wall Street Journal provides in-depth coverage of the Trump rally shooting and further.
Dow Jones futures today
Dow Jones futures open at 6:00 PM ET, along with S&P 500 futures and Nasdaq 100 futures.
How will Dow futures and other markets react to Trump’s assassination attempt? How will different sectors, such as solar energy, fare?
Bitcoin rose modestly, back to $60,000 on Sunday. Trump was pro-crypto in his election efforts.
Remember, overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading during the next regular stock market session.
Stock market rally
The stock market rally saw a major shakeup on Thursday. But ultimately, the major indexes hit record highs during the week, while the small-cap Russell 2000 soared to a multi-year high, fueled by hopes of Fed rate cuts.
The Dow Jones Industrial Average rose 1.6% during last week’s stock market trading, topping 40,000 for the first time. The S&P 500 index rose 0.9%. The Nasdaq composite rose 0.25%.
The small-cap Russell 2000 rose 6% to its best level since January 2022.
The yield on ten-year government bonds fell by 8.5 basis points to 4.19%, reaching a four-month low on Thursday. U.S. crude futures fell 1.1% to $82.21 a barrel.
Nvidia (NVDA), Tesla (TSLA) and most of the mega cap and chip stocks that fell back on Thursday ended with weekly gains or at least healthy charts. Meanwhile, key sectors such as housing made big gains after lagging behind for some time.
Weatherford International (KRWD), TopBuild (BLD), AppFolio (APPF) And Tencent (TCEHY) are located in purchasing areas.
Main income
Netflix stock, Goldman Sachs and ASML are also in buy range as they move toward gains. Taiwan Semiconductor stock is still flirting with a $1 trillion valuation. Goldman reports this early Monday, amid the ongoing wave of bank earnings. ASML (starting Wednesday) and Taiwan Semi (starting Thursday) will be huge for the chip sector and artificial intelligence in general. Netflix comes out on Thursday evening.
The video embedded in the article discusses the big week of upcoming earnings results, with shares of Taiwan Semiconductor, ASML, Netflix and Goldman all being analyzed.
Join IBD experts as they analyze leading stocks and the market on IBD Live
Nasdaq still expanding
On Wednesday, the Nasdaq closed 9% above its 50-day line, the tightest since June 2023, raising the risk of a pullback. After Thursday’s plunge and Friday’s modest rebound, the Nasdaq is 6.9% above its 50-day high, still extended.
With optimism high and the Nasdaq under pressure, the risks of a pullback are higher as tech earnings materialize. That could be a toxic mix.
ETFs
Among the growth ETFs is the Innovator IBD 50 ETF (FFTY) climbed 0.5% last week. The iShares Expanded Tech-Software Sector ETF (IGV) fell by 1.9%. The VanEck Vectors Semiconductor ETF (SMH) advanced 1.7%. Nvidia and Taiwan Semi shares are the two largest holdings in SMH, with ASML being a notable member.
Reflecting more speculative story stocks, ARK Innovation ETF (ARKK) rose 1.8% last week and ARK Genomics ETF (ARKG) increased by 9%. Tesla stock is the No. 1 holding in Ark Invest’s ETFs.
SPDR S&P Metals & Mining ETF (XME) rose 3.8% last week. The Global X US Infrastructure Development ETF (PAVE) rose by 4.5%. SPDR S&P Home Builders ETF (XHB) increased by 10.8%. The Energy Select SPDR ETF (XLE) rose 0.5% and the Health Care Select Sector SPDR Fund (XLV) gained 2.6%. The Industrial Select Sector SPDR fund (XLI) fell by 2.4%.
The Financial Select SPDR ETF (XLF) rose 2%, with Goldman Sachs shares making up a large share. The SPDR S&P Regional Banking ETF (KRE) rose by 8.6%.
Time the market with IBD’s ETF market strategy
Shares of Tesla tumbled 8.4% on Thursday, reversing a nine-month high and snapping a major 11-day win streak. But TSLA shares fell just 1.3% this week to 248.23. The EV giant will reportedly postpone the Tesla robotaxi event from August 8 to sometime in October.
CEO Elon Musk supported Donald Trump for president after the assassination attempt.
Tesla pauses after huge move; BYD breaks out during major overseas move
Nvidia stock
Nvidia shares rose 2.7% this week to 129.28, despite falling 5.6% on Thursday. Taking a step back, NVDA stock has been consolidating for a few weeks and typically finds support around or above the 21-day line. A few more weeks could produce a new base, with the 50-day line catching up.
Stocks in buy zones
Weatherford shares rose 4.9% to 127.72, recovering from the 50-day line and breaking out of a cup-with-handle base with a buy point of 127.20. Shares hit an intraday high of 130.61 on Friday before retreating.
TopBuild shares rose 14.6% to 431.91 last week. The insulation installer jumped above the 50-day line on Thursday, clearing a downward trend line. The official purchase point is according to Market wave.
AppFolio shares rose 5% to 264.35 on Friday, clearing a 256.73 buy point from a flat base. APPF rose 4.7% this week, its sixth straight weekly gain.
Tencent shares fell 3.8% to 50.47. The Chinese messaging and gaming giant surpassed a 50.89 intraday buy point on Friday after approving an early entry on Thursday. TCEHY flask has a cup-with-handle base.
AI is driving a ‘nuclear renaissance’. Bill Gates and Jeff Bezos are in the mix.
Analysis of the market rally
The Nasdaq is extended, while earnings season will be a major X-factor in the coming weeks. Taiwan Semi and ASML in particular could swing with techs in the coming week. But for now it’s broad progress, with a number of stocks showing buy signals.
Please note that not all stocks will participate. Restaurant stocks have suffered heavy damage in the past week. Social media plays had a rough few days. Be prepared to weed out losers and laggards when new buying opportunities arise.
The possible assassination attempt on Trump further underlines that the 2024 election season is a major wild card.
One downside to a broad market rally? Your watchlists need to be a lot bigger. So do your homework.
Nvidia and Taiwan Semiconductor shares rose IBD rankings. KB Home shares are listed on SwingTrader. Nvidia and Goldman shares are on the line IBD50. Nvidia stock is on IBD Bigcap 20. AppFolio was the IBD stock of the day on Friday.
Read The Big Picture every day to stay informed about market direction and the most important stocks and sectors.
Follow Ed Carson on Threads at @edcarson1971 and X/Twitter on @IBD_ECarson for stock market updates and more.
You might also like:
Why this IBD tool simplifies the search for top stocks
Best growth stocks to buy and watch
IBD Digital: Unlock IBD’s premium stock lists, tools and analysis today
Dow Jones Giants Lead 5 Stocks Near Buy Points