Dow Jones futures were little changed overnight, as were S&P 500 futures and Nasdaq futures after a slight downtrend as the stock market rallied. Two recent IPOs, Mobileye and Sprinkler, caused quite a stir.
Major indexes fell on Monday, with the Nasdaq and S&P 500 turning negative while AAPL stock trended slightly lower. But they kept most of last week's gains.
Apple (AAPL) posted a slight decline after the unveiling of the long-awaited Vision Pro mixed reality headset.
Tesla (TSLA), Fortinet (FTNT), DexCom (DXCM), Shopify (SHOP) and wing stop (WING) are in buy territory.
Bitcoin crashed as the SEC filed charges against Binance, the world's largest cryptocurrency exchange, and co-founder Changpeng Zhao for alleged securities breaches and illegal business in the United States. COIN stocks and also Bitcoin miners like Marathon Digital crashed. The SEC has threatened lawsuits. Coinbase (COIN).
IPOs are delayed
Late Monday, marketing software maker sprinkler (CXM) reported better-than-expected profit and revenue growth for the first quarter. CXM stock is up nearly 4% in late trade. Sprinkler stock, a 2021 IPO, had closed just above a brief consolidation that could be viewed as the conclusion of an eight-month consolidation.
In the meantime, Mobileye (MBLY) is down 3% in late trade, signaling a return below the 50-day level. The self-driving systems company said it will sell on behalf of 35 million shares intel (INTC), which Mobileye spun off in an IPO last year. MBLY shares fell 2.7% to 42.37 on Monday. Stocks are likely to fall below their 50-day moving average.
Tesla stock is on the IBD leaderboard, Wingstop is on the rankings watchlist. FTNT stock was added to SwingTrader on Monday and is on the IBD Long-Term Leaders list. WING shares and Fortinet are on the IBD 50. Fortinet was the IBD stock of the day on Monday.
The video embedded in this article discusses Monday's market action and analyzes FTNT stock. samsara (IOT) and fluence energy (FLNC).
Dow Jones futures today
Dow Jones futures saw a slight decline from fair value. S&P 500 futures were flat and Nasdaq 100 futures trended higher.
Crude oil futures fell 0.6%.
Keep in mind that nightly action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular trading session.
Apple Vision Pro
Apple introduced the long-awaited Vision Pro mixed reality headset at its annual Worldwide Developers Conference. The glasses are aimed at gaming, communication and productivity applications and combine virtual and augmented reality. The price of $3,499, higher than speculation of around $3,000, could put off potential buyers.
Earlier, Apple introduced some new Mac computers and provided updates for the latest iPhone, iPad, Mac, Apple TV and Apple Watch operating systems.
Apple shares closed down 0.8% at 179.58 after hitting a record 184.95 on the day ahead of the Vision Pro unveiling.
Join IBD experts as they analyze actionable stocks from the stock market rally on IBD Live
stock market rally
The stock market rally showed moderate declines across the board on Monday after the Nasdaq retreated from solid morning gains.
The Dow Jones Industrial Average fell 0.6% in trading on Monday. The S&P 500 index fell 0.2%. The Nasdaq Composite fell 0.1%. The Russell 2000 small-cap index fell 1.3%.
US crude prices rose 0.6% to $72.15 a barrel, well below intraday highs. Saudi Arabia announced in July that it would cut production by one million barrels a day.
The 10-year government bond yield was unchanged at 3.69%.
Among growth ETFs, innovator IBD 50 ETF (FFTY) is up 0.85%. The iShares Expanded Tech-Software Sector ETF (IGV) is up 0.7% with FTNT stock being an IGV hold. VanEck Vectors Semiconductor ETF (SMH) fell 1.25%.
ARK Innovation ETF (ARKK) is up 1.1% and ARK Genomics ETF (ARKG) is up 0.75%, reflecting more speculative story stocks. Tesla stock is Ark Invest's #1 ETF. COIN stocks and Shopify are also among the top 10 stocks on Cathie Wood's Ark ETFs.
The SPDR S&P Metals & Mining ETF (XME) is down 0.8%. The US Global Jets ETF (JETS) fell 0.2%. The SPDR S&P Homebuilders ETF (XHB) is down nearly 1%. The Energy Select SPDR ETF (XLE) slipped 0.7% and the Health Care Select Sector SPDR Fund (XLV) rose 0.4%.
The Financial Select SPDR ETF (XLF) fell 0.5%. The SPDR S&P Regional Banking ETF (KRE) fell 2.5%.
The five best Chinese stocks to watch right now
Stocks in buying areas
Tesla shares rose 1.7% on Monday to 217.61 after hitting a 2023 high of 221.29 during the day. The shares are still range bound from a buy point of 207.79 but are at the top end of the 5% chasing zone. Tesla stock broke out of a cup or double bottom basis on Friday. The EV giant has delivered above-average volume in six consecutive sessions.
According to MarketSmith analysis, FTNT stock rose 4.6% to 71.27, recapturing a buy point of 69.07 off a V-shaped flat base. The volume was great. Fortinet originally broke out on May 19 but soon reversed lower and tested the 50-day moving average before recovering.
DXCM shares rose 1.7% on Monday to 124.66, also hitting the flat base buy point of 126.44 on the day. Stocks reclaimed the 50-day moving average late last week and broke a short trendline. Dexcom stock hit a short-term high on Monday.
SHOP stock gained 2.8% to 59.92 and rebounded from its 21-day moving average. That offers an early entry point, though Shopify stock has touted aggressive buy points several times over the past few weeks, but those quickly fizzled out. Shares are working on a possible basis after posting a sharp earnings differential in early May.
WING shares rose 3% to 203.69 and bounced off the 50-day and 10-week moving averages, just above a previous consolidation. Stocks also recaptured their 21-day moving average and broke a descending trend line. The volume was low but not terrible. Investors could use Monday's move as a buy signal. Wingstop stock is on track to have a flat base by the end of the week that is part of a base-on-base pattern.
Analysis of the market rally
The stock market rally eased on Monday but seemed normal after last week's big gains. The Nasdaq initially led, but turned negative as Apple stock trended lower. The same was true for the S&P 500.
The Dow Jones fell slightly but is still above its 50-day moving average.
The Russell 2000 fell sharply and closed just below the 200-day moving average. This is an expression of the weak breadth. After the winners dominated late last week, the losers won easily on Monday.
The Nasdaq 100 rose 0.1%, above session highs. It's still 9.3% above its 50-day moving average.
The First Trust Nasdaq 100 Equal Weighted Index ETF (QQEW) was also up 0.1%.
The Invesco S&P 500 Equal Weight ETF (RSP) fell 0.3% but is still above its 50-day and 200-day moving average. It will be important to hold these levels and eventually make the way to the 2023 highs.
The market rally was led by tech titans and AI stocks, including many chip stocks. While some continued to gain on Monday, the reversal in Apple stock and the recent drop in chips aren't entirely unwelcome.
While market breadth was negative on Monday, a few sectors showed or hinted at strength.
That includes cybersecurity, with FTNT stock just one of several top performers. Several restaurant names, including WING Stock, are still on the menu. Medical products and system stocks like DXCM stock are at or near entry level. Home builders and, to a lesser extent, travel stocks are doing well.
Plan the market with IBD's ETF market strategy
After last week's bullish broad rally, investors should look to gradually increase exposure.
A number of stocks had flash buy signals on Monday, although there was no flooding given Monday's slight bearishness.
Don't force yourself to do too much work. Get drawn into the market rally. As the market steadily improves and top stocks trigger buy signals, you can expand your portfolio over time. When the market falters, keep an eye on the exit.
Have your watch lists ready. The key is finding emerging leaders and spotting early market entrants.
Read The Big Picture daily to stay up to date on market direction and the leading stocks and sectors.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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