Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. A newly confirmed stock market rally quickly moved to “under pressure,” last week as the major indexes sold off, despite Friday’s afternoon rebound.
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Tesla (TSLA) and China’s BYD (BYDDF) should release sales figures over the weekend, following strong June deliveries from Li Auto (LI), Nio (NIO) and Xpeng (XPEV).
Don’t feed the bear market. This is not a good time to be making new buys; investors should have little or no exposure. Instead, prepare for the next bull run.
Northrop Grumman (NOC), McKesson (MCK), Centene (CNC), AstraZeneca (AZN) and Shockwave Medical (SWAV) are all holding up reasonably well. All have relative strength lines at 52-week or consolidation highs.
BYD stock also is worth watching, trading right around a buy point. Tesla stock is close to 2022 lows.
NOC stock is on IBD Leaderboard. Li Auto, Centene, McKesson and AZN stock are on the IBD 50. CNC stock and McKesson are also on the IBD Big Cap 20.
The video embedded in this article reviews BYD stock, AstraZeneca and Privia Health Group (PRVA).
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
U.S. stock exchanges will be closed Monday in observance of Independence Day, but other markets around the world will be open. Dow Jones futures will trade normally on Monday.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Stock Market Rally
The stock market rally suffered solid-to-sharp losses once again, with Friday’s gains only trimming weekly declines.
The Dow Jones Industrial Average fell 1.3% in last week’s stock market trading. The S&P 500 index lost 2.2%. The Nasdaq composite tumbled 4.1%. The small-cap Russell 2000 retreated 2.1%.
The 10-year Treasury yield plunged 24 basis points to 2.89%, tumbling below 3%.
U.S. crude oil futures edged up 0.8% to $108.43 a barrel last week, thanks to Friday’s 2.5% gain. Gasoline futures rose Friday but fell for the week.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.1% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) edged up 0.25%. The iShares Expanded Tech-Software Sector ETF (IGV) slumped 5.3%. The VanEck Vectors Semiconductor ETF (SMH) plunged 9.3%. The Micron Technology (MU) warning, following reports of Intel (INTC) cutting PC chip prices, slammed semiconductor stocks.
SPDR S&P Metals & Mining ETF (XME) crumbled 5.4% last week. The Global X U.S. Infrastructure Development ETF (PAVE) slid 1.8%. U.S. Global Jets ETF (JETS) descended 3.4%. SPDR S&P Homebuilders ETF (XHB) edged up 0.5% thanks to a strong Friday bounce. The Energy Select SPDR ETF (XLE) rose 1.4% and the Financial Select SPDR ETF (XLF) declined 1.4%. The Health Care Select Sector SPDR Fund (XLV) edged up 0.4%.
Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) plunged 10.1% last week and ARK Genomics ETF (ARKG) slid 5.3%. TSLA remains a top holding across Ark Invest ETFs. Cathie Wood’s Ark also has small holdings in BYD, Xpeng and Nio.
Five Best Chinese Stocks To Watch Now
Tesla Deliveries
Tesla will likely report Q2 production and delivery figures on Saturday. Analysts polled by FactSet on average expect Tesla to deliver 265,000 vehicles in Q2. That would be a big drop from Q1’s record Tesla deliveries of 310,048 EVs.
Tesla Shanghai was shut down for much of April and only resumed full output in early June. The recently opened Tesla Berlin and Austin plants are producing relatively few vehicles, partly due to supply-chain issues.
Tesla stock fell 7.5% to 681.79 last week after hitting resistance at its 10-week line on Monday. Shares are not far from their May 24 low of 620.57. TSLA stock peaked in early November at 1,243.49.
Tesla Vs. BYD: Which EV Giant Is The Better Buy?
BYD Sales
The EV and battery giant should top 100,000 in EV and plug-in hybrid sales for a fourth straight month. They’ll likely top May’s record 114,943, with Q2 sales comfortably above 320,000.
That would mean BYD would race past Tesla in terms of vehicle sales, though BYD would still lag its rival in EV-only deliveries.
BYD stock cleared a 39.81 buy point from a deep cup-with-handle base during the week, closing up 1.2% to 39.97 for the week. BYDDF is still 17% above its 50-day line. A high handle or short, shallow base could be ideal.
China EV Startups
On Friday, Nio reported record deliveries in June, while Xpeng and Li Auto had their best month since December. With Covid lockdowns in the past and EV subsidies picking up, all three startups…
Read More: Dow Jones Futures: Don’t Feed The Bear Market; BYD Vs. Tesla Deliveries