Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The major indexes last week reversed lower from key resistance to undercut key support, raising fresh concerns about the stock market rally.
A hot inflation report and fears of an imminent Russia invasion of Ukraine spurred the stock market sell-off late in the week.
President Joe Biden warned Russian President Vladimir Putin of “swift and severe costs” for invading Ukraine in a Saturday phone call. Both countries pulled diplomatic staff out of Ukraine.
Russia/Ukraine news is likely to be in focus for stock, bond and energy markets in the coming days.
This is not a good time to be adding exposure.
Low Times For High Growth
For investors used to trading highly valued growth stocks, the new year has been painful. A rising rate environment pressures highly valued stocks, especially those that are unprofitable or have triple-digit price-to-earnings ratios. Dutch Bros (BROS), with a P-E ratio above 200 ,caught the eye of seemingly every growth investor a week ago, but BROS stock reversed sharply lower last week. Tesla (TSLA) has held up better than a lot of these names, but it’s been struggling in 2022. Datadog (DDOG) bounced back last week on earnings, but was that a one-time pop or will DDOG stock make further progress?
Advanced Micro Devices (AMD), while no longer exceptionally valued, still plunged 10% on Friday, leading a sell-off in chips and techs generally. After nearly hitting its 50-day line on Wednesday, AMD stock finished the week just above its 200-day line. It’s more than wiped out its Feb. 2 pop on earnings.
Investors on Monday will get a reading on Tesla’s China sales and exports for January as part of industry data on Chinese EV and overall auto sales.
Meanwhile, Cisco Systems (CSCO) recently made a $20 billion-plus offer for data analytics and security software firm Splunk (SPLK), The Wall Street Journal reported late Friday. The two companies reported are not currently in talks, the WSJ said, but SPLK stock popped 11% late Friday.
The video embedded in this article takes a look at the market rally’s highs and lows during the week and analyzes AMD stock, Regeneron and Oneok.
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.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the…