Dow Jones Futures: Tech Titans Aren't Leading The Stock Market Rally (Good); 3 Dow Giants Set To Jump

Dow Jones Futures: Tech Titans Aren't Leading The Stock Market Rally (Good); 3 Dow Giants Set To Jump

Dow Jones Futures: Tech Titans Aren't Leading The Stock Market Rally (Good); 3 Dow Giants Set To Jump

Dow Jones futures will reopen Sunday evening, with stimulus deal talks, Nike (NKE), JPMorgan Chase (JPM), Moderna (MRNA) and Tesla stock in focus.

Dow futures rose modestly late Friday, along with S&P 500 futures and Nasdaq futures, in an an unusually busy end-of-week after-hours session. Dow Jones giants Nike and JPMorgan stock were big winners on news. The FDA gave emergency approval to the Moderna coronavirus vaccine. Meanwhile, Tesla stock remained volatile amid continued heavy trading as it enters the S&P 500 index.

The stock market rally finished slightly lower Friday as stimulus deal talks faced some objections. Notably, the trillion-dollar giants Apple stock, (AMZN) and Google parent Alphabet (GOOGL) all fell more than 1%, while Microsoft (MSFT) lost a fraction. Intel (INTC) tumbled on a new threat to its chip business.

But tech titans haven't been leading the recent stock market rally, which arguably is a good thing. Leading stocks generally held up well Friday, notably cybersecurity names such as CrowdStrike (CRWD) and Zscaler (ZS).

Overall, it was a solid week for the stock market rally, especially the Nasdaq and growth names. All the major indexes hit record highs.

Friday Night Highlights
Nike earnings were better than expected for the athletic apparel and shoe giant. Nike stock jumped late.

The Federal Reserve gave passing grades to major financial firms in the latest bank stress tests. More importantly, the Fed said JPMorgan Chase, Goldman Sachs (GS), Citigroup (C), Bank of America (BAC) and others could resume buybacks, but not raise dividends. JPMorgan and several others announced plans to resume share repurchases. JPMorgan stock jumped late Friday, along with Citigroup, Bank of America and other banks.

Tesla (TSLA) fell 2.6% in late trade. But during Friday's regular session, TSLA stock rallied 6% to 695, hitting yet another record high. Volume was huge, especially in the final minutes, as index funds bought up shares ahead of Tesla stock joining the S&P 500 index before Monday's open. After a 70% surge over the past month on the S&P 500 announcement, how will Tesla stock react?

Apple (AAPL), Microsoft, Tesla, Nike, Zscaler and CrowdStrike stock are on IBD Leaderboard. Microsoft stock is on IBD Long-Term Leaders. Amazon stock is on the IBD 50.

Apple, Microsoft, Intel, Nike, JPMorgan and Goldman are all on the Dow Jones Industrial Average and S&P 500 index, with AAPL, MSFT and INTC also Nasdaq components.

Stimulus Deal Talks
Now the stock market rally awaits a stimulus deal.

President Donald Trump signed a stopgap funding bill Friday night to keep the federal government operating through the weekend while lawmakers continue to work on a coronavirus stimulus deal. The goal is to attach the roughly $900 billion stimulus package to a $1.4 trillion spending bill.

There are a few sticking points to an accord, but no longer major disagreements. With the economic recovery stalling amid coronavirus restrictions and the Jan. 5 Georgia Senate runoffs looming, there are strong reasons to reach a stimulus deal. Lawmakers also would like to get out of town for the holidays.

Dow Jones Futures
In brief Friday evening trading, Dow Jones futures climbed 0.6% vs. fair value while S&P 500 futures advanced 0.4%, buoyed by Nike, JPMorgan and other banking giants. Nasdaq 100 futures climbed 0.1%, not benefiting from banks and with Tesla stock giving up some regular session gains.

ETFs tracking the major indexes remained active until 8 p.m. ET Friday, ultimately indicating a 0.5% gain for the Dow, 0.3% for the S&P 500 and 0.4% for the Nasdaq 100.

Dow Jones futures will reopen at 6 p.m. ET on Sunday

Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

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