Futures mix; Chinese stocks rise on fresh stimulus

Dow Jones futures were little changed on Sunday night, while S&P 500 futures and Nasdaq futures fell slightly. The Shanghai Composite rose after fresh China stimulus. Earnings season picks up this week.

The stock market rally had a solidly positive week. The S&P 500 and Dow Jones hit record highs on Friday while the Nasdaq cleared key levels. The small-cap Russell 2000 rebounded from a key test. A number of leading stocks have flashed buy signals while others are setting up, while others are running.

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Uber Technologies Gap up as (UBER). Tesla (TSLA) was a “toothless” robotaxi event. Tesla stock plunged, triggering a big sell signal.

Nvidia (NVDA) flashed multiple buy signals during the period Taiwan Semiconductor (TSM) and Broadcom (AVGO) Flashed buy signal. Taiwan Semi earnings will be this week.

But there was a breadth of market leadership beyond the AI ​​chip name.

This is a period of massive exposure for investors, continuing to look for new buys and holding back. Pay close attention to earnings season for both your holdings and the major names that could impact your stocks.

In addition to Taiwan Semiconductor, this coming week includes key earnings Netflix (NFLX), United Health (UNH), Intuitive surgery (ISRG) and Goldman Sachs (GS). Everyone is trading around buy points or option entries.

Nvidia stock is on the IBD Leaderboard, SwingTrader and the IBD 50. Uber was Friday's IBD Stock of the Day.

By late Friday, Boeing ( BA ) said it plans to cut 10% of its global workforce, roughly 17,000 jobs, to delay the launch of its 777x jet and also warned that third-quarter sales would come in below analyst consensus. This comes amid a crippling strike, breaking down labor negotiations. The Dow Jones giant fell slightly on Friday evening, already trading at a 23-month low.

Dow Jones futures today

Dow Jones futures were little changed vs. fair value. S&P 500 futures were down 0.1% and Nasdaq 100 futures were down 0.2%.

Crude oil prices fell more than 1 percent. So did Tamar Futures.

Note that overnight action in Dow futures and elsewhere does not necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze leading stocks and markets on IBD Live

China is stimulating

China's finance ministry on Saturday outlined new stimulus measures that were generally in line with expectations. They include Beijing lending more to local governments to help finance their off-balance-sheet debt. Local governments can use the funds to buy unsold homes and turn them into subsidized housing. Major state banks will get help to raise their capital More broadly, officials said the central bank has room to increase deficit spending, but no plan.

There were no measures specifically aimed at empowering consumers, who were vulnerable.

Notably, finance officials did not specify the actual size of the expenditure.

The news comes over the weekend after a key planning agency failed to deliver any stimulus on October 8. This followed various efforts to cut rates and increase debt, buy property and raise share prices.

Chinese stocks and related plays rose on that initial stimulus effort, then retreated after the Oct. 8 disappointment.

The Shanghai Composite rose strongly intraday on Monday, erasing early gains after sliding 2.55% on Friday. Hong Kong's Hang Seng, which was closed on Friday, fell sharply.

China's September consumer prices, released on Sunday, rose just 0.4% from a year earlier, less than expected. Core inflation was just 0.1%, the lowest since February 2021. Producer inflation was negative for the 24th consecutive month.

Among the stimulus bets, five Chinese stocks are near buy points

Stock market rally

Stock market rally saw minor gains in key indices but it was an important week. The S&P 500 and Dow Jones hit record highs while the Nasdaq also cleared key levels.

The Dow Jones Industrial Average rose 1.2% in last week's stock market trading. The S&P 500 index and the Nasdaq composite rose 1.1%. The small-cap Russell 2000 popped 1%, thanks to Friday's 2.1% jump.

As the major indices cleared weeks of tight trading, top stocks were revealed with a large number of breakouts, early entries or follow-on buying.

Also, Nvidia and AI chip plays, cybersecurity firms and cruise lines had a big week. Several flashed buy signals including Carnival (CCL) and CyberArk Software (CYBR). JP Morgan Chase ( JPM ) jumped Friday on earnings, one of several financials flashing buy signals in the session. Insurers are doing well after some ups and downs in Hurricane Milton.

Many industry and space names are leading the way with foreign e-commerce plays. sweet green (SG) started on Friday as a few restaurants looked delicious. Oil and gas reserves have arrived, too Exxon Mobil (XOM) near buy point.

Several medical stocks are being established.

The 10-year Treasury yield rose nine basis points to 4.07%.

US crude oil futures rose 1.6% last week to $75.56 a barrel.

ETF

Among growth ETFs, Innovator IBD 50 ETF (FFTY) advanced 1.8% last week. The iShares Expanded Tech-Software Sector ETF ( IGV ) rose 3.25%. The VanEck Vector Semiconductor ETF ( SMH ) jumped 3.6%. Nvidia stock is the top holding in SMH, with Taiwan Semiconductor and Broadcom major members.

ARK Innovation ETF (ARKK) gained 0.2% last week. Tesla stock remains a major holding across Arc Invest's ETFs. Cathy Wood also owns a lot of Nvidia.

The SPDR S&P Metals & Mining ETF (XME) rose 1.5% last week. The US Global Jets ETF (JETS) rose 1.7%. The SPDR S&P Homebuilders ETF (XHB) closed a fraction lower. The Energy Select SPDR ETF (XLE) fell 0.4%, with Exxon a large holding.

The Healthcare Select Sector SPDR Fund ( XLV ) gained 1.5%. The Industrial Select Sector SPDR Fund ( XLI ) rose 2.15%, with Uber stock a key member. The Financial Select SPDR ETF ( XLF ) rose 1.8%, with JPMorgan a major member.

Time the market with IBD's ETF Market Strategy

Tesla stock sell signal

Tesla stock fell 12.9% to 217.81, its worst weekly loss since April. Friday's 8.8% tumble pushed Tesla decisively below its 50-day line on heavy volume. This is a significant Tesla sales signal. Recent buyers are probably sitting on losses. Long-term holders, who have a lower cost base, may choose to remain so.

Shares started the week extending losses from Q3 deliveries released on Oct. 2. Friday's sell-off follows the much-hyped Tesla Robotaxi event. Elon Musk showed off the CyberCab and RoboVan and predicted true self-driving again next year. However, he did not give any specific reason to believe this time to be different.

Tesla also didn't show an “affordable” model, an as-yet-unseen EV that is slated to begin production in early 2025. That, along with a refreshed Model Y, is key to Tesla increasing or at least maintaining delivery levels next year.

Tesla dives after Robotaxi event; BYD by zone after strong move

Uber Technologies flies

Uber stock skyrocketed 10.8% to 86.34 on Friday, off a base. Shares vaulted 16.2% for the week. Investors can use the 82.14 consolidation high as a buy point, roughly coinciding with Uber's intraday low Friday. Shares are now just outside the buy zone. Investors can wait to see if Uber consolidates the bulk of Friday's gains for a few days.

Analysts don't see a Tesla robotaxi as a threat in the next few years, which has a big overhang on Uber stock.

The Stock Market: If Not Now, When?

The stock market is up, coming off some key levels. Leading stocks performed well. If not now, when?

This time is heavily or completely invested. If you are an experienced trader and have risk appetite, you can go for margin.

Hopefully you've been publishing heavily for quite some time. So the aim should be to optimize your portfolio, buy incrementally and sell a variety. An optimal portfolio should consist of top stocks from different groups of top performers.

With the market looking so strong, it's time to own some highfliers with big daily swings. Even so, you want some steady performers.

So spend some time reviewing your holdings, both individually and collectively. Run through your screen. A large number of stocks are flash buy signals or set up.

Earnings season is winding down, which means big swings are likely for individual stocks but also for sectors and the overall market. Know which holdings and top potential buys are due earnings, as well as earnings dates for key companies that could change your position.

Read The Big Picture daily to stay in tune with market direction and leading stocks and sectors.

Please follow Ed Carson at @edcarson1971 and on X/Twitter @IBD_ECarson For stock market updates and more.

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