The stock market exhibited mixed performance last week. The Dow Jones Industrial Average reached a new record high, while the S&P 500 saw modest gains. Conversely, the Russell 2000 declined slightly, and the Nasdaq Composite lagged due to disappointing earnings from Nvidia (NVDA). However, the Nasdaq Composite rebounded on Friday, regaining its 50-day moving average.
The S&P 500 has entered a power trend, signaling positive momentum for the market rally. Several stocks broke out or positioned themselves for potential gains over the past week.
Notable stocks currently in buy zones include ServiceNow (NOW), Netflix (NFLX), AppLovin (APP), Comfort Systems (FIX), NextEra Energy (NEE), and Spotify (SPOT). Additionally, China’s BYD (BYDDF), a key rival to Tesla (TSLA), also saw a breakout on Friday, bolstered by a significant sales increase reported on Sunday. Other Chinese EV manufacturers also reported their August delivery figures.
Broadcom (AVGO), Samsara (IOT), and Dick’s Sporting Goods (DKS) are nearing buy points, with earnings announcements scheduled for this week.
Investors will also be looking forward to the August jobs report, set for release on Friday.
Notably, Nvidia and ServiceNow are featured on the IBD Leaderboard, Comfort Systems is listed on IBD SwingTrader, and Nvidia, Netflix, Samsara, and Comfort Systems are part of the IBD 50.
Dow Jones Futures Today
Dow Jones futures have dropped 0.1% against fair value, while S&P 500 futures are down 0.2%, and Nasdaq 100 futures have decreased by 0.2%. Crude oil futures also experienced a slight decline.
In economic news, China’s official manufacturing index fell 0.3 points to 49.1 in August, below the break-even 50 level and expectations for no change. The non-manufacturing index increased by 0.1 point to 50.3, contrary to forecasts for a minor decline. The composite gauge ticked down to 50.1 from 50.2. Meanwhile, the Caixin manufacturing index rose by 0.6 points to 50.4, surpassing expectations.
U.S. stock markets will be closed on Monday for Labor Day, though global exchanges will remain open. Dow futures will continue to trade as usual.
Stock Market Rally Recap
Despite a week of mixed action, the stock market closed on a strong note on Friday. The Dow Jones rose 0.9% over the week, while the S&P 500 gained 0.2%. The Nasdaq Composite fell 0.9% overall but posted a 1.1% gain on Friday. The small-cap Russell 2000 saw a slight decline.
