Dow Jones Futures: After Stock Market Rally’s Ugly Outside Week, Here’s What To Do

Dow Jones futures edged higher Sunday night, along with S&P 500 futures and Nasdaq futures. Tesla and CEO Elon Musk remained in the news over the weekend.

The stock market rally suffered heavy damage last week in the wake of a hawkish Fed outlook and weak economic data that raised concerns that the Federal Reserve will drive the economy into a recession. The Nasdaq and S&P 500 index closed the week below their 50-day moving averages.

Megacap stocks remain a drag on the major indexes, especially Apple (AAPL) and Tesla (TSLA), with TSLA stock plunging to fresh bear market lows. Amazon.com (AMZN) and Google parent Alphabet (GOOGL) aren’t too far away from their lows. Microsoft didn’t lose too much for the week but fell back from the 200-day line. Nvidia (NVDA), which had been part of a chip rebound, reversed lower, back below key support.

But the megacaps aren’t hiding underlying strength. Most stocks that had flashed buy signals in recent days and weeks turned south. Leading sectors also suffered.

Insulet (PODD), Commercial Metals (CMC), Elf Beauty (ELF), Peabody Energy (BTU) and Dow Jones giant Caterpillar (CAT) are holding up relatively well. None are actionable right now, however.

Investors should be wary of making any buys in the current market, but focused on trimming exposure and building up watchlists.

The video embedded in this article reviewed the market action in depth, while also analyzing Insulet, Elf Beauty and CAT stock.

Defense Deal

L3Harris (LHX) confirmed it will buy Aerojet Rocketdyne (AJRD) for $4.7 billion in all-cash deal, including debt. LH3 Harris will pay $58 a share per AJRD share. Lockheed Martin (LMT) scrapped a $4.4 billion deal for Aerojet in February amid regulatory opposition.