The stock market rally showed strong, broad action in the past week, running past a surprisingly hawkish Federal Reserve. That raises confidence in the uptrend’s longer-term prospects. But with the Nasdaq extended, the odds of a market pullback are elevated in the short term. Friday may have reflected the start of a slide, but it wasn’t much of one.
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A pullback could create new buying opportunities in leading stocks, many of which are currently far extended from any entry. But in the short run, investors should be cautious about making new purchases, especially in hot tech areas.
Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures.
BA stock is trading right around a buy point. Boeing (BA) and rival Airbus (EADSY) will likely announce a bevy of new orders at the Paris Air Show, which kicks off Sunday. McKesson (MCK) broke out of a consolidation while Smith & Nephew (SNN) is above a trendline entry. Marriott International (MAR), Chipotle Mexican Grill (CMG), Boyd Gaming (BYD) and Floor & Decor (FND) are near buy points. All seven stocks are from nontech areas of market leadership.
Meanwhile, Advanced Micro Devices (AMD), Samsara (IOT) and Rambus (RMBS) are three hot stocks that are starting to pull back.
But many leaders are not retreating. Nvidia (NVDA) hit a fresh record high Friday, surging 10% for the week. Meta Platforms (META) marked a 16-month best before closing a fraction lower on Friday. Tesla (TSLA), after two tiny losses ended a record 13-day win streak, rose to a fresh eight-month high Friday.
Tesla, META stock and Nvidia are on IBD Leaderboard. CMG stock is on the Leaderboard watchlist. MCK stock was added to SwingTrader on Friday, joining Boeing and FND stock. Chipotle and IOT stock are on the IBD 50. Chipotle and Tesla stock are on the IBD Big Cap 20. McKesson was Friday’s IBD Stock Of The Day.
The video embedded in the article reviews the market action over the past week and analyzes McKesson, Chipotle and AMD stock.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET, along with S&P 500…
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