Dow Jones futures and the S&P 500 futures will start trading Sunday evening in what will be a big week for corporate earnings. Tesla, ServiceNow, and Netflix are set to release their quarterly results. It’s been a strong start to 2024, with the S&P 500 and Dow Jones hitting all-time highs and the Nasdaq reaching a two-year best. Market leadership has been robust despite lackluster market breadth, with many stocks showing buy signals. Investors are showing cautious optimism, adding exposure gradually while keeping an eye on the upcoming earnings season. Companies such as Apple and Cloudflare have offered early entry opportunities, and more notable names are on tap for the week including Intel, ASML, Lam Research, KLA, D.R. Horton, Paccar, and United Rentals.
The stock market rally rebounded on Thursday and Friday after a weaker start to the week, with the Dow Jones Industrial Average, the S&P 500 index, and the Nasdaq composite all showing gains. Big techs led the recent market rally, while small caps made a rebound on Friday after struggling earlier in the week. Investors will be keeping a close eye on Tesla’s earnings, which are due Wednesday night, and especially on the 2024 outlook for gross margins and deliveries. Earnings for other major companies like Netflix and ServiceNow are also on tap for the coming week. It’s important for investors to stay up to date with market trends and be aware of upcoming earnings that could impact their holdings.
As the stock market rally continues, investors are focusing on adding to their portfolio gradually while staying wary of overextending themselves. The market leadership remains strong, with many stocks showing buy signals and recent buys extending their gains. However, with the upcoming earnings season, investors should be cautious and prepared for expectations that might be too high. It’s important to stay in sync with market direction, leading stocks, and sectors by reading The Big Picture every day and being aware of when companies on your watchlist will be reporting earnings. It’s a balancing act and requires having the discipline to avoid buying extended and doing the necessary preparation to take advantage of buying opportunities.