Dow Jones Futures: The New Stock Market Rally Risk; Square, Apple Supplier Near

Dow Jones futures will open for trading on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally continued to strengthen, with the S&P 500 index and Dow Jones hitting record highs while the Nasdaq delivered a second straight strong weekly gain.

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After weeks of wondering if a split market rally would survive, the Dow Jones and S&P 500 are at risk of becoming extended, raising the odds of a pullback.

Floor & Decor (FND), Square (SQ), JPMorgan Chase (JPM), Mosaic (MOS) and Apple (AAPL) supplier Skyworks Solutions (SWKS) are stocks in or near buy zones that offer some portfolio diversity amid a still-tricky market rally.

Megacap techs were big winners, with Microsoft (MSFT), Facebook (FB) and Google parent Alphabet (GOOGL) breaking out while Apple stock and Amazon.com (AMZN) jumped as they try to shake off months of sluggish action.

All five stocks are S&P 500 and Nasdaq members, with Apple stock and Microsoft also Dow components. So when these giants get going, the major indexes do too.

FND stock and Microsoft are on IBD Leaderboard. Google stock is on SwingTrader. MSFT stock is on IBD Long-Term Leaders. Floor & Decor and Square stock are on the IBD 50.

Alibaba Fine

Chinese regulators imposed a$2.8 billion antitrust fine vs. Alibaba (BABA) for abusing its market dominance over merchants and rivals. The record penalty vs. Alibaba comes amid unprecedented scrutiny vs. the Chinese e-commerce giant and its founder Jack Ma.

BABA stock, along with rivals JD.com (JD), Pinduoduo (PDD) and Tencent Holdings (TECHY) have come under heavy pressure in recent months

Dow Jones Futures Today

Dow Jones futures will open at 6 pm. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures xxx.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.

Coronavirus News

Coronavirus cases worldwide reached 135.45 million. Covid-19 deaths topped 2.93 million.

Coronavirus cases in the U.S. have hit 31.80 million, with deaths above 574,000.

Stock Market Rally Last Week

The stock market rally had another strong week, with the major indexes closing on a high note.

The Dow Jones Industrial Average rose almost 2% in last week’s stock market trading while the S&P 500 index climbed 2.7%, both hitting record highs. The Nasdaq composite, after reaching its 50-day line in the prior week, rallied 3.1% in the latest week, surging past its March short-term highs. The big-cap Nasdaq 100 jumped 3.9% to an all-time closing high.

The laggard was the Russell 2000, which fell 0.5%, but held above its 50-day line.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 2%, while the Innovator IBD Breakout Opportunities ETF (BOUT) advanced 2.7%. The iShares Expanded Tech-Software Sector ETF (IGV) jumped just over 4%, with MSFT stock its top holding. The VanEck Vectors Semiconductor ETF (SMH) gained a relatively modest 1.2%. SWKS stock is an SMH component.

Reopening plays lagged or declined last week. SPDR S&P Metals & Mining ETF (XME) sank 2.2% and Global X U.S. Infrastructure Development ETF (PAVE) edged up 0.2%. U.S. Global Jets ETF (JETS) climbed nearly 1%.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) advanced 2% while ARK Genomics ETF (ARKG) sank 2%. Square stock is a notable holding for ARK Investments.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

These Five 2020 Winners Are Setting Up For Another Run

Stocks Near Buy Points

While these five stocks wouldn’t touch on all the leading sectors of the market, they could be part of a nutritious breakfast, as it were.

Floor & Decor Stock

Floor & Decor stock jumped 9.9% last week to 108.69. On Wednesday, FND stock nudged past a 101.84 handle buy point. On Friday, shares vaulted higher, hitting a record high and clearing alternate entries of 108.14 or 108.64.

Square Stock

Square stock vaulted 14% to 261.65 last week, with above-average volume in the last three days. SQ stock is nearing a 283.29 buy point, according to MarketSmith analysis, after previously offering early entries.

JPMorgan Stock

JPMorgan stock climbed 1.7% last week to 156.28. JPM stock has been trading at its 21-day line in tight action for several weeks. In fact, it has a four-weeks-tight pattern with a 161.79 official buy point. Aggressive investors could buy JPMorgan stock now, trading above the bulk of recent action, with one huge caveat: JPMorgan earnings are on tap Wednesday. Buying a stock just before earnings is highly…