Dow Jones Futures: 10 Big Earnings On Tap For Market Rally

Dow Jones futures tilted lower Sunday night, along with S&P 500 futures and Nasdaq futures. Investors are looking ahead to a huge week of earnings, led by Tesla (TSLA), Microsoft (MSFT) and Boeing (BA).

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The stock market rally retreated mid-week, with the major indexes tumbling below key moving averages. But they bounced back Friday, especially the Nasdaq and tech stocks. The Nasdaq, the laggard in 2022, has led the big-cap indexes in 2023 as tech growth names come back in favor.

The recent pullback offered a chance for many stocks to take a breather, forging handles or other new buying opportunities.

Investors should be paying close attention, but be cautious about new positions. The market rally is around critical levels. Earnings season could roil the indexes and specific sectors as well as individual stocks.

Hundreds of companies will be reporting this coming week. Here are 10 earnings reports to watch closely: Tesla, Microsoft, Boeing, ServiceNow (NOW), Chevron (CVX), Visa (V) and Mastercard (MA), as well as chip-gear giants ASML (ASML), Lam Research (LRCX) and KLA Corp. (KLAC).

These reports will offer insight into their respective industries, and could have a big impact on the overall market. Tesla stock and Microsoft still have a lot of repair work to do, while Boeing is extended. NOW stock could be near an aggressive early entry. CVX stock, Visa and Mastercard are all near buy points. So are LRCX and KLA, while ASML is slightly out of reach.

KLAC stock is on the IBD Big Cap 20. Microsoft stock and ASML are on IBD Long-Term Leaders.

Microsoft, Boeing, Chevron and Visa stock are all Dow Jones components.

The video embedded in this article reviews an important market week and analyzes Etsy (ETSY), LRCX stock and ServiceNow.

Dow Jones Futures Today

Dow Jones futures lost a fraction vs. fair value. S&P 500 futures and Nasdaq 100 futures declined 0.1%.

Crude oil futures fell slightly.

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

Stock Market Rally

The stock market rally suffered a downside reversal Wednesday, and fell further on Thursday, but finished relatively well.

The Dow Jones Industrial Average fell 2.7% in last week’s stock market trading. The S&P 500 index dipped 0.7%. The Nasdaq composite climbed 0.55%. The small-cap Russell 2000 declined 1.1%.

The 10-year Treasury yield fell 3 basis points to 3.48% Friday. The yield hit 3.37% during the week, a four-month low.

The expiring February crude oil futures contract rose 1.8% to $81.31 a barrel last week. The March contract, the new near-month crude contract, finished at $81.64.

ETFs

Among growth ETFs, the Innovator IBD 50 ETF (FFTY) fell 1% last week. The iShares Expanded Tech-Software Sector ETF (IGV) rose 1.45%, with MSFT stock and ServiceNow both significant holdings. The VanEck Vectors Semiconductor ETF (SMH) edged up 0.7%. ASML stock is a big holding, along with LRCX, KLAC and TER.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) climbed 1.4% last week and ARK Genomics ETF (ARKG) lost 1%. TSLA stock remains a major holding across Ark Invest’s ETFs. Indeed, Cathie Wood’s Ark reloaded its Tesla stock holdings in recent months.

SPDR S&P Metals & Mining ETF (XME) dipped 0.5% after two big weekly gains. The Global X U.S. Infrastructure Development ETF (PAVE) fell nearly 3%. U.S. Global Jets ETF (JETS) edged up just 0.35% but it’s up sharply in 2023. SPDR S&P Homebuilders ETF (XHB) fell 2.4%.

The Energy Select SPDR ETF (XLE) climbed 0.7%, a sixth straight weekly advance. Chevron stock is a major component. The Financial Select SPDR ETF (XLF) sank 2.1%. The Health Care Select Sector SPDR Fund (XLV) fell 1.1%, the sixth decline in seven weeks.

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Key Earnings

Tesla earnings are due Wednesday night. Investors expect earnings to rise 34% and revenue 39%. That would be the first quarter in years that revenue growth would outpace profits, an early sign of margin pressure.

The focus will likely be on the outlook, especially in the wake of big price cuts worldwide to start 2023. Will Tesla stick to its 50% delivery growth target? Will Elon Musk provide more Cybertruck specifics, and will he confirm a reported Model 3 revamp? What about a new EV plant? Tesla stock soared 9% last week to 133.42, above the 21-day moving average after dropping to 101.81 intraday on Jan. 6. But it’s still below its 50-day line and especially its 200-day line.

Microsoft earnings are due Tuesday night. Analysts expect Microsoft earnings to decline slightly, with a slim revenue gain. Microsoft’s results will be key for software makers, the PC sector and cloud-computing rivals such as Amazon.com (AMZN). This past week, the Dow Jones tech titan said it would cut 10,000 jobs, or 4.5% of staff. MSFT stock edged up…