Dow Jones Futures: Market Rally Pullback Normal, But Not For These

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally is in the midst of a modest pullback after a strong run from mid-March lows.

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The major indexes still look healthy. But investors should be cautious about new buys in the very short term and be ready to exit positions if they aren’t working. Growth and shipping stocks ran into trouble late last week, such as Dutch Bros (BROS) and J.B. Hunt Transport Services (JBHT).

Apple stock, Exxon Mobil (XOM) and SolarEdge Technologies (SEDG) are setting up near buy points.

Tesla Deliveries Due

Tesla deliveries are expected Saturday morning, though they could come as late as Tuesday evening. Analysts are expecting Tesla (TSLA) to report Q1 global deliveries of 309,000. The Tesla Berlin factory has just begun deliveries, while the Shanghai plant was closed for several days in March amid China Covid restrictions.

Tesla stock continued to run up last week toward the 1208.10 cup-base buy point or a trendline entry around 1,145, but might be starting work on a handle.

China EV giant BYD (BYDDF) also is expected to report March sales in the next few days, with some expectation that EV and plug-in hybrid sales topped 100,000 for the first time. BYD stock reclaimed its falling 50-day line on Friday. But it remains below its 200-day line.

Tesla Vs. BYD: Which Booming EV Giant Is The Better Buy?

Tesla and BYD sales figures will follow March deliveries from Xpeng (XPEV), Nio (NIO) and Li Auto (LI). Nio stock and Li Auto reclaimed their 50-day lines on Friday, while XPEV stock also rose. In addition to strong deliveries, the China EV names rallied with other U.S.-listed Chinese stocks on a report easing delisting fears.

Tesla stock is on IBD Leaderboard and the IBD 50. XOM stock is on the IBD Big Cap 20, which is full of energy and commodity names. The video embedded in this article analyzes the market rally and discusses Apple (AAPL), JBHT stock and SEDG stock.

Dow Jones Futures Today

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

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 started last week strong but ended with modest gains or slim losses.

The Dow Jones Industrial Average dipped 0.1% in last week’s stock market trading. The S&P 500 index rose less than 0.1%. The Nasdaq composite rose 0.7%. The small-cap Russell 2000 also climbed 0.7%

The 10-year Treasury yield sank 11 basis points last week to 2.38%. The two-year Treasury yield spiked to 2.48%, decisively moving above the 10-year rate. This yield inversion is a possible recession signal — down the road — with the Fed set to aggressively raise rates at upcoming meetings. Experts differ on whether…