Dow Jones Futures: Market Correction Getting Worse, Tesla Breaks

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market had another grizzly week, even with a furious final-hour rebound to erase Friday’s losses.

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The major indexes all confirmed a new market rally on Tuesday. But that rally immediately ran into trouble with a big sell-off Wednesday. The Dow Jones undercut its May 12 lows on Thursday, with the S&P 500 and Nasdaq doing so on Friday, ending the rally after just a few days. A final-hour rebound erased Friday’s losses, but the major indexes were still down sharply for the week once again.

Retailers such as Target (TGT) and Walmart (WMT) helped trigger the broad, wide sell-off. But megacaps Apple (AAPL), Google parent Alphabet (GOOGL) and especially Tesla (TSLA) were major losers as well.

Tesla stock was hit especially hard, while emerging top rival BYD (BYDDF) had a solid week. BYD launched preorders for its Seal EV, a new Tesla Model 3 rival, on Friday. China EV startup Xpeng (XPEV) reports early Monday.

With inflation squeezing consumers and businesses and the Fed rapidly raising rates as a result — along with global supply-chain woes — the economic outlook looks difficult at best. Right now, the stock market is still adjusting to that new reality where a “hard landing” is a significant or even likely possibility.

Individual investors need to adjust to that hard reality as well.

Dow Jones giant Chevron (CVX), Eli Lilly (LLY), World Wrestling Entertainment (WWE) and ZIM Integrated Shipping (ZIM) are all worth watching. LLY stock and these other names are near buy points with their relative strength lines at or near highs.

ZIM stock is on the IBD 50. CVX stock is on the IBD Big Cap 20. WWE stock is the focus of this week’s New America feature. The video embedded in this article discusses the weekly action in detail, while also analyzing LLY stock, ZIM and Tesla.

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.

Apple has told some suppliers that it wants to boost iPhone production outside China, the Wall Street Journal reported, citing sources. Beijing’s “zero-Covid” policies is among the reasons. Apple is mulling ramping production in India and Vietnam.

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

The stock market showed some promise on Tuesday, but ended up racking up another week of hefty losses.

The Dow Jones Industrial Average fell 2.9% in last week’s stock market trading. The S&P 500 index slumped 3%. The Nasdaq composite tumbled 3.8%. The small-cap Russell 2000 retreated 1.9%.

Target stock plunged 19.3% and Walmart stock 19.3%, both to the lowest point since 2020, on weak earnings and guidance. Ross Stores (ROST) crashed 21.9% on weak results and…