Dow Jones Futures: Market Rally Failed This Test Several Times; Elon

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures, with Twitter stock in focus as Elon Musk moved to end his takeover. The stock market rally showed strength, with the Nasdaq leading the major indexes higher while more quality stocks flashed buy signals.

The Nasdaq closed the week around its 10-week moving average and 50-day line, where it’s struggled multiple times this year. The major indexes decisively clearing these key levels would be a positive step, though the market rally would still face numerous challenges, from technical resistance to the start of earnings season. Conversely, a sell-off from current levels would be bearish signal.

Elon Musk Wants To Terminate Twitter Deal

Late Friday, Tesla CEO Elon Musk informed Twitter (TWTR) that he want to terminate the $44 billion, $54.20-a-share deal. Musk’s lawyers argued that Twitter has “not complied with its contractual obligations.”

Twitter’s board said it’s confident in the deal and intends to close the transaction. It plans to fight in court to make Musk honor the signed deal. Protracted litigation is likely. Musk could be forced to close the deal or pay a substantial sum — more than the $1 billion breakup fee — to walk away.

It’s a big turnaround from April, when Musk belatedly disclosed a sizeable “passive” TWTR stock stake and quickly moved on a takeover deal, claiming he could vastly expand growth and promote free speech.

Twitter stock sank 5% in late Friday trading, signaling the lowest levels since mid-March. Shares sank 5.1% to 36.81 on Friday following a Washington Post article that the deal was in trouble.

TSLA stock rose modestly in extended trade.

Meanwhile, Musk backing away from Tesla could be good news for former President Trump’s struggling Truth Social. Digital World Acquisition Corp. (DWAC), a SPAC merger partner for Truth Social’s parent, surged 29% late Friday.

Stocks Making Bullish Moves

McKesson (MCK), UnitedHealth (UNH), Centene (CNC), Lantheus (LNTH), Northrop Grumman (NOC), Alibaba (BABA), SolarEdge Technologies (SEDG), Fortinet (FTNT) and Tesla (TSLA) are nine stocks in or near buy zones, ranging from traditional breakouts to early buy points to highly aggressive entries.

Northrop, UnitedHealth and LNTH stock are on IBD Leaderboard. Centene and McKesson are on SwingTrader. FTNT stock is on IBD Long-Term Leaders. UNH stock is on the IBD 50. MCK stock and Fortinet are on the IBD Big Cap 20. McKesson was Friday’s IBD Stock Of The Day.

The video embedded in the article discussed the state of the market and analyzed three stocks making bullish moves: McKesson, Lantheus 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.

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

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