Dow Jones futures edged lower Sunday evening, along with S&P 500 futures and Nasdaq futures. Twitter reportedly is warming to a takeover by Tesla (TSLA) CEO Elon Musk.
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The stock market suffered yet another week of losses while Treasury yields continued to climb. The major indexes hit resistance last week and broke below support levels. It was even worse beneath the surface. Leading stocks and sectors that had held up well showed strain, with miners in particularly selling off hard. Buying opportunities quickly reversed lower. Growth stocks continued to tumble.
Earnings Week
It’s the peak week for earnings, with Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN), Google parent Alphabet (GOOGL), Exxon Mobil (XOM), Caterpillar (CAT), Chevron (CVX), Raytheon Technologies (RTX) and General Dynamics (GD) among the hundreds of companies reporting this coming week.
But with market conditions deteriorating, the flood of earnings gives investors yet another reason to stay on the sidelines. But keep a close eye on big earnings, such as Apple, Exxon and General Dynamics, and the market reaction to those reports.
Tesla stock is on IBD Leaderboard and the IBD 50. XOM stock is on the Big Cap 20 list, which is filled with energy and commodity plays.
The video embedded in this article reviews the market action in detail, while also analyzing AAPL stock, Exxon and General Dynamics.
Earnings Preview: Seven Setups To Watch
Dow Jones Futures Today
Dow Jones futures edged lower vs. fair value. S&P 500 futures and Nasdaq 100 futures declined 0.1%.
A small number of Covid cases in Beijing is raising concerns of a lockdown in China’s capital. Meanwhile, Shanghai remains locked down for a fourth week, though Tesla and other factories have resumed limited production.
Crude oil prices fell more than 1% to slightly above $100 a barrel.
With French President Emmanuel Macron winning re-election on Sunday, the European Union is expected to begin discussing a ban on Russian crude oil imports.
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
Twitter Open To Elon Musk Bid?
Twitter seems more open to a takeover bid from Tesla CEO Musk, according to The Wall Street Journal. Musk announced Friday that the CEO had lined up financing for a Twitter bid, including some of his TSLA stock holdings. The two sides are meeting Sunday, the WSJ said, citing sources, to discuss the unofficial offer of $43 billion, or $54.20 a share.
It’s unclear if Musk would raise his offer, or if another bidder will appear.
Twitter stock rose 8.5% last week to 48.93. It’s up 24.5% since before April 4, when Musk belatedly disclosed a 9.1% TWTR stake. Meanwhile, Snap (SNAP) is down 20% and Facebook stock 18% over that span, even with a small Musk-Twitter bump on April 4. That suggests TWTR stock could…
Read More: Dow Jones Futures Fall After Bears Hunt Down Market Bulls; Twitter