Dow Jones futures edged lower early Tuesday while S&P 500 futures and Nasdaq futures rose slightly, led by Nvidia and Apple. Meme stock GameStop jumped before the open.
The stock market rally returns from a holiday weekend after some mixed action last week, with the Nasdaq rising to a new high while the Dow retreated.
Nvidia stock is continuing last week's big run as it moves toward a $3 trillion valuation. Apple stock gained on rebounding iPhone sales in China. GameStop soared following a stock offering.
Tesla is in focus after proxy advisory firm Glass Lewis said shareholders should reject Elon Musk's "excessive" $56 billion pay deal and a proposal to reincorporate in Texas.
Footwear stocks Deckers Outdoor and On Holding stepped higher on analyst upgrades.
Sea Limited tumbled as the Singapore-based e-commerce and gaming giant faces an Indonesia antitrust probe.
Viking Holdings rose slightly as the newly public cruise line operator got several analyst initiations at buy ratings. Viking reports earnings early Tuesday.
Several key earnings reports are on tap this week, including Cava after the close Tuesday.
But the week's biggest news may be Friday's core PCE price index, the Fed's primary inflation gauge. That will be key to Fed rate cut expectations, a September cut essentially a tossup. Economists expect the core PCE price index to rise a modest 0.2% in April. There's also a chance of a slight downward revision to core inflation in the year's first three months.
Nvidia and Cava stock are on IBD Leaderboard. On Holding stock is on SwingTrader. Nvidia, On Holding and Deckers stock are on the IBD 50. Nvidia stock and Deckers are on the IBD Big Cap 20.
Dow Jones Futures Today
Dow Jones futures fell 0.1% vs. fair value. S&P 500 futures climbed 0.15%. Nasdaq 100 futures rose 0.3%.
The 10-year Treasury yield edged down to 4.45% after rising five basis points to 4.47% last week.
Crude oil futures rose more than 1% to nearly $79 a barrel. Oil prices sank 2.3% last week to $77.22 a barrel.
Remember that premarket action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
The Dow Jones Industrial Average slumped 2.3% in last week's stock market trading. The S&P 500 index closed fractionally higher after briefly hitting a record high Thursday. The Nasdaq composite rose 1.4%, setting all-time levels, led by Nvidia.
Join David Ryan and IBD experts as they analyze leading stocks on IBD Live Tuesday
Tesla Vote
Tesla shareholders should reject CEO Elon Musk's proposed $56 billion compensation package, proxy advisory firm Glass Lewis said.
Glass Lewis said the pay deal is "excessive" and cited the "dilutive impact" on current shareholders. Investors first approved the pay deal back in 2018, but a Delaware court struck it down earlier this year, saying shareholders weren't adequately informed.
Elon Musk has hinted he could develop artificial intelligence and robotics outside of Tesla if he doesn't get the pay deal reinstated, plus further compensation to give him 25% voting control. His XAI startup has already hired away a number of Tesla staff.
Shares fell 1% before the open.
Tesla stock rose 1% last week to 179.24, above the 50-day line. TSLA stock is down 27.8% so far in 2024.
Tesla Vs. BYD: EV Giants Vie For Crown, But Which Is The Better Buy?
Cava Earnings
Cava is expected to report first-quarter earnings of four cents a share vs. a two-cent loss a year earlier, according to FactSet. Revenue should climb 21% vs. a year earlier to $246 million, buoyed by store openings. Same-restaurant sales should rise just 1.6%, down from 11.1% in the prior quarter and 28.4% in the year-earlier quarter. Analysts see Cava comps growth improving to the mid-single digit range in the rest of the fiscal year.
Cava stock popped 3% early Tuesday.
Shares jumped 7.3% to 82.93 last week, hitting fresh all-time highs. Cava is extended from any buy point.
Nvidia Stock
Nvidia stock rose 3% before the open. Last week, NVDA stock surged 15.1%, blasting to a record high on yet another booming earnings report and strong guidance.
The AI tech leader is closing in on a $3 trillion valuation, with Nvidia closing Friday at $2.66 trillion.
Apple Stock
Apple stock climbed nearly 2% early Tuesday. Its iPhone shipments in China soared 52% in April amid sizeable discounts there. That followed a 12% gain in March after tumbling 37% in the first two months of 2024. Apple faces hefty competition from Huawei and other local handset makers.
AAPL stock has a 199.62 consolidation buy point, according to MarketSurge. A move above the May 22 high of 192.82 could serve as an early entry.
Apple stock has been rebounding in recent weeks amid expectations that it will unveil a number of AI features at its upcoming Worldwide Developers event.
Time The Market With IBD's ETF Market Strategy
GameStop Stock
GameStop stock leapt more than 20% before the open. Late Friday, the mall-based video game retailer turned meme stock disclosed it had raised $933 million from selling 45 million shares. With that offering out of the way, bulls are back in force.
GME stock had skyrocketed two weeks ago, but quickly erased those gains as of Friday.
Deckers, On Holding
DECK stock rose 2% after Truist upgraded the Hoka running shoe and Ugg boots maker to a by with a 1,200 price target. Deckers gapped up 14.2% on Friday following strong earnings.
ONON climbed 2% after Truist upgraded the Swiss athletic shoe maker to a buy. On Holding leapt 4.7% on Friday, moving with Deckers, continuing its own run since earnings on May 14.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
