Dow Jones futures fell modestly early Tuesday, along with S&P 500 futures and Nasdaq futures.
The stock market rally initially struggled amid concerns about a sluggish economy, but once again came off lows in the afternoon to close mixed. Crude oil prices tumbled, hitting energy stocks. Nvidia had a solid session, helping the Nasdaq and S&P 500 even as more leaders came under pressure.
Meanwhile, Meta Platforms and GE Aerospace are near key levels, potentially setting up.
Spotify, Arm Holdings and ELF Beauty made strong moves, at least flirting with early entries. Vertex Pharmaceuticals rose in a buy zone. JPMorgan Chase held above a buy point.
After the close, HSA provider HealthEquity beat views and gave upbeat guidance. HealthEquity stock jumped early Tuesday, signaling a breakout from a flat base.
Nvidia and ELF stock are on IBD Leaderboard and the IBD 50. Vertex stock is on SwingTrader. Nvidia stock and Vertex are on IBD Big Cap 20. Spotify was Monday's IBD Stock Of The Day.
Dow Jones Futures Today
Dow Jones futures sank 0.4% vs. fair value. S&P 500 futures and Nasdaq 100 futures fell 0.4%.
The 10-year Treasury yield dipped to 4.38%.
Crude oil futures fell nearly 2% to just below $73 a barrel. Copper futures declined more than 2%.
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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Stock Market Rally
The stock market rally retreated Monday morning as the ISM manufacturing index unexpectedly fell, signaling a deeper contraction. While that might be good news for inflation, there are growing signs that the U.S. economy is starting to falter. However, as on Friday, the key indexes came off lows to close mixed.
The Dow Jones Industrial Average fell 0.3% in Monday's stock market trading. The S&P 500 index climbed 0.1% after testing the 21-day moving average once again. The Nasdaq composite rose 0.6%, with Nvidia stock providing key support.
The small-cap Russell 2000 fell 0.5%, but found support near the 50-day line.
The Invesco S&P 500 Equal Weight ETF sank 0.5%, just holding the 50-day line.
The First Trust Nasdaq 100 Equal Weighted Index ETF lost 0.15%, just below the 50-day line but well off intraday lows.
Restaurant stocks faltered amid growing signs of consumer weakness.
Discount retailers like TJX and medical plays such as Vertex and Regeneron are still doing well. Defensive growth names often do well in choppy markets or uncertain rallies.
U.S. crude oil prices tumbled 3.6% to $74.22 a barrel, to the lowest since early February. OPEC+ on Sunday agreed to continue production cuts into 2025, but that wasn't a surprise.
The 10-year Treasury yield plunged 11 basis points to 4.40%.
ETFs
Among growth ETFs, the iShares Expanded Tech-Software Sector ETF dipped 0.2%. The VanEck Vectors Semiconductor ETF rose 1.25%, with Nvidia stock the dominant holding.
Reflecting more-speculative story stocks, ARK Innovation ETF rose 1.3% and ARK Genomics ETF advance 2.45%.
SPDR S&P Metals & Mining ETF edged down 0.2% and the Global X U.S. Infrastructure Development ETF slumped 1.8%. U.S. Global Jets ETF climbed 0.65% but hit resistance at the 50-day. SPDR S&P Homebuilders ETF sank 1.2%, hitting 50-day resistance even with lower Treasury yields. The Energy Select SPDR ETF gave up 2.6%.
The Health Care Select Sector SPDR Fund rose 0.7%, with Vertex stock a member.
The Industrial Select Sector SPDR Fund slumped 1.2%, hitting resistance at the 50-day line to hit a 1-month low. GE stock is the No. 1 holding in XLI.
The Financial Select SPDR ETF declined 0.6%. JPMorgan stock is a key holding.
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Nvidia Stock
Nvidia stock jumped 4.9% to 1,150.18, a record close. Shares bounced after CEO Jensen Huang laid out Nvidia's AI chip plans through 2026. NVDA stock is significantly extended since gapping up on earnings on May 23.
Stocks Near Buy Points
Meta Platforms stock rose 2.3% to 477.49, back above the 21-day line. The Facebook and Instagram parent is just below the 50-day line, where Meta has hit resistance in the past few weeks. A strong move above the 50-day would offer an early entry. Meta stock has a 531.49 consolidation buy point.
GE Aerospace stock fell 2.5% to 161, but found support at the 10-week line. The aerospace pure play is set to have a flat base with a 170.80 buy point after this week.
Stocks In Buy Areas
ARM stock popped 5.5% to 127.12%, just closing above the May 28 short-term high of 125.98. That offers an early entry in deep, loose base. Arm Holdings said Monday it aims to have 100 million "AI-ready" Arm-powered devices by year-end.
Spotify stock leapt 5.6% to 313.49, rebounding from the near the 50-day line to nearly hit a 319.30 flat-base buy point. Shares did top a 312.69 early entry. The streaming music giant announced a price hike for U.S. premium customers.
ELF stock climbed 5.2% to 196.67 hitting 202.58 intraday. Shares cleared a too-low, too-short handle intraday, offering a 197.85 early entry. ELF stock is actionable from breaking the downtrend of this improper handle. The official buy point is 221.83.
Vertex stock rose 3.3% to 470.18, near the top of the buy zone from a 448.40 cup-base entry. Investors also could use the May 24 peak of 457.66 as a high handle buy point. The relative strength line, though not quite at highs, has ramped up considerably in the past few weeks.
JPMorgan stock dipped 0.4% to 201.78, just holding the 200.94 flat-base buy point, according to MarketSurge. Shares initially broke out on May 14, then tumbled 4.5% on May 20 as CEO Jamie Dimon hinted at retirement down the road. But JPM stock steadied, finding support at a rising 21-day line.
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What To Do Now
The market rally is struggling somewhat, even with Nvidia stock masking some of the weakness. It wouldn't take much for the Nasdaq and S&P 500 to rev back to record highs. If so, a number of stocks would flash buy signals while others could set up promptly. But it wouldn't take much for the Nasdaq and S&P 500 to break below their 21-day and 50-day lines.
So it's not a great time to be adding exposure. Have your watchlists up to date while you keep an eye on the exits.
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