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Dow Jones futures rise as Iran and Israel fear fading; Retail sales rise, Tesla cuts jobs

Dow Jones futures rose sharply early Monday, along with the S&P 500 and Nasdaq, as fears subsided after Saturday’s Iranian attack on Israel. Tesla (TSLA) fell on the stock market today after announcing major layoffs.


Among the Dow Jones giants is Goldman Sachs (GS) rose after strong pre-open earnings. Apple (AAPL) moved lower on declining iPhone sales. Salesforce.com (CRM) fell on the latest takeover rumors. Outside of the Dow Jones, Charles Schwab (SCHW) reported earnings.

Meanwhile, March retail sales rose 0.7%, or 1% excluding cars and gasoline, both well above expectations. February’s interim gain was revised to 0.9%. The New York Fed’s Empire State Manufacturing Index in April rose to -14.3 from -20.9 in March, but that was well below the breakeven point and below expectations for -5.1.

The stock market rally suffered significant losses last week, especially on Friday due to fears over Iran and Israel. The Nasdaq held up best, while Nvidia shares recovered from a key level but were still down.

Nvidia (NVDA) shares rebounded slightly in premarket trading Monday.

Stock Market Today: Dow Jones Futures Rise

Dow Jones futures rose 0.8% versus fair value in the stock market today, with Goldman, Apple and Salesforce stocks making big jumps. S&P 500 futures rose 0.7%. Nasdaq 100 futures advanced 0.85%.

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The yield on ten-year government bonds rose to 4.61%, which would be a new high in 2024.

Crude oil futures fell slightly.

Copper rose after new US and British sanctions on Russian copper, aluminum and nickel.

Remember, premarket action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in today’s stock market.

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Stock market rally in retreat

The stock market rally retreated last week, with Friday’s heavy losses shattering expectations for an encouraging Thursday.

The Nasdaq fell 0.45% in last week’s stock trading and was down 1.6% on Friday from Thursday’s record close.

The S&P 500 index fell 1.55%, just above its 50-day moving average. The Dow Jones Industrial Average fell 2.4% and the small-cap Russell 2000 fell 2.9%, both to their worst levels in weeks, well below the 50-day mark.

The yield on ten-year government bonds rose 12 basis points to 4.5% and reached a 2024 high of 4.59% on Thursday.

US crude oil prices fell 1.4% to $85.66 per barrel. Crude oil hit a multi-month high of $87.67 on Friday morning.

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Goldman Sachs earnings

Goldman Sachs reported a profit for the first quarter that was well above expectations. Goldman’s shares rose nearly 4%, signaling a return above the 50-day line.

Charles Schwab narrowly beat Wall Street views when it reported before the stock market open today. Schwab shares fell slightly in premarket trading, right around a buy point.

Tesla reports layoffs and stops deliveries of Cybertrucks

Tesla confirmed it will cut more than 10% of its global workforce, according to an email from Elon Musk to employees. That would be more than 14,000 jobs. That’s because the electric vehicle manufacturer faces declining demand and massive overcapacity at its factories.

Tesla has significantly reduced inventory discounts for Model Y in the US, even as inventories continue to rise. Together with the large job losses, this indicates that the EV giant will further reduce production in an attempt to increase margins.

Meanwhile, Tesla has halted deliveries of Cybertruck, according to online rumors this weekend. And late Friday, Tesla lowered the price of fully self-driving car subscriptions from $199 to $99 per month.

Tesla fell fractionally in premarket action.

Shares of Tesla rose 3.7% last week, but fell 2% to 171.03 on Friday.

Apple iPhone sales decline

Apple (AAPL) iPhone shipments fell 9.6% in the January-March period from a year earlier, IDC estimated Sunday. That came amid a 7.8% recovery in global smartphone sales, with Chinese mobile phone makers booming. Demand for Apple has also fallen in China due to increased competition.

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Apple shares fell during Monday’s market trading.

Shares rose 4.1% to 176.55 last week, recovering from 2024 lows on hopes of an AI phone and other AI-enhanced products later this year.

Salesforce is reportedly buying Informatica

Salesforce.com is in advanced talks to acquire a data management software maker Computer science (INFA), The Wall Street Journal reported Friday evening. The potential deal being discussed is for less than Informatica’s stock price.

Salesforce stock fell nearly 3% before Monday’s open. Informatica shares fell 1%.

Nvidia is rebounding on the stock market today

Nvidia rose fractionally in premarket trading.

Last week, shares rose 0.2% to 881.86 for the week. Nvidia shares recovered from the 10-week line on Wednesday and Thursday before retreating on Friday. The stocks still held are still holding the 21-day exponential moving average.

NVDA has a new flat base with a buy point at 974. Investors could use Thursday’s high of 907.39 as an early entry.

Follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.


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Futures rise; US urges restraint after attack on Iran

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