Dow Jones Hits 7-Month High, Stocks Near Buy Points; Why You Should Be Cautious

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures.

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The stock market rally had solid gains in the holiday-shortened week. The Dow Jones hit a seven-month high. But the S&P 500 index is coming up to its 200-day moving average, a key resistance area. Several economic reports loom next week, including the November jobs report. Those will be key for Fed rate expectations.

So investors may want to be cautious about adding much exposure in the very short term.

Key Earnings

Data storage firm Pure Storage (PSTG), Chinese e-commerce giant Pinduoduo (PDD), Dollar General (DG) and Ulta Beauty (ULTA) report earnings this coming week. PDD stock, Dollar General, Pure Storage and Ulta Beauty are all near buy points as well.

Salesforce.com (CRM) and Snowflake (SNOW) headline a number of software earnings reports, with guidance key for the entire sector and the IT spending outlook. Snowflake is expected to report its first-ever quarterly profit. But SNOW stock, and most of these other software plays, are well off highs.

Megacaps also are still struggling. Tesla (TSLA) rebounded this week, but from bear market lows. Amazon.com (AMZN) is still below most moving averages. Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA) and Google-parent Alphabet (GOOGL) are all above their 50-day lines, but below their 200-day.

The video embedded in this article reviewed the market rally over the past week and analyzed Dexcom (DXCM), Avis Budget Group (CAR) and PSTG stock.

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.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally had solid gains during Thanksgiving week.

The Dow Jones Industrial Average popped 1.7% in last week’s stock market trading. The S&P 500 index climbed 1.5%. The Nasdaq composite…

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