Dow Jones Futures and Tesla: Key Highlights as 2024 Ends

As the stock market gears up to conclude 2024, investors and market watchers are closely monitoring significant developments in Dow Jones futures, Tesla deliveries, and Nvidia’s performance. Here’s a detailed overview of the market outlook and key insights to guide your investment strategies.

Dow Jones Futures Today

Dow Jones futures remained relatively steady in Sunday’s overnight trading, with minimal changes in S&P 500 and Nasdaq futures. This stability comes after a week of mixed performance in the stock market rally. Despite Friday’s sharp losses, the Nasdaq and S&P 500 remain near record highs, while the Dow Jones and Russell 2000 continue to struggle below critical levels.

• Market Recap: The Dow Jones rose 0.35% last week but stayed below the 50-day moving average. The S&P 500 gained 0.7%, and the Nasdaq composite climbed 0.8%, although both indexes experienced a Friday pullback.
• Treasury Yields and Commodities: The 10-year Treasury yield increased to 4.62%, its highest since May. Meanwhile, U.S. crude oil futures climbed to $70.60 per barrel, marking a 1.6% weekly gain.

Tesla Stock: Anticipation Builds Around Q4 Deliveries

Tesla (TSLA) captured investor attention as its stock rose 2.5% last week, closing at $431.66. Although the stock experienced intraday highs of $465.33, it pared gains later in the week. Currently, Tesla stock does not present a clear buying opportunity as it consolidates below its previous peak of $488.54.

• Upcoming Delivery Reports: Tesla is set to announce Q4 and full-year delivery figures on January 2. Analysts predict record-breaking Q4 deliveries slightly exceeding 500,000 units. Elon Musk’s forecast of 1.81 million full-year deliveries hinges on Tesla achieving 514,925 units in Q4.
• Market Dynamics: The EV giant has implemented discounts and incentives to bolster demand. While sales in China remain robust, challenges persist in the U.S. and European markets.
• Cybertruck Milestone: Tesla’s Cybertruck has begun making its way to Europe, with the first units spotted in the Netherlands and Belgium. Despite regulatory hurdles, this signals Tesla’s push to expand its product reach globally.

Nvidia Stock: A New Buying Opportunity?

Nvidia (NVDA) showcased resilience with a 1.8% weekly gain, closing at $137.09. The stock offered an aggressive entry point earlier in the week as it moved above its 50-day moving average but ended below this level by Friday.

• Technical Patterns: Nvidia has formed a shallow double-bottom base with a buy point at $146.54. Tuesday’s intraday high of $141.90 offers an early entry for aggressive investors.
• Sector Performance: Nvidia’s growth potential is tied to advancements in AI and robotics, making it a key player in the semiconductor industry.

Broader Market Trends

The stock market rally remains intact, but recent volatility highlights the importance of a balanced portfolio. Speculative plays in nuclear and quantum computing stood out last week, even as high-growth stocks faced pressure on Friday.

• ETF Performance:
  • The VanEck Vectors Semiconductor ETF (SMH) rose 2.3%, with Nvidia as its top holding.
  • ARK Genomics ETF (ARKG) gained 3.2%, reflecting growing interest in biotech innovation.
  • The Energy Select SPDR ETF (XLE) advanced 0.5%, driven by rising oil prices.
• Steady Performers: Stocks like Boston Scientific (BSX) and Burlington Stores (BURL) exemplify the need for stable names in a volatile market.

Key Takeaways for Investors

1. Maintain Portfolio Balance: Blend high-growth tech stocks with steadier names in sectors like healthcare and consumer goods.
2. Monitor Key Events: Tesla’s delivery reports and Nvidia’s stock performance could set the tone for the early 2025 market.
3. Prepare Watchlists: As new buying opportunities emerge, having a curated list of leading stocks will enable swift decision-making.

As the year wraps up, the stock market’s trajectory remains uncertain. Investors are advised to stay informed, exercise caution with new buys, and position themselves to capitalize on market opportunities in 2025.