Dow Jones Futures Drop during Market Rally; Tesla CEO Elon Musk Will Not Join Twitter’s Board

Dow Jones futures, as well as S&P 500 and Nasdaq futures, dipped Sunday night, as Treasury rates continued to rise. In March, Tesla China sales were strong, but the Shanghai facility was shutdown. Meanwhile, Tesla CEO Elon Musk will not join the board of directors of Twitter (TWTR). The major indexes and top stocks suffered a down week as a hawkish Federal Reserve and rising Treasury rates weighed on them. The stock market rise is “stressed.”
Tesla shares experienced a terrible turnaround week on the outside. However, following a rapid rise, it now has a handle on a weekly chart. Tesla China sales were robust in March, but a shutdown in Shanghai will have an impact on April production.

Meanwhile, Apple (AAPL) fell, giving its handle a bit more weight although still trading closely. While Tesla (TSLA) and Apple (AAPL) are performing well, most growth stocks are not. Despite its “porcupine” image, Callon Petroleum (CPE) is trading closely on a weekly chart in stronger portions of the market. General Dynamics (GD) is also trading closely as it establishes a fresh flat foundation. Molina Health (MOH) has been trading firmly in a buy zone this week, while also finding crucial support.

Twitter CEO Parag Agrawa said Sunday night that Elon Musk will not be joining the company’s board of directors. Musk said on Monday that he had become Twitter’s largest stakeholder, owning 9.1 percent of the company. Twitter announced on Tuesday that he will be joining the board. TWTR shares increased by 27% on Monday. The week ended with shares up roughly 18%, but still below Monday’s low. The stock of Tesla is on the IBD Leader board. The IBD 50 index includes Tesla and CPE stock. The video attached in this post highlighted the mixed market activity and examined the stocks of Callon Petroleum, General Dynamics, and MOH.

Last week, the Nasdaq and small-cap Russell 2000 dipped below their 50-day moving averages, reversing the stock market gain. Despite small increases late in the week, the Dow Jones Industrial Average fell 0.3 percent in last week’s stock market activity. The S&P 500 index dropped 1.3 percent. The Nasdaq Composite Index fell 3.9 percent. The Russell 2000 index fell 4.6 percent.

The 10-year Treasury yield jumped 34 basis points to 2.71 percent last week, reaching a three-year high; as the Federal Reserve suggested that it will soon begin reducing its large balance sheet in addition to rapid rate rises. The Treasury yield curve is no longer inverted, with the two-year yield rising to 2.52 percent. Crude oil futures in the United States decreased 1.2 percent last week to $98.26 per barrel.