Dow Jones futures rose Monday morning, along with S&P 500 futures and especially Nasdaq futures. Oil prices gave up overnight gains even U.S. and Iran continued to exchange attacks.

Google-parent Alphabet, Tesla, Intel, GE Vernova and Interactive Brokers headline a big week of earnings, along with an AMD AI event.

The stock market saw losses last week that were concentrated in the Nasdaq and especially AI stocks. Space Exploration TechnologiesSPCX, better known as SpaceX, dived well below its IPO price. But many stocks in the medical, financial, energy and transportation sectors are showing strength.

Still, investors should be playing more defense than offense, cutting losers and continuing to take profits.

Interactive BrokersIBRK reports Tuesday night with GE VernovaGEV tap early Wednesday. Google-parent AlphabetGOOGL and TeslaTSLA are scheduled for late Wednesday and IntelINTC is due Thursday evening.

Also, Advanced Micro DevicesAMD will hold the AMD Advancing AI event on Wednesday, with CEO Lisa Su a featured speaker.

Also, expect big jet orders during the week around the biennial Farnborough Air Show. BoeingBA on Monday announced an order for 100 737 Max jets from leasing firm SMC Aviation Capital.

Dow Jones Futures Today

Dow Jones futures were up 0.25%. S&P 500 futures advanced 0.4% and Nasdaq-100 futures climbed 0.8%. Chip and AI stocks were generally bouncing after huge losses last week.

Crude oil prices edged lower near $82 a barrel after jumping above $85 overnight on U.S.-Iran attacks.

The 10-year Treasury yield edged up to 4.57%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

U.S., Iran Attacks Continue After Three U.S. Troops Killed

The U.S. and Iran continued attacks over the weekend. Iran targeted U.S. bases in the Mideast. On Friday, an Iranian missile attack killed two U.S. troops and wounded several at a Jordan air base, with one servicemember missing but feared killed. An Iranian drone killed another U.S. servicemember on Saturday.

Iran also launched weekend heavy attacks on Kuwait, striking an oil facility.

A top Iranian official said Saturday that Tehran is suspending all commitments under the 60-day ceasefire, saying the tentative peace deal is effectively dead due to escalating U.S. attacks. Several days ago, President Donald Trump said he considered the ceasefire “over.”

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Stock Market Rally

The stock market rally had a down week, but with the Nasdaq down far more than the other key indexes. Outside of AI there was a fair amount of resilience or outright strength.

The Dow Jones Industrial Average gave up 0.9% in last week’s stock market trading. The S&P 500 index slumped 1.55% to just below its 50-day line. The Nasdaq composite tumbled 2.9%, diving below its 50-day line, with the Nasdaq-100 index down 4.1%, almost undercutting early June lows. The small-cap Russell 2000 fell 0.5%.

The Invesco S&P 500 Equal Weight ETFRSP slipped 0.45%.

A wide range of chip and AI buildout stocks sold off this past week, including Dell TechnologiesDELL, SandiskSNDK, Micron TechnologyMU, though Dell did find support off its 50-day line on Friday. Many AI names look broken.

Real economy names had a strong week. Among those flashing buy signals were truckers like J.B. Hunt Transport ServicesJBHT, banks such as Goldman SachsGS, payment stocks including FlywireFLYW and big pharma names MerckMRK, Eli LillyLLY and Johnson & JohnsonJNJ.

Software names are trying to hold up and set up.

The 10-year Treasury yield fell three basis points to 4.54%.

U.S. crude oil futures spiked 15.5% to $82.49 a barrel last week amid heavy U.S.-Iran attacks and few tankers traveling through the Strait of Hormuz. Resurgent oil prices could hit transportation and other real-economy stocks that have been coming up.

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ETFs

Among growth ETFs, the CapForce IBD 50 ETFFFTY lost 4.6% last week. The iShares Expanded Tech-Software Sector ETFIGV gained 0.4%. The VanEck Vectors Semiconductor ETFSMH plunged 8.9%.

ARK Innovation ETFARKK slumped 6.3% last week and ARK Genomics ETFARKG declined 3.5%. Tesla is the No. 1 holding across ARK Invest funds, with Cathie Wood loading up on SpaceX since its IPO.

SPDR S&P Metals & Mining ETFXME shed 5.15% last week. The Energy Select SPDR ETFXLE jumped 4.7% and the Health Care Select Sector SPDR FundXLV edged up 0.2%. The Industrial Select Sector SPDR FundXLI dropped 1.4%. The Financial Select SPDR ETFXLF was up 1%.

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SpaceX And Tesla

Last week SpaceX dived 14.7% to 123.99, falling far below the $135 IPO price. A scrubbed Starship launch Thursday night didn’t help, but space and AI companies are no longer in favor. The Starship launch has been pushed back to Friday after previously being rescheduled for Monday.

SpaceX now has a $1.64 trillion market cap, down $1 trillion from the June 16 closing peak of $2.64 trillion. Notably, SPCX’s market cap is only modestly above Tesla’s at $1.43 trillion. That could undermine hopes that SpaceX will eventually buy Tesla at a fat premium.

Tesla stock sank 6.6% for the week, now clearly below all key moving averages. Shares have sold off since the EV maker reported stellar Q2 delivery figures on July 2. Strong sales bode well for Thursday’s earnings report. But TSLA stock’s valuation is largely based on hopes for robotaxis and robotics.

Five Stocks Near Buy Points In Tough Market

Google, GE Vernova, Intel, Interactive Brokers, AMD

Google is the first hyperscaler to report Q2 results, so earnings, guidance and capital spending plans will be key for the hard-hit AI sector. Intel and GE Vernova are notable players as well.

Google stock hit resistance at the 50-day line midweek, then tumbled on Gemini AI model delays. A decisive move above the 50-day line could provide an early entry.

GEV stock reclaimed its 50-day line on Friday. A strong earnings reaction could offer a buying opportunity. Intel stock has fallen well below its 50-day line.

Interactive Brokers held its 50-day line on Friday as it works on a short consolidation.

AMD will be in focus on Wednesday with its AI event. Shares dived 11.1% last week, but came off Friday’s lows to nearly hold the 50-day line. A strong move above the 50-day and 21-day lines could offer a pullback entry.

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What To Do Now

The stock market is difficult right now. The AI trade is heavily damaged, even with Friday’s half-hearted bounce among some names. While many non-AI groups are showing strength, market volatility and the risk of renewed sector rotations make new buys tricky.

Earnings season and U.S.-Iran news add to the uncertainty.

Investors can try some new buys, but might consider smaller position sizes and a tight lease on losses. Don’t feel obliged to make any purchases. Definitely dump losers and follow sell rules on winning positions that have come under pressure.

Work on watchlists. A large number of stocks are in buy areas or setting up, so have those on your radar.

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