Dow Jones Futures: Market Rally Takes Bearish Turn On Inflation,

Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The major indexes last week reversed lower from key resistance to undercut key support, raising fresh concerns about the stock market rally.

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A hot inflation report and fears of an imminent Russia invasion of Ukraine spurred the stock market sell-off late in the week.

This is not a good time to be adding exposure. Still, Apple stock, Regeneron (REGN), UnitedHealth (UNH), Google parent Alphabet (GOOGL) and Oneok (ONE) are stocks near buy points that boast growth at a reasonable price.

REGN stock has a P-E ratio of just 8. Apple (AAPL), UNH stock, Google and Oneok have P-E ratios in the 20s, roughly in line with the S&P 500 index.

Low Times For High Growth

For investors used to trading highly valued growth stocks, the new year has been painful. A rising rate environment pressures highly valued stocks, especially those that are unprofitable or have triple-digit price-to-earnings ratios. Dutch Bros (BROS), with a P-E ratio above 200 ,caught the eye of seemingly every growth investor a week ago, but BROS stock reversed sharply lower last week. Tesla (TSLA) has held up better than a lot of these names, but it’s been struggling in 2022. Datadog (DDOG) bounced back last week on earnings, but was that a one-time pop or will DDOG stock make further progress?

Advanced Micro Devices (AMD), while no longer exceptionally valued, still plunged 10% on Friday, leading a sell-off in chips and techs generally. After nearly hitting its 50-day line on Wednesday, AMD stock finished the week just above its 200-day line. It’s more than wiped out its Feb. 2 pop on earnings.

Investors on Monday will get a reading on Tesla’s China sales and exports for January as part of industry data on Chinese EV and overall auto sales.

Tesla stock is on IBD Leaderboard. Google stock is on IBD Long-Term Leaders. BROS stock is on the IBD 50.

The video embedded in this article takes a look at the market rally’s highs and lows during the week and analyzes AMD stock, Regeneron and Oneok.

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

Coronavirus News

Coronavirus cases worldwide reached 408.45 million. Covid-19 deaths topped 5.81 million.

Coronavirus cases in the U.S. have hit 79.11 million, with deaths above 940,000.

Covid cases have fallen dramatically in the U.S., with deaths also retreating. More states, including several run by Democratic governors, are ending mask mandates in the near future.

Stock Market Rally

The stock market rally sold off hard to end last week, with the major indexes breaking below key levels.

The Dow Jones Industrial Average fell 1% in last week’s