Dow Jones futures jumped Tuesday morning, along with S&P 500 futures and Nasdaq futures, on continued coronavirus vaccine optimism and strong China manufacturing data. Apple (AAPL), Tesla (TSLA), Nio, Xpeng Motors and Moderna stock were rallying before the open, while Zoom Video Communications (ZM) retreated.
The stock market rally lost ground Monday but came off lows, especially the Nasdaq, fueled by gains in Apple (AAPL), Moderna (MRNA) and AMD stock. In Monday’s session, Apple stock flashed an early buy signal, while Advanced Micro Devices (AMD) broke out. Apple chipmaker Qorvo (QRVO) also cleared a buy point.
Tesla, Nio Early Movers
The S&P 500 index will add Tesla stock in one fell swoop before Dec. 21, S&P Dow Jones Indices announced late Monday. Meanwhile, China rivals Nio (NIO) and Xpeng Motors (XPEV) reported November deliveries early Tuesday. Moderna just kept soaring.
On the downside, Zoom Video, the ultimate coronavirus play, reported better-than-expected results and upside guidance. But Zoom Video stock fell solidly before the open
Tesla and Zoom Video stock are two of the biggest 2020 winners, up 578% and 603%, respectively as of Monday’s close. But MRNA stock is 681% year to to date. Nio stock is up a 1,157% so far in 2020. Recent IPO Xpeng stock is up just 291%, though it tripled in November alone.
Apple stock, the ultimate megacap, rose before the open after closing right at an aggressive entry.
On Monday, Chinese stocks struggled on a variety of factors, including a looming House vote on legislation that could lead to delistings from U.S. markets. Fraud allegations vs. EV maker Kandi Technologies (KNDI) didn’t help. E-commerce giants JD.com (JD), Pinduoduo (PDD) and Alibaba (BABA) suffered significant losses. Tesla electric car rivals Nio, Xpeng and Li Auto (LI) also retreated.
JD.com stock, Pinduoduo, AMD and Tesla are on IBD Leaderboard. Apple stock is on the Leaderboard watchlist. AMD and Tesla stock are on SwingTrader. AMD stock is on the IBD 50.
Dow Jones Futures Today
Dow Jones futures rose 1.15% vs. fair value. S&P 500 futures climbed 1.1%. Nasdaq 100 futures advanced 1%. Apple stock gave a lift to the Dow Jones, S&P 500 and Nasdaq.
Caixin’s China manufacturing index rose 1.3 points in November to 54.9, the highest in 10 years. That comes a day after the official China manufacturing gauge hit a three-year high.
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 cases worldwide reached 63.70 million. Covid-19 deaths topped 1.47 million.
Coronavirus cases in the U.S. have hit 13.92 million, with deaths above 274,000.
The Moderna coronavirus vaccine is 94.1% effective, the biotech said early Monday. Notably, it’s 100% effective in preventing serious Covid-19 cases. Moderna (MRNA) filed for FDA approval, a few days after Pfizer (PFE)] and BioNTech (BNTX) filed with the FDA for their 95%-effective coronavirus vaccine.
Moderna stock spiked 20% Monday, capping a 126% explosion in November. MRNA stock kept soaring, tacking on 10% early Tuesday.
Stock Market Rally
U.S. Stock Market Today Overview
|Russell 2000|| (IWM)||181.30||-3.07||-1.67|
|IBD 50|| (FFTY)||39.50||+0.18||+0.46|
Last Update: 4:22 PM ET 11/30/2020
The stock market rally had a down day, but the Nasdaq was resilient while leading stocks did well overall.
The Dow Jones Industrial Average lost 0.9% in Monday’s stock market trading. The S&P 500 index sank 0.5%. The Nasdaq composite lost just a fraction, after falling more than 1% intraday.
For the month, the Dow Jones soared 11.9%, the S&P 500 10.8% and the Nasdaq 11.8%.
Some highflying IPOs came under pressure Monday, though they generally closed with modest losses or even reversed higher.
Growth stocks overall fared well. Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 0.5%. The iShares Expanded Tech-Software Sector ETF (IGV) climbed 0.45%. The VanEck Vectors Semiconductor ETF (SMH) popped 1.1%, with AMD stock a notable contributor.
Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.
Zoom Video Earnings
Zoom Video earnings shot up 1,000% to 99 cents a share, with revenue up 366.5% to $777.19 million. Analysts expected Zoom Video earnings of 76 cents on revenue of $693.4 million.
The videoconferencing leader guided higher for Q4 and for 2021.
However, Zoom Video stock fell 7% in premarket action. Shares rose 1.4% to 478.36 on Monday, reclaiming the 50-day line.
AMD stock jumped 6.3% to 92.66 in heavy volume Monday, blasting above an 88.82 buy point from a double-bottom base. CEO Lisa Su said during a Credit Suisse conference on Monday that AMD sees Q1 sales trending “a little bit better” than normal seasonality, suggesting some upside.
Qorvo stock rose 4.4% to 156.68, clearing the 154.53 buy point from a three-weeks-tight pattern. The chipmaker is benefiting from momentum in 5G wireless, including the new Apple iPhone. Qorvo was an IBD Stock Of The Day last week.
Qualcomm (QCOM), another 5G and Apple chipmaker, rose 2.3% to 147.17, working on a four-weeks-tight entry with an official buy point of 153.43, according to MarketSmith analysis. Qualcomm stock was Monday’s Stock Of The Day.
Giving a boost to Qualcomm and Qorvo stock, Apple stock rose 2.1% to 119.05, though it backed off an intraday high of 120.97.
Loop Capital upgraded Apple to a buy with a 131 price target, expecting upside to iPhone sales and other products and services. Morgan Stanley tapped the iPhone maker as a strong 5G play.
Shares are rebounding from their 50-day moving average. The official buy point is 138.08, with early entries of 125.49 and 122.09. Apple stock did cross a trend line starting from the Oct. 13 high, essentially closing right on that line.
An aggressive investor could start an AAPL stock position here, then perhaps add more shares as it clears the 122.09 and 125.49 levels and finally the 138.08 buy point.
Apple stock has slightly lagged the broader market for the past few months. If the tech giant can wake up, it would add real momentum to the major indexes.
Apple stock rose 2% before the open.
Tesla Stock Jumps On S&P 500 Update
Tesla stock rose 5% overnight on the S&P Dow Jones Indices’ decision to add the EV maker to the S&P 500 index in one go. Because of Tesla’s huge market cap, the committee had mulled splitting the stock’s entry into two tranches.
Tesla stock has skyrocketed since the announcement that Tesla will join the S&P 500 before the open on Dec. 21.
Meanwhile, Tesla got China’s official green light on Monday to sell the Model Y from its Shanghai plant, as expected.
Tesla stock briefly rose to a new high of 607.80 soon after Monday’s open before reversing for a 3.1% decline to 567.30.
Nio, Xpeng Deliveries
Nio delivered 5,291 electric vehicles in November, up 109% vs. a year earlier. That includes 2,386 ES6s, 1,387 ES8s and 1,518 EC6s. The recently launched EC6 crossover will compete with the Tesla Model Y when that launches.
Xpeng delivered 4,224 electric vehicles, up 342% vs. a year earlier. That includes 2,732 P7 sedans, which competes with the Tesla Model 3. Xpeng also sold 1,492 G3s, its small SUV.
Li Auto will likely release November delivery figures in the next few days.
Goldman Sachs raised its price targets on Nio and Li Auto stock for good measure.
Overall China EV production and sales, including Tesla figures will probably come next week.
Nio stock rose 3% early Tuesday. Xpeng rallied 7% and Li Auto stock 10%.
On Monday, Nio sank 6.4% while Li Auto and Xpeng stock lost nearly 9% on a bad day for U.S.-listed Chinese stocks.
Kandi Technologies tumbled 28% after short-seller Hindenburg Research accused the Chinese EV maker of fraudulent sales.
Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.
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