Dow Jones Futures: Extended Stock Market Rally, Tesla Climax Run Are Volatile Mix; Nio Stock A Buy With New ET7 Sedan


Dow Jones futures will open Sunday, along with S&P 500 futures and Nasdaq futures. The stock market rally shrugged off early losses and stunning events on Capitol Hill to deliver another week of solid gains, fueled by stimulus hopes. But the major indexes are looking increasingly extended, raising the risks of a pullback.




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Electric vehicles makers are in focus, with Nio (NIO) unveiling its ET7 luxury sedan and new battery technology Saturday at its annual Nio Day. On Friday, Nio stock cleared a buy point. Chinese rivals Xpeng (XPEV), Li Auto (LI), BYD Co. (BYDDF) are looking strong.

Meanwhile, Tesla stock appears to be in a climax run.

CES, JPMorgan Healthcare Conference

Looking ahead to the coming week are two big conferences, both virtual this year: The CES tech extravaganza and the JPMorgan Healthcare Conference. Dozens of companies will present key technology, earnings guidance and other business developments at or around those conferences. General Motors (GM) and AMD (AMD) will be key CES presenters on Tuesday.

GM stock is in buy range from a bullish rebound of its 10-week line and moving above its 21-day exponential moving average, while working on a flat base. AMD stock also rebounded from its 10-week line and is still in range from that key level, even as it is just extended from a prior base. It’s also working on a short consolidation that could turn into a base-on-base.


IBD Stock Of The Day Flashes Climax Top Signals


Key Earnings Reports

Late next week earnings season starts to pick up with results from JPMorgan Chase (JPM), Citigroup (C), Delta Air Lines (DAL) and Taiwan Semiconductor (TSM).

JPMorgan stock is nearing the top of a long consolidation, while Citigroup is closing in on that level. TSM stock is well extended. Delta stock is finding support at the 10-week line as it consolidates following a rally from a bottoming base. A strong rebound could offering a buying opportunity for DAL stock, though the fundamentals are likely to grim well into 2021.

Tesla (TSLA) and TSM stock are on IBD Leaderboard.


Five Stocks Flashing Buy Signals


Dow Jones Futures Today

Dow Jones futures will 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 89.84 million. Covid-19 deaths topped 1.92 million.

Coronavirus cases in the U.S. have hit 22.57 million, with deaths above 379,000.

New U.S. Covid cases topped 300,000 for the first time on Friday, while fears grow of more-infectious coronavirus mutations.

Stock Market Rally

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)31097.97+56.84+0.18
S&P 500(0S&P5)3824.68+20.89+0.55
Nasdaq(0NDQC )13201.98+134.50+1.03
Russell 2000 (IWM)207.69-0.48-0.23
IBD 50 (FFTY)42.93+0.45+1.06
Last Update: 4:08 PM ET 1/8/2021

The stock market rally started 2021 with a retreat on Monday, but rebounded from strong gains.

Cyclical stocks, chip names and software names all made intriguing moves.

The Dow Jones Industrial Average rose 1.6% in last week’s stock market trading. The S&P 500 index rose 1.8%. The Nasdaq composite advanced 2.4%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) jumped 4.6% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) rallied 3.4%.  The iShares Expanded Tech-Software Sector ETF (IGV) edged up 0.3% as software stocks rebounded from steep losses earlier in the week. The VanEck Vectors Semiconductor ETF (SMH) leapt 5.5%.

Nio Day

The new Nio ET7 will launch starting at 448,000 yuan ($69,200), though that’s before a subsidy for having battery-swap capability. Drivers also could pay lower prices upfront and subscribe to Nio’s battery-as-a-service offering.

The Nio ET7 will launch in Q1 2022 with 70kWH and 100 kWH battery options.

Nio says a bigger 150kWH battery pack will be available in Q4 2022. The solid-state battery would offer 1000 kilometers of range, roughly 620 miles, on a single charge. Solid-state batteries are expected to be the next big thing in batteries, with longer range, faster charging and less volatile, but they haven’t been launched commercially.

The ET7 will come with advanced driver-assist capabilities, including Lidar functionality and an Nvidia (NVDA)-powered supercomputer. Nio claims it’ll have far-greater computing power and camera resolution than Tesla Full Self Driving.

However, Nio claims its competition is not the Tesla Model S, but non-EV luxury cars.

Nio says it will open 500 second-generation battery-swap stations in 2021. It’s promising five-minute swaps, much faster than traditional charging stations.

While the ET7 won’t be available until 2022, the sedan could provide a halo effect for the entire Nio brand as a premium, cutting-edge EV maker.

Nio only sells in China, but says it’ll start selling in Europe in late 2021.

Xpeng began deliveries of its G3 compact electric EV in Norway late last year. Xpeng recently teased a new sedan with Lidar on social media. There is some speculation that the car will be the so-called P5, a smaller sedan than the P7. That could help target the market just below the Xpeng P7, Tesla Model 3 and BYD Han EV.

Nio Stock

Nio stock rallied 8.55% to 58.92 on Friday, clearing a 57.30 buy point from a cup base. For the week, Nio spiked 21%, following a big upside reversal move in the prior week that offered early entry. So while Nio stock ended the week in buy zone, it’s looking somewhat extended. When a stock races straight up from near the bottom of its base, like Nio did, there’s a good chance that the stock will consolidate or pullback, essentially forming a high handle above or next to the buy point.

Of course, sometimes stocks race from the bottom and then surge higher. The reaction to Nio Day could be a catalyst for big gains or losses, though many of the announcements confirmed reports and speculation.

As for its China EV rivals, Xpeng stock jumped 6.1% last week, above its 50-day line and now its 21-day exponential moving average but still below its fast-rising 10-week line. Li Auto stock leapt 19%, rebounding above its 50-day and 10-week lines. But both XPEV stock and Li Auto, big 2020 IPO winners, had steep corrections, making a bounce off the 50-day or 10-week line risky.

BYD stock, which trades over the counter in the U.S., shot up 19% to a record high.

Tesla Stock In Climax Run

Tesla stock surged 25% last week, part of an 11-day winning streak. After a powerful run for several weeks, TSLA stock appears to be going vertical and looking like a climax run.

Tesla is tripping several climax run signals, from exhaustion gaps, the biggest point move of its rally as well as being 151% above its 200-day moving average. Definitely click on the prior link to read more about why Tesla stock appears to be nearing a climax top

It’s possible that Tesla stock hit a peak Friday, or that it could keep rising for huge gains for a few more days. Selling at the very peak of a climax top is essentially the great fishing story for investors. Many will claim it, few will achieve it.

Investors may want to sell some Tesla stock into strength, because when a climax top occurs, shares can fall to earth even faster than they rise.

After a climax run, stocks often suffer huge declines that take years to recover from. Qualcomm (QCOM) finally surpassed its 2000 climax top peak last year.

Tesla stock had a climax-type run in late 2019 to early 2020, peaking on Feb. 4 at a split-adjusted 193.80. Shares then plunged 64% to 70.10 on March 18, with the coronavirus market crash no doubt contributing to the losses.

Perhaps Tesla stock will have a climax top, sell off and rebound rather quickly once again. But do you want to sit through a 30%, 50%, 80% decline on hopes for a rebound? If Tesla stock corrects or crashes and then bounces back, investors can always buy it back. After the coronavirus crash, Tesla stock offered buying opportunities slightly below and above the February peak.

China EV Sales

Investors will get wholesale December China electric vehicle sales on Monday for the broad industry and specific companies. Nio, Li Auto, Xpeng and BYD have already released December sales. But it will provide the first set of December China sales for Tesla.

Tesla released Q4 production and delivery figures for worldwide on Jan. 1, but not for specific regions. China demand clearly led Tesla growth in 2020, along with the Model Y in the U.S. With December China sales figures and European tallies, investors will get a better idea of North America sales as well.

Tesla said it will begin deliveries of made-in-China Model Y crossovers this month, with a starting price below that of the Nio EC6. The Volkswagen (VWAGY) ID.4, which will launch in China in early 2021, is expected to be much cheaper, though with a shorter range.

Late Thursday, Tesla launched the Model Y Standard Range for $41,990 in U.S., far cheaper than the prior base model of $49,990, but with an official range of just 244 miles. The Ford (F) Mustang Mach-E, which has just started deliveries, and the VW ID.4, with U.S. deliveries starting in March, are still significantly cheaper after $7,500 federal tax credits.

Stock Market Analysis

The stock market rally last week shrugged off rioters on Capitol Hill, early selling, a brief rotation out of many techs to finish on a high note, with broad-based gains as investors cheered the end of Election 2020 uncertainty and the prospects of significantly higher stimulus in the coming weeks.

The stock market strength is remarkable, if a little troubling.

The Nasdaq is now 8% above its 50-day moving average. That’s the most extended in the current post-election stock market rally. The Nasdaq did get more extended several times in the April-September rally, but that was an unusually powerful uptrend. That ended with the September correction. The S&P 500 index is 5.7% above its 50-day line, starting to look extended as well.

Webby’s RSI, which measures the gap from the Nasdaq’s intraday low to the 21-day line, is not flashing warning signs. But if the Nasdaq opens higher on Monday, that may change.

The risks are growing that a pullback will come, and that it could be large.

Remember how many growth stocks stumbled when the major indexes undercut their 21-day lines intraday on Jan. 4? Imagine the Nasdaq tumbling 8% in a week or two, akin to the September sell-off.

Meanwhile, the stock market rally’s biggest winner, Tesla, is in a climax run. Finally, bullish sentiment remains high, not surprising given the market’s strong performance and short-lived retreats. But that makes investors more complacent.

That’s a worrisome combination. A Tesla climax top could be the catalyst for a broad market pullback, especially with TSLA stock such a big weight in the S&P 500 and Nasdaq. Or a market pullback could be a trigger for Tesla stock reversal.


Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader


Stock Market Rally Leadership Broad

On the plus side, the stock market rally boasts broad leadership, with miners, infrastructure plays and financials joining growth stocks. Chipmakers continue to power ahead while software, after a recent hiccup, is rebounding nice again.

Will that broad leadership continue after the latest stimulus buzz wears off? Or will leadership become more selective?

In the here and now, the number of good-looking set-ups is rather thin, with so many leaders extended.

The Market Is Going To Do…

Ideally, the stock market rally would pull back gently or move sideways over a few weeks. That would let the 50-day line catch up the major indexes. The pause would also refresh watchlists. Many leading stocks are extended or at best working on very short consolidations. But, as always, the market is going to do what it’s going to do.

It’s not necessarily a bad idea to take some profits on some big winners, especially those that are looking extended. But there’s no need to get defensive until the stock market rally shows significant weakness.

As always, pay attention, have a game plan and keep a level head.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

YOU MAY ALSO LIKE:

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Dow Jones Futures: Stock Market Rally Lessons For 2021; Tesla, Nio Await Key News; 25 Stocks In Buy Range


Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally had modest gains last week, capping a strong year, especially for tech and growth stocks.




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Tesla (TSLA) and Nio (NIO) are due to report key sales figures in the next few days, along with Xpeng (XPEV), Li Auto (LI) and BYD Co. (BYDDF). Tesla and Nio stock were two of 2020’s biggest winners, with Xpeng, Li Auto and BYD also delivering triple-digit gains.

After such a surprising and often-powerful stock market rally in 2020, what are the lessons for 2021? There are several, but investors should always remember this: The stock market is going to do what the stock market is going to do.

25 Stocks In Buy Range Now

The following stocks are quality stocks that are flashing buy zones, either from traditional breakouts, early entries, or bullish rebounds from key levels. So have better-looking charts and fundamentals than others. But they offer an ideas at the breadth of stocks and sectors that are actionable heading into 2021. Several of these sectors have numerous other stocks that are setting up for possible buying opportunities.

Chips: Taiwan Semiconductor (TSM), Monolithic Power (MPWR), Micron Technology (MU) and Advanced Micro Devices (AMD).

Investment Banks: Jefferies (JEF) and T. Rowe Price (TROW).

Cyclical: Freeport McMoRan (FCX) and Deere (DE).

Payments: Visa (V) and Mastercard (MA).

Discounters: Five Below (FIVE), Ross Stores (ROST).

Medical Products: Intuitive Surgical (ISRG), Idexx Labs (IDXX).

EV Stocks: Nio stock and BYD.

Internet: Google parent Alphabet (GOOGL), Twitter (TWTR),  JD.com (JD),

Chipotle Mexican Grill (CMG), Pool Corp. (POOL), Chegg (CHGG), MSCI (MSCI), Epam Systems (EPAM) and Logitech (LOGI).


The 100 Best Stocks Of 2020


Tesla stock is on IBD Leaderboard, along with Taiwan Semiconductor, AMD and Chipotle. Chipotle stock, Five Below and Freeport McMoRan are on SwingTrader. Idexx Labs, Epam Systems, Pool Corp., MSCI and Mastercard are on IBD Long-Term Leaders, while MPWR stock and Chegg are on the watchlist. AMD stock, Monolithic Power, Chegg, Taiwan Semi and Pool are on the IBD 50.

Dow Jones Futures Today

Dow Jones futures will 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 84.37 million. Covid-19 deaths topped 1.83 million.

Coronavirus cases in the U.S. have hit 20.61 million, with deaths above 356,000.

Stock Market Rally

The stock market rally continued to advance last week, though some growth names struggled.

The Dow Jones Industrial Average rose 1.35% in last week’s stock market trading. The S&P 500 index climbed 1.4%. The Nasdaq composite advanced 0.65%.

For the year, the Dow Jones rose 7.2% and the S&P 500 index 16.3%. The Nasdaq surged 43.6%, its best annual gain since 2009.

Meanwhile, IBD Leaderboard leapt 58.4% in 2020, while SwingTrader spiked 86.4%.

Software stocks and many IPOs were big winners in 2020, but several suffered significant losses last week. That’s not entirely bad. Bullish sentiment is at high levels, according to several psychological indicators. Reducing some of the frothy segments in the stock market rally could be healthy.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) fell 1.3% last week, while the Innovator IBD Breakout Opportunities ETF (BOUT) slid 1.5%.  The iShares Expanded Tech-Software Sector ETF (IGV) retreated 1.7%. The VanEck Vectors Semiconductor ETF (SMH) rallied 1.65%.

Tesla Deliveries Due

Tesla deliveries for the fourth quarter are due in the coming week. Some forecasters with a good track record are predicting Tesla deliveries were around 182,000-183,000, fueled by big growth in China. A tally of 181,000 or more would mean Tesla deliveries for the full year reached the 500,000 mark.

Tesla reports quarterly deliveries and production figures within three business days of the following quarter. That could mean anytime from now to Wednesday, Jan. 6.

On Jan. 1, Tesla said it would start delivering the made-in-China Model Y this month, setting a base price of 339,900 yuan ($52,074). The Model Y crossover will compete with the relatively new Nio EC6 as well as the soon-to-debut Volkswagen (VWAGY) ID.4. The VW ID.4 launched in Europe last month and will reach the U.S. in March.

Meanwhile, Tesla slashed prices of its MIC Model 3 vehicles yet again. It reduced prices on its base SR+ and higher-end Performance variants, and is pulling the mid-level LR from its website. China OK’d the Performance variant for the 10% purchase tax cut.

Tesla stock rose 1.6% on Thursday, hitting a record high and closing out a mammoth 743% surge in 2020. TSLA stock is well extended from any conceivable buy point.

China EV Sales

Nio, Li Auto, Xpeng Motors and BYD Co. are due to report December deliveries and production figures over the coming days.

All four Chinese EV makers, along with Tesla, saw big November sales gains. One factor is Shanghai, which has a free license plate policy for new energy vehicles, including EVs, hybrids and fuel-cell vehicles. Many Chinese cities limit the number of license plates, providing the right to own a car, and they are quite expensive. The NEV free license policy was due to end in 2020, but on Wednesday Shanghai extended that through February.

China EV Stocks

Nio stock raced past Tesla stock in 2020, skyrocketing 1,112%. XPEV stock, a late August IPO, leapt 185% last year. Li Auto stock, late July IPO, surged 151% in 2020. BYD stock spiked 432%.

Last week, Nio stock fell to its 10-week line again, then rallied for a 6.5% gain. It’s now 9.2% above a 10-week line, still just within range. Intraday Thursday, Nio stock crossed a downward-sloping trend line and short-term resistance. Getting back above those levels would offer new early entries. Nio will soon have a new consolidation.

In addition to December sales figures, the EV maker will holds its annual Nio Day Jan. 9, where it will unveil new models, battery technology and more.

BYD stock popped 2.8% on Thursday to 26.43, part of a 7.8% weekly gain. That pushed the big Chinese EV and battery maker above a 26.30 handle-like entry in a short consolidation. BYD stock trades over the counter in the U.S. but is listed in Hong Kong. So in the U.S., volume is somewhat low and the stock tends to have mini-gaps, but its global liquidity is quite substantial.

XPEV stock rose 2.3% last week, rebounding from steep initial losses to close near the top of its range. Xpeng has found support at its 50-day line but is still below its 10-week line. It’s the first-ever test of either of those moving averages, but XPEV stock fell very hard and sharply to those levels. Aggressive investors looking to buy an Xpeng stock rebound might wait until it at least retakes its 21-day moving average.

Li Auto stock fell 1.7% last week, though it did close fairly high in its range. Li stock did hit resistance at the 50-day and is below its 10-week line. As with XPEV stock, investors looking to get into Li Auto stock on a bullish rebound from the 50-day/10-week line might wait until it crosses its 21-day line.

2020 Stock Market Rally Lessons For 2021

First and foremost, the big 2020 takeaway is that the market is going to do what the market is going to do. No would could have predicted the news events of 2020 — pandemic, shutdowns and an economy in freefall — let alone how that this would lead to a powerful stock market rally?

Don’t try to predict what the market will do in 2021 — or even next week. Listen to the market.

History suggests that the stock market is unlikely to repeat such big 2020 gains. But, you never know. If the major indexes only deliver modest full-year gains, investors who play the uptrends and sidestep corrections could see sizeable gains.

Right now, the stock market rally is still looking healthy. That could change quickly, but for now the major indexes and leading stocks are sending positive signals.

When the market goes into a correction, move significantly or entirely to cash. When a follow-through day confirms a new stock market rally, get in early.


Stock Market Forecast For 2021 May Be Different Than You Expect


Buy The Leaders

Getting into leading stocks from top sectors as they flash buy signals is the way to outperform the broad market. The Nasdaq, which nearly doubled from its March lows,  sprinted past the S&P 500 index and Dow Jones for the full year. Investors who focused on the true leaders could have generated far-larger returns.

Don’t Assume Which Stocks Will Be Big Winners

Don’t assume that the big 2020 winners will keep running – or that they’re doomed for a big reversal.

There’s likely to be some rotation, especially given the outsized gains of many winners and the shift from pandemic to post-pandemic environment. But some 2020 winners may continue to do well.

The 25 stocks in buy zones listed above offer a sense of the diversity of leadership.

Be Prepared For 2021

If you want to beat the major indexes consistently, you’ll need to be prepared. Run screens over the weekend, looking for top stocks from leading groups. Build up watchlists and do some research on those names.

You want to pounce on breakouts in a stock market rally, but you also want to be selective.

Don’t focus only on chips, or software, or payment stocks. Leadership can shift, and it’s good to have a diversity of elite stocks.

Mining and metal groups are among the highest rated right now. Housing stocks, which are slumping now, can go on enormous runs.

After you buy your stocks, holding winners is challenging. Do you try to hold for big gains or take profits at 10%, 20%. It can depend on your conviction in the stock and the state of the market rally. Taking partial profits when stocks get very extended or start to break short-term moving averages is at least as much an art as a science.

The key is to develop your sell rules and follow them.

Again, don’t predict the market. Listen to the market. Be prepared, decisive and flexible.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Dow Jones Futures: Stock Market Rally Caps 2020 As Tesla, Nio Extend Gains; Five Stocks Enter Buy Zones


Dow Jones futures were little changed Thursday morning, along with S&P 500 futures and Nasdaq futures, signaling slim gains to finish off an amazing 2020.




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The stock market rally had a quietly strong Wednesday, even though the major indexes closed with slim gains. There were several breakouts, while EV stocks such as Nio (Nio) and Tesla (Tesla) powered higher, and small caps and growth names outperformed overall. Meanwhile, Bitcoin surged yet again to a fresh high.

Tesla and Nio stock continued to climb early Thursday, both boosted by analyst comments.

In Wednesday’s session, Visa (V) broke out of a base, with archrival Mastercard (MA) tripping some buy signals. Taiwan Semiconductor (TSM), copper miner Freeport McMoRan (FCX) and China e-commerce play Vipshop (VIPS) cleared three-weeks-tight patterns, on a good day for chipmakers, cyclical stocks and Chinese internet plays, respectively. Walt Disney (DIS) popped out of a short consolidation.

Meanwhile, Nio stock is still in buy range from a 10-week line rebound and other bullish signals. While 2020 IPOs Li Auto (LI) and Xpeng Motors (XPEV) face big tests, BYD Co. (BYDDF) is setting up in a short consolidation as Tesla stock rallied to a record high. All may get a sales boost from Shanghai extending a license plate policy that encourages EV sales.

Finally, tech giants lagged somewhat after big gains Monday. Apple stock and Microsoft (MSFT) pulled back. But that could be a positive pause if they form handles.


Why This IBD Tool Simplifies The Search For Top Stocks


Tesla, Apple, Microsoft and TSM stock are on IBD Leaderboard. FCX stock is on SwingTrader. Microsoft and Mastercard stock are on IBD Long-Term Leaders, while Visa stock essentially is a Long-Term Leader. Taiwan Semi and VIPS stocks are on the IBD 50. Tesla stock and FCX are on the IBD Big Cap 20.

Microsoft stock, Apple, Visa and Disney are all Dow Jones components.

Dow Jones Futures Today

Dow Jones futures fell about 0.1% vs. fair value. S&P 500 futures edged lower. Nasdaq 100 futures climbed 0.1%.

Bitcoin price ran above $29,000 overnight, but has pulled back Thursday morning to modestly above $28,000.

The official China manufacturing indexes dipped 0.2 point in December to 51.9, still indicating modest growth.

At 8:30 a.m. ET, the Labor Department will release weekly jobless claims figures.

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 83.20 million. Covid-19 deaths topped 1.81 million.

Coronavirus cases in the U.S. have hit 20.21 million, with deaths above 350,000.

The U.K. approved the AstraZeneca coronavirus vaccine on Wednesday. The AstraZeneca (AZN) and Oxford vaccine is faster and easier to make than the Pfizer/BioNTech (BNTX) and Moderna vaccines, as well as being easier to store. So it’ll be a major player in vaccinations, especially in developing nations.

A few batches of the Moderna (MRNA) coronavirus vaccine arrived in Texas last week outside of the proper temperature range. The Pfizer (PFE) vaccine, meanwhile, requires ultracold storage.

Stock Market Rally

The stock market rally had slim gains for the major indexes, but small caps and growth names did well.

The Dow Jones Industrial Average rose 0.2% in Wednesday’s stock market trading. The S&P 500 index edged up 0.1%. The Nasdaq composite advanced 0.15%. The Russell 2000, which lost 1.85% on Tuesday, rebounded for a 1.05% gain.

Bitcoin price shot up as high as $29,000 during Wednesday’s stock market trading hours, clearing the early Sunday peak above $28,000. Bitcoin and other cryptocurrencies have been soaring, especially in the last couple of months. Grayscale Bitcoin Trust (GBTC), one way for stock investors to play Bitcoin, leapt 9.6% to a new closing high Wednesday.

Apple stock dipped 0.85% to 133.72. On Tuesday, the iPhone maker hit a record 138.79 high, clearing a 138.08 buy point, before reversing modestly lower. A high handle at these levels could be useful, shaking out weak holders with Apple stock up 12.3% so far in December.

Microsoft stock retreated 1.1% to 221.68 after reversing slightly lower Tuesday. A handle at these levels, near another resistance area, would provide a lower official buy point for MSFT stock.

Growth names generally did well, especially chip names. Software and red-hot IPOs were mixed.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.5%, while the Innovator IBD Breakout Opportunities ETF (BOUT) jumped 2.3%. The iShares Expanded Tech-Software Sector ETF (IGV) was essentially flat, down 4 cents. Microsoft stock is a major IGV holding. The VanEck Vectors Semiconductor ETF (SMH) gained 1.85%, with TSM stock a top component.

TSM Stock Headlines Chips

Taiwan Semiconductor stock rose 3.2% to 108.90, clearing a 107.94 buy point from a three-weeks-tight. Investors could have started a position in TSM stock on Dec. 24. The relative strength line for TSM stock is at a record high, reflecting its outperformance vs. the S&P 500 index.

Among other chip names acting well, Monolithic Power (MPWR) is consolidating right at record highs and a buy point. AMD (AMD), Applied Materials (AMAT), Lam Research (LRCX) and Entegris (ENTG) are finding support or rebounding from their 21-day exponential moving averages. All five are on the IBD 50, like TSM stock.

Visa Stock Breaks Out

Visa stock rose 1.9% to 218.36, clearing a 217.75 buy point from a flat base that could also be viewed as a handle to a consolidation going back to early September. Investors could have started a position in Visa stock on Monday, as it broke a short trend line.

Mastercard stock climbed 2.6% to 355.55. The official buy point is 367.35, though 357.10 could be viewed as a handle entry. MA stock already moved above some early entries, including 348.09.

For both Visa and Mastercard stock, the relative strength lines have been lagging while the Relative Strength Ratings are lackluster at best. Investors buying these stocks are betting on an economic and travel rebound in 2021, boosting transactions, including lucrative cross-border payments.

Visa was Wednesday’s IBD Stock Of The Day.

FCX Stock

FCX stock jumped 7.2% to 26.53 on Wednesday, vaulting above a 25.53 three-weeks-tight buy point, according to MarketSmith analysis. That follows a powerful run after bottoming at 4.82 on March 18. The copper and gold miner is benefiting from stronger demand and prices as the global economic outlook improves.

Technically, FCX stock is just within the 5% chase zone, which runs to 25.80. But investors should try to buy as close as possible to a buy point in a three-weeks tight. Freeport is looking a little extended.

Among related stocks, Caterpillar (CAT) rose 1.9% to 180.04, rebounding from its 10-week line as the Dow giant moves within its own tight pattern.

VIPS Stock

VIPS stock jumped 6.4% to 27.76, clearing a monthlong consolidation just above a prior base. That pause included a three-weeks-tight. VIPS stock, like FCX, might be a little extended now.

Vipshop, as a smaller Chinese e-commerce play, may be less affected by regulators cracking down on giants such as Alibaba (BABA).

BABA stock rose 0.9%, continuing a rebound from a big sell-off. JD.com (JD) popped 3.9%, actionable as it clears short-term resistance and continues a move above its 10-week line. Pinduoduo (PDD) ran up 7.8% to a fresh high, looking extended. So do Baidu (BIDU) and Bilibili (BILI), which shot up 13% and 14%, respectively, on Wednesday.

Disney Stock

Disney stock rose 2.2% to 181.17, clearing a short consolidation that was almost a three-weeks-tight. This is a possible area for DIS stock investors to add a few shares, but probably not to start a new position.

The recent consolidation follows a Nov. 9 gap-up on the initial bullish Pfizer coronavirus news, followed by further big DIS stock gains.

Nio Stock, China EV Stocks

Nio stock jumped 4.85% to 48.38. After again testing its 10-week moving average on Tuesday and nearly touching down on its 50-day line for the first time in months, Nio stock is now 8.5% above its 10-week line, still actionable. It’s also broken above a downward-sloping trend line, offering another early entry. In another week, Nio stock could have a new base with a 57.30 buy point.

As for rival China EV startups, XPEV stock rose 1.8% and Li Auto 1.4%. The former is just above its 50-day line but below its 10-week. Li stock is slightly below both, though well off weekly lows.

BYD Group, a more-established EV maker and big battery producer, rose 2.2% to 25.71. BYD stock, which is listed in Hong Kong and trades over the counter in the U.S., has formed a handle in a short consolidation, offering a 26.30 buy point.

Finally, Tesla stock rallied 4.3% to 694.78, its fifth straight gain and hitting a record 696.60 intraday. TSLA stock is now roughly flat since entering the S&P 500 index before the Dec. 21 open at 695.

Bank of America raised its Nio stock price target to 59 from 54.70, citing the Jan. 9 Nio Day event and other factors. Masterlink Securities initiated Tesla stock with a buy rating and 750 price target.

Nio rose 1% early Thursday, while Xpeng and Li Auto stock climbed 2%. Tesla advanced more than 1% to top 700 for the first time.

Shanghai Surprise for China EV Sales

Shanghai on Wednesday extended a policy offering free license plates for new energy vehicles from year-end to the end of February. NEV vehicles include electric cars, hybrids and fuel-cell vehicles. Obtaining license plates in major Chinese cities can be very expensive, and limited. The Shanghai NEV license plate policy fueled huge November sales gains for Tesla, Nio, Xpeng, Li Auto and BYD Group, with expectations for more of the same in December.

After February, the EV sales picture could be more complicated, with the risk of overall supply exceeding demand. Tesla presumably will be ramping up made-in-China Model Y output, while Volkswagen should be doing the same for the rival ID.4. Nio, Li Auto, Xpeng, BYD and other legacy automakers and startups also will be have higher EV production.

In the short run, Nio, Xpeng, Li Auto and BYD should release December production and deliveries data by the end of next week. Tesla will release global production and deliveries figures for the fourth quarter by late next week.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Dow Jones Futures: Tesla China Sales In Focus, Nio Eyes Buy Point; Coupa Software, Stitch Fix Rise On Earnings


Dow Jones futures tilted lower late Monday, along with S&P 500 futures and Nasdaq futures. Coupa Software (COUP) and Stitch Fix (SFIX) headlined earnings after the close, while Tesla stock and Chinese electric-car makers Nio (NIO), Xpeng Motors (XPEV), Li Auto (LI) and BYD Co. (BYDDF) will be in focus Tuesday morning.




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The stock market rally had a mixed session Monday, a welcome pause after some recent strong gains, especially for the Nasdaq composite and many leaders. Apple (AAPL) continued to advance, along with several other big-cap techs. Hopes for a stimulus deal continue to support the stock market rally, though it’s unclear how close lawmakers are to an accord, or when that might come.

Coupa Software earnings and Stitch Fix earnings were much better than expected. COUP stock rose past a new buy point. Stitch Fix stock skyrocketed, rebounding bullishly from its 10-week line.

Nio stock, Li Auto, Xpeng Motors and BYD generally found support Monday near a key level after the Chinese EV stocks sold off last week. Nio stock is close to an aggressive entry. Industrywide data on Chinese electric-car sales are due Tuesday morning, but the star of the show will likely be Tesla (TSLA).

Tesla stock rose to a new high Monday, still rallying on the upcoming S&P 500 inclusion and optimism about November sales in China. Nio, Xpeng, Li Auto and BYD have all reported November deliveries. Tesla does not disclose monthly figures, so the trade group data will offer key insight.


Why This IBD Tool Simplifies The Search For Top Stocks


Tesla stock is on IBD Leaderboard. So is Apple stock.

Dow Jones Futures Today

Dow Jones futures fell 0.3% vs. fair value. S&P 500 futures lost 0.35% and Nasdaq 100 futures retreated 0.3%.

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 67.93 million. Covid-19 deaths topped 1.55 million.

Coronavirus cases in the U.S. have hit 15.36 million, with deaths above 290,000. With the U.S. adding more than 1 million cases a week and daily deaths at record highs, government restrictions are stepping up, especially in California.

The U.K. will start giving doses of the Pfizer (PFE) and BioNTech (BNTX) coronavirus vaccine on Tuesday. An FDA advisory panel will review the Pfizer/BioNTech vaccinations on Thursday, with full FDA approval and U.S. vaccinations expected to quickly follow.

Stock Market Rally

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)30069.20-149.06-0.49
S&P 500(0S&P5)3691.94-7.18-0.19
Nasdaq(0NDQC )12519.95+55.72+0.45
Russell 2000 (IWM)188.40+0.20+0.11
IBD 50 (FFTY)39.88+0.21+0.53
Last Update: 4:04 PM ET 12/7/2020

The stock market rally had a relatively quiet start to the week. The Dow Jones Industrial Average fell 0.5% in Monday’s stock market trading. The S&P 500 index dipped 0.2%. The Nasdaq composite rallied 0.45%, led by big caps Apple, Facebook (FB), Adobe (ADBE), Netflix (NFLX) and Tesla stock.

Apple stock rose 1.2% to 123.75 on Monday, above a pair of early buying opportunities and close to a 125.49 entry.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) advanced 0.5%. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.55%. The VanEck Vectors Semiconductor ETF (SMH) climbed 0.6%.

The Nasdaq composite is 5.7% above the 10-week line. That’s not extended, but it’s not far from being so. Along with high bullish sentiment readings, some highly extended IPOs and other growth names, including Xpeng and Li Auto stock, raise concerns about a pullback for the major indexes and leading stocks.

If you’re already on margin, you might be cautious about adding much net exposure. But aside from cutting losses or taking partial profits in extended leaders, there’s no reason for significant selling. But it’s time to be alert, flexible and decisive.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Coupa Software Earnings

Coupa Software earnings fell 10% to 18 cents a share, while revenue swelled 31% to $132.96 million. Analysts expected Coupa Software earnings of just 3 cents a share on sales of $124 million

The business expense management software maker reported strong billings and guided up for Q4 revenue, but sees a Q4 loss.

Coupa Software stock rose 4% to 336.50 overnight, just above a just-formed handle buy point of 336.35. Shares rose 1.8% on Monday to 323.94.

Stitch Fix Earnings

Stitch Fix earnings came in at 9 cents a share, up from a 1-cent loss a year earlier and defying fiscal Q1 views for a 15-cent loss. Revenue rose 10% to $490.42 million, also beating.

The online personal shopper also guided higher for fiscal Q2 and full-year revenue.

Stitch Fix stock spiked 34% overnight. Shares edged up 0.8% to 35.83 on Monday, after tumbling 14% last week to their 10-week line. Before that, SFIX stock had run up to a two-year high from an early October breakout.

China EV Stocks

Nio stock rose 4.8% on Monday to 45.11, just below its 21-day exponential moving average. For a swing or aggressive position trade, investors could use 48.10, just above the December upside reversal day, as a buy point

Xpeng stock fell 2.1% to 48.30, finding support at its Dec. 2 low but finishing modestly below its 21-day EMA. That came as the 2020 IPO announced a new offering of 40 million American depositary shares. Fellow 2020 IPO Li Auto stock, which had an offering last week, reversed higher to close up 3.1%, but hit some resistance at its 21-day. All sold off at least 20% last week after huge gains over several weeks.

BYD stock climbed 1%, back above its 21-day line. BYD, a major producer of electric cars, buses and batteries in China, retreated 6.7% last week.

Tesla Stock

Tesla stock jumped 7.1% to 641.76 on Monday, far extended from a 466 buy point as well as a 502.49 entry. Shares are now up 57% since the announcement that TSLA stock will join the S&P 500 index before the open on Dec. 21. That’s continuing to provide momentum for Tesla stock. Loup Ventures’ Gene Munster said shares could skyrocket to $2,500 within the next three years, giving Tesla a $2 trillion valuation.

Finally, expectations are high for November sales of made-in-China Tesla Model 3 electric cars.

While Tesla stock has run up over the past few weeks, it’s only 11% above its 10-day moving average. While a pullback would be a surprise, TSLA stock is not in imminent danger of a sharp retreat along the lines of last week’s tumble in Nio, Xpeng and Li stock.

Another Model 3 price cut spurred stronger Tesla China sales in October, but the company also exported about 7,000 Model SR+ cars to Europe for the first time. It’s possible there was an order backlog that Tesla filled last month. Also, Tesla is expanding stores in second- or third-tier cities in China — which are often large.

A strong November sales figure would give Tesla a decent shot at reaching its goal of 500,000 deliveries worldwide in 2020.

However, Chinese media report the new made-in-China Model 3 SR+ with LFP battery cells shows substantially weaker range in colder temperatures, far more than would be expected. If true, that would be problematic in much of Europe. But with the first such Model 3 cars being delivered now as winter looms, that should be clear in the next few weeks.

Tesla Expansion In 2021

In early 2021, the Shanghai plant will begin making the Model Y, providing a new growth area. The upcoming Berlin plant will make the Model 3 and Model Y, introducing the latter to Europe. The Austin plant also will be finished by late 2021, likely starting the Model Y, with the Cybertruck and Semi following.

Meanwhile, the Ford (F) Mustang Mach-E will launch in the U.S. by year end. The Volkswagen (VWAGY) ID.4 will launch in Europe by year-end, China in early 2021 and the U.S. in March.

The Mach-E, VW ID.4 and the already-released Nio EC6 are among the competitors for the Tesla Model Y, among several others, especially in Europe. The made-in-China Model 3 competes with the Xpeng P7 and the BYD Han EV, with at least one Nio sedan due in early 2021.

While the electric-vehicles market is rising rapidly in Europe and China, EV supply may outpace demand as Tesla, legacy automakers and EV startups ramp up production.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Dow Jones Futures Signal Stock Market Rally; Tesla, Nio, Xpeng, Moderna, Zoom Are Notable Movers


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.




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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 News

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

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29643.97-266.40-0.89
S&P 500(0S&P5)3621.82-16.53-0.45
Nasdaq(0NDQC )12198.74-7.11-0.06
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

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

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.

Apple Stock

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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Stock Market Rally Flashes Mixed Signals; Why Apple Stock, Nio, Zoom Video Are Important| Investor’s Business Daily


Dow Jones futures will not begin trading until Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally had a strong week, with the Dow Jones and Nasdaq composite both hitting record highs. But there is a disconnect between the robust, secure action in the major indexes vs. some more speculative names and high bullish sentiment.




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Apple (AAPL), CrowdStrike (CRWD), Nio (NIO) and Zoom Video Communications (ZM) are four stocks to watch this week.

CrowdStrike and Zoom Video stock report earnings this week, while Tesla (TSLA) rival Nio will likely report monthly deliveries. Apple stock is simply the ultimate megacap, with a valuation of $1.98 trillion.

Broader Stock Market Impact

All four are important in their own right, but they also have a broader stock market impact.

Zoom Video earnings and guidance on Monday night, and ZM stock reaction, will be key as looming coronavirus vaccines loom over stay-at-home stocks.

CrowdStrike stock is perhaps the top cybersecurity play right now. But it’ll share the spotlight Wednesday night with two other leading security software names: Zscaler (ZS) and Okta (OKTA). All have cleared early entries. Their results and guidance will be important for the cybersecurity group and cloud software broadly.

Nio stock is the biggest of the Chinese electric car startups. Can Nio can continue to show strong month-to-month growth, satisfying lofty investor expectations? Is there room for all the hot EV stocks to keep growing fast in China? Xpeng Motors and Li Auto (LI), both 2020 IPOs, also may release monthly deliveries next week, along with the more-established BYD Co. (BYDDF). Industrywide data, including Tesla production and deliveries, will likely be released the following week.

Apple stock could move markets, especially if other slumbering megacaps like Microsoft (MSFT) and Amazon.com (AMZN) follow suit. A revived Apple also could buoy leading iPhone chipmakers Qorvo (QRVO) and Qualcomm (QCOM), both of which are near buy points.

Tesla stock is on IBD Leaderboard. Apple stock is on the Leaderboard watchlist. CrowdStrike stock is on SwingTrader.

Dow Jones Futures Today

Dow Jones futures will reopen at 6 p.m. ET on Sunday. So will 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 62.54 million. Covid-19 deaths topped 1.45 million.

Confirmed coronavirus cases in the U.S. have hit 13.60 million, with deaths above 272,000.

However, actual U.S. Covid-19 infections reached 52.9 million at the end of September and could be nearly 100 million now, according to a model developed by the Centers for Disease Control and Prevention. The model assumes most coronavirus cases are mild or asymptomatic and are never tested.

Los Angeles County announced a new stay-at-home order Friday as coronavirus cases soar in the nation’s most populous county. The three-week order, starting Monday, bans most gatherings and limits capacity in retail stores and other non-essential businesses to 20% occupancy.

Meanwhile, the U.K. reportedly will OK the Pfizer (PFE) and BioNTech (BNTX) coronavirus vaccine in a few days, with the first vaccinations by Dec. 7. The FDA is expected to approve the Pfizer-BioNTech vaccine by mid-December, with the Moderna (MRNA) coronavirus vaccine also winning approval around that time. The European Union expects to OK vaccines by year-end.

The U.K. and EU may OK the AstraZeneca (AZN) coronavirus vaccine before year-end, but the U.S. may be weeks later.

Stock Market Rally Last Week

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29910.37+37.90+0.13
S&P 500(0S&P5)3638.35+8.70+0.24
Nasdaq(0NDQC )12205.85+111.45+0.92
Russell 2000 (IWM)184.42+0.83+0.45
IBD 50 (FFTY)39.32+0.59+1.52
Last Update: 1:24 PM ET 11/27/2020

The stock market rally had a strong week, with the Dow Jones and Nasdaq composite both hitting record highs and the S&P 500 index on the cusp of all-time levels.

The Dow Jones Industrial Average rose 2.2% in last week’s stock market trading. The S&P 500 index climbed 2.3%. The Nasdaq composite gained nearly 3%.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) boasted a 2.6% advance last week. The iShares Expanded Tech-Software Sector ETF (IGV) rose 2.85%. The VanEck Vectors Semiconductor ETF (SMH) climbed 3.2%. The Renaissance IPO ETF (IPO) surged 10.1%.

Zoom Video Stock

Zoom Video stock jumped 7.3% last week after an 8.9% rally in the prior week. On Friday, shares broke a rather-steep downtrend, but closing just below its 50-day line. A move above the 50-day would offer a buying opportunity, but not until after Zoom Video earnings Monday night.

Guidance, and any comments about a post-coronavirus world, will be key. It’ll also may move other pure stay-at-home plays such as Peloton (PTON) as well as cloud software names generally.

CrowdStrike Stock

CrowdStrike stock climbed 3.5% last week to 150.83. It’s close to an official 154 buy point. It already triggered an early entry on Nov. 19, when CRWD stock rebounded from its 50-day line and broke above its 50-day line. It cleared another entry at 144.39. CrowdStrike earnings are due Wednesday night, along with Zscaler and Okta, which are also above early entries.

Nio Stock

Nio is likely to report monthly delivery figures late next week. For the past few months, Nio has released monthly figures on the second or third day of the following month. Production and deliveries have been rising dramatically. That’s also true for Xpeng Motors and Li Auto, thought starting from a lower base. BYD is among the very largest EV makers in China.

Investors are betting the Nio growth will remain strong. Nio stock has surged 247% since its late October breakout and a whopping 1,551% since May 22. Xpeng and Li Auto stock are up 327% and 243%, respectively, from their late summer IPO prices.

In early 2021, Tesla will begin deliveries of the made-in-China Model Y, with the VW ID.4 coming out at about the same time. EV production in China is set to skyrocket.

Nio stock is 8.9% above its 10-day line. So while a pullback, even to the 50-day line, wouldn’t be a surprise, Nio isn’t flashing extreme risks of a near-term retreat that new IPOs Corsair Gaming (CRSR) and Palantir (PLTR) did last week. Xpeng stock is up 18% from its 10-day line and Li Auto just 3.9%.

Tesla stock is up 17.8% from its 10-day line. That’s not extreme. Also, it comes shortly after a powerful breakout, when hot stocks often can be bolt from moving averages without raising concerns for a while.

Apple Stock

Apple stock actually fell 0.6% last week, though it pared losses and moved back above its 50-day line after tumbling 3% on Monday. The relative strength line for Apple stock has been drifting lower for a few months, much like Amazon and Microsoft. These megacaps are entitled to take a rest after a long run of outperformance. That could continue for some time.

Apple stock rising would provide a further lift to the market rally. It would be a good sign for Apple iPhone chipmakers such as Qorvo and Qualcomm stock. Both offer tight entries.

Stock Market Outlook

Judging by the major indexes and many leading stocks, the expectation would be for the stock market rally to continue higher. After a few weeks of sector rotation, the gains were broad-based, with stay-at-home stocks like Zoom Video rebounding while real economy names such as Boeing (BA), Caterpillar (CAT) and JPMorgan Chase (JPM) kept advancing. Yet the major indexes are just clearing consolidations going back to early September.

But by some measures, the market is getting excessively bullish. The bulls vs. bears reading, measuring investment newsletter writers’ sentiment, shot up to 64.6%, the highest since January 2018. Readings over 60% often signal at least a short-term top is underway. Meanwhile, the action in some new IPOs, as well as electric car stocks (some overlap with Li Auto and Xpeng stock), also suggest a bit of speculative mania. That can continue for a lengthy period, but it does add to the risks.

If Apple stock and other megacaps gained momentum, that would fuel further market gains and bullish sentiment, perhaps hastening a pullback. So in the current climate, perhaps the stock market rally needs lukewarm action from tech giants to keep from overheating.

What You Should Do Now

As always, you should analyze your stocks, with a special emphasis on your winners. How extended are they from moving averages. You may want to consider partial profits on stocks that have been going nearly vertical for some time.

There aren’t a lot of good-looking setups right now, with some of the promising-looking stocks ready to report earnings, like CrowdStrike stock. So cast a wide net for your watchlists.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Dow Jones Falls, As Tesla Stock Slides On Recall; Nio Dives On China Investigation


The Dow Jones Industrial Average dropped 150 points, as Tesla stock fell from record highs on a vehicle recall. Chinese electric vehicle stocks Li Auto, Nio and Xpeng Motors tumbled on a Chinese government investigation. Nikola plunged as much as 17% in morning trade.




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Among the Dow Jones leaders, Apple (AAPL) rose 1%, while Microsoft (MSFT) moved up 0.3% in today’s stock market. Meanwhile, Salesforce.com (CRM) moved closer to a new buy point.

Tesla (TSLA) slid from all-time highs Wednesday morning after the company recalled over 9,000 Model X SUVs. Meanwhile, Nikola (NKLA) plunged as much as 17%.

Chinese EV stocks tumbled after Reuters reported that China’s state planner was investigating new energy vehicle projects related to two property developers. Li Auto (LI) skidded 9%. Nio (NIO) faltered 3.7%, while Xpeng Motors (XPEV) sold off 9.6% in morning trade.

Stocks in or near buy zones in the stock market rally are Advanced Micro Devices (AMD), FedEx (FDX) and Zumiez (ZUMZ).

Microsoft and Tesla are IBD Leaderboard stocks, while Apple is on the Leaderboard Watchlist. AMD and Zumiez were featured in this week’s Stocks Near A Buy Zone column. FedEx was Tuesday’s IBD Stock Of The Day.

Dow Jones Today

On Wednesday, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 lost 0.3%. The tech-heavy Nasdaq composite outperformed with a 0.1% rise in morning trade.

Among exchange traded funds, Innovator IBD 50 (FFTY) climbed 0.35% Wednesday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) moved up 0.2%. Meanwhile, the SPDR S&P 500 ETF (SPY) dropped 0.3%.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 34.1% for the year through Tuesday’s close. Meanwhile, the S&P 500 is up 12.5%, while the Dow is up 5.3% year to date, through the Nov. 24 close.

Coronavirus Updates

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 12.9 million on Wednesday. Total virus-related deaths rose past 265,000.

The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 60.2 million Wednesday, with more than 1.4 million virus-related deaths.

Coronavirus Stock Market Rally

According to IBD’s The Big Picture, the stock market returned to a new uptrend following a bullish follow-through day on Nov. 4.

Tuesday’s Big Picture commented, “The Dow Jones Industrial Average’s 1.5% gain to 30,046 didn’t simply make history as the first close above a key psychological price level. The action affirms that the Dow’s follow-through day on Nov. 4 was no head-fake of a rally. Since that noteworthy session, the Dow industrials have climbed nearly 7.9%.”

Investors should continue to use the stock market’s strength to buy breakouts. Start slowly with new purchases and see how they perform. If they work, then add more exposure. But if breakouts start to fail, then you can back away.

In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Fair Isaac (FICO) is the most recent addition to the list, added on Nov. 13. Shares are extended after they cleared resistance around 450.


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Dow Jones Stocks: Salesforce Approaches Buy Point

Dow Jones stock Salesforce.com is approaching a 271.02 buy point in a double bottom with handle, according to MarketSmith chart analysis. Shares rallied 1% Wednesday morning and are about 3% away from the new entry.

The cloud software company is the No. 1-performing stock on the Dow Jones Industrial Average, advancing 60.4% year to date.

Stocks In Or Near Buy Zones: AMD, FedEx, Zumiez

Chip giant Advanced Micro Devices moved up 2.5%, advancing closer to an 88.82 buy point in a double bottom, according to MarketSmith chart analysis. Shares are about 2% away from the entry Wednesday.

A potential handle entry offers a slightly lower buy point, at 87.15. The stock was again trying to move past this early entry in morning trade.

According to IBD Stock Checkup, AMD stock boasts a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Tuesday’s IBD Stock Of The Day, FedEx, broke out above a 293.40 buy point in a flat base Tuesday, but shares closed below the new buy point after paring gains. Shares fell over 1%, falling further below the buy point Wednesday morning.

Top stock to watch Zumiez is in the 5% buy zone after Monday’s breakout above a rare buy point in an ascending base at 35.64. The 5% buy range tops out at 37.42. Shares fell 1.5% Wednesday, but are still holding above the buy point.

The retail leader was featured in Friday’s Stock Spotlight column.


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Chinese EV Stocks: Li Auto, Nio, Xpeng Motors

Chinese EV stocks sold off sharply Wednesday after Reuters reported that China’s state planner told local governments to investigate new energy vehicle projects linked to property developers Evergrande Group and Shenzhen Baoneng.

Li Auto skidded 9% in morning trade, while Nio stock tumbled 3.7%. Xpeng Motors sold off 9.6%.

Tesla Stock

IBD Leaderboard stock Tesla slid from all-time highs Wednesday with an over-1% fall after the National Highway Traffic Safety Administration said Tesla filed to recall 9,136 Model X electric SUVs due to an adhesive failure.

On Nov. 18, shares broke out above a 466 buy point in an awkward cup with handle. The 5% buy zone tops out at 489.30, so the stock is well extended. On Tuesday, Tesla stock set a record high at 559.99.

Nikola Plunges

Nikola plunged as much as 17% before cutting losses after CEO Mark Russell, in a CNBC interview, disappointed investors seeking assurance that the company’s $2 billion deal with General Motors (GM) would still go through. If the deal isn’t finalized by Dec. 3, then either side can pull out.

Nikola stock is nearly 70% off its 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple gained 1% Wednesday, on pace to add to Tuesday’s 1.2% rally. Shares are trying to retake their 50-day line after closing below that key level on Monday.

Apple stock continues to trace a new base with a 138.08 buy point. An early entry exists at 125.49. But the top Dow Jones stock is starting to show signs of significant weakness.

The blue-chip giant is the No. 2-performing Dow Jones stock for 2020, with a 56.9% advance through Tuesday.

Software giant Microsoft moved up 0.3% Wednesday, moving further above the 50-day moving average line. Shares regained that critical level on Tuesday.

Year to date, Microsoft is one of the top Dow Jones stocks, advancing 35.6% through the Nov. 24 close.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Dow Jones Futures: Bitcoin Play PayPal In Buy Zone As Tesla, Nio, Xpeng Fly; Apple Stock Breaks Support


Dow Jones futures rose modestly late Monday, along with S&P 500 futures and Nasdaq futures, as President Donald Trump agreed to cooperate in the transition to Joe Biden.




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The stock market rally rose modestly Monday, amid fresh coronavirus vaccine news. Tesla stock, Nio (NIO), Xpeng Motors (XPEV), Li Auto (LI) and many other EV plays raced higher.

PayPal (PYPL) flashed early buy signals, as the digital payments stock has become the latest Bitcoin play — and player. CrowdStrike (CRWD), Twilio (TWLO) and Novocure (NVCR), which flashed similar buy signals late last week, continued to rally Monday after testing additional buy points.

Finally, Apple stock had a bad session, falling through its 50-day line, continuing to lose ground vs. the overall stock market rally. Apple (AAPL), which boasts a $1.936 trillion market cap, is a member of the Dow Jones, S&P 500 index and Nasdaq composite.

Early Tuesday, Best Buy (BBY), Anaplan (PLAN), Analog Devices (ADI), Dick’s Sporting Goods (DKS) and Burlington Stores (BURL) report earnings.

Tesla (TSLA), PayPal and Novocure stock are on IBD Leaderboard. Novocure, Tesla and CrowdStrike stock are on SwingTrader. PayPal stock is on IBD Long-Term Leaders.

Trump Cooperates With Biden Transition

The General Services Administration Monday night acknowledged that Joe Biden is the apparent winner of the 2020 presidential election. That step triggers a formal presidential transition. Biden and his aides will have access to agency officials, briefings and more, a well as some $6 million in funds.

President Trump said on Twitter that he believes that he’ll “prevail” in legal challenges to the 2020 election, but gave his blessing to GSA chief Emily Murphy to move ahead with the delayed transition.

“In the best interest of our Country, I am recommending that Emily and her team do what needs to be done with regard to initial protocols, and have told my team to do the same.”

The moves came as several GOP senators called for the presidential transition to begin. It also came after Michigan certified its election results, a key blow to Trump’s thin hopes of overturning the election outcome.

With a formal transition and Trump administration cooperation, President-elect Biden can hit the ground running after his term begins on Jan. 20. That includes continuing the likely rollout of coronavirus vaccines.


Why This IBD Tool Simplifies The Search For Top Stocks


Dow Jones Futures Today

Dow Jones futures were 0.6% above fair value. S&P 500 futures climbed 0.5%. Nasdaq 100 futures rose 0.4%.

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 59.50 million since the pandemic’s start. Covid-19 deaths topped 1.4 million.

Coronavirus cases in the U.S. have hit 12.77 million, with deaths above 263,000.

Early Monday, AstraZeneca (AZN) reported that its coronavirus vaccine was 62% or 90% effective, depending on the dosage. The AstraZeneca Covid vaccine, developed with Oxford, is far cheaper that the Pfizer (PFE) or Moderna (MRNA) vaccines, but those are roughly 95% effective.

In any cases, there is a strong chance that the Pfizer coronavirus vaccine will win FDA approval by mid-December, with the Moderna and AstraZeneca vaccines perhaps getting authorization before year-end.


Stock Of The Day Offers Multiple Entries As Pot Sector Shapes Up


Stock Market Rally Monday

The stock market rally had a broad but uneven rally, weighted toward real economy plays. President-elect Joe Biden named former Federal Reserve chief Janet Yellen to be his Treasury Secretary. That news appeared to push stocks higher as well.

The Dow Jones Industrial Average rose 1.1% in Monday’s stock market trading, as Boeing (BA), Chevron (CVX), Disney (DIS), JPMorgan Chase (JPM) and more offset weakness in Apple stock. The S&P 500 index climbed 0.6%. The Nasdaq composite edged up 0.2%. All the major indexes are near record highs. The small-cap Russell 2000 stepped up with a 1.85% gain to an all-time level.

The Russell 2000 and Dow Jones led as real economy sectors such as airlines, financials, energy and industrials rallied on the coronavirus vaccine news. Some pure-play stay-at-home stocks such as Zoom Video (ZM) retreated, while software was mixed.

But growth stocks overall did well.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed 0.8%. The iShares Expanded Tech-Software Sector ETF (IGV) dipped 0.1%. The VanEck Vectors Semiconductor ETF (SMH) rose 1.5%, hitting a new high.

Tesla Stock, Nio, EV Sector On Fire

Tesla stock shot up 6.5% to 521.49, hitting a record high Monday after soaring 20% last week on news that it’ll join the S&P 500 index on Dec. 21. Shares are far extended from a 466 buy point.

Wedbush analyst Dan Ives raised his TSLA price target to $650 with a $1,000 bull case target. The Tesla price target hike largely came from Ives’ forecast for a booming electric-car market in 2021.

Nio Stock, EV Sector

The broader EV stock sector had a huge day.

Nio stock jumped more than 12% to a record high. Xpeng stock skyrocketed 34% and Li Auto 14.5%. Xpeng and Li Auto stock, both 2020 IPOs, hit record highs.

Electric-van startup Workhorse Group (WKHS) vaulted 12%. Electric-truck startup Lordstown Motors (RIDE), with Workhorse and General Motors (GM) as investors, leapt 8%. EV charging station maker Blink Charging (BLNK) spiked 48%, or 333% so far this month.

The electric-car market is expected to expand in 2021, though largely due to government policies pressuring traditional automakers to expand their EV offerings. EV supply is rapidly coming on line, especially in Europe, but will EV demand follow suit? The coming years could be a boom market for EV sales, but with cutthroat competition.

But, for now, electric-car stocks are racing at breakneck speed. Even if you think they should stop, or go into reverse, you don’t want to step in front of them.

Tesla, Nio and several EV stocks extended gains overnight.

PayPal Stock

PayPal stock rose 4.2% to 200.82, rebounding from its 50-day line and breaking a downward-sloping trend line. Both are buy signals. PYPL stock has another early entry at 205.02. At the end of this week, PayPal stock is likely to have a new base with an official buy point of 215.93.

Note that the relative strength line for PYPL stock has fallen significantly since its Oct. 21 peak, though that follows a long run. The RS line, the blue line in the charts provided, tracks a stock’s performance vs. the S&P 500 index.

PayPal is rallying as the digital payments leader has moved into Bitcoin transactions. Bitcoin prices have been soaring in the past several weeks. PayPal reportedly is accounting for a huge share of Bitcoin buys in the past few weeks, after rival Square (SQ) had dominated the cryptocurrency’s purchases.

Meanwhile, CrowdStrike rose 1.25%, Twilio stock 1.5% and Novocure 1.55%. Those all followed big gains last week, surging from 50-day/10-week lines and breaking downtrends. They also moved above a further resistance point, offering yet another buy point. On Monday, all three stocks initially fell, but all found support at that latest buy point in a bullish rebound.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Apple Stock

Apple stock fell 3% to 113.83, falling through its 50-day line and closing near session lows. The RS line has fallen since Sept. 1 to its lowest level since the end of July. After a strong run after the coronavirus crash, Apple stock may need to some time off.

The weakness in Apple stock and another megacap techs is masking the underlying strength in growth stocks. But it’s still unclear which sectors will lead the next leg of the stock market rally.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Dow Jones Falls Amid Coronavirus Restrictions, Covid-19 Vaccine; Nio, Tesla Eye Record Highs


The Dow Jones Industrial Average briefly fell more than 150 points early Friday, as new coronavirus restrictions outweighed Pfizer’s Covid-19 vaccine news. Tech leaders Nio and Tesla eyed record highs Friday, while Workday tumbled on earnings.




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Among the Dow Jones leaders, Apple (AAPL) fell 0.4%, while Microsoft (MSFT) lost 0.3% in today’s stock market. Meanwhile, Salesforce.com (CRM) is approaching a new buy point.

Tesla (TSLA) approached its all-time highs Friday morning with a 0.3% rise. Chinese rival Nio (NIO) pared gains after racing 4.4% higher, as it eyed its record highs.

Among companies reporting earnings, Intuit (INTU) and Workday (WDAY) both beat the Street’s earnings and sales estimates. Both were sharply lower in early trade.

Stocks in or near buy zones in the stock market rally are Advanced Micro Devices (AMD) and Target (TGT).

Microsoft, Target and Tesla are IBD Leaderboard stocks.

Dow Jones Today: Coronavirus Vaccine

Early Friday, the Dow Jones Industrial Average fell 0.25%, while the S&P 500 lost 0.1%. The tech-heavy Nasdaq composite reversed 0.2% higher in morning trade.

Pfizer (PFE) and BioNTech (BNTX) said they planned to file for an emergency use FDA authorization Friday for their coronavirus vaccine.

Pfizer shares rallied almost 2%, while BioNTech stock jumped 5%.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.3% Friday. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) traded down 0.1%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 0.6%.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 32.7% for the year through Thursday’s close. Meanwhile, the S&P 500 is up 10.9%, while the Dow is up 3.3% year to date, through the Nov. 19 close.

Coronavirus Updates: New Restrictions

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 12 million on Friday. Total virus-related deaths rose past 258,000.

The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 57.4 million Friday, with more than 1.36 million virus-related deaths.

Amid the rising number of coronavirus cases, California is the latest state to introduce new restrictions. Gov. Gavin Newsom issued a “limited Stay at Home Order” on most of the state, requiring nonessential work and gatherings to end between 10 p.m. and 5 a.m.

Coronavirus Stock Market Rally

According to IBD’s The Big Picture, the stock market returned to a new uptrend following a bullish follow-through day on Nov. 4.

Thursday’s Big Picture commented, “For now, stock market sentiment remains moderately positive despite the recent stock market rotation. The Nasdaq still faces a test of the 12,000 level. Amid the current back-and-forth action, investors should be flexible in case they need to add or reduce exposure.”

Investors should use the stock market strength as a go-ahead to buy new breakouts. Start slowly with new purchases and see how they perform. After raising cash during the recent correction, don’t rush to be fully invested all at once. Try some new buys. If they work, you can add to them; if not, you can back away.

In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Fair Isaac (FICO) is the most recent addition to the list. Shares are extended after they cleared resistance around 450.


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Dow Jones Stocks: Salesforce Nears New Entry

Dow Jones stock Salesforce.com is trading near a 271.02 buy point in a double bottom with handle, according to MarketSmith chart analysis. Shares fell 0.8% early Friday.

The cloud software company is the No. 1-performing stock on the Dow Jones Industrial Average, advancing 62.7% year to date.

Stocks In Or Near Buy Zones: AMD, Target

Chip giant Advanced Micro Devices is rapidly approaching an 88.82 buy point in a double bottom, according to MarketSmith chart analysis. Shares are about 4% away from the entry after Thursday’s 3.6% advance. A potential handle entry offers a slightly lower buy point, at 87.15. Shares fell 0.7% Friday morning.

According to IBD Stock Checkup, AMD stock boasts a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

AMD is a new IBD SwingTrader member.

Wednesday’s IBD Stock Of The Day, Target, is in the 5% buy zone above a 167.52 buy point in a short consolidation. The buy range runs up to 175.90. Shares rallied over 1% in morning trade.

According to IBD Leaderboard commentary, “Target cleared a short pattern in heavy volume after strong earnings. It is also in buy range from a pullback to the 10-week moving average. Target was added as a half position Wednesday.”


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Stock Market Earnings: Intuit, Workday

Intuit smashed Wall Street’s targets for its fiscal first quarter on a resurgence in small business spending, but shares fell 3.5% Friday morning. The stock ended Thursday’s regular trading in the 5% buy zone past a 354.08 buy point in a cup with handle, but is now below the entry.

Workday reported earnings and sales for its third quarter that topped analyst estimates, while subscription revenue also came in above expectations.

But shares slid 7% in morning trade. The stock is approaching a 236.94 early entry in a cup with low handle. The proper entry looms at 248.85.

Nio, Tesla Stock Eye Record Highs

IBD Leaderboard stock Tesla neared all-time highs Friday morning with a 0.3% gain following Thursday’s 2.6% leap. Tesla hit a record high Thursday, topping out at 508.61.

On Wednesday, shares broke out above a 466 buy point in an awkward cup with handle. The 5% buy zone tops out at 489.30, so the stock is already extended.

Tesla was Tuesday’s IBD Stock Of The Day.

Chinese rival Nio advanced over 4% early Friday before trimming gains, on pace to add to Thursday’s 7.5% surge.

The stock is about 7% off its 52-week high, which was notched on Nov. 13 at 54.20.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple moved down 0.4% Friday, on pace to give back a large amount of Thursday’s 0.5% rise. Shares are looking to continue a rebound from their 50-day line. Apple stock is tracing a new base with a 138.08 buy point. An early entry exists at 125.49.

The blue-chip giant is the No. 2-performing Dow Jones stock for 2020, with a 61.6% advance through Thursday.

Software giant Microsoft moved down 0.3% Friday, as the stock looks to further its rebound from the key 50-day line. Shares are about 9% away from their all-time high.

Year to date, Microsoft is one of the top Dow Jones stocks, advancing 34.7% through the Nov. 19 close.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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Nio Erases 8% Dive On Earnings; Tesla Surges Near Buy Point| Investor’s Business Daily


Dow Jones futures, along with Nasdaq 100 futures and S&P 500 futures, traded lower late Tuesday, as the stock market rally eyed record highs. Tesla surged to within striking distance of a new buy point, while Chinese rival Nio plunged as much as 8.9% on earnings late before erasing losses.




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The Dow Jones Industrial Average led major stock indexes lower Tuesday with a 0.6% decline, or 167 points. The S&P 500 fell 0.5%, while the tech-heavy Nasdaq composite moved down 0.2%. All three major stock indexes are close to reaching record highs.

Among the Dow Jones leaders, Apple (AAPL) fell 0.8%, while Microsoft (MSFT) slid 1.3%. Meanwhile, Salesforce.com (CRM) is once again approaching a new buy point amid Tuesday’s 2.5% advance.

IBD Stock Of The Day, Tesla (TSLA), surged 8.2% on its inclusion in the S&P 500 index. Chinese rival Nio (NIO) briefly dived more than 8% on earnings late before erasing losses.

Stocks in or near buy zones in the stock market rally are Chipotle Mexican Grill (CMG) and Facebook (FB).

Chipotle, Microsoft and Tesla are all IBD Leaderboard stocks. Meanwhile, Apple is on the IBD Leaderboard Watchlist.

Dow Jones Futures Today

Late Tuesday, Dow Jones futures fell 0.1% vs. fair value, while S&P 500 futures were down 0.2%. Nasdaq 100 futures lost 0.2% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Among exchange traded funds, Innovator IBD 50 (FFTY) fell less than 0.1% Tuesday. The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF traded down 0.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.5%.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 32.6% for the year through Tuesday’s close. Meanwhile, the S&P 500 is up 11.7%, while the Dow is up 4.3% year to date, through the Nov. 17 close.

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29783.75-166.69-0.56
S&P 500(0S&P5)3609.60-17.31-0.48
Nasdaq(0NDQC )11899.34-24.79-0.21
Russell 2000 (IWM)178.50+0.87+0.49
IBD 50 (FFTY)37.95-0.02-0.05
Last Update: 4:36 PM ET 11/17/2020

Coronavirus Updates

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 11.5 million on Tuesday. Total virus-related deaths rose past 252,000.

The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 55.5 million Tuesday, with more than 1.33 million virus-related deaths.

Coronavirus Stock Market Rally

According to IBD’s The Big Picture, the stock market is back in a new uptrend after a bullish follow-through day on Nov. 4.

Monday’s Big Picture commented, “IBD’s enterprise software industry group exemplifies how quickly the stock market has cooled on coronavirus plays. The group ranked in the top 15 for much of October, but is now No. 87 for six-month relative performance among 197 industries tracked by IBD.”


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Dow Jones Stocks: Salesforce’s New Buy Point

Last week, Dow Jones leader Salesforce.com briefly broke out past a 270.26 buy point in a double bottom pattern, according to MarketSmith chart analysis, but the stock quickly tumbled below its 50-day line.

Amid recent strength, the stock is back above its 50-day line and is approaching a 271.02 buy point in a double bottom with handle. Shares advanced 2.5% Tuesday.

Salesforce.com is the No. 2 performer on the Dow Jones Industrial Average with a 57.5% year-to-date advance through Tuesday’s close.

According to the IBD Stock Checkup, Salesforce.com stock has a 95 out of a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Stocks In Or Near Buy Zones: Chipotle, Facebook

FANG stock leader Facebook is tracing a cup with handle with a 297.48 buy point, according to MarketSmith chart analysis. Shares are about 7% away from the new entry amid Tuesday’s 1.4% fall.

According to the IBD Stock Checkup, Facebook stock has a 98 out of a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Burrito maker Chipotle is nearing a 1,366.76 buy point in a double bottom. Shares are about 8% away from the new entry, as they struggle to get back above their key 50-day line.

Both stocks are featured in this week’s Stocks Near A Buy Zone column.


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Nio Earnings

Chinese electric-car maker Nio topped third-quarter estimates and gave strong guidance late Tuesday. The company reported a loss of 12 cents a share on revenue of $666.6 million. Vehicle margin expanded to 14.5% from -6.8% a year ago and 9.7% in Q2. Available cash more than doubled from Q2 to $3.3 billion in Q3.

Wall Street expected the electric-SUV maker to lose 15 cents a share on revenue of $628 million.

Nio Stock

On Nov. 13, Nio advanced as much as 248% past a 15.55 buy point in a cup with handle and could be in the midst of a climax run. On that day, Nio rose to a peak of 54.20, gaining as much as 77% from the close of 30.58 in the week ended Oct. 30. Eighteen weeks have passed since the all-electric SUV and sedan maker broke out past 10 a share. The parabolic rise in recent weeks mirrors what is seen during a climax run.

Meanwhile, Nio stock rose as much as 355% above its long-term 200-day moving average, another potential signal the stock may be overheating.

Tesla Stock

Tesla stock surged more than 8% Tuesday on news it would be added to the S&P 500 index on Dec. 21. The IBD Leaderboard stock is rapidly approaching a 466 buy point in an awkward cup with handle.

According to IBD Leaderboard commentary, “The handle’s midpoint of 422.50 is slightly higher than the midpoint of the cup (416.19) itself. That’s good. One risk not to ignore: the new base is late stage, following advances from cup with handle bases and a high, tight flag that also counted as a base. So, the latest pattern has higher risk.”

Tesla was Tuesday’s IBD Stock Of The Day.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple moved down 0.8% Tuesday, as shares continue their rebound from their 50-day line. Apple stock is tracing a new base with a 138.08 buy point. An early entry exists at 125.49.

The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 62.6% advance through Tuesday.

Software giant Microsoft moved down 1.3% Tuesday, snapping a two-day win streak. Shares are above their 50-day line, as they trade about 8% away from their all-time high.

Year to date, Microsoft is one of the top Dow Jones stocks, advancing 36% through the Nov. 17 close.

Stock Market Rally: What To Do Next

During the recent stock market correction, investors should have built watchlists of potential leaders. Now it’s time to put those watchlists to work.

Investors should use the current stock market strength as a go-ahead to buy new breakouts. Start slowly with new purchases and see how they perform. After raising cash during the recent correction, don’t rush to be fully invested all at once. Try some new buys. If they work, you can add to them; if not, you can back away.

In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones futures.

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